Non due payment recovery after 8 year

917 votes

For a straight money recovery suit, the limitation period is three years from the date the dues fell due (Limitation Act, 1963). On the face of it, an eight-year-old claim is barred. But the clock resets if the buyer acknowledged the debt in writing, or made a part-payment, before those three years ran out — worth checking your ledgers and correspondence for anything signed. A fresh written promise to pay a time-barred debt is also enforceable under Section 25(3) of the Contract Act. The cheque is the key. When was it drawn, and when did it bounce? A Section 138 complaint under the Negotiable Instruments Act has strict windows: the cheque must be presented within its validity, statutory notice sent within 30 days of dishonour, and the complaint filed within 30 days of the notice period lapsing. If the dishonour is eight years old, that route is closed. If it’s recent, you still have a live cause of action. Send me the dates on the invoice and the cheque, and I’ll tell you exactly what’s still open to you.

Advocate Arti Mulani LawRato