Legal remedy for time-barred loan recovery

+1 vote
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asked Nov 4, 2015 in Criminal Law by anonymous
I have lent a sum of Rs.7,50,000/- to a friend of mine and the amount was paid by way of cheques about fifteen years ago.  He has failed to repay and recently issued a cheque  for the said amount along with interest accrued thereon.  I wish to know if I can present the cheque and, if it gets dishonoured, can I go against him legally either to get back my money or to punish him as per the legal provisions. I request your advice in view of the fact that this case is almost 15 years old but the amount was paid by me through a cheque and it is totally legal money.  If I approach a court what are my winning  chances and the expenses involved and whether it is worth making such an attempt.

Request your guidance.

1 Answer

0 votes
answered May 21, 2016 by Env Coord

If your friend is paying now via cheque, good for you. If he issues a cheque & if that cheque bounces, then you can surely prosecute him under Section 138 of Negotiable Instruments Act (popularly known as Cheque-Bouncing Case).
Under this section your friend can be sentenced to 2 years in Jail along with fine of double amount mentioned in cheque.

Criminal Prosecution is difficult after 15 Years, but consult an advocate if you can prosecute your friend under Section 420 (Cheating).

Refer to Section 473 of Cr.P.C., 1973 : https://indiankanoon.org/doc/1555290/

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