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        Companies Law

        2003 (2) TMI 398 - HC - Companies Law

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        Special limitation under the Negotiable Instruments Act excludes condonation of delay under the Limitation Act for cheque dishonour complaints. Section 142 of the Negotiable Instruments Act, 1881 prescribes a special limitation period for cognizance of complaints under section 138, requiring ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Special limitation under the Negotiable Instruments Act excludes condonation of delay under the Limitation Act for cheque dishonour complaints.

                            Section 142 of the Negotiable Instruments Act, 1881 prescribes a special limitation period for cognizance of complaints under section 138, requiring filing within one month from the date the cause of action arises. Read with section 138(c) and its non obstante clause, the scheme creates a complete bar after expiry of the prescribed time and excludes recourse to section 5 of the Limitation Act, 1963. Because a complaint under section 138 is an original proceeding, section 5 does not extend limitation or permit condonation of delay for complaints filed beyond the statutory period.




                            Issues: Whether complaints for dishonour of cheques filed beyond the period prescribed under section 142 of the Negotiable Instruments Act, 1881 could be entertained by applying section 5 of the Limitation Act, 1963 by virtue of section 29(2) of that Act.

                            Analysis: Section 142 of the Negotiable Instruments Act, 1881 is a special limitation provision governing cognizance of offences under section 138 and it bars the court from taking cognizance unless the complaint is made within one month from the date on which the cause of action arises. The statute, read with section 138(c), creates a complete bar after expiry of the prescribed period, and the non obstante clause reinforces the special procedure. In such a scheme, the power to condone delay under section 5 of the Limitation Act, 1963 stands excluded. The complaint under section 138 is an original proceeding, and section 5 does not extend limitation for such original proceedings.

                            Conclusion: Section 5 of the Limitation Act, 1963 does not apply to complaints filed under section 138 of the Negotiable Instruments Act, 1881 beyond the period prescribed under section 142, and the delay could not be condoned.


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