Post-dated cheque limitation and execution proof: suit within time and statutory presumptions supported the plaintiff's claim.

A post-dated cheque is treated as a bill of exchange for limitation purposes, so time runs from the cheque date; on the stated facts, a suit filed within three years was not time-barred. The statutory presumption attaching to negotiable instruments also supported the plaintiff's case on execution, and the defendant's denial was not proved. Material from the cheque dishonour proceedings, including the statement recorded under Section 313 CrPC, was treated as relevant admission of signature and execution, making the dismissal of the suit unsustainable and supporting decree with interest and costs.

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Issues: (i) Whether the suit based on a post-dated cheque was barred by limitation. (ii) Whether the defendant had executed the cheque and whether the evidence on record justified dismissal of the suit.

Issue (i): Whether the suit based on a post-dated cheque was barred by limitation.

Analysis: A cheque is treated as a bill of exchange within the statutory definition, and the limitation for a claim founded on such instrument runs from the date of the bill. On the facts found, the cheque was post-dated and the suit was instituted within three years from the relevant date. The limitation finding entered by the court below was therefore incorrect.

Conclusion: The suit was not barred by limitation.

Issue (ii): Whether the defendant had executed the cheque and whether the evidence on record justified dismissal of the suit.

Analysis: The statutory presumption attached to negotiable instruments supported the plaintiffs' case. The defendant's denial was not substantiated by evidence, while the materials from the cheque dishonour proceedings, including the statement recorded under Section 313 of the Code of Criminal Procedure, 1973, constituted relevant admission regarding the signature. The trial court failed to appreciate this evidence properly.

Conclusion: The cheque was held to have been executed by the defendant and the dismissal of the suit was unsustainable.

Final Conclusion: The decree of the court below was set aside and the suit was decreed with interest and costs in favour of the plaintiffs.

Ratio Decidendi: A post-dated cheque attracts limitation from its date as a bill of exchange, and an admission made in criminal proceedings under Section 313 of the Code of Criminal Procedure, 1973 may be relied on as relevant evidence to prove execution of the cheque.

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