https://www.taxtmi.com/caselaws?id=184669 Limitation under Section 3 of the Limitation Act bars the remedy by suit but does not extinguish the underlying debt, unless the statute itself destroys the right. Where a creditor holds adequate contractual security, it may appropriate the debt from that security even if suit recovery is time-barred, provided the contract authorises such adjustment. On the facts, the security bond allowed the bank to adjust loan dues from fixed deposit proceeds and credit only the balance to the account holder. That contractual adjustment was inconsistent with dishonest misappropriation or criminal breach of trust under Section 405 IPC, so the complaint disclosed no prima facie offence and criminal process was not warranted. en-us Mon, 20 Apr 1992 00:00:00 +0530 Fri, 15 Jul 2016 18:24:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184669 Limitation under Section 3 of the Limitation Act bars the remedy by suit but does not extinguish the underlying debt, unless the statute itself destroys the right. Where a creditor holds adequate contractual security, it may appropriate the debt from that security even if suit recovery is time-barred, provided the contract authorises such adjustment. On the facts, the security bond allowed the bank to adjust loan dues from fixed deposit proceeds and credit only the balance to the account holder. That contractual adjustment was inconsistent with dishonest misappropriation or criminal breach of trust under Section 405 IPC, so the complaint disclosed no prima facie offence and criminal process was not warranted. Case-Laws Indian Laws Mon, 20 Apr 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184669