https://www.taxtmi.com/caselaws?id=275852 S.138 NI Act applies only where the dishonoured cheque was issued towards discharge of a legally enforceable debt or liability. Where the cheque was admittedly issued to repay a time-barred debt, and there was no acknowledgment of liability or payment of interest within the limitation period to extend limitation, the underlying liability is not legally enforceable; hence dishonour does not attract criminal liability under S.138. Relying on this principle, the HC affirmed that the accused could not be convicted merely because a cheque was issued for a debt that was not legally recoverable, and upheld the acquittal; the appeal was dismissed. en-us Fri, 22 Sep 2000 00:00:00 +0530 Sun, 04 Jan 2026 21:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=275852 S.138 NI Act applies only where the dishonoured cheque was issued towards discharge of a legally enforceable debt or liability. Where the cheque was admittedly issued to repay a time-barred debt, and there was no acknowledgment of liability or payment of interest within the limitation period to extend limitation, the underlying liability is not legally enforceable; hence dishonour does not attract criminal liability under S.138. Relying on this principle, the HC affirmed that the accused could not be convicted merely because a cheque was issued for a debt that was not legally recoverable, and upheld the acquittal; the appeal was dismissed. Case-Laws Indian Laws Fri, 22 Sep 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=275852