A dishonoured cheque issues in January, 2007 towards repayment of loan advanced in December, 2004 will cause following legal effect, in a suit for recovery of loan amount

A) It would amount to neither acknowledgement nor part payment of debt and hence no fresh limitation will start running from date of the Cheque in January, 2007 B) It will cause revival of the time barred debt and hence the amount can be recovered C) It being clishonoured cheque, cannot be treated as part payment of debt and thus, the suit will be barred by limitation D) It is the cheque without consideration and will be of no effect, whatsoever for extension of limitation

Answer & Solution

Correct Answer: Option B

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A dishonoured cheque issues in January 2007 towards repayment of loan...

A dishonoured cheque issues in January, 2007 towards repayment of loan advanced in December, 2004 will cause following legal effect, in a suit for recovery of loan amount

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