Recently, I noticed a trend in the interpretation of #chequebouncing cases under Section 138 of the Negotiable Instruments Act, 1881. As most of you would know that the Covid-19 period was exempted from all limitation periods by the Hon’ble #SupremeCourt under the Suo Moto WP (C) 3 of 2020.
But in interpreting the abovementioned orders, an erroneous interpretation was undertaken by the Dist. Courts whereby any complaints under s.138 filed in the Dist. Courts during the #covidー19 period were held to be premature and not maintainable as it was held that no cause of action arose, since the limitation periods were exempted.
Prima facie, the interpretation was frightfully wrong as it effectively meant that any cheques during the Covid-19 period, if dishonored, couldn’t be challenged before the end of Covid-19, ie. February 2022. Not only was such an interpretation horrendously against the mandate of s.138, but was a significant roadblock for all litigants who, despite Covid-19 approached the courts, only to have their complaints dismissed.
However, I am happy to share that in a similar matter, I raised the above contentions and my revision was allowed. Sharing a small snippet of the judgment along with this post. #FeelingGreat
