The Rajasthan High Court, in a significant ruling, has held that a cheque issued for the payment of a time-barred debt constitutes a valid and enforceable contract under Section 25(3) of the Indian Contract Act, 1872. Consequently, the dishonour of such a cheque attracts criminal liability under Section 138 of the Negotiable Instruments Act, 1881.
Cheque for Time-Barred Debt is a Valid Promise, Enforceable Under Section 138 NI Act: Rajasthan High Court
