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2014 (7) TMI 1330 - SUPREME COURTDishonor of Cheque - insufficiency of funds - legally enforceable debt or not - Section 25(3) of the Indian Contract Act, 1872 - HELD THAT:- The High Court erred in quashing the complaint on the ground that the debt or liability was barred by limitation and, therefore, there was no legally enforceable debt or liability against the accused. The case before the High Court was not of such a nature which could have persuaded the High Court to draw such a definite conclusion at this stage. Whether the debt was time barred or not can be decided only after the evidence is adduced, it being a mixed question of law and fact. The High Court could not have quashed the proceedings on the ground that at the time of issuance of cheque, the debt had become time barred and therefore, the complaint was not maintainable. The High Court, therefore, fell into a grave error in quashing the proceedings. Appeal allowed.
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