KEDAR NATH MITTER Vs. DENOBANDHU SHAHA

JUDGEMENT

(1.) The only question that arises in this appeal is whether a cheque given in part-payment of principal is sufficient to take the case out of the Indian Statute of Limitation having regard to the terms of Section 20 of that Act.

(2.) The facts are not in dispute. And if the cheque is sufficient for the purpose of Section 20, then this appeal must fail.

(3.) It seems to me clear that if a cheque be delivered to a payee by way of payment and is received as such by him, it operates as payment and is an extinguishment to that extent of the debt, though this is no doubt subject to a condition subsequent that if upon the presentation the cheque is not paid the original debt revives. There is no suggestion in this case that the cheque upon presentation was not paid, in fact, it was: and so there was payment in the fullest sense of the term, and thus a part of the principal of the debt has, before expiration of the prescribed period, been paid by the debtor to the creditor.