Date on which cause of action arose for filing complaint for dishonour of cheque is to be excluded for the purposes of limitation

While calculating the period of one month as prescribed under Section 142(b) of the Negotiable Instruments Act, 1881 for filing a criminal complaint on the ground of dishonour of cheque, the period is to be reckoned by excluding or including the date on which the cause of action arose?

While calculating the period of one month as prescribed under Section 142(b) of the Negotiable Instruments Act, 1881 for filing a criminal complaint on the ground of dishonour of cheque, the period is to be reckoned by excluding or including the date on which the cause of action arose? The question arose in form of reference before the three-judges bench of the Supreme Court to adjudicate whether the above position as settled in Saketh India Ltd. & Ors. vs. India Securities Ltd. [(1999) 3 SCC 1] is the correct of position of law.

The Apex Court held that the period has to be reckoned by excluding the date on which the cause of action arose and hence the law as laid down in Saketh Case is the correct proposition of law.

It was affirmed that where a particular time is given from a certain date within which an act has to be done, the day of the date is to be excluded. The Limitation Act is not applicable to Negotiable Instruments Act, with the aid of Section 9 of the General Clauses Act, 1897 it can be concluded that while calculating the period of one month as prescribed under Section 142(b) of the N.I. Act, the period has to be reckoned by excluding the date on which the cause of action. In view of the above, it is not possible to hold that the

Econ Antri Ltd. vs. Rom Industries Ltd. & Anr.
(SC, 26.08.2013)