Computation of limitation in case of dishonour of cheque

Supreme Court: Answering a substantial question of law as to whether the date on which the cause of action arose should be included while calculating the period of one month prescribed under Section 142(b) of the Negotiable Instruments Act, 1881, the 3-Judge Bench comprising of Hon'ble P. Sathasivam, CJ., Hon’ble Ranjana Prakash Desai and Ranjan Gogoi, JJ., relying upon Saketh India Ltd. v. India Securities Ltd., (1999) 3 SCC 1 and various other decisions, held that while computing the time one should exclude the first day on which action arose and should include the last prescribed day. The Court, further, said that the view taken in SIL Import,USA v. Exim Aides Silk Exporters, Bangalore, (1999) 4 SCC 567 is incorrect as it runs contrary to the view laid down in Saketh India Case and hence any decision of this Court which has taken a contrary view to the decision of Saketh India Case does not lays down the correct law on the said question. [Econ Antri Ltd. v. Rom Industries Ltd., Criminal Appeal No.1079 of 2006, decided on August 26, 2013]

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