Law:

Section:

Negotiable Instruments Act (XXVI of 1881)---S. 118--- Civil Procedure Code (V of 1908), O.XXXVII, Rr. 2 & 3---Limitation Act (IX of 1908), S.5---Suit for recovery of amount on bais of dishonoured cheque---Time barred leave application without condonation application under S.5 of Limitation Act, 1908---Validity---Defendant had failed to obtained leave to defend suit, thus, contents of plaint would be deemed to be admitted---Suit was based on negotiable instrument, thus, suit cheque would be presumed to have been issued against consideration---Plaintiff was entitled to decree against defendant, who had issued suit cheque---Suit was decreed with costs and mark-up/profit @ 12.5% per annum from date of suit till realization of decretal amount. JUDGMENT TUFAIL H. EBRAHIM, J.---Brief facts of the case are that plaintiff had advanced a sum of Rs.34,50,000 to defendant No.1 for purchase of goods, namely, reconditioned/second hand generators made in Japan; which payment was made through defendant No.2. That defendant No.1 failed to supply the said goods and the purchase order was cancelled by the plaintiff. On the repeated request of the plaintiff, defendant No.1 issued two cheques No.3813295 for the sum of Rs.22,00,000 and No.3813296 for the sum of Rs.12,50,000 both cheques dated 17-3-2006 drawn at Standard Chartered Karachi Pakistan in favour of the plaintiff being the refund amount. The said cheques were presented by the plaintiff to her Bank, but the same were dishonored by the Bank of defendant No.1 on 20-8-2006 and returned to the plaintiff with the remarks "not arranged for/exceeds arrangement". The plaintiff has filed this suit under Order XXXVII, Rules 1 and 2 of C.P.C. for recovery of the said amount of Rs.34,50,000 from the defendants on the basis of dishonoured cheques issued by defendant No.1. The defendants were duly served and they had filed their respective leave to defend applications after expiry of statutory period without any condonatien…

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