cheque which has not been encashed, cannot amount to an ‘acknowledgement of liability’ in terms of Section 18 of the Limitation Act, 1963.

No Acknowledgement Of Liability Based On An Unrealized Cheque: NCLAT Chennai

Case Title: M/s. Primee Silicones (Chennai) Pvt. Ltd. v M/s. UCAL Fuel Systems Ltd.

Case No.: Company Appeal (AT) (CH) (Ins.) No. 299 of 2021

The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Ms. Shreesha Merla (Technical Member), has held that a cheque which has not been encashed, cannot amount to an ‘acknowledgement of liability’ in terms of Section 18 of the Limitation Act, 1963.