What does legally enforceable debt meaning?

What does legally enforceable debt meaning?

other liability means a legally enforceable debt or other liability and enforcement of legal liability time-barred debt. It cannot be said that a time-barred debt is a equally enforceable debt”.

Are time barred debt legally enforceable?

Thus, S. 138 is attracted only if the cheque is issued for the discharge of alegally enforceable debt or other liability. In this case, admittedly, the cheque in question was issued in discharge of a time barred debt. It cannot be said that a time barred debt is a legally enforceable debt.

How do I take legal action against a cheque?

If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. However, the complaint should be registered in a magistrate’s court within a month of the expiry of the notice period.

What happens if a cheque bounces in India?

The punishment for cheque bounce is imprisonment for a term not more than two years or a fine that can extend to twice the amount of the cheque or both. A civil suit can also be instituted against the drawer for payment of the cheque amount.

What is not legally enforceable?

An unenforceable contract or transaction is one that is valid but one the court will not enforce. Unenforceable is usually used in contradiction to void (or void ab initio) and voidable. If the parties perform the agreement, it will be valid, but the court will not compel them if they do not.

What is the difference between a contract that lacks legality and a contract which is unenforceable?

A legally binding enforceable contract requires an offer to enter into an agreement, acceptance of that offer, consideration, and no defenses for not enforcing the agreement. Consideration is an exchange of promises to do or not do something. If these exist an otherwise valid contract may be unenforceable.

What happens after 7 years of not paying debt in India?

Settlement and defaults are disastrous for your credit score. They will show up on your record for up to 7 years. This will let future credit card or loan providers know that you were unable to pay off the amount who, in turn, will be hesitant to lend to you or charge a high rate of interest for it.