- (1.) Suit filed by the plaintiff was dismissed by the trial court vide judgment and decree dated 01.03.2006. Appeal preferred against the said decree failed and was dismissed on 23.01.2009. This is how, plaintiff is before this court, in this regular second appeal. Parties to the lis, hereinafter, would be referred to by their original positions in the suit. In short, plaintiff filed a suit for recovery of sum of Rs. 10,25,000/-. It was averred that the plaintiff is a limited company and engaged in business at Nabha Road, Malerkotla. Defendant No. 1 purchased certain goods on credit valuing Rs. 10,25,000/- and in discharge of its liability, defendant No. 2, as Director of defendant No. 1, issued six cheques of different dates and value, drawn on State Bank of Patiala, Branch Sector 7-C, Chandigarh, out of account No. 61316 of defendant No. 1. The details of which read as under:
(2.) The said six cheques were presented by the plaintiff to its banker i.e. Punjab National Bank, Branch Malerkotla. However, the same were returned unpaid and dishonoured, vide two different memos dated 14.10.1999, with the remarks "exceeds arrangements". Although, defendants were apprised of this development and were asked to make the payment, but to no avail. Thus, the suit.
(3.) In defence, it was pleaded, inter alia, that the cheques in question were issued to the plaintiff in advance as security to secure the payment of goods to be supplied by the plaintiff. It was maintained that defendants had in fact made the payment of all the goods that were supplied, but plaintiff never returned the cheques, mentioned in the plaint. No amount was due and payable by the defendants to the plaintiff. Further, defendants were never approached and asked by the plaintiff to make payment for the value of the cheques. The suit was alleged to be barred by time, as it was not filed within limitation.;