Article 31: (Art. 69 of the Act of 1908):
The period of limitation for a suit on a bill of exchange or promissory note payable at a fixed time after date is three years and limitation starts to run when the bill or note falls due.
Image Source: vsdynamicsfinance.files.wordpress.com
ADVERTISEMENTS:
As per Section 2(c) of the Limitation Act, 1963, ‘bill of exchange’ includes a hundi and a cheque.
According to Section 2(k) of the Limitation Act, 1963, ‘promissory note’ means any instrument whereby the maker engages absolutely to pay a specified sum of money to another at a time therein limited or on demand, or at right.
Article 31 is applicable when the bill has been accepted by drawee and it is payable at a fixed period after date. It does not apply when the bill of exchange has been dishonoured by non-acceptance.
In P. Buchiraju v. A. V. Mangaseetaram, (AIR 1920 Mad. 486), it has been held that for the application of Article 31 it is not necessary that the bill or the note should itself embody the stipulation as to the period of payment. Even where the bill or note is silent evidence may be led to prove that there was a contract fixing a period for payment.