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Bombay HC: Once Payment Applied as Per Creditor Discretion, No Plea on Dishonoured Cheque - (24 Jan 2022)


Bombay High Court has held that once a payment has been applied as per creditor's discretion under Section 60 of the Contract Act, 1872 to a few of the pending invoices instead of all, and the period of limitation has expired regarding all of them, the creditor then cannot take the plea that cheque payment getting dishonoured will extend the period of limitation on all pending payments.


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