JIWANLAL ACHARIYA vs RAMESHWARLAL AGARWALLA

The Supreme Court held that the term 'loan' in Section 4 of the Bihar Money-Lenders Act, 1939 includes a promissory note executed for the renewal of a loan, even if the original loan was advanced before the lender was registered. The Court ruled that the suit for recovery based on the promissory note was maintainable and not barred by limitation, clarifying that for the purpose of Section 20 of the Indian Limitation Act, the date of payment is determined by the date on the post-dated cheque, not the date it was handed over. The judgment established that a post-dated cheque operates as payment from its delivery date if honored.