PUNJAB NATIONAL BANK vs SURENDRA PRASAD SINHA

The Supreme Court held that Section 3 of the Limitation Act, 1963 bars the remedy to enforce a debt but does not extinguish the right to the debt itself. The Court clarified that while the right to enforce the debt through judicial process may be time-barred, the debt continues to exist and can be settled through other means. Furthermore, the Court ruled that actions taken in accordance with a contract do not constitute criminal breach of trust under Sections 405 and 409 IPC, as the creditor can adjust the debt against the security in their possession.