* This is the most generic template file in a WordPress theme How much time i refund my money by legal procedure. The court was of the view that u/S. before the payment is due or the service has been completed. To simply put, post-dated cheque is one which is drawn with a date which is after the date on which cheque was written. In S. Hajee Mohamed Haneef Saheb and Co. v. S. Abu Bucker  , it was held that:-. But when you write a date which is later than the current date, say you write a date of a cheque as 3rd Feb, this is when it becomes post-dated cheque. Post Dated Cheques (PDC) in Dubai and UAE. Firstly, a post dated cheque is not recognised by banks and financial instituions. How much time i refund my money by legal procedure. The holder of the cheque has authority to put in the date. That also brings in transparency in transactions and discourages creation of black or unaccounted money through evasion of taxes or other malpractices. This type of cheque is popularly called as PDC Cheque .The can be en cashed only on the date written on its face. It includes the printed form and a cheque in the electronic form. Business Impact of e-Invoice: What will Change? The cheque as drawn therefore is a cheque in proper form and therefore, a bill of exchange within the meaning of the Act  . A cheque is a written instruction to a bank payable on demand. A cheque is a bill of exchange drawn on a specified banker and to be payable on demand. Cheques are very prone to fraud and ill will. Hello. 2.3K views View 3 Upvoters In the above example, if you are a recipient of the cheque, you can deposit the cheque on 3rd Feb or after that though the cheque was physically written and received to you on 27th Jan. In other words, the date that appears on the check is after the date when the check was written. However, we need to treat a cautious line by preventing the situation that arose in Pawan Enterprises case  where the amount due at the time of presentment was lower than that written on the post-dated cheque. you write a cheque, post dated, and it is accepted as post dated payment. The Bombay High Court has held that if a blank post-dated cheque — which has been issued only as a "collateral security" for a loan — bounces, the debtor can not be prosecuted under the Negotiable Instruments (NI) Act. Free resources to assist you with your legal studies! 2. When the payment is stopped- if the drawer asks the bank to stop the payment and not to pay for cheque already issued 6. Insufficient Funds. I did not have that type of money in the bank and the agent new that, he even suggested to let it bounce and then go in to th dealership to talk with someone in the finance dept to ask for an extension on the downpayment. For example, I could issue a cheque to you on the 12th of Feb 2015 for any date in the future; like say for … Submitting post-dated cheques by borrowers is a customary practice for home finance and other retail products like personal, auto and consumer durable loans. In addition, if I leave the company, there will be the gratuity and pay-in-lieu of unused vacation. You can follow this sample warning letter to your clients for dishonored payment cheques before any legal action. Options in case the post-dated cheques of EOS benefits bounce back. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on LawTeacher.net then please: Our academic writing and marking services can help you! When Dubai’s property market was booming, many developers collected post dated cheques (PDCs) from buyers. 2. You are expecting your paycheque to be in your account to civer said cheque (say, a utility bill). The other issue is Post Dated Cheques being deposited earlier than they are due.Post Dated Cheques or PDC are cheques where cheque is issued for a future date. Take a look at the next section. A cheque must bear a date because the mandate of the customer to the banker given in the cheque becomes legally effective on the date mentioned therein. Post-dated cheque. There exists a special rule for dishonour of post-dated cheques. 1. The period of six months mentioned in proviso (a) to S.138 begins to run only from the date mentioned in the cheque and not from the date of drawal of the cheque  . Post dated cheque; All, We are about to register a land property. Following are some of the reasons why a cheque is bounced or dishonoured: 1. A post-dated cheque is as much negotiable as a cheque for which payment is due immediately on presentation, and there is no authority for holding that a person in whose favour such a cheque is endorsed before the date of payment is not a holder in due course or that such an assignment or endorsement is not enforceable at the instance of the assignee or endorsee. 2. Who is spend a legal procedure expense me r defaulter. Usually, a postdated cheque is used when you are short on money and that’s exactly when you can’t afford extra fees. Cashing a Postdated Check Before the Date Shown . So, provisions like S.138 of Negotiable Instruments Act are salutary to give reliability, credibility and acceptability of negotiable instruments like cheques in daily life  . Why is it not advisable to issue a post-dated cheque? Try out the all new, Tally is India's leading business management software solution company, which today enables ~2 million businesses worldwide. Dosto bike bot post dated cheque me mainly yahi reason code ke sath ya to aapka cheque bounce ho jata hai ya phir aapke pass return aa jata hai. A Post dated cheque is the cheque with the date written on its face is above current date.For example Today is 13/07/2016 and party is giving a cheque dated 24/07/2016 is a post dated cheque. ... Act that the cheque has been issued in discharge of a debt or liability is on the accused and the fact that the cheque might be post dated does not absolve the drawer of a cheque of the penal consequences of Section 138 of the Act. When the signature is not correct, or the cheque is not signed at all. In order to do so, an amendment in S.138 is suggested which would provide that in case of bouncing of a ‘non-blank’ post-dated cheque, first of all, a ‘show-cause notice’ needs to be given by the payee to the debtor (followed by a ‘notice to pay’ after a ‘certain period’ in case the debtor fails to provide details of the actual debt remaining  ); thereby giving the opportunity to the latter to check the quantum of amount due. Something I have experienced myself, few years back, I had a confrontation with the agent whom I gave 18 post dated cheques for a vehicle purchase. In fact, acceptance of a post-dated cheque is an accommodation given to the debtor by a creditor and the former can’t be allowed to abuse this faith. Company Registration No: 4964706. Later, at the time of presentment of the cheque by the appellant, one of these cheques was dishonoured on the grounds of insufficiency of funds. For instance, in Venugopalan v. Moosa  , the complainant alleged that the respondent/accused had borrowed an amount of Rs. As per new law if my clients bounce the cheque & I make a case against them, they won't be imprisoned, they would have to pay fine. Published: 12th Aug 2019 in World trade is carried through banking operations rather than cash transactions. Very often banks accept blank post-dated cheques from … It becomes a cheque (negotiable instrument) only after the date mentioned. If a cheque bounces it is treated as a criminal offence with the potential of jail time, hefty fines and an overall risk to your credit score. What are the alternatives for post-dated cheque? If such cheques bounce, the drawer will have difficulties as Omani law says that these cheques were not intended as the primary mode of payment. However, only if the cheque was issued for discharge of a legally enforceable debt, can it be said to be dishonoured or bounced. A post-dated cheque becomes a cheque for the purpose of S.138 of the Act only on the date mentioned thereon and in between the date of drawal of the cheque and the date mentioned in the cheque, it is only a bill of exchange. Even if your payee (the recipient) is honest, they may make the honest mistake of forgetting and leaving you with bad cheque fee. It is interesting to note that Qatar had also been facing the same problem of backlog of cases for quite a long time; as a result of which it is looking forward to abolish the system of post-dated cheques from May 2010  . These cheques differ only by one important features i.e., Cheque Date. So, the court held that such a situation is not hit by S.138 of the Act  . Cheque bounce return memo date on 11.5.2018. Do we have any other alternatives? It is humbly submitted that in Warma case, the court wrongly relied on the afore-said distinction as I think that if a cheque can’t be recognized as an instrument against a debt or liability, then it can’t be said that it has been kept as a ‘security’ because it would not be of any use to the creditor. Ltd. v. Shri Chiko Ursula D’Souza  where the debtor gave a stop-payment order to the bank with a malafide intention of avoiding payment. This arrangement of issuing a post-dated cheque to the recipient (the person or business receiving the payment, also known as the payee) is only made when the drawer wants the recipient to wait before depositing the cheque. */ It is because of the fact that the parties may have agreed to use these cheques as EMIs for repaying the loan in future. * @subpackage Tally Dubai: According to a legal order passed in 2017, a person who issued a cheque - worth Dh200,000 or less - that bounced could absolve his or her case after paying a fine. In Sampelly Satyanarayana Rao v Indian Renewable Energy Development Agency Limited (1) the Supreme Court held that a dishonoured post-dated cheque for repayment of a loan instalment that was described as 'security' in the loan agreement was covered by the criminal liability set out in Section 138 of the Negotiable Instruments Act 1881. In case a rent cheque bounces, the landlord can follow the above procedure to recover the dues from the tenant. Registered Data Controller No: Z1821391. Assume that today is 27th Jan and you are writing a cheque. Similarly, each country has specific rules related to the issue and validity of the post-dated cheque. To avoid committing the default of cheque bounce, the drawer must mention the correct date in the cheque. The issue was whether the cheque was issued for the due discharge of a legally enforceable debt/liability because of the additional fact that in the complaint, the complainant had mentioned that he had given the loan to the defendant on a ‘guarantee’ of the post-dated cheque concerned  . The successful model of fast-track courts as suggested by Law Commission should be followed; wherein the 1,735 fast-track courts of sessions judges were set up for long-pending cases and they disposed off 10.66 lakh cases between 2000 and 2005  . If a post-dated cheque is not blank, that is to say that if a certain amount is written on it then in my view, it should not be derecognized merely on the ground that no liability or debt was standing due when it was being drawn because no disbursement of loan had been made. The consideration amount is 4.8 crore. To define post-dated cheque, it is a form of a cheque drawn with a future date written on it. 1. ... Act that the cheque has been issued in discharge of a debt or liability is on the accused and the fact that the cheque might be post dated does not absolve the drawer of a cheque of the penal … Looking for a flexible role? for example, if you received post dated check from customer today what you will do with the entry?. * I live in the state of nj...and i am looking at all these laws that prohibit and fine bad check doers...with the exception of post dated checks. The legal remedies available in case of cheque bounce … Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. So, according to the court, a cheque whether issued for payment of a debt or as security, makes no difference in law. If my cheque is bounced what is the legal action i do? I have 8 post dated Cheques for issuing quaterly mode. Post Dated Cheques Accounting is varied from Company to Company. If you have an option to exercise, then it is best to avoid writing a postdated cheque. It is an established law that for attracting S.138 of the Act, the cheque should have been issued in discharge of a debt or liability. Do you have a 2:1 degree or higher? Typically, banking companies will take post-dated repayment cheques at the time of giving out loans, while landlords in many Indian cities take post-dated cheques for the entire year in advance after signing the lease deed. A post-dated cheque is treated as a bill of exchange, till the date mentioned by the drawer of the cheque. The proposal of The International Consumer Rights Protection Council for the creation of a credit rating body that would blacklist repeating offenders can also be a good option. 138 the cheque drawn must be for the discharge, in whole or in part, of any debt or other liability. However, the court said, that the object was not to provide effective and speedy remedy for recovery of loans. They, however, are also used as a tool of secured future payment. Take a look at some weird laws from around the world! The cheque is post-dated or more than … A post-dated check (or post-dated cheque) is a check written with a future date. Criminal Appeal Number 77 of 2006, in session dated 26 July 2006 states that assuming the cheque issuance follows the legalities of doing so, the crime of issuing a bounced post-dated cheque occurs even if the issuer is aware of the insufficient funds in their account and issues the cheque as … ! Case 1: Bouncing of a rent cheque In India, it is common practice for the landlord to take post-dated cheques from the tenant. worst off i end up paying the bounced check fee and he walks away free?!? * @since 1.0.0 A cheque is a negotiable instrument. The possible reason could be expected funds have not come into the bank. I have 8 post dated Cheques for issuing quaterly mode. Farmers are very often at the receiving end of such cases filed under Section 138 and often end up in jail. Post dated cheque i.e. So, in such cases, the right approach is not to allow the creditor to write an amount in the cheque on his own otherwise there is a high risk of harassment of debtor. How to stop payment for post dated cheques answered by expert cheque-bounce lawyer. Post-dated cheques issued for guaranteeing payment often have the words “guarantee” written on them. A DIFC based company I work for hasn't paid 5 months worth of salary, plus business travel expenses. Small and Medium-sized Enterprises (SMEs) often rely on post-dated cheques, thus for a sturdy cash-flow, it is essential that cheques do not bounce. In case of loan transaction, borrower is in need of money and therefore he borrows loan amount with understanding that the loan amount would be repaid in lumpsum on a future date or in installments from particular future date onwards periodically, with or without interest. 1. It was opined that such a cheque was not issued voluntarily in discharge of a debt or legal liability. Differences Between Cheque Dishonoured & Cheque Bounce: Sir, I want to know what should I do in this situation? A post-dated cheque is only a bill of exchange from the time when it is written or drawn till the date it becomes mature (i.e. Options in case the post-dated cheques of EOS benefits bounce back. Society Ltd. v. Shri Rajendra Bhagchand Warma  (herein after called the ‘Warma case’). to secure a loan, to serve as an advance or security or for discharge of a legally enforceable debt. Unmatching signature on the cheque 3. 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