Validity of cheque


Will a cheque which was taken from a cheque book that was issued in 2007 (by HDFC bank) remain OK in regard to its validity if the cheque is presented for clearence in 2015? Please note that new CTS type of cheques are available now, whereas in 2007 cheques were of non-CTS type. If the vailidity of such an old cheque (when it was issued the date speace in the cheque was kept blank) is lost, can this be a ground for quashing a case under section 138 NI act? Please give your opinion. you may pm as well...

 
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Retired employee.

I do not know whether you are seeking opinion on a shut case.

As per NIAct, there is no such prescripttion that cheque book should be issued on that day or year.

First go through the definition of Cheque in NIA and as the cheque fulfils all the norms stipulated in Act, no one can question on the form of validity of the cheque.

However, there may be different procedures for encashment of cheque, and the one with MICR etc have more speedy collection, and a normal cheque has to be presented in normal presentation directly by collecting banker (your banker) to the paying banker.  So far according to my knowledge, no banker has refused payment of any cheque that is received by him stating that the cheque is not in prescribed form, and atleast in no banking books or laws such reason was stated for return of the instrument stating such reason for refusal.

Contact your Bank and ask them to present as Collection instrument direct to Bank by post.  As a holder in due course, you are entitled to sue the other bank if the cheque is returned with such flimsy reasons that never mentioned in NI Act.

 
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manager

Non CTS cheques are cleared by the banks on every Monday. Otherwise there is no difference between old and new cheques.
 
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manager

Non CTS cheques are cleared by the banks on every Monday. Otherwise there is no difference between old and new cheques.
 
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