Negotiable Instruments Act
WgCdr AK Singh
(Querist) 21 June 2011
This query is : Resolved
Dear Sir,
1. I am retiring from my organisation on 30 Jun 11.
2. I need to obtain clearances from various depts for effecting my Pension Order.
3. One of the depts (Mess) is asking for a blank cheque (a/c payee) for signing the clearance form.
3. Is it legal to ask for blank cheques ? In no, then what remedy/action can be sought against the dept/employee asking for the same ?
4. If it's legal, is it safe to issue a blank cheque ? For if by mischief/error, an exorbitant amount is filled in and presented to my bank, the cheque would get bounced. This would make me liable to prosecution under the Negotiable Instruments Act.
5. Please clarify.
Thanks.
AK
Swathi S Bhat
(Expert) 21 June 2011
Sir,
You didn't revealed about your department and post. Well, if you want to issue a blank cheque, then you have to get an endorsement from the department that they requested you to issue a blank cheque including its purpose also. That particular endorsement must include cheque No. date, purpose. That endorsement must be properly signed and sealed by that department. If they are ready to give an endorsement as mentioned above, then you can move further otherwise, please avoid issuing blank cheques.
WgCdr AK Singh
(Querist) 21 June 2011
Dear Swati,
1. Thanks for your response. I would not like to disclose the name of the dept asking for the blank cheques, except that it's a Govt Dept.
2. Please answer point no. 3 of my original post. Please keep in mind that without the blank cheque, the clearance form is not being signed. This would obstruct the issuance of my Pension Order. Is it legal to use such blackmail techniques ?
Thanks.
AK
R.Ramachandran
(Expert) 21 June 2011
Dear Mr. Singh,
No Department will ever ask for a blank cheque. If they want, ask them to give it in writing.
In fact, you are only supposed to submit your Pension Papers six months in advance. If you have done that it is OK. After all, if no due certificate is not received from any particular department, they will withhold your DCRG and nothing else.
I think it is all unnecessary anxiety displayed by persons like you that others are taking undue advantage of it.
Even now, when you are going to retire within another 10 days, you don't have the courage to disclose the departmnet.
I will advise you to keep quiet till you get relieved on 30.6.2011.
If I were in your place, I will not give any blank cheque that too to a Government Department, just to obtain NO DUE Certificate. At best, you say it is MESS Dues. The Mess Master should be in a position to send your MESS dues to your Accounts Department by the end of the month or by first week of next month i.e. July. Once that amount is known, plese clear by paying by cash and youwill get your NO DUE Certificate. That will solve the problem.
WgCdr AK Singh
(Querist) 22 June 2011
Dear Mr Ramachandran,
1. Thanks for your insight. But what you have written is not how it happens on ground. What prevents a dept from asking for a blank cheque from a person who needs a No Dues cert from it ? And how can one force the said dept to ask for the blank cheque in writing ? They will not ask in writing, and will insist on a blank cheque. Take it or leave it. And it's a fact that blank cheques are being provided by the retiring persons.
2. In light of the above, point no. 3 of my original post still remains unanswered. I would like to request for clarification on the same.
3. Further, the dept's name has not been disclosed to avoid bringing disrepute to the rest of the organisation. It's not for lack of courage.
4. Furthermore, asking for clarifications is no sign of anxiety; and such reference is best avoided. I would like to thanks all the persons who have replied to my query. However, it is also requested that personal comments may kindly be avoided.
5. Once again, I am grateful for the responses to my query.
Advocate. Arunagiri
(Expert) 22 June 2011
3. Is it legal to ask for blank cheques ? In no, then what remedy/action can be sought against the dept/employee asking for the same ?
Blank cheques can be demanded. But, they can fill it with legaly enforceable debt only.
No government department will ask for blank cheque. I think they have not given clearance, as they presume there may be bills pending with the mess.
My suggestion is give a blank crossed cheque, put the date, fill up the beneficiary / Government department name.
R.Ramachandran
(Expert) 22 June 2011
Dear Mr. Singh,
You are talking about avoiding disrepute to the rest of the organization. If one part of the organization is not doing it properly, and highlighting the same would not in any way bring disrepute to the rest of the organization. Even otherwise, if such acts of one part if highlighted would bring disrepute, so be it. Let the organization correct its wrong policies and procedures and let the orginary citizen not get harazzed.
You say that what I have written does not happens on the ground. I hold my gun, it does not happen on the ground because people succumb to patently unjustified demands.
Department has no authority to ask for a Blank Cheque. Blank cheque is being asked since it has not finalised the accounts to arrive at as to what is the amount due. It is nothing but their lethargy. For that why others should suffer? The same departments do not ask such blank cheques from top bosses. It works out its dues in advance and intimates the persons concerned in time.
You say that they want the blank cheque. If they can say orally, what prevents them from giving such instructions to you in writing? Because, the Departmental authorities themselves know that they have no authority to do so. As simple as that.
Yes, in the kind of atmosphere one works, it may take some time for the Mess, to work out the dues and to intimate. To that extent, there will be delay in settlement of your DCRG. But not the pension. But after a reasonable time, say one month or two, the MESS should issue the NO DUE CERTIFICATE or intimate the amount due from you. You should have patience to wait for that time. Then some one has to bring this to the notice of the higher ups that such delays are occuring, especially in the case of retirees. This should be avoided. The Department will definitely give instructions and ensure that such delays do not take place. For that, first we should stop issuing such blank cheques. This will see that the pensions have not been settled. The pension office itself will get worried that so much pension cases it has not disposed of. It will definitely have chain reaction. But, we do not want anything of that. We want out job to be done by hook or crook, whether what we accept to do is lawful or not, then we say that that is the practice!
In all our problems we have to get ourselves trained to take the bull by its horn not by its tail.
You cannot say that it is not anxiety. Otherwise sit cool like a cucumber. See whether the pension dues are reaching you automatically or not, provided you have submitted your pension papers. NO Due certificate is their botheration not yours. Each month, you do not go to your mess and ask for how much you should pay. It is the Mess, which sends the amount due from you to your Accounts branch. Similarly, they have to give it for the last month when you are in service. That statement will go in a routine manner to your Accounts. It is for the Accounts to take care of it and how to adjust it or to pass it on to the Pension Department. So, everything has to happen in a routine manner within the Department. If that does not happen, and everyone succumbs to the unlawful dictats.
When you have come to the public forum like LCI and asks for views, you should not take anything as being personal. As an Advocate it is my duty not only to tell you about your legal rights, and also tell you how to achieve it. It is for you to take or leave it.
You say your point no.3 still remains unanswered. I do not think so. It is very clear from my answer that the Authorities cannot lawfully ask you to give blank cheque. If they have lawful authority, let them do so by asking in writing. For this you say, how can one ask the department to give it in writing. Can you please tell me, is there any law that prevents you from putting into writing saying that "when I approached you for no due certificate, you asked me to give blank cheques. Please indicate under what provisions you are asking me to give blank cheques?". If there is no law that prevents you from asking, you should ask. Then see what happens.
WgCdr AK Singh
(Querist) 22 June 2011
Dear Mr Ramachandran,
1. It is humbly submitted that merely because one has come to the public forum, it need not be a license to flogging him for asking something.
2. But never mind. I am much grateful for your detailed response. I agree with you on many points; and I had certainly not planned to give in to unjust demands. Only for this purpose did I ask for the legality of the Dept's action in the first place.
3. As regards Point No. 3 of my original response, I have got two opposite answers. Adv Arunagiri holds that a blank cheque CAN be asked for, while in your opinion, it CAN'T legally be asked for.
4. It may please be specified what offence is made and under which section/clause of the N.I. Act, if a blank cheque is asked for.
5. Thank you for your time.
Sincerely,
AK
R.Ramachandran
(Expert) 22 June 2011
Dear Mr. Singh,
Point No.4 - no offence gets committed by just asking for blank cheque, nor any offence gets committed if any blank cheque is issued.
WgCdr AK Singh
(Querist) 23 June 2011
That clarifies the issue.
Thanks a lot.
AK Singh
