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Curious Sam (Self)     12 June 2012

138 cheque bounce case - validity of cheque

I reproduce below, one of the conditions to be met for a 138 case to be valid:

"Provided that nothing contained in this section shall apply unless-

 

 (a)the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier."

 

What is the "period of its validity" of a post dated cheque, as applicable in a 138 cheque bounce case?

 

In my case, the complainant claimed in the 138 complaint that I took a hand loan (bunch of lies) and handed over a post dated cheque dated three years from the date of the loan.  Was the cheque valid after 3 years?  Was it ever valid?

 



Learning

 5 Replies

LAXMINARAYAN - Sr Advocate. ( solve problems in criminal cases. lawproblems@gmail.com)     12 June 2012

Yes post dated cheque is valid for the date for which it is issued may be after a long period but no further validity will be allowed.So in your case the cheque is valid for a date after even three years but not a single day aftewords.

Prasun Chandra Das (Banker)     12 June 2012

Chqs are presently valid for 3 months only (and not 6 months) from the date on the chq (regardless of the date when the chq was written). However, this applies to clearing chqs, meaning in cases where chq of X bank is deposited in Y bank. "Period of validity" is mentioned because a drawer, while issuing a chq, can restrict the validity of the chq as per his wish. So, if he writes on the chq "valid for 10 days", the chq will be valid for 10 days OR 3 months (from the date on the chq), whichever is earlier (i.e., 10 days). In your case, the chq is valid.

Curious Sam (Self)     12 June 2012

What if the date/other entries on teh cheque are not in the handwriting of the drawer? 

Prasun Chandra Das (Banker)     12 June 2012

Handwriting/ink used do not matter. It is not necessary for the drawer to write the chq - any person can write it. Only the signature has to be drawer's and any correction/material alteration on the chq (if any) has to be authenticated by signing in full by the drawer.

LAXMINARAYAN - Sr Advocate. ( solve problems in criminal cases. lawproblems@gmail.com)     12 June 2012

You will have only valid defense for legality of loan.


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