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Shiva Shankar S.K (Branch Manager)     31 May 2010

Legal Implication in case of cheque bounce

A customer of ours has issued a PDC cheque of substantial value that needs to be banked as per the due date. However the customer has written in ink the following on the backside of the cheque

"An email confirmation would be required from the VP of the comapny before banking the cheque"


My query is, in the event teh cheque bounces and we have to take legal recourse under Sec 138.

Will the statement written on the overleaf of teh cheque weaken our case.





 7 Replies

LAXMINARAYAN - Sr Advocate. ( solve problems in criminal cases.     01 June 2010


Ayush (Advocate)     01 June 2010

yes, it will weak your case if you have presented the cheque in the bank before the receipt of the email confirmation. however, if you have compiled with the condition written on the back of the cheque, meaning thereby if you have banked the cheque after receipt of email confirmation from the vp of the company, it will make your case a strong one.

There may be points in your favour which will depend upon the facts and circumstances of your case. Please consult a nearest lawyer.

Anil Agrawal (Retired)     03 June 2010

Written on the bank? Signed. If you don't have email facility, do you have to create it? How can such preposterous condition can be created? Tomorrow the drawer will write: Payee to come to his house with sweets to get confirmation. 

Basavaraj (Asst, Manager-Legal)     08 June 2010

For some points I agree with Mr.Agarawal,

Mr.Shiva Shankar S.K, your problem is stand on technically basis only. From my experience I would like to share my views that.

  1. Cheque issued by your customer for discharge he/her debts, so he cannot deny it, if not onus lies on him to prove it.
  2. Pls check who has signed the said Cheque, whether V.P. or someone else?.
  3. Courts would not entertain this kind of written conditions/statements behind the cheques.
  4. Courts entertain only written communication such as ‘Not to present the cheque till so and so date’ or ‘do not present the cheuqe unless my confirmation’.         
  5. In your case see whether the same customer has written in his own hand with signature.
  6. Have you got any other written letter from your customer on this effect? If not..
  7. Present the cheque after due date, if got bounced send a legal notice to that person within 30 days from the date of receipt from your banker.
  8. In that case he cannot hide from that reason.  

Venkatnarayanan (M.A)     14 June 2010

Thanks to Mr.Basavaraj,

Shanker sir, from the above advise you can settle your problem, everthing Mr.Raj jas quoted, it seems.


Please follow Mr.Raj.


I do agree with Mr. Basavaraj,.

Anil Agrawal (Retired)     19 June 2010

I think what is written on the back of the cheque has no legal sanctity.

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