Can an undated cheque be filled up by a drawee who is in possession of the cheque without seeking the pemission of the drawer of that undated cheque ? Is there any provision of whereby before filling up the date on the cheque the drawee has to seek the drawers permission ????
the drawer must have given blank cheque as a security to the drawee. There, drawee has to fill in the amount which the drawer is liable to pay and the same has been admitted by the drawer. otherwise, the drawer needs to prove that the amount so filled in the cheque is worng and the drawee had done breach of trust.
if the drawer feels that the drawee is going to misuse the cheque then the drawer needs to give stop payment instruction to the bank.
simultaneously, drawer nees to communicate the same officially to the drawee of the cheque asking to reurn the blank cheques and the same shall be replaced by the cheque duly filled by the drawer.
Thank You for your answers. I will like u answer a particular question for me. CAN A DRAWEE FILL UP THE DATE OF AN UNDATED CHEQUE WITHOUT TAKING THE DRAWER'S PERMISSION ????? In a case I am trying to take the contention that before filling up the date in an undated cheque the drawee did not take the drawer's permission. Will this contention be valid ???
The drawee has all the right to fill up the date on undated cheue without seeking anybody's permission and present the same for payment. It does not matter wthether the handwriting is obviously diffrent
Thank you very much for all the answers. I need to place the said views in front of the management, hence can any one quote me a section or a case law which clearly establishes that an undated cheque can be encashed by the drawee after filing in the date by himself or any section or case law hinting at a similar thing because the management will ask for something more substantial to verify the said point? Thank you very much once again.