Patna Law College C heque Meaning Section 6 Amendments20022015 Exception to section31 of RBI Act Essentials of a cheque Case laws Section 6 Cheque A cheque is a bill of exchange ID: 1027366
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1. ChequeByDeep NarayanGuest FacultyPatna Law College
2. ChequeMeaningSection 6Amendments(2002,2015)Exception to section.31 of R.B.I ActEssentials of a chequeCase laws
3. Section 6- Cheque—A “cheque” is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.
4. Explanation I(a) “a cheque in the electronic form” means a cheque drawn in electronic form by using any computer resource and signed in a secure system with digital signature (with or without biometrics signature) and asymmetric crypto system or with electronic signature, as the case may be;] (read with IT ACT 2000)(b) “a truncated cheque” means a cheque which is truncated during the course of a clearing cycle, either by the clearing house or by the bank whether paying or receiving payment, immediately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing.
5. Explanation IIFor the purposes of this section, the expression “clearing house” means the clearing house managed by the Reserve Bank of India or a clearing house recognised as such by the Reserve Bank of India.]
6. Explanation IIIExplanation III.—For the purposes of this section, the expressions “asymmetric crypto system”, “computer resource”, “digital signature”, “electronic form” and “electronic signature” shall have the same meanings respectively assigned to them in the Information Technology Act, 2000 (21 of 2000).]
7. ESSENTIALS OF CHEQUEAlways drawn on a bankerAlways payable on demandDoes not require acceptanceMay be payable to the drawer himselfThe banker is liable only to the drawer.Cheque is valid only for few monthsNo stamp is required
8. Case Law-1Anil kumar Sawhney v. Gulshan Rai , (1993) 4 SCC 424It was held that a post – dated cheque remains only a bill of exchange till the date shown on its face and only from that date it becomes a cheque on being payable on demand.
9. Case Law-2Ashok yeshwant Badave v. Surender Madavrao NighojakarIt was held that a post – dated cheque is not Payable till the date which is shown there on arrives and will become cheque on the said dateand prior to that date the same remains bill ofExchange.
10. Case 3Veer Exports v. J. kalacathy, AIR 2002 SC 38It was held that there is no bar against voluntary revalidation of a negotiable instrument (including a cheque) by a drawer after the expiry of its validity period. Thus it is always open to a drawer to voluntarily revalidate a negotiable instrument , including a cheque
11. Difference between Cheque and DraftCheque is an order by the drawer on his agent, the bank, for payment of a certain sum of money to the bearer or order of the person in whose favour the cheque is drawn, a draft is not an order by a private person to his own agent.A draft, like a cheque, cannot be drawn by a private individual
12. Case -4Raghavendrasingh Bhadoria v. State bank of Indore , A.I.R 1992 M.P 148S.N. Shukla v. Punjab National Bank Ltd. A.I.R . 1960 All . 238
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