Analysis of the Legal Status of Post-Dated Cheques in India
By
Indranath Bishnu
Time and again questions have been raised with respect to the legal status of post-dated cheques. The first issue is whether the same is a cheque at all or whether it is a bill of exchange. Secondly, what is the period of validity of a post-dated cheque. Finally, what are the remedies under the Negotiable Instruments Act, when a post-dated cheque is dishonoured. This article examines all these legal aspects in regard to post-dated cheques.
Defining a post - dated Cheque
Nature of a Post-Dated Cheque
A “Post Dated” cheque literally means a cheque with a future date. It is only a bill of exchange when it is written or drawn. It becomes a cheque only when it is payable on demand. A post-dated cheque does not become payable until the date, which is shown on the face of the said document, arrives. It will only become a cheque from the legal po ....