Cheque – A Brief Introduction As Well As Requisites

Sec.6 of the Negotiable Instruments Act defines a jibe every bit “A nib of central drawn on a specified banker as well as non expressed to survive payable otherwise than on demand“. A jibe is defined every bit a bill of exchange. But it is dissimilar from a nib inward many aspects. Chalmer rightly points out that, “All cheques are bills of exchanges but all bills of exchanges are non cheques”.

Dr. Hard, inward his Law of Banking defines a jibe every bit “an unconditional guild inward writing drawn on a banker signed yesteryear the drawer, requiring the banker to pay on postulate a kernel of sure enough inward coin to or to the guild of a specified soul or bearer as well as which does non guild whatsoever deed to survive done inward improver to the payment of money”.
Simple definition :In elementary words nosotros tin dismiss say that “A Cheque is an guild to a banking concern to pay a stated kernel from the drawer’s account, written on a especially printed form
A jibe is besides a nib of central amongst 2 additional features :
  1. It is ever drawn on a specified banker.
  2. It is ever payable on demand.
Here is a specimen of MICR Cheque
Requisites of Cheque :
  1. Form of the Cheque : A jibe tin dismiss accept the cast of an guild written on an ordinary slice of paper. But to a greater extent than ofttimes than non the banks volition furnish printed jibe forms to the client spell opening the trouble concern human relationship as well as the customers every bit a dominion must role alone the printed jibe forms supplied alone every bit that rule, if the guild is made on slice of newspaper the banking concern volition decline payment.
  2. Issue of Cheque : A jibe is said to survive issued when the drawer parts it to around other person. The upshot of jibe is real of import because the drawer is non liable on a jibe until he has issued it. Even if drawer is induced yesteryear fraud, it is deemed to survive duly issued.
  3. Dating of Cheque : A jibe is non invalid merely because it is non dated. But dating of a jibe is essential to discovery whether it is stale jibe or not. A stale jibe is 1 which is non presented for payment earlier iii months from the appointment of upshot of cheque. 
  4. Payee : Where the jibe is payable to or order, it is essential to cite the yell of the payee. If the drawer has non mentioned the payee’s name, whatsoever holder of the jibe tin dismiss insert the payee’s name. Bank volition dishonor a jibe presented without the yell of the payee. 
  5. Amount of the jibe : Amount of the jibe is to survive stated clearly both inward words as well as figures without leaving whatsoever infinite earlier as well as later on teh amount stated to avoid whatsoever alteration of the amount.
  6. Signature : The jibe must survive properly signed yesteryear the drawer as well as it should tally amongst the specimen signature signed at the fourth dimension of the opening account. If the drawer is illiterate, cheques tin dismiss survive drawn by; way of the pollex impression duly witnessed yesteryear a soul known yesteryear the banker.
  7. Delivery : Unless the jibe is properly delivered, the drawer does non instruct liable at that spot on. Hence to brand drawer liable, he must receive got delivered the jibe consummate inward all respects to the payee, amongst the intention that the amount is payable to payee or to his order. 
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