Section 15 of NI Acts 1881 defines endorsement (Indorsement) as under When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a…
Although, there are several cheque bounce reasons to be considered such as incorrect date mentioned on the cheque, signature mismatch, mismatch of the amount and figures, damaged cheque, overwriting of the cheque, etc. The principal reason for a cheque bounce is insufficient funds. If a cheque is dishonoured because of insufficient funds in the payer’s…
Under the Negotiable Instrument Act a cheque is a bill of exchange it is an order on the drawee bank to pay the amount specified in it to the payee or the bearer until and unless the amount mentioned in the cheque is paid, the disposition of property therein will not take place. Section 19…
Section 99 of the Negotiable instrument Act 1881 provides that “When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may cause such dishonour to be noted by a notary public upon the instrument or upon a paper attached thereto, or partly upon each. A such note must…
RBI on Friday announced that all the 18,000-odd branches which are outside the centralised clearing system called cheque truncation system will come under it by September. This is decision is taken by Central Bank as part of further improving, speeding up, and fool-proofing the payments and settlement systems, it said. The Cheque Truncation System (CTS)…
The Negotiable Instruments (Amendment) Act, 2018 (Amendment) received the assent of the President on 2nd August 2018. Sec 143 A & 148 which have been now inserted in the NI acts is in addition to Section 138 of the NI acts which deals in cheque bounce cases. Equipped with the newly inserted sections to NI…
Section 8 of NI act provides that holder is any person who is entitled in his own name to the possession of negotiable instrument and has right to receive or recover the amount from the parties thereto.The word ‘entitled’ means that the person who claims to be holder should acquire the instrument in a lawful…
(This post explains Legal amount and courtesy amount,Effect of date written in Saka samvat,Cheques written in Regional Language, meaning of e-cheque.) A cheque has three principal parties viz. Drawer; Drawee and Payee. The drawer is the person who issues (draws) the cheque. The drawee is the paying bank whose name and address is printed on…
A cheque signed by a drawer of cheque without completing the material particulars such as date, amount or name of the payee, it is known as an inchoate or incomplete cheque. When the drawer of a cheque hands over an inchoate cheque to a payee, prima facie he has given authority to the payee to…
Writing a cheque seems to be a simple task, but remember, issuing a cheque to a person is equivalent to payment of cash and we find frauds related to cheque are very common. Therefore, no need to mention that writing a cheque in right way is crucial to avoid misuse or dishonor of cheque issued…