Blank Cheques

Blank cheques are illegal too

Section 20 of Negotiable Instruments Act provides

That the holder of a negotiable instrument can fill up the amount upto the value covered by stamps. Since there is no stamps on a cheque, the date can not be filled up, as filling a date later will make is a post dated cheque.

Post dating a cheque means writing a date subsequent to the date of writing the cheque.

Second the blank cheque is good in the hands of a holder in due course.

A holder in due course a person who does not have the notice of infirmity in the cheque. A person who did not know that the cheque was issued without proper writings thereon is protected.

So the drawee of a cheque is not a holder in due course since he is aware that the cheque was undated in hte first instance.

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