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.
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.
No comments:
Post a Comment