Is postdating a check against the law

Posted by / 01-Sep-2020 14:26

Is postdating a check against the law

and mainly revolves around section 138 of the Negotiable Instruments Act, 1881.The two major issues before the courts are: 1) Post-dated cheques that are stopped by the bank or issuer, causing problems for whoever is to be paid by the cheque for goods or services provided and; 2) the reverse, in which a person is promised goods or services but does not receive them and has to stop the cheque.A corporation is a formal organization or business associated with a publicly registered charter.The registration recognizes the business entity as a separate legal entity.

Unlike a normal check, a postdated check is not necessarily payable on demand.(2) A cheque is not invalid by reason only that- (a) it is not dated; (b) it is antedated or post-dated; or (c) the date it bears is a Sunday.(3) For the purpose of determining whether a post-dated instrument is a cheque, the fact that the instrument is post-dated shall be disregarded.According to the Comptroller of the Currency: "A check is a negotiable instrument—the payee, the person to whom the check is written, may negotiate it through the banking system at any time" and check writers seeking redress must restrict themselves to pursuing the payee.In practice, whether the check writer has any redress against the financial institution where the payee deposited the check may depend on whether it can be shown that the check was accepted over the counter without examination.

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