Law on Post-Dated Cheque in Complaints under S.138 of Negotiable Instruments Act, 1881

Law on Post-Dated Cheque in Complaints under S.138 of Negotiable Instruments Act, 1881

Dealing with a case of S.138 of Negotiable Instruments Act, 1881 in C. Ponnusamy v. Chinnamman Constructions [2014] GCtR 6613 (Madras) it was held that "a 'Cheque' is a recognised mode of payment and post dated cheques are used in various transactions in daily life. It is to be remembered that a 'post dated cheque' is deemed to be a 'Bill of Exchange' and is not attracted by the provisions of Section 138 to 142 of Negotiable Instruments Act, 1881. It becomes a 'Cheque' attracting the provisions of Section 138 of the Negotiable Instruments Act on the date mentioned on the cheque. Further, the aim of a post dated cheque is to provide some accommodation to the 'Drawer of a Cheque.'"

One cannot forget a vital fact that one of the main ingredients of the offence under Section 138 of the Negotiable Instruments Act, is the return of the cheque by the Bank unpaid. Till the time, the cheque is returned by the bank unpaid, no offence under Section 138 is made out. A post dated cheque cannot be presented before the Bank and as such, the question of its return would not arise. It is only, when the post dated cheque becomes a 'cheque with effect' from the date shown on the face of the said cheque the ingredients of Section 138 of the Act come into operative play in the considered opinion of the Court.