Post dating cheques in australia
20,000/- from him and had issued a post-dated cheque for Rs.22,000/- for the due discharge of the said liability (including interest).
Such a blank cheque doesn’t constitute a cheque and thus S. Now, in Warma case, blank post-dated cheques were issued prior to disbursement of loan as a collateral security for loan which was sanctioned.
According to the court, in such a case there was no existing debt or liability when the cheque is issued.
the Bombay High Court’s decision in Ramkrishna Urban Cooperative Credit. In this case, the Respondent had taken loan for his business from the Appellant bank and for satisfaction of the loan; some blank cheques were issued to the Appellant.
It was also agreed by the Respondent that he shall pay the amount from time to time in installments.
POST-DATED CHEQUES A post-dated cheque becomes a cheque for the purpose of S.138 of the Act only on the date mentioned thereon and in between the date of drawal of the cheque and the date mentioned in the cheque, it is only a bill of exchange.