Post Dated Cheque As Security For Repayment Of Loan - Liability or Not



Post Dated Cheque is a cheque written by drawer for payment of a particular amount on a date in future. In other words, it is a legal commitment for future's liability by the drawer.

Law On Dishonour of Post-Dated Cheque Given As Security For Repayment of Loan:

A post-dated cheque, which was described as a security in the agreement, can be presented by the drawee or holder in the bank, if the drawer or issuer of cheque fails to make the repayment of loan or any other debt.

Therefore, it is correct to say here that its the legal liability of the person to make the repayment of loan or debt on time; otherwise the drawee or receiver of post-dated cheque has the right to present the said post-dated cheque in the bank to get his or her legal dues.

The similar matter has also been covered by the Hon'ble Supreme Court in its judgment passed in the matter i.e. Sampelly Satyanarayana Rao Vs Indian Renewable Energy Development Agency Limited.

 

Article Written By: Mr. Raman Sharma (CS, LLB, DIM, B.Com)

Contact: barristerramansharma@gmail.com 

 

 

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