blank cheque
Naresh Kudal
(Querist) 10 May 2014
This query is : Resolved
Receiving blank cheque as security for debt, whether an offence or not.
Devajyoti Barman
(Expert) 10 May 2014
it is no offence especially the drawer delivers it put of an amicable agreement.
Advocate Bhartesh goyal
(Expert) 10 May 2014
If the cheque has been given as security then no offence u/s 138 of N.I.Act.
V R SHROFF
(Expert) 10 May 2014
one must be able to prove that the cheque has been given as security . Compl will deny.. u/s 138 ni.
i m sure, there cannot be contract or agr, that the cheque has been given as security . Then what's the use of chq??
ajay sethi
(Expert) 11 May 2014
it is not an offence . once you issue signed cheque you are authorising drawee to fill in details .
Guest
(Expert) 11 May 2014
Academic query. Discuss your real problem. Can you justify asking for a blank cheque against specific amount of security?
Nadeem Qureshi
(Expert) 11 May 2014
Receiving the cheque is no offence
T. Kalaiselvan, Advocate
(Expert) 11 May 2014
I agree and go with the vies of expert Mr. Dhingra on the subject. What is the necessity for giving a duly signed blank cheque, though it is for collateral security, what if the same has been misused against the person issuing it?, come out with facts.
R.V.RAO
(Expert) 12 May 2014
If ,receiving a blank cheque is an offence, all branches of all banks at one time or the other( for extending one or another type of laon ), have committed same.
then why did RBI not take any action against all the banks in this country?
we are all or atleast most of us who borrowed money from banks,at one time or the other have issued blank cheques, as security cheque.but never intended to be presented by the bank.atleast, that is what the banks say while collecting the blank cheque. the borrower in a hurry to draw the loan, obliges the bank.
but buyer beware. if the cheque is presented and not honoured, it is the issuer who is under trouble under sec 138 of N.I. Act.but banker is not under any trouble.that is law of the land. can we change the law of the land?
Guest
(Expert) 12 May 2014
Mr. Rao,
Did you find anyone stating that receiving blank cheque is an offence? If you are the supporter of issue of blank cheques that does not mean the practice should be encouraged.
So far as banks are concerned, they normally ask for PDCs for the specific anount of EMIs, not blank cheques. If someone asks for blank cheques his intentions should be doubted and resisted. About your statement, "but never intended to be presented by the bank," if not intended to be presented what purpose of the bank those blank cheques would serve and why those are required? PDC's are only to cover up defaults in EMIs and are always intended to be presented by the bank.
The question arises, when there is a specific amount of consideration, why there should be a blank cheque without amount in words and figures? I can understand the undated cheques, but there cannot be any justification of totally blank cheque.
