Dear Members,
Please clarify the below doubt with relevant citation.
A Company issued one PDC cheque dated 05-05-2010 to B Company on 30-04-2010, B Company has presented it for payment prior to the cheque date on 02-05-2010. The said PDC cheque has got bounced with reason ‘insufficient funds’ with bank memo dated 05-05-2010. Legal notice had served on the B Company stating that ‘you have issued a cheque’ A Company (conceal) won’t mention about PDC cheque in their notice but A Company will defend as Cheque rather than PDC cheque even in the Complaint (PCR) before the court of law.
Questions
1. Whether PDC cheques can be present prior to the date? (PDC cheque bounce on 05-06-2010, cheque date 05-06-2010)?
2. Can A Company defend as only Cheque rather than PDC cheque?
3.What would be the relief for B Company form the above 2nd question?
I request all members to reply on my query.
Thanking you
BASAVARAJ.R