A bank notices a post-dated cheque presented for payment before the date appearing thereon, the cheque will be returned marked post-dated or the bank will hold on to the cheque until it is able to be cashed in.
Is issuing post dated cheques illegal
I postdated my check because i didnt want to miss the due date, and i intended to transfer the funds closer to the date i wrote on the check.
Post dated cheques illegal
High court rejected the appellant's argument, holding that when the post-dated cheques were issued, the loan amount had been authorised and was an existing debt or liability and thus fell within the scope of section 138 of the act.
Post dated cheques law
The greatest danger lies in the banker paying a post-dated cheque and subsequently dishonouring another cheque which ought to have been paid but had to be returned due to lack of funds.
If youre going to write a postdated check (or receive one), here are some things you should know!
Supreme court held that whether a post-dated cheque is for "discharge of debt or liability" depends on the nature of the transaction.
Its judgment, the court distinguished between a cheque given towards an advance payment for a purchase order and post-dated cheques given under a loan agreement.