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A Cheque is a Negotiable Instrument. It is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.

The modern definition of cheque includes the electronic image of a truncated cheque and a cheque in electronic form.

  • A Cheque in Electronic form means a cheque which contains the exact mirror image of a paper cheque, and is generated, written and signed in a secure system ensuring the minimum safety standards with the use of digital signature (with or without biometric signature) and asymmetric crypto system
  • A Truncated Cheque means a cheque which is truncated during the course of a clearing cycle, either by the clearing house or by the bank whether paying or receiving payment, immediately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing.

Essential features of a Cheque

Essential characteristics of a Cheque

  • Transferability
  • Holder in due course
  • Right of action

Related Cases / Recent Cases / Case Laws

  • Dishonour of cheque - Suspension of sentence during pendency of revision - Sentence suspended subject to payment of cheque amount. (2014(1) Civil Court Cases 186 (Raj.)
  • Vijayander Kumar and Others v State of Rajasthan and Another, Criminal Appeal Jurisdiction, Criminal Appeal No. 1297 OF 2004, Supreme Court of India judgement dated February 11, 2014

Related Legislation

Related Topics

Additional Reading

  • Difference between cheque and other bills of exchange
  • Drawee, Drawer, Drawee in case of need, Acceptor, Acceptor for honor, Payee