Cheque

Cheque is a request of drawer to the bank where the drawer maintains an account to pay a specific sum of amount to the payee on presentation of the cheque or on the date fixed on the cheque

Under banking practice in our country, bank is supposed to make payment to payee if there is sufficient amount payable to the payee equal to the amount mentioned on the cheque.

Cheque is a request of drawer to the bank where the drawer maintains an account to pay a specific sum of amount to the payee on presentation of the cheque or on the date fixed on the cheque

Under banking practice in our country, bank is supposed to make payment to payee if there is sufficient amount payable to the payee equal to the amount mentioned on the cheque.

Cheque, in law, had been given the status of negotiable instrument, which, however, could not be engineered/fabricated as other document(s), declared/qualified as 'negotiable instrument'

Proper execution would normally require only two parties i.e. taking out the cheques from the cheque-book, which was believed to be in the safe hands of the account holder, and signing/execution thereof

No other person could perform such part except by stealing, defrauding, or finding a lost one, which claims should always be upon the person who otherwise was expected to keep cheque in safe hands.

Cheque, in law, had been given the status of negotiable instrument, which, however, could not be engineered/fabricated as other document(s), declared/qualified as 'negotiable instrument'

Proper execution would normally require only two parties i.e. taking out the cheques from the cheque-book, which was believed to be in the safe hands of the account holder, and signing/execution thereof

No other person could perform such part except by stealing, defrauding, or finding a lost one, which claims should always be upon the person who otherwise was expected to keep cheque in safe hands.

Until the contrary was proved, it had, inter alia, to be presumed that every negotiable instrument was made/drawn for consideration; that every negotiable instrument bearing a date was made/drawn on such date; and that the holder of a negotiable instrument was a holder in due course

Such was a rebuttable presumption yet the onus was on the person denying consideration to allege/prove the same

Defendant could discharge burden of proof placed upon him under S.118 of the Negotiable Instruments Act, 1881 by producing reliable evidence showing that consideration had not been passed or by relying upon facts/circumstances of the case and also by referring to flaws in the evidence of plaintiff and then contending that presumption had been rebutted.

Petitioner filed the application for comparison of hand-writing on the disputed cheque which was dismissed by the Trial Court

Petitioner contended that he never issued any cheque to the respondent; that he issued a blank cheque to the owner of petrol pump as guarantee in lieu of purchase of diesel for agriculture purpose; that the petitioner returned the entire amount to the owner of petrol pump but he did not return the disputed cheque to the petitioner with mala fide and ulterior motive; that writing on the disputed cheque was fake and fictitious

Petitioner had purchased fertilizers from the respondent and in lieu thereof issued the cheque in question in his favour; that the petitioner in his written statement had admitted the issuance of the said cheque in his favour; that the petitioner would frequently change his signatures; that the petitioner could not advance any cogent reason for comparison of writing on the cheque in question

Validity

Petitioner had not denied his signature on the cheque in question

Burden of proof was on him to rebut the presumption and prove that the same was without consideration or by relying upon facts and circumstances of the case and also by referring to flaws in the evidence of plaintiff

Court was empowered to compare the signature/writing/seal with others admitted/proved

However, whether or not to exercise such discretionary power would depend upon the facts/circumstances of each case

Report of a handwriting expert on its own could not be made basis to discard the direct evidence and when direct evidence was available, there was no need for expert opinion, which otherwise was nothing but confirmatory / explanatory to direct evidence

Revision petition was dismissed accordingly.

Cheque falls within the definition of negotiable instrument whereupon the plaintiff can file suit under O.XXXVII, R.2 of C.P.C.

Section 10 of Sindh Rented Premises Ordinance, 1979 does not provide payment of rent through cheques.

Cheque is a negotiable instrument and there is rebutable presumption that every negotiable instrument is made, drawn, accepted and endorsed for consideration.

Cheque could be presented for the purposes of encashment within six months as per bank rules and a holder of cheque can bank and present it within his period at his convenience.

Cheque Forged-Payment by Banker-Liability of Bank to customer-Factors determining liability-Negligence of customer-Negligence of Bank-Effect-Forged cheque

No mandate by customer to Bank for payment-[London Joint Stock Bank Ltd. v. Macmillan and Arthur 1918 A C 777 and Young v. Grote (1827) 4 Bing. 253 considered].

Balance at credit of drawer insufficient-Cheque, held, a request for loan by way of an overdraft-Negotiable Instruments Act (XXVI of 1881), S. 6.