Dishonour of cheques..

Athul (NA) (43 Points)

02 May 2013  

Respected Experts,

I will be thankful if you will be answer this question in common commercial practice , with legal implications..

Facts:

--'A' issues a post-dated cheque of 30000 to 'B' (dated 3rd may)

--On 3rd may, the drawer has only 31000 in his account as balance(of which 3k being minimum balance)

Can the Bank refuse this cheque on the grounds of insufficiency of funds?

I have seen some banks refuse it, while others dont, they honor it. So, what exactly is the correct legal positon in this regard?

 

Thanks!