Cheque - Definition - Law Dictionary Home Dictionary Definition cheque

Definition :

Cheque, defined. [Act (1 of 1879), s. 3; [Negotiable Instruments Act, 1881 (26 of 1881), s. 6:

A 'cheque' is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.

Explanation 1.--For the purposes of this section, the expression--

(a) 'a cheque in the 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 biometrics signature) and asymmetric crypto system;

(b) '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.

Means a bill of exchange, drawn on a specified banker and not expressed to be payable otherwise than on demand. [Indian Stamp Act, 1899, s. 2(7)]

An order addressed to a banker requesting him to pay to (a) the person therein mentioned, or his order, or (b) the person therein mentioned, or the bearer of the cheque, the sum of money therein mentioned; defined in the (English) Bills of Exchange Act, 1882, s. 73--by which such provisions of that Act as are applicable to a bill of exchange payable on demand apply also to a cheque--as a 'bill of exchange drawn on a banker payable on demand.

A warrant for the payment of half a year's interest on 5 per cent. War Stock, 1929-47, made out in the usual form of the Bank of England, signed by the Bank's chief accountant, to the order of a specified person was held to be a cheque' within the meaning of that word in the Bills of Exchange Act, 1882 (Slingsby v. Westminster Bank, Ltd., 1931 (1) KB 173). S. 82 of the act affords the banker protection when 'in good faith and without negligence he receives payment for a customer of a cheque crossed generally or specially to himself and the customer has no title or a defective title thereto.' But see Underwood, Ltd. v. Bank of Liverpool, 1924 (1) KB 775; and Lloyds Bank, Ltd. v. Savory & Co., (1933) 49 TLR 116.

As to the effect of stopping a cheque, see Cohen v. Hale, (1878) 3 !. BD 371; and of alteration, Slingsby v. District Bank, 1932 (1) KB 544. See Watson on Cheques; Chalmers on Bills of Exchange. See CROSSED CHEQUE.

Is a bill of exchange drawn on a banker, payable on demand, Halsbury's Laws of England, Vol. 3(1), para 210, p. 176.

Is a bill of exchange drawn on a banker payable on demand. Bill of Exchange Act, s. 73 (UK) Halsbury's Laws of England, Vol. 4(1), para 306, p. 156.