Legal Question in Banking Law in India

cheques signed in March, April, date in May 2006 signed by either of the joint holders presented for payment within six months of the date those bear have to be honoured notwithstanding the change of operation on the date in May 2006. The date of the cheque is material. We have not come across any articles or RBI guidelines which prescribe that the cheques to be honoured only when they bear the signatures required/altered after the dates of cheques concerned. The Bank was not in orde in dishonouring the cheque in the question posed. In many companies the authorized signatory is changed from time to time. The Bank has only to see that the concerned signatory as on the date of cheque has signed the same. That is it.

I agree.

I agree with Shri J. Radhakrishnan

The mode of operation prevalent on the date of presentment of cheque only will have to be followed by the Bank.

For example, if in a either or survivor account if one person dies, then the other person can validly claim that cheques (signed by the deceased when he was alive )presented to the Bank after the death of the drawer, should not be honoured.