A post-dated cheque is a cheque which contains a later date than the date of its delivery. There is no prohibition in the Negotiable Instruments Act, 1881 against post-dated cheque. The cheque is negotiable and operative. It was also held that in the case of a post-dated payment need not be on the date the cheque bears and the cheque is operative and negotiable in between the date of delivery and the date it bears. It is as much negotiable as cheque for which payment is due immediately on presentation. A cheque is not invalid by reason that it is ante dated or post dated or is dated on a Sunday. Such cheque may be treated as a bill payable on demand.2
It has been held in Anil Kumar Sawhney v. Gulshan Rai that “a post-dated cheque” is only a bill of exchange when it is written or drawn, it becomes a “cheque” when it is payable on demand. The post dated cheque is not payable till the date which is shown on the face of the said document. It will only become cheque on the date shown on it and prior to that it remains a bill of exchange under section 5 of the Act. As a bill of exchange a post dated cheque remains negotiable but it will not become a cheque till the date when it becomes “payable on demand”.
Explore the The Negotiable Instruments Act, 1881 Bare Act PDF to read the official text along with our legal team’s executive summary.
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