WHATS IS THE POSTED CHEQUI AND THERE REMEDY

A posted cheque refers to a cheque that has been written and dated for a future date rather than the current date. It is also known as a post-dated cheque. The payee cannot cash or deposit the cheque until the specified future date.

Remedies for Issues Related to a Posted Cheque

1. If the Cheque is Cashed Before the Due Date:

• The drawer (person who wrote the cheque) can request the bank to stop payment if they notice early encashment.
• If the bank processes it before the due date, the drawer can file a complaint with the bank for wrongful payment.
• Legal action may be taken against the bank for failing to honor the post-dated nature of the cheque.

2. If the Cheque Bounces (Dishonored Cheque):

• The payee can send a legal notice to the drawer within 30 days.
• If the drawer does not respond or make the payment, the payee can file a case under Section 138 of the Negotiable Instruments Act (in India) or the relevant cheque laws in their country.
• The drawer might face penalties, fines, or even legal prosecution if the cheque was intentionally issued without sufficient funds.

3. If the Drawer Wants to Cancel the Cheque Before the Due Date:

• The drawer can issue a stop payment request with their bank.
• However, if the payee has already relied on the cheque (e.g., as part of a business transaction), they might sue the drawer for breach of contract.