Mere filling up of a date in an undated cheque is not a material alteration rendering the cheque void under Section 87 of the Negotiable Instruments Act, 1881 (NI Act) | If there is no fixed time for repayment, the obligation of repayment at the demand of the Creditor | Can proceedings under Section 138 of the NI Act be initiated against such drawer, if the cheque was given only as a security? – Amarendra Dhari Singh Vs. Rajshree Singh – Delhi High Court

/ 34 minutes of reading

Hon’ble Delhi High Court held that:

(i) Once it is admitted that the amount is repayable, and there is no fixed time for repayment, the obligation of repayment cannot be at the sweet will of the debtor, but at the demand of the creditor.
(ii) Unless there is a contract to the contrary, which may even be oral, the amount is repayable upon the lender’s demand.
(iii) Insertion of the date will not make it a material alteration rendering the cheque void under Section 87 of the Negotiable Instruments Act, 1881.

Mere filling up of a date in an undated cheque is not a material alteration rendering the cheque void under Section 87 of the Negotiable Instruments Act, 1881 (NI Act) | If there is no fixed time for repayment, the obligation of repayment at the demand of the Creditor | Can proceedings under Section 138 of the NI Act be initiated against such drawer, if the cheque was given only as a security? – Amarendra Dhari Singh Vs. Rajshree Singh – Delhi High Court Read Post »