Essential Ingredients of a Cheque
Any bank account holder with a bank account in the particular bank is eligible to issue the cheque. Giving the cheque in favour of another person means he becomes a maker or drawer of the cheque. If a drawer desire, he may also write a cheque for self-withdrawal of money. And he directs his bank to pay the amount mentioned explicitly in the person’s name on the cheque. We should know some main essential ingredients of the cheque, which are given below;
(1) the cheque must be issued in writing form like written in ink pen, typed or printed. There is no value in oral order or oral directing not treated as a cheque.
(2) The cheque must be drawn by a drawer when his account is available.
(3) The cheque must be drawn from a drawer in his bank where his account is available.
(4) The cheque must be signed by a drawer while issued to another person.
(5) The drawer must mention the particular amount in the figure and the words.
(6) The drawer must mention the name of the party eligible to encash the cheque.
(7) The drawer must mention the particular date on the cheque Eg. Date, month and year, so that it will help to count the validity and expiration of the cheque.
Also Read:
How to draft a Cheque Bounce Notice under Section 138 of NI Act?
What is the effect if Drawer’s Signature differs can it attract to cheque bounce case?
