1. A
TEAM
SIKORSKY
PRODUCTION
CHEQUES

2. GROUP MEMBERS NAME & ID :

3.  Essentials:
 Instrument in writing
 Contains unconditional order
 Drawn by the Drawer
 Drawn upon a specified banker
 To pay a certain sum of money
 Payable on demand
 It is signed by the maker

4.  Cheques
Order
cheque Bearer
cheque
Blank
cheque
Stale
cheque
Multilated
Cheque
Post dated
cheque

5. 
Cheque
open
cheque
Crossed
cheque
Gift cheque
Traveller‟s
cheque

6. Parties of cheque:
 Parties of cheque are –
Drawer
PayeeDrawee

7.  Receipt need not be obtained
 Convenient to receive money
 Near money
 Endorsable
 No need of counting
 An automatic record is maintained

8.  Material alteration:
 addition to or deletion of text from a legal
instrument that significantly changes its legal
sense or effect may thus invalidate it.
examples of material
alteration
1.The date
2.the sum
3.The place
4.The name
5.The crossing
6.The rate of interest

9. Authorised
alteration
Non-
material
alteration
 Examples of Authorised alteration:
 1.Filling blanks, 2. blank
endorsement
 3.Acceptance conditional
 4.General crossing
 5.Consent of parties
 Examples of Non-
material alteration:
 1.Correcting mistakes, 2.Intention
of original parties,
 3.Consent of parties
 4.Result of an accident

12.  Besides the above two types of crossing, in
recent years, the following types of crossing
have been developed
 1. “Not Negotiable” crossing
 2.Restrictive crossing or Account payee
crossing
 3.Double crossing

13. ENDORSEMENT:
WRITING ON THE BACK OF THE INSTRUMENT FOR THE
PURPOSE OF NEGOTIATION.
Essentials of a valid
endorsement:
On the back or face or on allonge
Made by maker/holder
Signed by endorser
Shouldn’t be partial
Completed by delivery
Made in ink

14.  1.Blank or General Endorsement
 2.Special or full
 3.partial or invalid
 4.Restrictive
 5.Conditional or qualified
Pay „X‟ or
order
Pay to the
order of „X‟
Sans recourse
facultative
Sans Frais

15.  Transfer of property
 Right to sue the acceptor
 Right to recover from endorsee
 Right of further negotiation
LEGAL EFFECTS OF AN
ENDORSEMENT :

16. DIFFERENCE BETWEEN BILL OF EXCHANGE AND
CHEQUE
CHEQUE BILL OF EXCHANGE
Drawee : drawn on banker
Payable on demand : always
on demand
Days of grace: three days
Acceptance : no acceptance
required
Notice of dishonor: not
necessary
 Any person/banker
 Demand and expiry
No grace days
Need acceptance
Necessary

17. DIFFERENCE BETWEEN BILL OF EXCHANGE &
CHEQUE
CHEQUE BILL OF EXCHANGE
 Crossing : crossed
generally or specially
 Stamping : doesn’t require
stamping
 Discounting : cant be
discounted
 Can not be crossed.
 Must be stamped
 Can be discounted

18. Holder:
Any person who have the possession of the instrument
and also the right to recover money in his own name.
 Holder In Due Course:
 “Bonafide holder for value without notice”. And also
becomes a possessor for consideration.
 Consideration for becoming a holder
in due course :
 Valuable consideration on value
 Legal method
 Holder before the date of maturity
 Holder in good faith

19. Privileges of a holder in due course:
 Title free from equities
 Cured of all defects
 Liability of prior parties
 Rights in case of fictitious bills
 Estoppel against
Denying original
validity
Denying the
capacity
Endorser to deny
capacity of prior
parties

20. Difference between holder and
holder in due course
Holder in due course Holder
 Entitlement: acquires his
possession
 Consideration :
consideration is a must
Maturity : before maturity
Title : free from defects
 Entitled in his own name
 Not necessary
After maturity
Doesn’t acquire good title

21. Difference between holder and
holder in due course
Holder in due course Holder
 Presumption: bound to
be a holder
 Recovering: liabilities of
prior parties
 Privileges: Free from all
equities
 Cant be a holder in due
course
 Can recover the amount
 No special privileges

22. THANK YOU ALL 