Kinds of Cheques || How many types of Cheque || Classification of Cheque

Cheque maybe classify it into the following kinds:-

i)  Stale Cheque or Out-dated cheque : A cheque to be honoured, it has to be presented within 6 months from the date of the cheque. If the cheque is presented for payment beyond the 6 months, it is said to be the Stale or Out-dated Cheque. However, an out-dated or Stale cheque may be accepted by the banke for payment if the drawer/customer gives consent to make the payment. Such consent is subject to the period of limitation, which is 3 years. In other words, the drawer of the cheque has to give his consent within 3 years. The period of limitation is 6 years in England.

G. Balakrishna vs. The Official Assignee, Madras & others: It was held in this case that if a cheque is presented beyond 6 months, the holder of the cheque cannot have recourse to the drawer and is not entitled to claim payment agains such cheque.

ii) Ante-dated Cheque: A drawer while drawing cheque gives the date in that cheque prior to the date on which it is drawn (prior to the date means back date). It is called ante-dated cheque. Banker can accept such cheque, if it does not exceed 6 months period.

iii) Mutiliated Cheque: A cheque which is cut into many pieces is called mutilated cheque. The drawee bank should see in honouring a cheque, whether it is mutilated, cancelled or torn. If the cheque is torn into two or many pieces, it should be returned with the remark 'mutilated cheque'. If he is satisfied that the mutilated cheque gets the original shape of the instrument, he may accept the cheque.

In Hongkong Shanghai Banking Corporation v. Loo Lee Shi (AIR 1928 P.C.), it was held that if a cheque is torn accidentally either by the drawer or by the holder, the drawer must confirm it.

iv) Post-dated cheque : Drawer of a cheque gives the date in the cheque later or after the date on which it is drawn. It is known as post-dated cheque. The banker must accept the post-dated cheque only after the ostensible date given on the cheque. If he accepts before, he has to face many consequences.