Payment right protected past cheque validity period

  • Published: 16:36 July 14, 2011

SUBJECT
Other

I was given a cheque by another person but the bank of the cheque issuer refused to pay me its value on the grounds that more than six months had elapsed since the encashment date. The bank asked me to ask the cheque issuer to amend the date but I am certain that the individual concerned will not oblige this request.

My question here is whether the bank is legally within its right to turn down the cheque after a period of six months. If this is true, what must I do to redeem the cheque’s value.

As per inter-bank transaction rules, cheques that are more than six months past the encashment date shall not be accepted until the cheque issuer amends the date. But I advise the questioner to try to deposit the cheque in his own account; this way, his bank will inform him regarding the cheque in writing if it is not encashed whereupon he will be in a position to file a complaint with the police.

The questioner may also file a case before the civil court which will oblige the cheque issuer to pay the due amount after the questioner’s right is proved before the court.

Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.

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