Can An Employer Take A Blank Cheque From An Employee - CiteHR
Human Resource
Leena Soinde
Sr. Hr Manager
+2 Others

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Please tell me, Can an employer take a blank cheque from an employee before joining as security.
legal validity? how does law view this act, is it an offence?
please tell me in detail,

Thanks mr. stephen, I want to know how law is attracted and under which act and which section? Can we not take a blank cheque for security. that too if the employee is dealing cash.
Dear Skariah,
Giving a blank cheque attracts provisions of Section 138 Negotiable Instruments Act, Order XXXVII Civil Procedure Code meaning there by that some admitted debt is due and payable. In the instant case at hand the blank cheque is being given (presumably in good faith or otherwise under duress) for which no cause has arisen as yet.
I hope this is enough to satisfy your query.

Dear Mr. Deepak, Thank you so much for the info, i will go through the sections and order, if there is any doubt i will again disturd u. regards skariah
can anybody tell me, what kind of documents the employer has to execute, when he wants to appoint a staff who is going to deal with cash collection, deposit, and cash in his custody may be 2 or more days. if not blank cheque, then an agreement or surety bond? please let me know if are in to that field. how to protect the interest of the institution?

Dear skariah, Not only employer, no body can take an blank, undated cheque from any one. It is against the Indian Law.
Dear Skariah,
In case as per your query the staff appointed is going to deal with cash collection, deposit, and cash in his custody with a view to protect the interest of the institution may be asked to give surity bond by a guarantor or in the alternative the institution can require the employee to furnish indemnity bond (with a proviso that the same should not be invoked for any bonafide act done in good faith). Hope this satisfies your query. Last but not least please for even a second don't even think of disturbing, this is a learning exercise for all of us.

Dear Mr. deepak and Mr. Mahesh,
thanks, ya in that case i would like to forward an agreement, please let me know whether this agreement will stand in the court of law. if you think it is ok please let me know and if not what else to add to make it pakka.
please see the attachment.

Attached Files
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File Type: doc AGREEMENT- surety.doc (43.0 KB, 403 views)

Dear Skariah,
Oops I skipped to mention that to make the Agreement Pakka let it be Registered with local sub registrar office or in the alternative let the same be printed on Stamp paper of Rs.100/- duly notarized.

This agreement cannot be enforced unless you prove the employee
guilty of misappropriation. you have to explain what is misappropriation,
who is the authority to decide misappropriation etc in the document

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