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I have given a blank cheque and an agreement for employment for 1 year. But I didn't signed the cheque. Now he is saying that he will default the cheque. Is it possible
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Hi, I am manikanth. I worked in a start-up where I signed an employment bond and gave a blank cheque. I left the job after 3 months. Now he is saying he will default the cheque. But I didn't signed the cheque. So is it valid
If you have not signed the cheque how can it encashed ?
the amount column was not filled in?
An unsigned cheque does not carry any obligation and no action would lie against you under the Negotiable Instrument Act 1881. But be sure about it!!!
The unsigned cheque does not carry any value. Your employer can not present this cheque before bank for encashment since it is a void instrument.
Further, the account holder can also send instruction to bank for "Stop Payment" or ' Hold'.
Stop payment would not be appropriate.
It is unsigned and the said cheque has no financial value.
I hope you did not able to grasp the thing, why stop payment option was suggested as an assurance that person concern is safe. It was nothing rather suggested to understand that cheque issuer has got option to hold the payment, even if a signed cheque.
Please understand that issuance of stop order is not all that simple thing.
It has a legal meaning.
Read this link for general info.
Though due to lack of signature the cheque in this case is worthless.
Stop payments cannot be issued without valid cause..
Having regard to the widespread practice of issuing cheques which are dishonoured and the many ingenious methods of avoiding payment that are practiced, the Legislature has opted for a non-nonsense situation.(Sec 138 NI act and court judgements)
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