Report No. 11x
62. Section 19.-
We have replaced section 19 and the first part of section 21 by a comprehensive provision,1 in the light of section 10 of the Bills of Exchange Act, including the various circumstances in which an instrument is payable on demand.
1. See section 14, App I.
63. We have also engrafted a new provision1 following section 36(3) of the English Act, to explain when an instrument payable on demand shall be deemed to be overdue, for reasons already explained.
1. See Section 5, App I.
64. As stated before, we have added another new provision1 to explain what is meant by "payable at a determinable future time".
1. See section 17, App I.
65. There is no provision in our Act relating to ante-dating and post-dating as in section 13(2) of the English Act. But notwithstanding the absence of such a provision, the Privy Council, in the Bank of Baroda case,1 held that post-dated cheques are not invalid. The practice of ante-dating and post-dating cheques seems to be prevalent in this country, as in other countries, though there is no statutory recognition of such practice in India. One of the Chambers of Commerce has suggested that we should make a provision treating such instruments as valid. We have thought it necessary to give statutory recognition to the practice by inserting a section2 on the lines of section 13(2) of the Bills of Exchange Act. But even in England, ante-dating may amount to forgery where the object is to defraud a third party.3 We have, accordingly, improved upon the English provision by adding that an ante-dated or post-dated instrument will not be valid where it is done for an illegal or fraudulent purpose.
1. Bank of Baroda Ltd. v. Punjab National Bank Ltd., AIR 1944 PC 58.