Citizen Media Watch

december 15th, 2020

Post Dated Agreement

Posted by lotta

The $1 million sola change that I am preparing for this client to deliver to his benefactor, the actual date the funds were wired, was legal. It was created to document or commemorate an earlier oral agreement on the repayment of funds. A document backdated to obtain a more favourable legal result is probably illegal. For example, if a document is signed in January but goes back to December to get some tax deduction, it is probably illegal and can be criminal. The applicant asked the Delhi High Court to quash the grievances on the grounds that the dishonour of the cheques issued under the guarantee does not fall under Section 138, because: (a) the cheques were given back as collateral; and (b) no debt or liability is due at the time the cheques are issued. Accordingly, the applicant submitted that the cheques were amounts to be paid in the future. The Delhi Supreme Court rejected this assertion. This case was challenged in the Supreme Court, where it was asked whether, with respect to the facts, the dishonour of loan advance repayment cheques, also known as ”guarantee” in the loan agreement, was covered in Section 138. The Tribunal emphasized the specificity of the case, as established in point 3.1(iii) of the loan contract as an example of coverage for the execution of cheques ”for the repayment of monthly payments by appointment and on the interest rates payable”.

It was found that the payments, as soon as they expired on the day of the loan agreement cheques, would be within the scope of Section 138. While Juzek`s entrepreneurial spirit is worth an article of its own, I found it interesting to read, in juzek`s history research, that he reissued the labels in his instruments. They contained his own name, but a completion date about five years earlier than the actual date on which the instrument was completed. The Supreme Court, based on the relevant terms of the loan agreement between the parties, held that the decision on whether to determine a post-dated cheque for ”debt relief or liability” depended on the nature of the transaction. This article explains when legal documents can be retrodated and, if appropriate, it is legally possible to do so. Thus, the court, at the time of rejecting the claim, decided that if the liability or debt was in place or if the amount became final at the time of the post-born cheque, section 138 was attracted. Despite the general conviction, the return of documents is not necessarily illegal. In fact, it is allowed for so long that there is a Latin expression, nunc pro tunc, which describes the backdated documents. ”This contract is August 31, 2018 (effective date), although the parties may have executed it before or after that date.” In light of that case, the provisions of Section 138 are attracted when a post-dated cheque, albeit known as a ”guarantee,” is effectively issued as an unloading or satisfying debt or outstanding debt, to the extent that the intention and purpose of issuing the post-born cheque does not correspond to the ”safety” nomenclature issued to it.



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