Here are the top 10 questions that the judiciary typically asks to verify the legitimacy of a bill of exchange or cheque when it is presented as a non-acceptance. These questions help the judiciary systematically verify the validity and authenticity of a bill of exchange or cheque before accepting or rejecting it.
- Is the cheque or bill properly signed by the drawer or maker?
(To confirm authenticity and proper execution.) - Does the cheque or bill contain all the necessary elements required by law, such as the date, amount, payee, and signature?
(To ensure compliance with statutory requirements.) - Was the cheque or bill issued for a lawful and valid purpose?
(To verify legality and prevent issuance for illegal transactions.) - Was the cheque or bill presented within the statutory period for presentation?
(To determine if presentation timing affects validity.) - Is there sufficient funds or credit available at the time of presentation?
(To assess the likelihood of a valid payment obligation.) - Are there any signs of forgery, alteration, or fraud on the instrument?
(To establish authenticity and prevent fraudulent claims.) - Was the cheque or bill issued in accordance with the formalities prescribed by law?
(To verify whether the instrument meets statutory formality requirements.) - Has the drawer or maker previously authorized the transaction or the issuance of the cheque or bill?
(To confirm legitimacy of the transaction underlying the instrument.) - Was the cheque or bill presented for acceptance or payment within a reasonable or statutory period?
(To ensure timely presentation, as delays may invalidate the instrument.) - Are there any disputes, defenses, or irregularities that justify non-acceptance?
(To evaluate if defenses such as fraud, duress, or forgery are valid reasons for non-acceptance.)
