''Cheque''
Section 6 of the Negotiable Instruments Act, 1881 deals with ''Cheque''. [A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form. The Act came into force on 01 Mar 1882.
1[A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.
Explanation I.-- For the purposes of this section, the expressions
2[(a) a cheque in the electronic form means a cheque drawn in electronic form by using any computer resource and signed in a secure system with digital signature (with or without biometrics signature) and asymmetric crypto system or with electronic signature, as the case may be;]
(b) a truncated cheque means a cheque which is truncated during the course of a clearing cycle, either by the clearing house or by the bank whether paying or receiving payment, immediately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing.
Explanation II. -- For the purposes of this section, the expression clearing house means the clearing house managed by the Reserve Bank of India or a clearing house recognised as such by the Reserve Bank of India.]
3[Explanation III. -- For the purposes of this section, the expressions asymmetric crypto system, computer resource, digital signature, electronic form and electronic signature shall have the same meanings respectively assigned to them in the Information Technology Act, 2000 (21 of 2000).]
Section 6, The Negotiable Instruments Act, 1881 (Act 26 of 1881).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Punjab & Sind Bank vs Vinkar Sahakari Bank Ltd.
Court's Decision & Legal Precedent
A Pay Order issued by a bank is a cheque within the meaning of Section 138 of the Negotiable Instruments Act, 1881, and the holder of such Pay Order has the legal standing to file a criminal complaint for dishonour. The fact that the drawer and drawee are the same banking institution does not prevent the instrument from being a cheque when held by a third party. The holder is presumed to be a holder in due course under Section 118(g) unless the contrary is proved, and such presumption cannot be rebutted at the stage of quashing the complaint but only during trial.
On this section: Definition of cheque as bill of exchange drawn on specified banker payable on demand; court applied this to determine Pay Order status
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Mithi Interiors P.ltd. Thr. Its Director vs Esscon Engineers P.ltd., Anr.
Court's Decision & Legal Precedent
A cheque which is not validly signed in accordance with the bank's joint-signatory authorisation does not answer the description of a cheque under Section 6, and a Section 138 complaint founded on such an instrument fails for want of an essential ingredient; the payee's knowledge of the mandate was treated as relevant.
On this section: Companion leave petition applying the same Section 6 test of a validly drawn cheque to the second dishonoured instrument in the series.
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Mithi Interiors P.ltd. Thr. Its Director vs Esscon Engineers P.ltd., Anr.
Court's Decision & Legal Precedent
Where the bank mandate required the account to be operated jointly, a cheque signed by only one of the authorised signatories is not a validly drawn cheque within the definition in Section 6, so an essential ingredient of the offence under Section 138 is absent and the acquittal was not disturbed.
On this section: Uses the Section 6 definition as the test of whether an instrument is a 'cheque' at all, holding that authority to draw in the manner the bank mandate prescribes is part of that definition.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 6
What have the courts held on Section 6 of the Negotiable Instruments Act?
Punjab & Sind Bank vs Vinkar Sahakari Bank Ltd. (17 Sep 2001) is the leading judgment on this section among those set out below: Definition of cheque as bill of exchange drawn on specified banker payable on demand; court applied this to determine Pay Order status. Another 2 judgments on this section are set out below, 1 of them from the Supreme Court. They run from 2001 to 2011.
How do I find court cases under Section 6 of the Negotiable Instruments Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: NI Act 6, section 6 NI Act, section 6 of the Negotiable Instruments Act. People searching for it also type negotiable instrument act 6. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Punjab & Sind Bank vs Vinkar Sahakari Bank Ltd. (17 Sep 2001).
What should I read with Section 6 of the Negotiable Instruments Act, and has it changed?
4 other provisions in this corpus refer back to it.
When did Section 6 of the Negotiable Instruments Act come into force?
Section 6 of the Negotiable Instruments Act, cited as NI Act 6, came into force on 01 Mar 1882, having been enacted on 09 Dec 1881. It is in force as at the date shown on this page.
Other sections of this Act
- 138. Dishonour of cheque for insufficiency, etc., of funds in the account312 words
- 142A. Validation for transfer of pending cases299 words
- 143. Power of Court to try cases summarily297 words
- 143A. Power to direct interim compensation291 words
- 142. Cognizance of offences290 words
- 141. Offences by companies287 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.