The Top Court on Friday said that Covid-19 lockdown willn’t impact the three-month period of validity of the cheques.
A three-judge bench, headed by CJI Sharad Arvind Bobde, was considering request of extension of timelines under various laws.
When the question came on extension of 3 month period of validity of cheques, the Reserve Bank of India (RBI) informed the court that the same shouldn’t be done as it would impact banking activities.
The bench, also comprising Justices R Subhash Reddy & AS Bopanna, accepted Reserve Bank of India (RBI) suggestion & kept the 3 month validity period of cheque intact.
The Reserve Bank of India (RBI) has fixed validity period of cheque under Section 35A of the Banking Regulation Act. The court noted that all banking systems across the country follow this prescribed period & there is no need to interfere with the same.
Read also : Writ Petition Seeking CBI Probe Against Kerala CM In Gold Smuggling Case To Be Treated As PIL: HC
The central govt ordered starting economic activities in the country after an over two-month-long lockdown in phases. While the 1st phase of relaxtion, called Unlock 1, began on June 1, the 2nd of the three phases came into force from July 1.
Though considerble relaxations have been given by the govt in Unlock 2, theare are no concessions for containment zones. The govt advisory said that lockdown shall continue to be implemented strictly in the containment zones till July 31. Within the containment zones, strict perimeter control will be maintained & only essential activities are allowed.
Source Link
