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negotiable instruments act

Suresh Pai S (Tax Consultant) (1029 Points)

01 April 2017

what is the use of a marked cheque?

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marked check. A check marked 'good for payment', sometimes by means of a special stamp, and guaranteed by the bank on which it is drawn. The issuer of the check is thereby acknowledged to have sufficient funds to cover the payment. See also certified check.

Suresh Pai S (Tax Consultant) (1029 Points)
Replied 01 April 2017

But if he later withdraws the money there is no use of this marking. Court has ruled that marking of a cheque gives assurance that the funds were available only when it was marked. It cannot be taken as an assurance for the cheque. Then what is the use of the same?