Company directors drew and signed company cheques, but the cheques did not bear the word ‘limited’ or permitted substitute. The cheques were not met and the claimants sued the signatories personally.
Held: The section made the signatory of such a cheque personally liable. Once presented and refused, it became ‘not duly paid’. Under section 45 of the 1882 Act, the drawer was discharged if the cheque was not presented, but under section 46 presentation was sometimes dispensable.
Judges:
Nicholas Warren QC
Citations:
Times 03-Mar-2005
Statutes:
Companies Act 1985 349(4), Bills of Exchange Act 1882 45
Jurisdiction:
England and Wales
Citing:
Cited – British Airways Board v Parish 1979
Once a cheque is presented for payment and payment is refused, the cheque is deemed not ‘duly paid’. . .
Lists of cited by and citing cases may be incomplete.
Company, Banking
Updated: 05 December 2022; Ref: scu.223441