The Supreme Court on Friday stated that Covid-19 lockdown won’t influence the three-month interval of validity of the cheques.
A 3-judge bench, headed by Chief Justice of India (CJI) Sharad Arvind Bobde, was contemplating request of extension of timelines underneath numerous legal guidelines.
When the query got here on extension of three-month interval of validity of cheques, the Reserve Bank of India (RBI) knowledgeable the courtroom that the identical shouldn’t be performed as it could influence banking actions.
The bench, additionally comprising Justices R Subhash Reddy and AS Bopanna, accepted RBI suggestion and stored the three-month validity interval of cheque intact.
The RBI has mounted validity interval of cheque underneath Section 35A of the Banking Regulation Act. The courtroom famous that each one banking techniques throughout the nation comply with this prescribed interval and there’s no have to intrude with the identical.
The central authorities ordered beginning financial actions within the nation after an over two-month-long lockdown in phases. While the primary section of leisure, referred to as Unlock 1, started on June 1, the second of the three phases got here into pressure from July 1.
Though appreciable relaxations have been given by the federal government in Unlock 2, there aren’t any concessions for containment zones. The authorities advisory stated that lockdown shall proceed to be carried out strictly within the containment zones until July 31. Within the containment zones, strict perimeter management can be maintained and solely important actions are allowed.