The legal implications of dishonoured cheques : a local and international perspective

Abstract

The purpose of this thesis is to illustrate and analyse certain legal implications arising from cheques, which are not honoured. In Chapter One a great deal of emphasis has been given to the Definition and Juridical Nature of a cheque. Chapter One is an important exercise which helps to arrive to the conclusion that the provisions relating to bills of exchange found in the Commercial Code should be extended to cheques issued 'to order'. In Chapters Two and Three other legal implications concerning cheques such as the countermanding and the post-dating of cheques are examined and illustrated with case law as well as the criminal implications of dishonoured cheques. These Chapters highlight the deficiency of the law relating to cheques in our Code and until the Legislator intervenes to enact specific provisions, which regulate dishonoured cheques, the use of cheques in Malta would be seriously undermined and this may negatively effect the Maltese economy at large. In Chapter Four the Negotiable Instruments Act of India is dealt with. India, being a Commonwealth Country with a history of British Rule and where most of the law is based on English Statute law, serves as the perfect example of how positive law could efficiently regulate and minimize dishonoured cheques. The final Chapter focuses on some principles, which may form the basis of a new legislation in Malta, which governs dishonoured cheques.