Post-Dated Cheque Policy

This Post-Dated Cheque Policy is effective dated: June 01, 2024

Control Document: GEF-PP-015, Ver. 1.0

Purpose

This policy outlines the procedures and legal considerations for submitting post-dated cheques (PDCs) on galaxefi, ensuring compliance with Pakistani laws, specifically Section 489-F of the Pakistan Penal Code (PPC) and the Negotiable Instruments Act, 1881.

Click here to: Request legal assistance under PPC Section 489-F

Scope

This policy applies to traders and service providers involved in the issuance, acceptance, and processing of post-dated cheques.

Definitions

  • Post-Dated Cheque (PDC): A cheque issued with a date later than the current date.
  • Dishonored Cheque: A cheque that the bank returns unpaid due to insufficient funds or any other reason.

Legal Framework

According to Section 489-F of the Pakistan Penal Code (PPC):

  • Dishonest Issuance: Issuing a cheque dishonestly for repayment of a loan or fulfillment of an obligation which is subsequently dishonored.
  • Punishment: The penalty for issuing a dishonored cheque includes:
    • Imprisonment for up to three years.
    • A fine, with no specified limit.
    • Both imprisonment and a fine.

Policy Guidelines

Issuance of PDCs

  • Traders should ensure that funds are available in the account on the due date.
  • Electronic copy of the PDCs are to be uploaded on the platform.
  • Credit cannot be granted if the instrument (cheque) is physically received by the service provider.

Acceptance of PDCs

  • After verification of the available credit limit for a trader, the new credit will be issued accordingly.
  • It is up to the sole discretion of the service provider to accept or reject PDCs.

Processing and PDC Presentation

  • PDCs are matured after and on the due date and hence will be presented in the bank.
  • Platform monitors the clearance of the PDCs through the related service provider.

Communication

  • Clarity and Transparency: Providing clear, accurate, and timely information to customers.
  • Professionalism: Maintaining a professional demeanor in all interactions with customers.

Handling Dishonored Cheques

  • If a cheque is dishonored, immediately it will be informed to the trader for its resolution IRR (Instrument Replacement Request) type I or type II as the case may be.
  • If the issue is not resolved promptly, the service provider will escalate the matter as per the legal procedures outlined in Section 489-F of the PPC along with all the actions taken in response to a dishonored cheque as they are maintained by the platform.

Legal Action

  • In cases of dishonored cheques, consider pursuing legal action under Section 489-F of the PPC.
  • Coordinate with legal counsel to ensure compliance with all legal requirements and to handle any legal proceedings.

Service Provider Responsibility

  • Service Providers must adhere strictly to this policy and report any violations or concerns to galaxefi’s legal department.
  • Training will be provided to all relevant stakeholders to ensure understanding and compliance with this policy.

Indemnification

  • galaxefi shall not be liable for any losses or damages incurred by any party due to the dishonor of a post-dated cheque.
  • The issuer of a dishonored cheque agrees to indemnify and hold galaxefi harmless from any claims, demands, or legal actions arising from the dishonor of such cheques.
  • galaxefi assumes no responsibility for the consequences of any errors or omissions in the processing of PDCs and disclaims all liability in connection with the use of PDCs.

Penalties for Non-Compliance

Traders found to be in violation of this policy may face legal action, up to and including the filing of an FIR (First Information Report) with the police, which may subsequently result in a court case.

Legal Safegaurd

Please refer to the legal safeguards provided by our platform.

Policy Review and Updates

This policy will be reviewed annually and updated as necessary to ensure continued compliance with Pakistani laws and the operational needs of galaxefi.

Quick Contact

By using our Services, you acknowledge that you have read, understood, and agree to comply with this Post-Dated Cheque Policy. For questions or concerns about this Policy, please use the following form: