A post-dated cheque (PDC) is a cheque dated for a future day. Under the NI Act it becomes a cheque payable on demand only on that date and cannot be presented before it; it then stays valid for three months from the date written. If it is dishonoured on presentation after that date, Section 138 applies in the usual way: notice within 30 days of the return memo, 15 days to pay, complaint within a month.
How post-dated cheques work in India
The supplier receives the PDC when goods are delivered, often one per instalment. It records the cheque details against the invoice. On or after the date written, the supplier deposits it; the bank processes it in clearing. If funds are available it is paid; if not, the memo is issued and the Section 138 process begins. Because a cheque is valid for three months from its date, a PDC dated 1 June can be presented until 31 August. Banks are not obliged to honour a PDC presented before its date and will return it marked "post-dated", which is not a dishonour.
- Record cheque number, date, amount and bank against each invoice.
- Set a reminder for the cheque date and present promptly.
- If the buyer asks you to hold the cheque, get the request in writing; it is evidence of the debt.
Why it matters for getting paid
A PDC converts an invoice into a negotiable instrument with criminal consequences for non-payment. Suppliers without PDCs must prove the debt through invoices and delivery proof in a civil court; suppliers with PDCs start with the Section 139 presumption that the cheque was issued for a debt. For trades with long credit, asking for PDCs at delivery is the single most useful credit control step. See Section 138 and the cheque bounce timeline calculator.
How FundRaksha uses it
When a client holds PDCs, FundRaksha's advocate checks dates and validity, advises on presentation (and re-presentation within validity if needed) and runs the Section 138 process the moment a memo is issued. Clients are also advised to take PDCs in future. FundRaksha has handled ₹50 Cr+ of invoices, a large share secured by PDCs; the fee is 30% of recovery.
Worked example (hypothetical)
A Tiruppur garment maker delivers ₹9,00,000 of goods on 1 March and takes three PDCs of ₹3,00,000 dated 30 April, 31 May and 30 June. The first is honoured. The second is deposited on 2 June and returned "funds insufficient" on 4 June. Notice is sent on 7 June and received 10 June; payment due 25 June; the complaint window runs to 25 July. The third PDC is presented on 1 July and also bounces, starting a second cycle. Two complaints follow, each with a 20% interim compensation application (₹60,000 each). The buyer settles both for ₹6,00,000 plus ₹40,000 towards costs.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.