Para 5.2.5 — CAM
Original Rule Text
(xi) In case of expiry of the currency of a cheque the same may be inquired into and retrieved by the CDDO. However, revalidation of a time barred cheque is not permissible regardless of the date of its drawal. The provisions of Para 5.2.5 may be strictly followed for the cancellation of the time barred cheques and issue of fresh cheque in lieu thereof. In the event of non-return of the time-barred cheque to the drawer, the drawer should require the payee either to return the cheque for cancellation or issue of fresh cheque in lieu thereof. (Rule 16 of R&P Rules, 2022).
(xii) When it is necessary to issue a fresh cheque in place of the time barred cheque, cancellation of time barred cheque must be recorded in the cheque issue register and then the cheque must be cancelled. In case fresh cheque is not required to be issued, the cheque should be defaced/cancelled as above and forwarded to the PAO. The entries in the accounts should simultaneously be suitably reversed Para 3.9 (2) to (4) of Subsidiary Instructions to R&P Rules, 2022).
(xiii) The CDDO may receive request for issue of fresh cheque/ electronic payments in place of a cheque/ electronic payments issued by him earlier on the grounds that it has been lost/failed. If request for issue of fresh cheque is made within a period of three months from the date of issue of original cheque, he should send intimation to the bank on which it has been drawn, regarding the reported loss of the cheque and advise it to stop payment if the cheque is presented for payment thereafter. If the currency of the cheque has not expired at the time of sending the intimation, the bank shall acknowledge in writing in the form given in para 5.4.1 of chapter 5 of this manual. If the currency of the cheque alleged to have been lost has expired at the time of intimation to the bank, the acknowledgement of the 'stop payment order' may not be insisted upon from the bank. In such cases the intimation to the bank is sufficient for the record of the CDDO. The CDDO on receipt of intimation from the bank or record of intimation sent to bank in case of expired cheques will send a copy of the same to the PAO, for issue of a non-payment certificate.
3.5.2 The PAO concerned on receiving a copy of this intimation from the said CDDO, will issue a non-payment certificate after verification of his relevant records i.e. Register of Cheques
delivered, etc. and after keeping a suitable note against the relevant entry in that register. The non-payment certificate will be in the following form:
" Certified that cheque No.......dated.........for ₹...reported by..........(the drawing officer) to have been drawn by him on.......branch of......bank in favour of......has not been paid".
What This Means
This para deals with time-barred and cancelled cheques issued by CDDOs. A cheque that has expired (past its 3-month validity) cannot be revalidated under any circumstances. The CDDO must cancel it in the cheque issue register and issue a fresh cheque following the procedure in Para 5.2.5. If the payee does not return the time-barred cheque, the CDDO must require them to either return it for cancellation or request a fresh cheque. If no fresh cheque is needed, the time-barred cheque must be defaced/cancelled and forwarded to the PAO with the accounts entries reversed. The CDDO may also receive requests for fresh cheques or electronic payments in place of earlier cheques or e-payments that were returned undelivered or failed, in which case a similar cancellation-and-reissue procedure applies.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Revalidation of time-barred cheques is never permissible, regardless of when they were drawn
- 2Time-barred cheques must be cancelled in the cheque issue register and a fresh cheque issued if needed
- 3If the payee does not return the expired cheque, the CDDO must formally request its return or a fresh cheque request
- 4Defaced/cancelled cheques not requiring reissue must be forwarded to the PAO with accounts entries reversed
- 5Failed electronic payments follow a similar cancellation-and-reissue procedure
Practical Example
A supplier received a government cheque of Rs 1 lakh in January but forgot to deposit it. In May, when the supplier tries to deposit it, the bank rejects it as time-barred (past 3 months). The supplier contacts the CDDO requesting a fresh cheque. The CDDO requires the supplier to return the expired cheque, cancels it in the Register of Cheques Issued, reverses the original accounting entries, and issues a fresh cheque. If the supplier had lost the original cheque, the CDDO would require them to submit a declaration before reissuing.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can a time-barred government cheque be revalidated?▼
What is the validity period of a government cheque?▼
What if the payee does not return the expired cheque?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.