Ram Rattan v Parma Nand
AIR 1946 Lahore 16619461 min read
The case in brief30-second read
- Facts
- An instrument was drawn on a bank payable on demand but was described as a "hundi" rather than a "cheque" The question arose whether it attracted the provisions applicable to cheques under the NI Act.
- Issue
- Whether an instrument meeting all essentials of S.6 (drawn on a specified banker, payable on demand) is a cheque regardless of its nomenclature.
- Held
- S.6 requires: drawn on a specified banker + payable on demand. If both conditions are met, the instrument is a cheque by law regardless of what the parties call it. The label ("hundi," "order," etc.) is irrelevant. Substance prevails over form.
- Principle
- An instrument drawn on a bank payable on demand is a cheque under S.6 regardless of the name given to it; substance prevails over form
Facts
- An instrument was drawn on a bank payable on demand but was described as a "hundi" rather than a "cheque"
- The question arose whether it attracted the provisions applicable to cheques under the NI Act
Issue
- Whether an instrument meeting all essentials of S.6 (drawn on a specified banker, payable on demand) is a cheque regardless of its nomenclature.
Held
- S.6 requires: drawn on a specified banker + payable on demand. If both conditions are met, the instrument is a cheque by law regardless of what the parties call it. The label ("hundi," "order," etc.) is irrelevant. Substance prevails over form.
Ratio decidendi
An instrument satisfying the S.6 definition is a cheque regardless of nomenclature. The legal character is determined by substance (drawn on banker + demand), not by the label given by parties.
Exam use
How to use it in an answer
Use for S.6 definition questions and substance-over-form principle. Key line: "If drawn on a banker and payable on demand, it is a cheque under S.6 regardless of the name used."
Cite this
Citation
Ram Rattan v. Parma Nand AIR 1946 Lahore 166Reported: AIR Lahore. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.