As per the contractual terms, the cheque payment is agreed in different installments. In order to avoid further complications, we received suggestion that it is safe to do certification of cheques. Please advice on the legal validity of certification.
As per Article 566 of the Trade regulation law, the drawer has right to get the certification of cheque. Such certification shall confirm the availability of sufficient funds with the drawee to pay on the date of certification and the signature by the drawee on the face of the cheque shall be considered as certification. The funds for payment of a certified cheque shall remain blocked with the drawee for payment upon presentation of the cheque. The funds against payment of the certified cheque shall remain frozen with the drawee and under his responsibility in favour of its bearer, until the end of the period set for presenting the cheque for payment.