Post-dated cheques remain negotiable instruments, excluding advances against them from the Bombay Money Lenders Act loan definition.

A post-dated cheque retains the character of a negotiable instrument because it is a bill of exchange drawn on a banker and payable on a future date. On that basis, an advance made against such a cheque falls outside the definition of "loan" under the Bombay Money Lenders Act. The commentary notes that this exclusion supports maintainability of a suit for recovery of the advance, with post-suit interest considered reasonable at the rate stated in the text. The central legal point is that post-dated cheques are treated as negotiable instruments for the statutory exclusion applicable to advances made against cheques.

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Issues: (i) Whether a post-dated cheque is a negotiable instrument within the meaning of the Negotiable Instruments Act and the Bombay Money Lenders Act; (ii) whether an advance made against post-dated cheques falls outside the definition of "loan" under the Bombay Money Lenders Act so as to sustain the suit.

Issue (i): Whether a post-dated cheque is a negotiable instrument within the meaning of the Negotiable Instruments Act and the Bombay Money Lenders Act.

Analysis: A cheque is a bill of exchange drawn on a specified banker and payable on demand. A post-dated cheque does not become enforceable until the date mentioned on it arrives, but it remains a bill of exchange drawn on a banker and therefore retains its character as a negotiable instrument. The statutory definition of negotiable instrument includes a bill of exchange payable at a future date.

Conclusion: A post-dated cheque is a negotiable instrument.

Issue (ii): Whether an advance made against post-dated cheques falls outside the definition of "loan" under the Bombay Money Lenders Act so as to sustain the suit.

Analysis: The statutory exclusion for advances made against cheques applies where the advance is made against negotiable instruments of the kind contemplated by law. Since post-dated cheques are negotiable instruments, the advance made against them is not a loan within the mischief of the Bombay Money Lenders Act. The plaintiff could therefore not be non-suited for want of compliance with that Act. As regards relief, the amount advanced was Rs. 1,410, interest before suit was not payable, and interest from the date of suit at 9% per annum was found reasonable.

Conclusion: The advance was not a loan within the Bombay Money Lenders Act, and the suit was maintainable for recovery of Rs. 1,410 with interest from the date of suit at 9% per annum.

Final Conclusion: The revision succeeded in substance, the dismissal of the suit was set aside, and the petitioner obtained a decree for the principal amount with post-suit interest and costs of the suit.

Ratio Decidendi: A post-dated cheque is a negotiable instrument, and an advance made against such a cheque is excluded from the definition of "loan" under the Bombay Money Lenders Act.

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