Kaagazaat

Security Cheque Handover Letter

At a glance

Price: Free, always.
Stamp duty: A letter of this kind that only records the handing over of cheques, and creates no new payment obligation, is not ordinarily treated as a separately stamped instrument.
Registration: Not registrable.
Witnesses: Not legally required.

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Free, always.

Free: up to 5 documents a day.

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Also called

Security Cheque Letter
Cheque Handover Letter
Letter Accompanying Security Cheques
Cheque as Security for Loan
Security Cheque Receipt
ਸੁਰੱਖਿਆ ਚੈੱਕ ਪੱਤਰ
सुरक्षा चेक पत्र

When you need it

Put in writing that the cheques you are handing over are security for a loan, not payment of it — which cheques, from which bank, for how much, what they secure, and the only circumstances in which the lender may bank them. Without a letter, a cheque in a lender's hand can be presented for any reason at all, and a dispute turns on one person's word against the other's.

The letter fixes the cheque numbers and amounts, ties them to the particular loan or obligation, says the lender must give written notice of default before presenting them, and says they must be returned once the loan is repaid. Not for rent: the Post-Dated Cheque Handover Receipt is the document for rent cheques. Not a promise to repay — this letter does not set out repayment terms, so use it with a Loan Agreement, a Promissory Note or an Acknowledgement of Debt, which it names. Not a guarantee by a third party; that needs the Guarantee Agreement.

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

A letter of this kind that only records the handing over of cheques, and creates no new payment obligation, is not ordinarily treated as a separately stamped instrument. This drafter could not confirm that for Punjab or Chandigarh against a dated, notified source, so do not rely on it. Confirm with the Sub-Registrar of the tehsil, or against revenue.punjab.gov.in (Punjab) or revenue.chd.gov.in (Chandigarh), whether any stamp is called for, before the letter is signed.

Registration

Not registrable. The letter creates no interest in immovable property.

Notarisation

Not legally required, but useful: a notary's or Oath Commissioner's stamp fixes the date on which the cheques were handed over, which is the fact such a dispute most often turns on.

Witnesses

Not legally required. Two witnesses are taken, as on the other loan documents in this library, because the date of handing over and the purpose stated are exactly what is later disputed.

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Sample preview — placeholder answers, not your data

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SECURITY CHEQUE HANDOVER LETTER

Date: 1 April 2026
Place: Chandigarh

To
Rajinder Kumar Sethi
House No. 1451, Sector 33-D, Chandigarh 160020

From
Vikram Sethi
House No. 214, Phase 4, S.A.S. Nagar (Mohali) 160059
PAN: AFRPB2212K

Subject: Cheques handed over as security

Dear Rajinder Kumar Sethi,

1. THE CHEQUES

1.1 I am handing over to you 2 cheque(s) drawn on HDFC Bank, Phase 7, S.A.S. Nagar (Mohali), account ending 4521, from my own account, as follows: Cheque no. 000451 dated 5 April 2026 for Rs 1,00,000; cheque no. 000452 dated 5 May 2026 for Rs 1,00,000. The total of the cheques is ₹2,00,000 (Rupees Two Lakh only).

1.2 The cheques are handed over fully written out, with the date and the amount filled in by the Giver.

2. WHAT THEY SECURE

2.1 The cheques are given as security only, and not as payment, for: Loan of Rs 1,50,000 under the Loan Agreement dated 4 March 2026 between the same persons. The amount lent is ₹1,50,000 (Rupees One Lakh Fifty Thousand only).

2.2 Handing over the cheques does not discharge any part of the loan, and does not give you any right to the money in my account. The loan is discharged only when the money is actually repaid.

3. WHEN YOU MAY PRESENT THEM

3.1 You will not present any of these cheques to the bank unless I have failed to pay an amount due under the loan, you have given me written notice of that failure, and 15 days have passed after the notice without my paying.

3.2 You will present a cheque only for an amount actually due and unpaid under the loan at that time, and never for more than that.

3.3 If I repay the loan in full, or the amount due is paid by other means, you will not present any cheque.

4. RETURN OF THE CHEQUES

4.1 When the loan is repaid in full, you will return all the cheques that have not been presented, within 7 days, and give me a written note that nothing further is due.

4.2 If you lose any cheque, you will tell me at once in writing, so that I can instruct my bank to stop payment on it.

5. MY CONFIRMATION

5.1 I confirm that the cheques are drawn on my own account, that I signed them myself, and that I understand the law on the dishonour of cheques may apply if a cheque is presented as allowed above and is not honoured.

Yours faithfully,

SIGNED by the GIVER
Vikram Sethi

Signature: ______________________________

ACKNOWLEDGEMENT BY THE LENDER

I, Rajinder Kumar Sethi, confirm that I have received the cheques described above on 1 April 2026, that I hold them only as security, and that I will use and return them only on the conditions in this letter.

Signature: ______________________________
Rajinder Kumar Sethi

WITNESSES

1. Karamjit Singh

House No. 3301, Sector 46-C, Chandigarh 160047
Signature: ______________________________

2. Deepak Mehra

House No. 88, Phase 3B2, S.A.S. Nagar (Mohali) 160059
Signature: ______________________________

Questions about this document

Does the Security Cheque Handover Letter need stamp paper or stamp duty in Punjab and Chandigarh?

A letter of this kind that only records the handing over of cheques, and creates no new payment obligation, is not ordinarily treated as a separately stamped instrument.

See the full position on stamp duty, registration and witnesses

Does the Security Cheque Handover Letter need registration in Punjab and Chandigarh?

Not registrable.

See the full position on stamp duty, registration and witnesses

What does the Security Cheque Handover Letter cost on Kaagazaat?

Free, always.

Does the Security Cheque Handover Letter need witnesses?

Not legally required.

See the full position on stamp duty, registration and witnesses

Often needed with this document

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