Is it legal to take blank cheque as security?

Yes blank signed cheques are legal for security purpose. Hi, You may very well take the blank cheques as security and it is legal. It is not illegal to hold a blank cheque for security.

Supreme Court: If A Signed Blank Cheque Is Voluntarily Presented To A Payee, Towards Some Payment, The Payee May Fill Up The Amount And Other Particulars. This In Itself Would Not Invalidate The Cheque

The Bench noticed that the Trial Court had completely overlooked the provisions and failed to appreciate the statutory presumption drawn under Section 118 and Section 139 of NI Act. The Statute mandates that once the signature(s) of an accused on the cheque/negotiable instrument are established, then these ‘reverse onus’ clauses become operative. Similarly,