A cheque marked by the bank as unpaid for insufficient or absent funds can support compulsory execution. Any dispute about entitlement should be supported by the underlying agreement, receipts and other relevant evidence.
An unlawful instruction to stop payment, closing an account in circumstances covered by law, or deliberately making a cheque unpayable may constitute an offence. Do not use these actions to manage a contractual disagreement.
Before delivery, clarify the amount, payee, date, secured obligation and return arrangements. Avoid signing blank cheques, and retain a copy together with the agreement and confirmation of settlement or return.
A practical next step
If a demand or execution notice arrives, promptly gather the agreement, cheque copy, bank statement of return and payment receipts.