(1) When a signed cheque is cancelled, it shall be stamped "cancelled" by the drawing Officer.
The fact of cancellation shall be noted in red ink over the initials of the drawer of the cheque upon the counterfoil or record slip or transaction sheet available in the cheque book and also across the order of payment which has been endorsed on the Payment Voucher.
(2) If a cheque is cancelled before the entry is made in the Bank Book, the cheque number and the words “cancelled” shall be noted in the bank book. However, if the entry for cheque has already been recorded in the Bank book, the entry should be reversed.
(3) Cancelled cheques shall be retained with their counterfoils for purpose of audit.
50. Lost cheques - If a cheque is lost before payment, a fresh cheque can be issued to the party on after obtaining a certificate from the Treasury Officer or Bank that it has not been paid in the form given below.
CERTIFICATE Certified that Cheque No..... dated........ for Rs...... reported (by the disbursing Officer) to have been drawn on this treasury or bank in favour of...... has not been paid and will not be paid if presented hereafter.
Dated...... Treasury Officer or Bank.