What is meant by crossing cheque saying not negotiable?

According to above section, the cheque marked ‘not negotiable’ to a crossed cheque does not bar it from transferred in the name of another person. It means, a person takes a stolen cheque marked with ‘Not Negotiable’ from another person, and encashes it then he is liable to refund encashed money to the true owner.

Can a cheque with not negotiable crossing be transferred?

A cheque crossed “not negotiable”, may be transferred, but the transfer is not attended by the same important consequences as in the negotiation of a negotiable Instrument. If the transferor had a good title, the transferee is entitled to receive payment.

What is the legal effect of not negotiable crossing?

Effect of crossing a cheque A bank can ignore the crossing and pay a crossed cheque over the counter. However, if it later turns out that the person paid was not entitled to receive that payment, the paying bank will be liable to the true owner and will also forfeit the statutory protection given by the Ordinance.

Do you need to write not negotiable on a cheque?

You may write the words ‘not negotiable’ between the two parallel lines on your cheque. This means that if the cheque is transferred to another person, the person who obtains the cheque has no greater rights to it than the person who gave it.

What are the different types of Cheques?

Types of Cheques: Know What are the Different Types of Cheques

• Bearer Cheque.
• Order Cheque.
• Crossed Cheque.
• Open cheque.
• Post-Dated Cheque.
• Stale Cheque.
• Traveller’s Cheque.
• Self Cheque.

What are the different types of crossing of cheque?

Types of Cheque Crossing

• Crossing a Cheque.
• General Cheque Crossing.
• Special Cheque Crossing.
• Restrictive Cheque Crossing.
• Not Negotiable Cheque Crossing.

Which form of crossing is the safest and why?

Grade separated crossings are the safest form of railway crossing. Grade separation is a very expensive option which involves building either an overpass or underpass to separate the train tracks and the road. In other cases, the road may be realigned to improve sight distance at uncontrolled rail crossings.

Why are Cheques not negotiable?

Meaning of ‘not negotiable’ You may write the words ‘not negotiable’ between the two parallel lines on your cheque. This means that if the cheque is transferred to another person, the person who obtains the cheque has no greater rights to it than the person who gave it.

What are the four types of Cheques?

Types of Cheques: Know What are the Different Types of Cheques

• Bearer Cheque. A bearer cheque is the one in which the payment is made to the person bearing or carrying the cheque.
• Order Cheque.
• Crossed Cheque.
• Open cheque.
• Post-Dated Cheque.
• Stale Cheque.
• Traveller’s Cheque.
• Self Cheque.

What are the 3 parties to a cheque?

Parties of a cheque

• Payee: The person whose name is written on the cheque, that is the person to whom the cheque is payable.
• Drawer: The owner of the current account, that is, the person who issued and signed the cheque.
• Drawee: The bank from where the money is cashed.

What are the three types of checks?

Types of checks include certified checks, cashier’s checks, and payroll checks, also called paychecks.

When do you write not negotiable on a cheque?

It is when the words ‘Not Negotiable’ are written between the two parallel transverse lines across the face of the cheque in the case of general crossing or in the case of special crossing along with the name of a banker. The Not Negotiable Crossing does not mean that the cheque is non-transferrable.

What does a general crossing on a cheque mean?

In general crossing, the cheque bears across its face an addition of two parallel transverse lines and/or the addition of words ‘and Co.’ or ‘not negotiable’ between them. In the case of general crossing on the cheque, the paying banker will pay money to any banker.

Who is authorized to cross a cheque under negotiable instrument act?

Kabir Jaiswal is a student of National University of Study and Research in Law, Ranchi (NUSRL) who writes about crossing cheque under the Negotiable Instrument Act. What is Crossing of Cheques? Why Cross a Cheque? Who is authorized to Cross a Cheque? General Crossing v. Special Crossing

When does a cheque need a transverse line?

Where a cheque bears across its face an addition of the name of a banker, either with or without the words “not negotiable”, the cheque is deemed to be crossed specially Sec, 124 (Section.124 of the Negotiable Instruments Act, 1881). Transverse lines are not necessary in the case of a special crossing.

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