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Chapter-8

Chapter-8  Of Crossed Cheques
81. General Crossed Cheque: Where a Cheque bears across its face an addition of the words “and company” or any abbreviation thereof, or of
two parallel transverse lines simply, either with or without the words “not negotiable” and the Cheque shall be deemed to be generally
crossed.

82. Special Crossed Cheque: Where a Cheque bears across its face an addition of the name of a Banker, either with or without the words “not
negotiable” and the Cheque shall be deemed to be specially crossed.

83. Crossing after Issue: (1) Where a Cheque is uncrossed, the Holder may make it general or special crossed Cheque.
(2) Where a Cheque is general crossed Cheque, the Holder may make it special crossed Cheque.
(3) Where a Cheque is general or special crossed Cheque, the Holder may add the words “not negotiable”.
(4) Where a Cheque is crossed specially, the Banker to whom it is crossed may again cross it especially to another Banker or his agent
for collection.

84. Payment of Crossed Cheque:

(1) Where a Cheque is crossed generally, the Banker on whom it is drawn shall not pay it otherwise than to a
Banker.
(2) Where a Cheque is crossed specially, the Banker on whom it is drawn shall not pay it otherwise than to the Banker to whom it is
crossed or his /her agent for collection.

85. Payment of a Cheque Bearing “Account Payee”: The Banker shall make the payment of a crossed Cheque bearing the words “account
payee” only by depositing the amount in the account of the person on whose name the Cheque is drawn.

86. Payment of Cheque Crossed Specially More Than Once: Where a Cheque is crossed specially to more than one Banker, except when
crossed to an agent for the purpose of collection, the Banker on whom it is drawn shall refuse payment thereof.

87. Payment in due Course of Crossed Cheque: Where the Banker on whom a crossed Cheque is drawn has paid the same in due course, the
Banker paying the Cheque, and the Drawer thereof, shall respectively be entitled to the same rights, and be placed in the same position in all
respects, as they would respectively be entitled to and placed in if the amount of the Cheque has been paid to and received by the true owner
thereof.

88. Payment of Crossed Cheque Out of Due Course: Any Banker paying a crossed Cheque without completing the procedures of Section 84 and

85, shall be liable to the true owner of the Cheque for any loss he/she may sustain owing to the Cheque having been so paid.

89. Cheque Bearing “Not Negotiable”: A person taking a Cheque Crossed generally or specially bearing in either case the words “not negotiable”
shall not have, and shall not be capable of giving a better title to the Cheque than that which the person from whom he took it had.

90. Non-Liability of Banker Receiving Payment of Cheque: A Banker who has in good faith and without negligence received payment from
customer of a crossed Cheque to him/herself shall not, in case the title to the Cheque proves defective, incurr any liability to the true owner of
the Cheque by reason only of having received such payment.

91. Application of this Chapter to Drafts: The provisions of this Chapter shall apply to any Draft as if the Draft were a Cheque.

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