BANKING AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -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.

Detailed explanation-3: -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. For example; Mr. Panjwani issues a crossed cheque in favour of Mr. Khubchandani which does not bear the words ‘not negotiable’ therein.

Detailed explanation-4: -Not Negotiable Crossing cheque takes away the negotiable title of a cheque, which means that the transferee cannot bear the title of the cheque holder but the cheque still remains transferable. It looks like an ordinary cheque only but it cannot be cashed or deposited under any circumstances.

Detailed explanation-5: -A crossed cheque can only be paid in account & hence it is not a negotiable instrument.