GENERAL KNOWLEDGE

Detailed explanation-1: -According to Section 6, of the Negotiable Instruments Act, 1881, the term cheque is defined as “a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.”

Detailed explanation-2: -Section 6 of the Negotiable Instruments Act defines what a ‘cheque’ means. According to this provision, a cheque is basically a bill of exchange drawn on a specific banker.

Detailed explanation-3: -Central Government Act. Section 126 in The Negotiable Instruments Act, 1881. 126. Payment of cheque crossed generally.-Where a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker.

Detailed explanation-4: -(6) Where any direction has been given under sub-section (4) or sub-section (5), the State Government and any police officer of the State Government investigating the offence shall not proceed with the investigation and shall forthwith transmit the relevant documents and records to the Agency.