A cheque is an unconditional order in writing drawn on a banker signed by the drawer, requiring the banker to pay on demand a sum certain in money to or to the order of a specified person or bearer and which does not order any act to be done in addition to the payment of money
         There are two types of Cheques, open cheques and crossed cheques. Open Cheque is one which is payable in cash across the counter of a bank. A crossed cheque is one on which two parallel transverse lines with or without the words "& Co." are drawn. The payment of such a cheque can be obtained only through a banker. Thus crossing is a direction to the drawee banker to pay the amount of money on a crossed cheque through a banker so that the party who obtains the payment of the cheque can be easily traced.


Type of crossing - 

          There are two types of crossing. General crossing and special crossing. Another type of crossing Known as 'restrictive crossing' his developed out of business usage.

1) General crossing -- 

            A cheque is said to be crossed generally where it bears across its face an addition of -
(i) the words "and company" or any abbreviation thereof, between two parallel transverse lines, either with or without the words"not negotiable"; or

(ii) two parallel transverse lines simply, either with or without the words "not negotiable" Sec. 123(Section.123 of the Negotiable Instruments Act, 1881)  Where a cheque is crossed generally, the drawee banker shall not pay it unless it is presented by a banker Sec, 126.(Section.126 of the Negotiable Instruments Act, 1881)

2) Special crossing -- 

            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. The payment of a specially crossed cheque can be obtained only through the particular banker whose name appears across the face of the cheque or between the transverse lines if any. Where a cheque is crossed specially the banker on whom it is drawn shall not pay it otherwise than to the banker on whom it is crossed, on his agent for collection Sec,126 (Section.126 of the Negotiable Instruments Act, 1881).


3) Restrictive crossing ---

           In addition to the two statutory types of crossing discussed above, there is another type which has been adopted by commercial and banking usage. In this type of crossing the words, "A/c payee" are added to the general or special crossing .




See also

Who may Cross a cheque 


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