Crossing of a Cheque

Sociology | Mercantile Law | International Law | International Relations

Cheque and Crossing of a Cheque
What is Cheque?
Under the Section-6 of the Negotiable Instruments Act, ‘a cheque is a bill of exchange drawn on a specified bank and not expressed to be payable otherwise on demand.’

Cheque is a type of negotiable instrument.

What is Crossing of a Cheque?
A cheque crossed is one which carries the explicit instruction about the method in which it is to be redeemed. It is payable only via the banker mentioned and cannot be cashed at the bank counter.

Purpose of Crossing a Cheque
The object behind crossing a cheque is to affirm the security of the cheque-holder.

Types of Cheque-Crossing
Under the Negotiable Instruments Act 1881, the crossed cheque falls under any of the two following broad categories;

A. Generally Crossed Cheque
A cheque crossed in general has been defined under section 123 of the Negotiable Instruments Act, “Where a cheque bears across its face an addition of the words “and company” or any abbreviation thereof, between two parallel transverse lines, or of two parallel transverse lines simply, either with or without the words “not negotiable”, that addition shall be deemed a crossing and the cheque shall be deemed to be crossed generally”.

Besides the generally crossed cheque, another similar form is Cheque Crossed ‘Account Payee’. Along with being generally crossed, this cheque carries an additional aspect. It has been defined under section 123A of the Negotiable Instruments Act, “Where a cheque crossed generally bears across its face an addition of the word “account payee” between the two parallel transverse line constituting the general crossing, the cheque, besides being crossed generally, is said to be crossed “account payee”.

B. Cheque Crossed Specifically
Second major kind of crossed cheque has been defined in the Section 124 of the said Act, “Where a cheque bears across its face an addition of the name of a banker either, with or without the words not negotiable, that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially, and to be crossed to that banker”.

Can a Cheque be Crossed after having Issued?
The answer to this has been clarified in the Section 125 of the Negotiable Instruments Act. It gives following regulations in this regard:

  • Where a cheque is uncrossed, the holder may cross it generally or specially.
  • Where a cheque is crossed generally, the holder may cross specially.
  • Where a cheque is crossed generally or specially the holder may add the words “not negotiable”.
  • Where a cheque is crossed especially, the banker to whom it is crossed may again cross it specially to another banker, his agent, for collection.
  • When an uncrossed cheque, or a cheque crossed generally, is sent to a banker for collection he may cross it especially to himself.

Payment of Generally Crossed Cheque
Where a cheque is-crossed generally, the banker on whom it is drawn shall to pay it.

Payment of Specifically Crossed Cheque
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.

Restriction regarding Cheque bearing ‘Non 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. This rule has been laid in section 130 of the Act.

Difference between General and Specific Crossed Cheque
The major difference between the two can be seen in the following specimens taken from the ‘Business Law’ website.


In the former type there is mere general crossing without any specific name of company or organization while in the latter the specific agents have been mentioned.