CROSSIN OF CHEQUES

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

NASEEMUNNISA BEGUM

NASEEMUNNISA BEGUM (Querist)
Follow

21 February 2011 Explain NOT NEGOTIABLE CROSSING of cheques with examples?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

21 February 2011 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 form whom he took it had. [section 130]. Thus, mere writing words ‘Not negotiable’ does not mean that the cheque is not transferable. It is still transferable, but the transferee cannot get title better than what transferor had.

A gives Cheque to B. B transfers it to C. But if not honored C has no right only B has the right to sue.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now