Types of crossings :
A crossed cheque is one which bears two parallel transverse lines across the face of the cheque with or without any words. Other words, a cheque may be crossed by drawing two parallel lines on the face of the cheque. Crossing initially began in England when checks were sent From bank to another bank.
Crossing of a cheque may be defined as an instruction from the drawer of the cheque to the banker that he is only to pay the cheque provided certain conditions are fulfilled .Crossing is a unique feature associated with a cheque affecting to a certain extent the obligation of the paying banker and also it’s negotiates character.
Different Types of Crossings Cheque :
- General Crossing
- Special crossing
- Account Payee Crossing
- Not negotiable crossing
What is General Crossing ?
A general crossing is a crossing where a cheque simply bears two parallel lines with or without any words and without any specification for payment. Sec 123 of the negotiable instruments act 1881 defines general crossing as follows, “where a cheque bears across it’s face an addition of the words, and company”or any abbreviations there of, between two parallel transverse lines or of two parallel transverse lines simply either words or without the words, Not Negotiable that addition shall be deemed crossing and the cheque shall be deemed to be crossed generally.
The essential requirements of general crossing are drawing of two lines : (Types of Crossings )
- On the face of the cheque
- Parallel to each other and
- In cross direction
Specimens of General Crossing :
What is Special Crossing ?
A special crossing is a crossing where a cheque bears across it’s face the name of a banker. Sec 124 of the negotiable instruments act 1881, defines special crossing as follows, ” where a cheque bears across it’s face an addition of the name of a banker, either with or without the words “not negotiable“, the addition shall be deemed a crossing and the cheque shall be deemed to be crossed specially and to be crossed to the banker.
Incase of special crossing two parallel transverse lines are not necessary, but the name of a bank should be written on theface of the cheque. The name of the banker on the cheque must appear otherwise than as drawer, payee, drawer or endorser of the cheques to continue special crossing.
Specimens Of Special Crossing :
What is Account Payee Crossing ?
Account payee crossing is a crossing where a cheque bears across it’s face the words such as “Account payee” or “payee’s account only” along with general or special crossings. It may be noted here that the words “Account payee” or payee’s account are not recognised by the negotiable instruments Act like, but are being used due to the practice prevalent in the business community.
What is Not-Negotiable Crossing ?
A not negotiable crossing is a crossing where a cheques bears across it’s face the words “Not Negotiable” along with general or special crossings. According to the section 123 and 124 of the Negotiable instruments act, 1881 , a cheques may be crossed either generally or specially with the words “not negotiable“.
Objects Of Not Negotiable Crossing :
- To provide safeguard against miscarriage and dishonesty to the holder of the cheques.
- To provide protection to the collecting banker.
- To provide protection to the paying banker.
What is Double crossing ?
Where a cheques bears across it’s face two Seperate special special crossing I.e the name of two banks, it is termed as double crossing. A specially crossed cheques is required to be collected through the banker specified in the crossing.
In the double crossing two banks name will appear on the cheques.
What is Obliterating a Crossing ?
Obliterating a crossing means illegally destroying or removing all signs of crossing on a cheque. It may be done by dishonest person to convert crossed cheques into open cheques and obtain payment through the counter of the bank.
In case the paying banker could not detect the obliteration of crossing and pays the cheque as open cheque, he is protected by the Negotiable instruments act provided some conditions are fulfilled. Section 89 provides the following conditions to be fulfilled :
- The cheque doesn’t appear to be a crossed one or obliteration of crossing is not apparent at the time of presentation for payment .
- The payment is made in due course under section 10 Of the act.