cheque
pratik
(Querist) 25 October 2009
This query is : Resolved
if the cheque is crossed & it has been written not negotiable or any bank name what does it mean why it has been written what are the advantages & disadvantages to the cheque issuer & the cheque receiver why it has been written.
Also as per which section & act with an suitable examples ?
also what is the difference between circular & notification as per which act or section or as per consitution of india ?
A V Vishal
(Expert) 25 October 2009
Notification is issued by authority for publishing rules or regulations or decisions in the Government Gazette and has authority and enforceability of law. Circular is an administrative order sent to multiple reciepients and may or may not have authority or enforceability of law.
A V Vishal
(Expert) 25 October 2009
Crossing of cheques is of different types:
Cheques are crossed generally when:
1) it has two transverse parallel lines marked across it face; or
2) it bears an abbreviation & Co. between the transverse parallel lines, or
3) It bears the words not negotiable between the two parallel lines.
A cheque crossed generally will be paid to the banker through which it is presented. It is direction to the drawee banker the sum only through a banker. Where a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker.
Crossing of cheques generally does not affect negotiability of instrument except, when the words not negotiable are added to the crossing. However this does not restrict transferability of a cheque.
Specimens of General Crossing>>
1) Blank
2) & Co
3) Not Negotiable
Cheques crossed specially:
Where a cheque is crossed by two parallel transverse lines and the name of the banker is written between the two parallel lines, with or without the words, not negotiable it is called Special Crossing. It may be noted that two transverse parallel lines are not necessary in special crossing. The banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection. It will be paid only when presented by the banker.
Any cheque issued in two names (1) banker and (2) the party to whom it is to be credited will not fall in the category of cheque which must be issued in name of one party only. The name of the party to whom it is to be credited is the payee and the banker whose name appears on the payee and the banker whose name appears on the cheque is the collecting banker only.
PJANARDHANA REDDY
(Expert) 25 October 2009
CIRCULARS ARE IN INTIMATION OR INFORMATION NATURE,
NOTIFICATIONS ARE IN ENFORCEMENT NATTURE WITH ALL MODALITIES.
CHEQUES::NEGOTIABLE INSTRUMENT ACT 1881 CLEARLY MENTIONED THE ALL CATEGORIES.
GO TO THE BARE ACT,PLS...SECTIONS ATTACHED
PJANARDHANA REDDY
(Expert) 25 October 2009
SORRY THE FILE NOT ATTACHING, I AM CUT & PASTING , SORRY FOR THE LONG POST.....
Negotiable Instruments Act, 1881
Arrangement of Sections
SECTION
Chapter I
Preliminary
1. Short title
2. ** ** **
3. Interpretation clause
Chapter II
Of Notes, Bills and Cheques
4. “Promissory noteâ€
5. “Bill of exchangeâ€
6. “Chequeâ€
7. “Drawerâ€, “Draweeâ€
8. “Holderâ€
9. “Holder in due courseâ€
10. “Payment in due courseâ€
11. “Inland instrumentâ€
12. “Foreign instrumentâ€
13. “Negotiable instrumentâ€
14. Negotiation
15. Indorsement
16. Indorsement “in blank†and “in fullâ€
17. Ambiguous instruments
18. Where amount is stated differently in figures and words
19. Instruments payable on demand
20. Inchoate stamped instruments
21. “At sightâ€, “On presentmentâ€, “After sightâ€
22. “Maturityâ€
23. Calculating maturity of bill or note payable so many months after date or sight
24. Calculating maturity of bill or note payable so many days after date or sight
25. When day of maturity is a holiday
Chapter III
Parties to Notes, Bills and Cheques
26. Capacity to make, etc., the promissory notes, etc.
27. Agency
28. Liability of agent signing
29. Liability of legal representative signing
30. Liability of drawer
31. Liability of drawee of cheque
32. Liability of maker of note and acceptor of bill
33. Only drawee can be acceptor except in need or for honour
34. Acceptance by several drawees not partners
35. Liability of indorser
36. Liability of prior parties to holder in due course
37. Maker, drawer and acceptor principals
38. Prior party a principal in respect of each subsequent party
39. Suretyship
40. Discharge of indorser’s liability
41. Acceptor bound although indorsement forged
42. Acceptance of bill drawn in fictitious name
43. Negotiable instrument made, etc., without consideration
44. Partial absence or failure of money-consideration
45. Partial failure of consideration not consisting of money
45A. Holder’s right to duplicate of lost bill
Chapter IV
Of Negotiation
46. Delivery
47. Negotiation by delivery
48. Negotiation by indorsement
49. Conversion of indorsement in blank into indorsement in full
50. Effect of indorsement
51. Who may negotiate
52. Indorser who excludes his own liability or makes it conditional
53. Holder deriving title from holder in due course
54. Instrument indorsed in blank
55. Conversion of indorsement in blank into indorsement in full
56. Indorsement for part of sum due
57. Legal representative cannot by delivery only negotiate instrument indorsed by deceased
58. Instrument obtained by unlawful means or for unlawful consideration
59. Instrument acquired after dishonour or when overdue
60. Instrument negotiable till payment or satisfaction
Chapter V
Of Presentment
61. Presentment for acceptance
62. Presentment of promissory note for sight
63. Drawee’s time for deliberation
64. Presentment for payment
65. Hours for presentment
66. Presentment for payment of instrument payable after date or sight
67. Presentment for payment of promissory note payable by instalments
68. Presentment for payment of instrument payable at speci¬fied place and not elsewhere
69. Instrument payable at specified place
70. Presentment where no exclusive place specified
71. Presentment when maker, etc., has no known place of business or residence
72. Presentment of cheque to charge drawer
73. Presentment of cheque to charge any other person
74. Presentment of instrument payable on demand
75. Presentment by or to agent, representative of deceased, or assignee of insolvent
75A. Excuse for delay in presentment for acceptance or payment
76. When presentment unnecessary
77. Liability of banker for negligently dealing with bill presented for payment
Chapter VI
Of Payment and Interest
78. To whom payment should be made
79. Interest when rate specified
80. Interest when no rate specified
81. Delivery of instrument on payment or indemnity in case of loss
Chapter VII
Of Discharge from Liability on notes, Bills and Cheques
82. Discharge from liability
83. Discharge by allowing drawee more than forty-eight hours to accept
84. When cheque not duly presented and drawer damaged thereby
85. Cheque payable to order
85A. Drafts drawn by one branch of a bank on another payable to order
86. Parties not consenting discharged by qualified or limited acceptance
87. Effect of material alteration
88. Acceptor or indorser bound notwithstanding previous alteration
89. Payment of instrument on which alteration is not appar¬ent
90. Extinguishment of rights of action on bill in accep¬tor’s hands
Chapter VIII
Of Notice of Dishonour
91. Dishonour by non-acceptance
92. Dishonour by non-payment
93. By and to whom notice should be given
94. Mode in which notice may be given
95. Party receiving must transmit notice of dishonour
96. Agent for presentment
97. When party to whom notice given is dead
98. When notice of dishonour is unnecessary
Chapter IX
Of Noting and Protest
99. Noting
100. Protest
101. Contents of protest
102. Notice of protest
103. Protest for non-payment after dishonour by non-accept¬ance
104. Protest of foreign bills
104A. When noting equivalent to protest
Chapter X
Of reasonable time
105. Reasonable time
106. Reasonable time of giving notice of dishonour
107. Reasonable time for transmitting such notice
Chapter XI
Of Acceptance and Payment for Honour
and reference in case of need
108. Acceptance for honour
109. How acceptance for honour must be made
110. Acceptance not specifying for whose honour it is made
111. Liability of acceptor for honour
112. When acceptor for honour may be charged
113. Payment for honour
114. Right of payer for honour
115. Drawee in case of need
116. Acceptance and payment without protest
Chapter XII
Of Compensation
117. Rules as to compensation
Chapter XIII
Special rules of evidence
118. Presumptions as to negotiable instruments
119. Presumption on proof of protest
120. Estoppel against denying original validity of instru¬ment
121. Estoppel against denying capacity of payee to indorse
122. Estoppel against denying signature or capacity of priorparty
Chapter XIV
Of Crossed Cheques
123. Cheque crossed generally
124. Cheque crossed specially
125. Crossing after issue
126. Payment of cheque crossed generally/specially
127. Payment of cheque crossed specially more than once
128. Payment in due course of crossed cheque
129. Payment of crossed cheque out of due course
130. Cheque bearing “not negotiableâ€
131. Non-liability of banker receiving payment of cheque
131A. Application of Chapter to drafts
Chapter XV
Of Bills in Sets
132. Set of bills
133. Holder of first acquired part entitled to all
Chapter XVI
Of International Law
134. Law governing liability of maker, acceptor or indorser of foreign instrument
135. Law of place of payment governs dishonour
136. Instrument made, etc., out of India, but in accordance with the law of India
137. Presumption as to foreign law
Chapter XVII
Of Penalties in case of Dishonour of Certain
Cheques for Insufficiency of Funds
in the Accounts
138. Dishonour of cheque for insufficiency, etc., of funds in the account
139. Presumption in favour of holder
140. Defence which may not be allowed in any prosecution under section 138
141. Offences by companies
142. Cognizance of offences
143. Power of Court to try cases summarily
144. Mode of service of summons
145. Evidence on affidavit
146. Bank’s slip prima facie evidence of certain facts
147. Offences to be compoundable
Sachin Bhatia
(Expert) 25 October 2009
Very well explained by Mr.PJANARDHANA REDDY
Raj Kumar Makkad
(Expert) 27 October 2009
Thanx a lot for Vishal for fully saisfying the quarry as well as for increasing at least my knowledge.
