Q.Explain the different kinds of crossing of a cheque under the Negotiable Instruments Act, 1881.

Crossing is a safety mechanism unique to cheques that controls how, rather than to whom, the cheque's proceeds may be collected, and it comes in a few recognised forms of increasing strictness.

Crossing is available only for cheques, and it does not change who is entitled to the money — it changes how the proceeds must be collected, making a lost or stolen cheque far harder to misuse.

General Crossing (Section 123). Two parallel transverse lines are drawn across the face of the cheque, with or without the words '& Co.' between them. Effect: the cheque cannot be paid in cash across the counter; it must be collected through some bank.

Special Crossing (Section 124). The name of a particular banker is written across the face of the cheque, with or without the words 'not negotiable'. Effect: the cheque can be paid only to that specific named banker (or its collecting agent) — a stricter restriction than a general crossing.

'Not Negotiable' Crossing (Section 130). The words 'Not Negotiable' may be added to either a general or special crossing. Effect: this does NOT stop the cheque being transferred further, but it does mean that a person who takes a cheque so crossed cannot get, and cannot pass on, a title better than the title of the person who transferred it to them.

'Account Payee' Crossing. A widely followed and judicially enforced banking practice, not spelt out section-by-section in the Act itself but layered onto a crossing. It directs the collecting bank to credit the proceeds only to the bank account of the named payee — offering the strongest practical protection of all, which is why it is the crossing most commonly used in genuine business dealings today. …

A very common mistake is believing 'Not Negotiable' crossing stops a cheque from being transferred at all — it does not; it only removes the protection that would otherwis …