Crossed Cheque A crossed cheque is a cheque which is payable only through a collecting banker and not directly at the counter of the bank. Crossing ensures security to the holder of the cheque as only the collecting banker credits the proceeds to the account of the payee of the cheque. When two parallel transverse lines, with or without any words, are drawn generally, on the left hand top corner of the cheque. A crossed cheque does not effect the negotiability of the instrument. It can be negotiated the same way as any other negotiable instrument. Types of Crossing There are two types of negotiable instruments:- • General Crossing • Special Crossing • Account Payee or Restrictive Crossing • ‘ Not Negotiable ‘ Crossing General Crossing General crossing is a cheque which bears across its face two parallel transverse lines without any words as (‘and company’ ‘or & Co.’) written in between these two lines, it is called general crossing. In general crossing the name of the banker is not mentioned. Special Crossing When a cheque bears across its face an addition of the name of the banker, either with or without the ‘not negotiable’ that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed to that banker. 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 or his agent for collection. Account Payee or Restrictive Crossing This crossing can be made in both general and special crossing by adding the words Account Payee. In this type of crossing the collecting banker is supposed to credit the amount of the cheque to the account of the payee only. The cheque remains transferable but the liability of the collecting banker is enhanced in case he credits the proceeds of the cheque so crossed to any person other than the payee and the indorsement in favour of the last payee is proved forged.The collecting banker must act like a blood hound and make proper enquiries as to the title of the last indorsee from the original payee named in the cheque before collecting an 'Account Payee' cheque in his account. Not Negotiable Crossing The words 'Not Negotiable' can be added to General as well as Special crossing and a crossing with these words is known as Not Negotiable crossing.The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument i.e the transferee of such a crossed cheque cannot get a better title than that of the transferor ( cannot become a holder in due course ) and cannot covey a better title to his own transferee, though the instrument remains transferable
