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CA Foundation · Business Laws · The Negotiable Instruments Act, 1881

Anita Sharma draws a cheque in favour of Ravi and writes the words 'and Company' between two parallel transverse lines across its face, with no banker's name. What type of crossing is this?

This is a general crossing. The Act treats a cheque with two parallel transverse lines and the words 'and Company' (or an abbreviation), without naming any banker, as crossed generally. A special crossing needs a banker's name, which is absent here.

  1. AGeneral crossing under the Negotiable Instruments Act, 1881Correct
  2. BSpecial crossing
  3. CRestrictive crossing as 'not negotiable'
  4. DAccount payee crossing only

Explanation

Under the Act, a cheque bearing across its face the words 'and Company' (or any abbreviation) between two parallel transverse lines, either with or without 'not negotiable', is crossed generally. No banker's name is mentioned, so it is not special. Words 'not negotiable' are absent, so it is not a restrictive crossing.

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