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

Meera draws a cheque in favour of Arvind and writes two parallel transverse lines across its face, with nothing written between them. Which type of crossing is this?

This is a general crossing. Two parallel transverse lines across the face of a cheque, with or without words such as 'and Company' or 'not negotiable', make a general crossing. The cheque is then payable only through a banker, not over the counter.

  1. AGeneral crossingCorrect
  2. BSpecial crossing
  3. CRestrictive crossing
  4. DNot a valid crossing without the words 'and Company'

Explanation

Under the Act, a cheque bearing across its face two parallel transverse lines, with or without the words 'and Company' or 'not negotiable', is crossed generally. Adding the banker's name would make it special. The words 'and Company' are not necessary, so the last option is wrong.

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