Section 124 NI Act: Cheque crossed specially

Negotiable Instruments Act, 1881

Section 124 NI Act at a Glance

Section 124 NI Act defines when a cheque is deemed to be crossed specially. When a cheque bears across its face the addition of a banker's name, with or without the words "not negotiable", the cheque is crossed specially to that banker.

Section 124 NI Act Bare Act Text

124. Cheque crossed specially.

Where a cheque bears across its face an addition of the name of a banker, either with or without the words “not negotiable,” that addition shall be deemed a crossing and the cheque shall be deemed to be crossed specially, and to be crossed to that banker.

Section 124 NI Act in Simple Words

Section 124 NI Act defines what makes a cheque crossed specially. When a cheque bears across its face an addition of the name of a banker, that addition is deemed a crossing. Because of that addition, the cheque is deemed to be crossed specially and to be crossed to that named banker.

Under Section 124 NI Act, the addition of the banker's name across the face of the cheque may be made either with or without the words "not negotiable".

When Section 124 NI Act Applies

  • The instrument is a cheque.
  • The cheque bears across its face an addition of the name of a banker.
  • The addition is made either with or without the words "not negotiable".
  • That addition is deemed a crossing, and the cheque is deemed to be crossed specially and crossed to that banker.

Example of Section 124 NI Act

Kamala in Mysuru draws a cheque for ₹75,000 in favour of Manoj. Across the face of the cheque, the name of Manoj's banker in Mysuru is written. Under Section 124 NI Act, that addition of the banker's name across the face of the cheque is deemed a crossing. The cheque is deemed to be crossed specially, and to be crossed to that named banker, whether or not the words "not negotiable" are also written on the cheque.

FAQs on Section 124 NI Act

What is Section 124 NI Act?▼

Section 124 NI Act defines when a cheque is deemed to be crossed specially. It provides that when a cheque bears across its face an addition of the name of a banker, with or without the words "not negotiable", that addition is deemed a crossing and the cheque is deemed to be crossed specially to that banker.

What makes a cheque crossed specially under Section 124 NI Act?▼

The addition of the name of a banker across the face of the cheque makes it crossed specially under Section 124 NI Act. The cheque is then deemed to be crossed to that banker.

Can a cheque crossed specially under Section 124 NI Act also include the words "not negotiable"?▼

Yes. Section 124 NI Act states that the addition of the name of a banker across the face of the cheque may be made either with or without the words "not negotiable".

How does Section 124 NI Act differ from Section 123 NI Act?▼

Section 124 NI Act requires the addition of the name of a banker across the face of the cheque, which makes the cheque crossed specially to that banker. Section 123 NI Act covers two parallel transverse lines across the face of the cheque, either simply or with the words "and company" or any abbreviation thereof between them, which makes the cheque crossed generally.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·