Section 128 - Payment in due course of crossed cheque, Section 129 -
Payment of crossed cheque out of due course, Section 130 - Cheque
bearing not negotiable : Negotiable Instruments Act 1881
What is Payment in due course of crossed cheque? What is Payment of
crossed cheque out of due course? What is Cheque bearing not
negotiable? Payment in due course of crossed cheque, Payment of
crossed cheque out of due course and Cheque bearing not negotiable are defined under Section
128, 129 and 130 of Negotiable
Instruments Act 1881
Section 128 of Negotiable Instruments Act 1881: "Payment in due
course of crossed cheque"
Where the banker on whom a crossed cheque is
drawn has paid the same in due course, the banker
paying the cheque, and (in case such cheque has come
to the hands of the payee) the drawer thereof, shall
respectively be entitled to the same rights, and be
placed in the same position in all respects, as they
would respectively be entitled to and placed in if
the amount of the cheque had been paid to and
received by the true owner thereof.
Section 129 of Negotiable Instruments Act 1881: "Payment
of crossed cheque out of due course"
Any banker paying a cheque
crossed generally otherwise than to a banker, or a cheque
crossed specially otherwise than to the banker to whom the same
is crossed, or his agent for collection, being a banker, shall
be liable to the true owner of the cheque for any loss he may
sustain owing to the cheque having been so paid.
Section 130of Negotiable Instruments Act 1881: "Cheque
bearing not negotiable"
A person taking a cheque crossed generally or specially,
bearing in either case the words "not negotiable", shall not
have, and shall not be capable of giving, a better title to the
cheque than that which the person from whom he took it had