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