Question

Difference between crossed cheque and account payee cheque

Answer 1

Answer:

Cross cheque can paid directly to its barrier It provides an instruction to the paying bank to pay the amount only through the banker.

Account payee cheque is also paid into the account of the person whose name is written on the check and thus, no counter payment is done.

Thus, both refer to same kind of checks

Answer 2

Answer: According to Section 123 of the N I Act, a general crossing is defined as," Where a cheque bears across it's face, an addition of the words "and company", or any abbreviation thereof, between two parallel transverse lines, or of two parallel transverse lines simply, either with or without the words, "not negotiable ". that addition shall be deemed a crossing and a cheque shall be deemed to be crossed generally". So to constitute a general crossing

(1) There must be two parallel transverse lines:

(2) The two transverse parallel lines must be on the face of the cheque.

Section 124 of the N I Act, defines a special crossing as, " Where a cheque bears across it's face an addition of the name of a banker, 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.

Therefore, special crossing means writing across the face of the cheque the name of some bank with or without the words "not negotiable " or "account payee". Dr. M J SUBRAMANYAM

Explanation: