A cheque is said to be crossed when two transverse parallel lines with or without any words are drawn across its face. A crossing is a direction to a payee banker to pay the money generally to a particular banker, as the case may be, and not to the holder at the counter.
Ordinarily, the payee of a cheque is entitled to encash at the counter of the paying banker by presenting it within the specified banking hours. In case of a bearer cheque, the paying banker does not need to go into an elaborate exercise with regard to the identity of the holder of the cheque. An order cheque is
also paid by the paying banker on being apparently satisfied about the true identity of the presenter of the cheque. To ensure that the cheque is not encashed by a wrong person, by concealing his identity, there has developed a practice called ‘crossing of a cheque’. The practice has been given legal coverage in the Negotiable Instrument Act, 1881.
When cheque is crossed it in effects means a request-more appropriately, an instruction by the client not to pay the cheque directly over the counter but to a banker only for crediting the payees account with the bank. A cheque bearing such an instruction is called a ‘crossed cheque’. The crossing of a cheque is intended to ensure that its payment is made to the right payee. Section 123 to 131 of the Negotiable Instrument Act contain provisions relating to crossing. According to section 131-A, these sections are also applicable in case of drafts. Thus not only cheques but bank drafts also may be crossed.
For our discussion we may differentiate crossing into following two types:
1. General Crossing.
2. Special Crossing.
