Section 125 of NIA : Section 125: Crossing After Issue

Explanation using Example

Imagine John has received an uncrossed cheque from his employer for his monthly salary. To enhance security and ensure that the cheque gets deposited directly into his bank account, John decides to cross the cheque. He adds two parallel lines on the top left corner of the cheque and writes "& Co." between them. This means he has crossed it generally. Now, only a bank can cash this cheque.

Later, he decides to further specify the bank where the cheque should be deposited, so he writes the name of his bank between the parallel lines, converting the general crossing into a special crossing. This ensures that the cheque can only be deposited into his account at that particular bank.

Additionally, John writes "not negotiable" on the cheque, which means even if the cheque is transferred to someone else, the recipient cannot claim the money from the cheque against John or any prior endorsers if the cheque was obtained dishonestly or is under dispute.