Cheque bearing “not negotiable”
Full Text
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.
Plain English Summary
Removes the holder-in-due-course shield from a cheque marked not negotiable, ensuring that a transferee cannot acquire a better title than the transferor.
Key Legal Elements
- Cheque crossed generally or specially with words not negotiable
- Instrument remains transferable, but negotiability shield is removed
- Transferee cannot obtain or pass a better title than transferor had
- Defect in title in any prior link infects subsequent holders
Practical Note
Critical distinction between transferability and negotiability. A Not Negotiable cheque can still be transferred, but the transferee takes it subject to all underlying title defects. If the cheque was stolen or obtained by fraud, even an innocent third-party holder for value cannot enforce payment against the drawer.
हिंदी पाठ
“अपरक्राम्य” अंकित चेक।—कोई व्यक्ति जो सामान्यतः या विशेषतः रेखांकित ऐसा चेक लेता है जिस पर “अपरक्राम्य” शब्द अंकित हैं, वह उस चेक पर उससे बेहतर हक न तो रखेगा और न देने में समर्थ होगा जितना कि उस व्यक्ति का था जिससे उसने वह लिया था।