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Mercantile Laws-I

Notes 14.8.3 Protesting (Sec.100)

The protest is the formal notarial certificate attesting the dishonour of the bill and based upon the

noting. After the noting has been made, the formal protest may be drawn up by the notary at his
leisure. When the protest is drawn up it relates back to the date of noting.

14.9 Crossing of Cheques

14.9.1 Meaning of Crossing

Crossing is a unique feature associated with a cheque affecting to a certain extent the obligation
of the paying banker and also its negotiable character. It is a peculiar method of modifying the
instrument to the banker for payment of the cheque. Crossing on cheque is a direction to the
paying banker by the drawer that payment should not be made across the counter. The payment

on a crossed cheque can be collected only through a banker. Sec.123 defines crossing as, “Where a
cheque bears across its 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 the cheque shall
be deemed to be crossed generally.” A cheque that is not crossed is a called an open cheque.

14.9.2 Significance of Crossing
As payment cannot be claimed across the counter on a crossed cheque, crossing of cheques serves
as a measure of safety against theft or loss of cheques in transit. By crossing a cheque, a person,
who is not entitled to receive its payment, is prevented from getting the cheque encashed at the
counter of the paying banker.

14.9.3 Types of Crossing

Crossing may be either (1) General or (2) Special. The term general crossing implies the addition
of two parallel transverse lines.

Note Specimen of General Crossing

‘Special Crossing’ implies the specification of the name of the banker on the face of the cheque.
Sec.124 in this regard reads: “Where a cheque bears across its face, an addition of the name
of banker, either 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 paid to that banker”.
The drawing of two parallel lines is not necessary in case of a specially crossed cheque. The object
of special crossing is to direct the drawee banker to pay the cheque only if it is presented through
the particular bank mentioned therein. Thus, it makes the cheques more safer.

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