As per Sec 130 of N.I.Act, a cheque crossed "Not Negotiable" __________.
Question
As per Sec 130 of N.I.Act, a cheque crossed "Not Negotiable" __________.
Solution
As per Section 130 of the Negotiable Instruments Act, a cheque crossed "Not Negotiable" restricts the transferee's ability to further negotiate the cheque. In other words, the transferee cannot have better rights than the transferor. If the cheque was stolen or obtained fraudulently, the transferee will not get a good title to the cheque. This means that the person who receives the cheque will not have the right to transfer the cheque to someone else and cannot claim the amount of the cheque if it was acquired unlawfully.
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