Chapter XIV - Of Crossed Cheques
Section 123
Section 123: Cheque crossed generally
Section 123 identifies the markings that make a cheque generally crossed.
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Need advice on Section 123?
This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Applicability and limits
Two parallel transverse lines alone can amount to a general crossing. The section also covers the stated “and company” wording or abbreviation between the lines, with or without “not negotiable”.
A general crossing is not the same as a special crossing to a named banker. “Not negotiable” carries its separate title consequence under section 130; it is not required for every general crossing.
Hypothetical example
Hypothetical: a company draws a cheque with two parallel lines across its face and no bank name. The marking fits the general-crossing form; the payment restriction is considered under section 126.
Evidence and decision flow
Inspect the cheque face and preserve a clear image.
Record whether a banker is named and whether “not negotiable” appears.
Use sections 124, 126 and 130 to assess the distinct effects of those markings.
Practical checklist
Do
- Inspect the cheque face and preserve a clear image.
- Record whether a banker is named and whether “not negotiable” appears.
- Use sections 124, 126 and 130 to assess the distinct effects of those markings.
Avoid
- A general crossing is not the same as a special crossing to a named banker. “Not negotiable” carries its separate title consequence under section 130; it is not required for every general crossing.
Glossary
- General crossing
- A crossing in the form described by section 123.
- Transverse lines
- The two parallel lines across the cheque face referred to in the provision.
Frequently asked questions
Are the words “not negotiable” compulsory?
No. Section 123 allows a general crossing with or without them.
Can two lines alone be sufficient?
Yes. Two parallel transverse lines simply are expressly covered.
Does this section name the collecting bank?
No. A special crossing to a named banker is addressed by section 124.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026