Cheque
“Cheque” means under section 6 of negotiable instruments Act, A “cheque” is a bill of
exchange drawn on a specified banker and not expressed to be payable otherwise than on
demand. “Drawer,” “Drawee.”
1. Types of Cheques in Myanmar
(i) Bearer Cheque
(ii) Order Cheque
(iii) Crossed Cheque
(iv) Post-dated Cheque and so on.
Section 123 of the Negotiable Instruments Act states that when a cheque has two parallel
lines, with or without words like "and company" or "not negotiable," it is considered generally
crossed.
Section 124 of the Negotiable Instruments Act states that if a cheque has the name of a
specific banker written across it, with or without the words “not negotiable,” it is considered
specially crossed.
Section 125 of the Negotiable Instruments Act allows the holder of a cheque to cross it if
it is not already crossed. A generally crossed cheque can be further specially crossed, and the words
“not negotiable” can be added. A specially crossed cheque can also be further crossed by a banker
to another banker for collection.
Section 126 of the Negotiable Instruments Act states that a generally crossed cheque can
only be paid to a banker. A specially crossed cheque can only be paid to the specific banker
mentioned or their agent for collection.
Under section 127 of the negotiable instruments Act, Where a cheque is crossed specially
to more than one banker, except when crossed to an agent for the purpose of collection, the banker
on whom it is drawn shall refuse payment thereof.
Section 128 of the Negotiable Instruments Act states that if a banker pays a crossed cheque
in due course, both the paying banker and the drawer retain the same rights as if the cheque had
been properly paid to the true owner.
Section 129 of the Negotiable Instruments Act states that if a banker pays a generally
crossed cheque to someone other than a banker or a specially crossed cheque to the wrong banker,
they will be liable for any loss suffered by the true owner of the cheque.
In section 130 of the negotiable instruments Act, 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.
Section 131 of the Negotiable Instruments Act states that if a banker receives payment for
a crossed cheque in good faith and without negligence, they will not be liable to the true owner if
the cheque later turns out to have a defective title.
Explanation.- A banker receives payment of a crossed cheque for a customer within the meaning
of this section notwithstanding that he credits his customer’s account with the amount of the
cheque before receiving payment thereof.
In the case of Crumplin v. London Joint Stock Bank Lts. (1913)30 T.L.R. 99, It
was held that a "Not Negotiable" crossing is merely one factor among others to be
considered in deciding whether a collecting present has been negligent, and that in the
circumstances of the present case there had not been neglience.