USE OF NOT NEGOTIABLE CHEQUE

BHAVESH Y KAYASTHA (Querist) 27 September 2010 This query is : Resolved
EXPLAIN ME THE DIFFERENCE BETWEEN A/C PAYEE CHEQES AND NOT NEGOTIABLE CHEQUE WITH EXAMPLE IN DETAIL

Follow Query

Report Abuse

Chanchal Nag Chowdhury (Expert) 27 September 2010
A/C PAYEE CHEQUES are meant to be paid to an a/c. & not over the counter. However, it may be endorsed to somebody else who may become the eventual holder of the instrument.
NOT NEGOTIABLE CHEQUES are similar to A/C PAYEE CHEQUES but whose further endorsement has been stopped.

s.subramanian (Expert) 27 September 2010
Yes. I agree.

mahendrakumar (Expert) 28 September 2010
usually insurance claims are paid as non negotiable cheque.

Sri Vijayan.A (Expert) 28 September 2010
1. Yes, A/c Payee means the payment must be made to the Payee who is maintaining an account (With any bank, etc)
2. Suppose the cheque is in favour of Mr.X, who does not have any bank account.
3. In this case, he can endorse that the cheque is negotiated to Mr.Y.
4. The payment may be made to Mr.Y through his bank account.
5. By this, it is ensured that the payment shall be through a existing account only. So no mal-practice may happen.
6. A further security is the prevention of such negotiation as told above.
7. By this, negotiation/ endorsement is stopped. Hence this is called, Non Negotiable Cheque.

M/s. Y-not legal services (Expert) 10 October 2010
Mr.chanchal.. Gave an excellant explaination.. I agree with him.

Basavaraj (Expert) 15 October 2010
Yes I agree

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries