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basic doubt in negotiable inst.

Subhendu S Sanyal (B.Com(C.S.),CA FINAL ) (666 Points)

24 February 2009

I RECD. A CHEQUE CROSSED 'A/C FROM SOMEONE...BUT I DONT HAVE TIME TO GO TO BANK..SO I WANT TO TRANSFER IT TO MY FATHER.... CAN I DO IT BY PUTTING MY SIGNATURE ON THE BACK OF THE CHEQUE...??IF YES..IS IT SO SIMPLE..?IF 'A/C PAYEE' CAN BE TRANSFERRED SO EASILY....THEN ANYONE CAN STEAL IT FROM ME & PUT MY FORGED sign & transfer THE MONEY....?

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4 Replies

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 27 February 2009

HOW CAN IT BE POSSIBLE YAR NO NO NO!!!!!!!!!!

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Sayan Kr Mukherjee (student) (102 Points)
Replied 03 March 2009

It cant b possible. A/C payee cheque is payable only to the a/c holder or his/her legal representative. So its more secured thn the cheque wthout havin crossed.

Nitin (Advocate) (32 Points)
Replied 07 March 2009

if the cheque is 'crossed and A/c Payee only' then it will honour in Your and Your favour only. that is to say, the cheque can be cleared in favour of your account only. U can not endorse it in favour of your father (like any other Bill of Exchange). In stead, u will have to deposit in your bank account and then reissue another cheque in favour of your father (if u want to transfer cash in favour of your father).

hope the querry is solved.