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Cheque crossed not negotiable
A draws a cheque in favor of B crossed not negotiable , C by fraud obtains from B then C transfer to D for value who subsequently transfers it to E for value, can E get a good title? ?
Replies (1)
No, because when a cheque is crossed as "Not Negotiable" the title of the holder even if in due course (bonafide, for value) is not better than the title of the endorser.
Now, A can recover his money from E, E can recover from D and D from C.
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