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vey basic dubt

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

26 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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5 Replies

CA Srivatsan G (CA) (130 Points)
Replied 26 February 2009

Hai...

A/c Payee cheque can't be transferred jus like that.... Only bearer cheque can be transferred by the above process... A/c payee cheque ll only be credited in the concerned A/c...

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SNEHASREE (ARTICLED ASSISTANT) (102 Points)
Replied 26 February 2009

NO A/C PAYEE CHEQUE CANNOT BE TRANSFERRED BY SIGNING ON THE BACK OF THE CHEQUE.

CMA KNVV Sri Vidya - Sri Kanth (C.A.Final (New) ICWAI FINAL (New)) (11269 Points)
Replied 26 February 2009

No Account payee cheque cannot be transfered so easily bearer cheques can be transfered in the above process A/c payee cheque can be cleared only through the bank by credting in the concerned a/c

Shilpa Singhal (Student) (65 Points)
Replied 26 February 2009

Hi Surender..

when a cheque is crossed as A/c Payee then also the cheque can be ENDORSED to other person provided the endorsee has an account with some bank. This is the theory and as u said..there is a risk of forgery in this case..so,most of the banks do not prefer to collect a endorsed cheque even if it is a/c payee except in the case that the endorsor's account is also in the same bank . But theorotically, an a/c payee cheque also can be endorsed by mere writing the endorsee's name and signing on the back of the cheque.Only thing is that the payment cannot be made accross the counter but the amount is credited to the endorsee's account.

The case that u have mentioned was exactly the game plan of the famous Harshad mehta's forgery case.So, crossing of cheque only ensures the payment through bank account.