Section 81A
Non-transferable cheque
ActIn forceProvision 86 of 107
Section 81A
(1)
Where a cheque is crossed and bears across its face the words
“account payee” or “a/c payee”, either with or without the word “only”, the cheque shall not be transferable, but shall only be valid as between the parties thereto.
(2)
For the purpose of section 80, a banker is not to be treated as having been negligent by reason only of his failure to concern himself with any purported indorsement of a cheque which under subsection (1) or otherwise is not transferable.
Special Provisions Relating to Endorsement, Etc.