Clause 5
New section 81A
of Bills of Exchange (Amendment) Bill
BillNot in forceProvision 5 of 9
Clause 5
The principal Act is amended by inserting, immediately after section 81, the following section:“Non-transferable cheques81A.—
(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 purposes 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.”.