A person taking a cheque crossed generally or specially, bearing in either case the words “not negotiable,” shall not have, and shall not be capable of giving, a better title to the cheque than that which the person from whom he took it had.
CHAPTER XIV O F CROSSED C H E Q U E S
Section 130: Cheque bearing “not negotiable”
The Negotiable Instruments Act, 1881
Questions on this section
1 question in 3 of our papers cite Section 130. Try these from the free papers:
1. X steals a cheque crossed generally and bearing the words "not negotiable" from its true owner O. X transfers it to Y, who takes it in good faith and for value. Under Section 130 of the Negotiable Instruments Act, 1881, what title does Y get?