Section 992.- The duty and the authority of a banker to pay a cheque drawn on him come to an end  on :

(1)   Countermand of payment ;

(2)   Knowledge of the drawer’s death ;

(3)   Knowledge or publication of an interim receiving order or bankruptcy order against the drawer.

 

Section 993.- If the banker signs on the cheque a statement such as “good” or “good for payment”, or words to the same effect, he becomes bound, as principal debtor, to pay the cheque to the holder.

If the holder of a cheque procures it to be so certified, the drawer and indorsers are discharged from liability thereon.

If it is so certified at thedrawer’s request, the drawer and indorsers are not discharged.

 

Section 994.- If a cheque bears across its face two parallel transverse lines either with or without the words “and company” or any abbreviation thereof between such lines, it is said to be crossed generally and payment of it can only be made to a banker.

If between such lines a name of any particular banker is inserted, such cheque is said to be crossed specially and payment of it can only be made to that banker.

 

Section 995.- (1) An uncrossed cheque may be crossed generally or specially by the drawer or any holder.

                  (2) Where a cheque is crossed generally, the holder may cross it specially.

                  (3) Where a cheque is crossed generally or specially, the holder may add the words”not negotiable”.

                  (4) Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially to another banker for collection.

                  (5) Where an uncrossed cheque or cheque crossed generally is sent to a banker for collection, he may cross it specially for himself.

 

Section 996.- A crossing authorised in the foregoing section is a material part of the cheque. It shall not be lawful for any person to obliterate it.

 

Section 997.- Where a cheque is crossed specially to more than one banker except when crossed to an agent for collection being a banker, the banker on whom it is drawn shall refuse payment thereof.

Where a banker on whom a cheque is drawn which is so crossed nevertheless pays the same, or pays a cheque crossed generally otherwise than through a banker, or if crossed specially otherwise than to the banker to whom it is crossed or his agent for collection being a banker, he is liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.

Provided that where a cheque is presented for payment which does not at the time of presentment appear to be crossed, or to have had a crossing which has been obliterated, or to have been added to or altered otherwise than as authorised by law, the banker paying the cheque in good faith and without negligence shall not be responsible or incur any liability.