CROSSED CHEQUE
TRANSFER CHALLENGED ALLOWABLE BY LAW DECISION OF MAGISTRATE [from ottr own correspondent] Friday. In a case heard at the "Whangarei Court it was argued by Mr. A. Steadman, who was appearing for the defendant, that an order cheque marked not negotiable and crossed could not be transferred. The position was that a. cheque been to one person who had later transferred it, hut when presented at the bank payment had been stopped by the drawer. The holder of the cheque then took 'action against the drawer to recover the amount and this claim was defended. • . Mr. Steadman argued that cheques came under the sections of the Act dealing with bills of. exchange and quoted authorities which he stated supported "this contention. Mr. A. G. Lamb, for the plaintiff, contended that it was a recognised principle that a crossed cheque was negotiable and that cheques did not come under the sections of the Act governing bills of exchange.
"Ymi are maintaining that a not negotiable cheque cannot bo passed on?" said the magistrate, Mr. G. N. Morris, to Mr. Steadman. "Section SI clears up this point. Such a cheque can be transferred, and so judgment will go to plaintiff for the amount claimed.''
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Bibliographic details
New Zealand Herald, Volume LXXVI, Issue 23339, 6 May 1939, Page 15
Word Count
204CROSSED CHEQUE New Zealand Herald, Volume LXXVI, Issue 23339, 6 May 1939, Page 15
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