In the current era, Cheques are used in almost all transactions, be it the guarantee of loans, Landlord-tenant agreements tenders, payment of salary to employees, payments of bills etc. Cheques have become an integral part of our day to day transactions.
A cheque is a negotiable instrument which has been defined under Section 6 of the Negotiable Instruments Act,1881. Crossed cheques or account payee cheques are not negotiable by any person other than the payee of the cheque. It is advised to use account payee cheques in order prevent misuse of the cheque.