धारा 70

Section 70 of the Negotiable Instruments Act, 1881, states that 'where a cheque is not crossed, the banker on whom it is drawn shall pay it to the bearer thereof, and the payment shall be good as against the drawer'. This means that if a cheque is not crossed, the paying banker is required to pay it to the bearer of the cheque, and the payment is considered good as against the drawer. The effect of a cheque not being crossed is that it can be paid to anyone who presents it, and the paying banker is not required to verify the identity of the presenter. The Supreme Court of India has held that a paying banker who pays a cheque that is not crossed to a person who is not the rightful owner of the cheque is not liable for the amount of the cheque, as long as the payment was made in good faith and without negligence.