Section 85 - Cheque payable to order, Section 85A - Drafts drawn by one branch of a bank on another payable to order : Negotiable Instruments Act 1881

What is the meaning of Cheque payable to order? What are Drafts drawn by one branch of a bank on another payable to order? Cheque payable to order and Drafts drawn by one branch of a bank on another payable to order are defined under Section 85 and 85A of Negotiable Instruments Act 1881

Section 85 of Negotiable Instruments Act 1881: "Cheque payable to order"

(1) Where a cheque payable to order purports to be indorsed by or on behalf of the payee, the drawee is discharged by payment in due course.

(2) Where a cheque is originally expressed to be payable to bearer, the drawee is discharged by payment in due course to the bearer thereof, notwithstanding any indorsement whether in full or in blank appearing thereon, and notwithstanding that any such indorsement purports to restrict or exclude further negotiation.

Section 85A of Negotiable Instruments Act 1881: "Drafts drawn by one branch of a bank on another payable to order"

Where any draft, that is, an order to pay money, drawn by one office of a bank upon another office of, the same bank for a sum of money payable to order on demand, purports to be indorsed by or on behalf of the payee, the bank is discharged by payment in due course.