Praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
Cashing and receiving certified cheques is considered a form of constructive possession, which is tantamount to actual possession. In Resolution No. (6/4/55), the International Islamic Fiqh Assembly permitted dealing in cheques and considered that a form of constructive possession. The Resolution stated: "One of the contemporary forms of constructive possession considerable according to Sharia and custom is receiving the cheque if it is covered by the currency indicated on it when collected and held by the bank."
In addition, a regular cheque is a document issued to the bank, directing it to pay the specified sum mentioned in digits as well as words to the person whose name is borne on the cheque.
The general rule is that a cheque is cashed in the name of its owner and the latter is allowed to give it to someone else, and this is called "Endorsement." This is when the first beneficiary endorses the cheque to a second beneficiary and so on. However, it is allowed for the issuer to exclusively restrict cashing the cheque to the person whose name is borne on it, which is the first beneficiary, to guarantee that it reaches the rightful owner.
From the perspectives of Sharia and law, it is allowed to restrict the cheque to the first beneficiary since there is a considerable interest in this to the issuer of the cheque who is perhaps doing this to prevent fraud especially in Murabah sales. And Allah the Almighty knows best.
