A sheet handling apparatus includes a sheet transport path, a pinch and drive mechanism disposed at an entry side of the transport path for conveying the sheets in a transport direction X along the transport path, at least one liftable pinch and drive mechanism disposed at the transport path downstream of said entry side pinch and drive mechanism, a sheet alignment mechanism disposed further downstream at the transport path and arranged to impart a movement in a direction Z normal to the transport direction X to at least a part of a sheet that passes through, and a controller arranged to receive a sheet length signal and to control said at least one liftable pinch and drive mechanism in accordance with the sheet length.