Madras HC | Unlawful for holder of cheque to fill date and amount in blank cheque beyond knowledge of accused; execution of cheque explained

Madras High Court: The Bench of M.V. Muralidharan, J. upheld the order of respondent’s acquittal for an offence punishable under Section 138 of Negotiable Instruments Act, 1881 while holding that “the different ink, pen, and manipulation of the amount would show that the complainant had failed to demonstrate due execution of the cheque.”

The present appeal was directed against the judgment of acquittal passed by the Additional District Judge reversing the conviction of the respondent under Section 138 (for dishonour of cheque).

Appellant submitted that respondent borrowed a sum of Rs 1,50,000 from him and issued a cheque drawn on ING Vysya Bank towards his liability to repay the same. However, the cheque was dishonoured. The appellant initiated the process under Section 138 and the trial court convicted the respondent holding him guilty. The respondent appealed to the ADJ who reversed his conviction as mentioned above.

The High Court observed that presumption in favour of complainant contemplated under Sections 118 and 139 of NI Act comes to play only on the satisfaction of Court that the cheque in question was duly executed. It was explained that “execution” of the cheque does not mean the mere handing over a “blank cheque”, but it means that the cheque is given in the full form, ” the complainant cannot be justified in doing material alteration beyond the knowledge of the accused.”

It was stated, it would be certainly unlawful if a complainant is allowed to fill up details of cheque beyond the knowledge of the accused such as filling up date and amount in a blank cheque.” In the present case, figure denoting the amount was found to be written in different inks and also the handwriting in as much as digits and words were concerned also differed. In such view of the matter of the Court did not find any illegality in the impugned order. Thus, the petition was dismissed. [E. Dhanuskodi v. D. Sreedhar, 2018 SCC OnLine Mad 5124, dated 08-11-2018]

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    I’m ,of course benefited by reading you Judge SEKAR Madras.

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