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2006 DIGILAW 597 (BOM)

B. Krishna Reddy v. B. K. Somashekara Reddy

2006-04-12

K.SREEDHAR RAO

body2006
JUDGMENT:- The appellant-complainant prosecuted the accused for offence under Section 138 of N.I. Act. 2. The accused towards payment of credit purchase issued Ex.P-1 a cheque of Rs. 1,00,000/-. Upon presentation, cheque is dishonoured. Statutory notice is issued and complaint is filed. It is the contention of the defences, that cheque Ex.P-2 is materially altered by the complainant. The cheque was issued in respect of SBI account bearing No.4948. P.W.1 admits that since the said account was closed, he altered the account number to 7383 in Ex.P-1 and presented to the bank for encashment. The bank as per Ex.P-2 returned the cheque with an acknowledgment "referred to the drawer". P.W.1 clearly admits he has altered the bank account number of the cheque. Section 87 of the N.I. Act declares that "any material alteration of negotiable instrument renders the same void as against anyone who is a party thereto at the time of making such alteration and does not consent thereto, unless it was made in order to carry out the common intention of the original parties". If the endorsee were to make an alteration, the liability of the endorser is discharged. It is mandatory that in order to attract prosecution under Section 138 of N.I. Act there should be any debt or legal liability In view of admitted material placed on the part of P.W.I, instrument has become void in law. Therefore, no action in law under Section 138 of N.I. Act could lie. The acquittal of the accused is sound and proper. The appeal is dismissed. Appeal dismissed.