Karnataka High Court
B. Krishna Reddy S/O Bankadarayappa vs B.K. Somashekara Reddy S/O Krishna ... on 12 April, 2006
Equivalent citations: II(2007)BC388, ILR2006KAR3111, 2006(5)KARLJ318, 2006 (5) AIR KAR R 19
Author: K. Sreedhar Rao
Bench: K. Sreedhar Rao
JUDGMENT K. Sreedhar Rao, J.
1. 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.Pl 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 defence, that cheque Ex.Pl is a materially altered by the complainant. The cheque was issued in respect of SBI account bearing No. 4948. PW1 admits that since the said account was closed, he altered the account number to 7383 in Ex.P1 and presented to the bank for encashment. The bank as per Ex.P2 returned the cheque with an acknowledgement "referred to the drawer". PW1 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 any one 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 (sic) placed on the part of PW1, instrument has become void in law. Therefore, no action in law under Section 138 of N.I.Act. (sic) The acquittal of the accused is sound and proper. The appeal is dismissed.