Negotiable Instrument Act

Querist : Anonymous (Querist) 14 April 2010 This query is : Resolved
Learned Members,
My question is if there is correction in the year on the cheque amounts to rectification/correction but not modification and such correction requires initial of the drawer.
For Eg., On the cheque leaf there is a year like this 19__, but complainant written on the cheque that 1901 instead of 2001.

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B K Raghavendra Rao (Expert) 14 April 2010
It is a cheque corrected and therefore needs signature of the drawer. Probably you are mistaken about the year. The earlier cheques are printed with first two digits of the year like 19... and they are used in the year 20... The complainant if had written 01 in the blank space, it would be valid since the printed digits 19 does not count for the correction.

If the digits 19 is not printed, then the cheque is invalid and the banker is bound to return the cheque for defect of overwriting without endorsement thereof.

As you say it is complainant who has written, the facts presumed are that the cheque was presented to the banker and the cheque bounced and hence he has preferred a complaint under Section 138 of the Negotiable Instruments Act.

You can challenge the correction but if the banker had not objected to it and returned the cheque only for 'insufficient funds', then you can do little about it. You need to call the Manager of the Bank to the court and cross-examine him to prove your point.

Parthasarathi Loganathan (Expert) 14 April 2010
Material Alteration is excluded in case of preprinted cheques with prefixes. Here the intention of the drawer is to indicate that it is meant for 2001 only. Any correction to this effect may not require drawer's authentication. In Banking related matter one has to construe both Banking Law and Practice.

Raj Kumar Makkad (Expert) 14 April 2010
I concur with rao.

Querist : Anonymous (Querist) 15 April 2010
Thanks to the learned Members.
I have won this case, accused is acquitted.

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