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K.SOMASHEKAR
A. P. Amit Kumar – Appellant
Versus
A. P. Manjunath – Respondent
Material alteration refers to unauthorized changes to a negotiable instrument, such as overwriting a figure in the amount field (e.g., the digit "5" in Rs. 3,50,000/-), which prompts a bank endorsement of "alteration requires authentication" alongside "funds insufficient". (!) [3000415770019]
Under Section 87 of the Negotiable Instruments Act, any material alteration renders the instrument void as against any party thereto at the time of alteration who does not consent, unless made to carry out the original parties' common intention. (!) [3000415770017][3000415770018][3000415770011]
Such alteration, if done without the drawer's knowledge (e.g., filling a blank cheque issued for security and overwriting the amount), voids the cheque, eliminating any legally recoverable debt or criminal liability under Section 138. [3000415770001][3000415770019][3000415770020]
The trial court correctly held the cheque void due to admitted material alteration, leading to acquittal, as no presumption under Section 118 applies to a void document. (!) [3000415770004][3000415770020]
This appeal is directed against the judgment of acquittal dated 20.02.2010 passed by the II Addl. Civil Judge and JMFC, Chikmagalur in Criminal Case.No.3294/2006 acquitting the accused for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as ‘the NI Act’, for brevity). The same is challenged in this appeal urging various grounds.
2. The factual matrix of the complainant’s case are as under:
The accused had availed hand loan of Rs.3,50,000/- from the complainant. In pursuance of the same, he had issued a cheque dated 11.8.2006 bearing No.265574 for a sum of Rs.3,50,000/- drawn on State Bank of India, Chikmagalur branch. The complainant presented the said cheque for encashment through his banker – State Bank of Mysore, Chikmagalur. The same was returned unpaid with the Bank memo stating “Funds Insufficient and alteration requires authentication” to honor the cheque. They issued memo on 12.8.2006. Subsequently, the complainant got issued a legal notice to the accused calling upon him to pay the amount within 15 days from the date of receipt of the notice. The notice was served on the accused, he neither paid the amount no
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