IMPORTANT POINT
Alteration of dates in cheques amounts to material alteration.

R.S. Ramanathan, J.—The complainant in C.C.No.53 of 2001 on the file of the Judicial Magistrate No.II, Erode is the appellant. The appellant filed the above complaint under section 138 of the Negotiable Instruments Act stating that the first accused, a registered firm in which Accused Nos.2 to 6 were partners, purchased yarn on credit from the complainant/appellant from 07.04.1997 to 13.4.1999 and towards that transactions, the accused owed a sum of Rs.5,87,252/- to the complainant and towards the discharge of the above liability, the second accused on behalf of the first accused issued 6 cheques for a total sum of Rs.5,25,252/- and the cheques were given for collection on 19.3.1999 and all the cheques were dishonoured with an endorsement funds insufficient . Therefore, a statutory notice was issued to the respondents 2 to 5. Due to inadvertence, registered notice was not sent to the sixth accused. However, being a partner of the first accused, he is also responsible. Accused Nos.3 and 4 sent reply notice contending false allegations and as the amount was not repaid, the respondents are liable to be prosecuted. The learned Judicial Magistrate dismissed the complaint and aggrieved by the same, the present Appeal is filed.

2. Mr.R.Sreerangan, learned counsel appearing for the appellant submitted that the trial court without properly appreciating the admission of the respondents/accused wherein they admitted the issuance of cheques, ought to have raised a presumption in favour of the complainant and ought to have held that the respondents are liable to be convicted as they failed to repay the amounts due under the Cheques.

3. He also submitted that the trial court erred in holding that Exs.P.2 to P.5 are not the original documents and they are copies and in the absence of filing original documents Exs.P.2 to P.5 cannot be taken into consideration to prove that there were transaction between the appellant and the respondents and as per the transaction, the respondents owed amount to the appellant as agreed by them. The learned counsel further submitted that having regard to the issuance of Cheques by the respondents and having regard to the defence taken by the respondents that the Cheques were given as a security for the purchases to be made later by the accused and they did not purchase any yarn from the appellant and demanded return of the Cheques issued by them and failure on the part of the respondents to prove the same, even assuming that Exs.P.2 to P.5 cannot be admitted having regard to the presumption available under Section 139 of the N.I.Act, the trial Court ought to have held that the Cheques were issued towards legally enforceable liability and the respondents failed to rebut the presumption by substantiating their case and ought to have convicted the respondents. He therefore submitted that the finding of the trial Court that the Cheques were not issued towards legally enforceable liability is erroneous and the same is liable to be set aside. He further submitted that the trial Court erred in holding that the appellant is not a holder in due course, having regard to the admission of PW.1 that the Cheques were discounted with the financiers and the appellant received money and later the financiers got back the money from the appellant and thereafter, the cheques were presented for collection. The learned further submitted that the trial Court without appreciating the fact that the Chques can be presented during the validity period for any number of times and admittedly, the validity period was extended by the second accused by altering the date in all the Cheques and endorsements were also made to that effect and though the second accused denied the endorsement made by him, no attempt was made by him to send the Cheque for expert’s opinion that the endorsements were not made by him, the trial Court ought to have held that the appellant is a holder in due course and being a payee is entitled to initiate the pr