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2025 Supreme(Online)(Ker) 67000

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Gopinath P., J
Susheela Devi – Appellant
Versus
T. Prabhakaran Nair – Respondent
CRL.A NO. 646 OF 2018 | Crl.L.P. NO.220 OF 2018 | ST NO.8031 OF 2015



Advocates:
For the Appellants/Petitioners: Jai George, Rekha Nair
For the Respondents: Seena C.

A drawer of a negotiable instrument can voluntarily re-validate a cheque by altering the date, even if the original validity period has expired; such alteration does not invalidate the cheque or the subsequent prosecution under Section 138 of the NI Act.

Headnote:(A) Negotiable Instruments Act - Material Alteration - Re-validation of Cheque - Alteration of date on a cheque to extend its validity, if done voluntarily by the drawer or with consent, does not render the instrument invalid. There is no legal bar under the NI Act preventing a drawer from re-validating a negotiable instrument. (Para 6)

(B) Presumption of Liability - Section 138 - Once the execution of the cheque is established and supported by financial records (statement of account), the presumptions under Sections 118 and 139 of the NI Act apply, shifting the burden to the accused to prove the absence of a legally enforceable debt. (Para 2)

Issues: Whether the alteration of the date on a cheque after the initial validity period expires renders the cheque invalid for the purpose of prosecution under Section 138 of the NI Act.

Table of Content
1. trial court conviction based on ni act presumptions and subsequent acquittal by first appellate court due to date alteration. (Para 1 , 2 , 3)
2. appellant's contention that date alteration was consensual and supported by financial evidence. (Para 4 , 5)
3. legal permissibility of re-validating a cheque through date alteration as per supreme court precedent. (Para 6)

JUDGMENT

This appeal has been filed challenging the judgment dated 05-02-2018 in Crl. Appeal No.79/2017 on the file of the Additional Sessions Judge-IV, Kollam, through which that court (hereinafter referred to as the 'First Appellate Court’) set aside the conviction and sentence imposed on the 1st respondent by the Judicial First Class Magistrate-III, Kollam, in S.T No.8031/2015.

2. S.T. No.8031/2015 was a complaint filed by the appellant herein alleging that the 1st respondent herein had committed an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the NI Act'). It was the case of the appellant that the 1st respondent had issued a cheque dated 16-04-2015 for a sum of Rs.3,00,000/- to the appellant, and the same was presented for encashment. The cheque was returned unpaid and dishonoured on account of want of funds in the bank account of the 1st respondent. After complying with statutory formalities, the complaint was instituted and was taken on file as S.T. No.8031/2015. The trial court found that the case of the 1st respondent that there was no financial transaction between the appellant and the 1st respondent cannot be accepted as Ext.P6 document, which is the statement of account of the complainant, clearly shows that the appellant had issued cheque No.783817 drawn on her account to the 1st respondent and that was encashed by the 1st respondent. On this finding and relying on the presumptions under Sections 118 and 139 of the NI Act, the learned trial judge found that the appellant had succeeded in proving that the cheque had been issued by the 1st respondent for the discharge of a legally enforceable debt. The trial court therefore convicted the 1st respondent for the offence under Section 138 of the NI Act. The 1st respondent was sentenced to undergo simple imprisonment for 3 months and to pay a fine of Rs.3,00,000/-, and in default of payment of the fine amount, the 1st respondent was directed to undergo simple imprisonment for a further period of one month. It was directed that the fine amount, if realised, shall be paid to the appellant as compensation under Section 357 Cr. P.C.

3. An appeal was filed by the 1st respondent, which came to be numbered as Crl. Appeal No.79/2017. The appeal was considered by the Additional Sessions Judge-IV Kollam, and by the judgment dated 05-02- 2018, the Sessions Court reversed the finding of the trial court and acquitted the 1st respondent on the ground that there was a material alteration in the date on the cheque in question. The First Appellate Court also found that the said alteration was made beyond the date of validity of the cheque as counted from the original date shown on the cheque, and in the absence of evidence to show that the alteration was done with the consent of the 1st respondent, the burden was on the appellant to show that the alteration was carried out by the 1st respondent or with his consent.

4. The learned counsel for the appellant would submit that the finding of the First Appellate Court is clearly unsustainable in law. It is submitted that the original date on the cheque issued to the 1st respondent was 15-10-2014. It is submitted that the validity of the said cheque was till 14- 04-2015, as at that point in time, a cheque had a validity of six months. It is submitted that the 1st respondent was a doctor by profession, and the appellant used to consult him. It is submitted that the 1st respondent had borrowed amounts from the appellant and had issued a cheque for the discharge of the liability to the appellant. When the appell

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