Handwriting and Contents doesn’t matter as to whether cheque written by Complainant or not

When a person transferred a blank cheque to the creditor for any purpose that amounts to cheque was been issued under the security within the purview and presumption of Section 139 of Negotiable Instrument Act. As per the section 20 of NI act when blank cheque is given by drawer he gives authority to payee to complete the instrument. It is unequivocally established that payee can fill or write over the cheque but it shall be original transaction amount. It has a exception under the Section 87 if the payee failed to prove under the section 20 in respect of authority that amounts of material alteration.  In this regard, the accused can’t take any defence under the grounds that contents of the cheque not written by me and the same filled by the complainant. Therefore, the handwriting and contents in the cheque is immaterial. However, in order to avoid misuse the cheque from the point of original fact that income proof the complainant is mandatory as discussed in earlier post in this blog.

Section 20. Inchoate stamped instruments- Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in India, and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete, as the case may be, upon it a negotiable instrument, for any amount specified therein and not exceeding the amount covered by the stamp. The person so signing shall be liable upon such instrument, in the capacity in which he signed the same, to any holder in due course for such amount: provided that no person other than a holder in due course shall recover from the person delivering the instrument anything in excess of the amount intended by him to be paid thereunder."

Section 87. Effect of material alteration.—Any material alteration of a negotiable instrument renders the same void as against anyone 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; Alteration by indorsee.—And any such alteration, if made by an indorsee, discharges his indorser from all liability to him in respect of the consideration thereof. The provisions of this section are subject to those of sections 20, 49, 86 and 125.

Study Case: Smt. Sunita Dubey vs Hukum Singh Ahirwar