VALSA AGENCY Vs. K BALAKRISHNAN

JUDGEMENT

(1.) THE second and third petitioners who are partners of the first petitioner firm are accused for an offence punishable under Section 138 of the Negotiable Instruments Act in C.C. No.327 of 2005 on the file of the learned Judicial Magistrate, Avinashi

(2.) THE allegation in the Complaint is that the petitioners have borrowed a sum of Rs.9,50,000/- on 07.08.2005 and issued a cheque for repayment of the same on 17.08.2005. THE cheque was dishonoured on the next day as "drawers signature differs and account closed". THE complainant preferred the present Complaint after following the necessary formalities.

(3.) RELIANCE was also placed on the judgment reported in Ramachandran v. K. Dineshan and another, 2005 Crl.L.J.1237."The basic principle of law is that any change in a written instrument which changes the legal identity or business character of the instrument, either in its terms or in the legal relation of the parties to it, is a material alteration and such a change invalidates the instrument against the person not consenting to the change. This principle of law is essential to the integrity and sanctity of contracts. By alteration, the identity of the instrument is destroyed. So, the effect of making a material alteration on a negotiable instrument without the consent of the party bound under it is exactly the same as that cancelling the instrument.".