Stale cheques and disputed date insertion can create a triable defence in a summary suit

In a summary suit, stale cheques not presented within their validity period can raise a triable issue because the claim must rest on an enforceable liability. Adding dates to undated cheques may also amount to material alteration under the Negotiable Instruments Act, 1881, unless it is shown to reflect the parties' common intention or consent. On the pleaded facts, the absence of clear consent made the cheques' validity a matter for trial, supporting the defendant's right to defend unconditionally.

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Issues: (i) whether a summary suit could be resisted on the basis that two of the cheques relied upon were stale and had not been presented within their validity period; (ii) whether insertion of dates on undated cheques amounted to material alteration rendering the instruments void and giving rise to a triable defence.

Issue (i): whether a summary suit could be resisted on the basis that two of the cheques relied upon were stale and had not been presented within their validity period.

Analysis: A claim under the summary procedure must be founded on a debt or liability enforceable on the basis pleaded. Where part of the foundation consists of cheques that were not presented within their validity period, a substantial question arises as to whether such cheques can support a summary decree. The court treated this as a live issue going to the maintainability of proceeding summarily.

Conclusion: The stale cheques raised a triable issue and could not, at the interlocutory stage, justify rejection of the defence.

Issue (ii): whether insertion of dates on undated cheques amounted to material alteration rendering the instruments void and giving rise to a triable defence.

Analysis: Under Section 87 of the Negotiable Instruments Act, 1881, a material alteration voids an instrument against a non-consenting party unless it is made to carry out the common intention of the parties. The court held that adding dates to undated cheques is capable of amounting to material alteration. On the plaint averments, the cheques were to be presented only after confirmation by the defendant, and the alleged presentation was without such confirmation. On a prima facie view, consent and common intention were not established.

Conclusion: The alteration issue disclosed a plausible defence and made the validity of the cheques a matter for trial.

Final Conclusion: The defendant disclosed a friable defence and was entitled to defend the suit unconditionally, so the summary procedure could not be invoked to obtain judgment at that stage.

Ratio Decidendi: In a summary suit, where the instrument foundation is challenged by a plausible issue as to stale cheques or material alteration without consent, the defendant is entitled to unconditional leave to defend because the matter cannot be decided without trial.

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