Signed cheque completion by payee is not material alteration when drawer fails to rebut statutory presumptions.

A signed cheque delivered to the payee carries implied authority for completion of the remaining particulars, unless the drawer proves that those entries were made without consent. Filling in the date, amount, or name by the holder does not, by itself, amount to material alteration under Section 87 of the Negotiable Instruments Act, 1881. Where the drawer fails to show absence of authority or consent, the presumptions under Sections 138 and 139 continue to operate and remain unrebutted. On the facts stated, the accused did not discharge that burden, and the conviction under Section 138 was upheld.

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Issues: Whether a cheque signed and delivered by the drawer but filled in by the payee as to date and amount amounts to material alteration so as to defeat prosecution under Section 138 of the Negotiable Instruments Act, 1881, and whether the statutory presumption in favour of the complainant stands rebutted.

Analysis: A signed cheque delivered to the payee carries an implied authority for completion of the remaining particulars, unless the drawer proves that the entries were made without consent. Section 20 of the Negotiable Instruments Act, 1881, though not directly applicable to cheques, reflects that principle. A mere filling in of date, amount, or name by the holder does not by itself constitute material alteration within Section 87 of the Negotiable Instruments Act, 1881, because material alteration presupposes a change of an existing term into something fundamentally different. The statutory presumptions under Sections 138 and 139 of the Negotiable Instruments Act, 1881, therefore continue to operate where the cheque bears the drawer's signature and the drawer fails to lead evidence showing absence of authority or consent. On the facts, the accused did not discharge that burden.

Conclusion: The cheque was validly acted upon, no material alteration was proved, and the conviction under Section 138 of the Negotiable Instruments Act, 1881, was upheld.

Ratio Decidendi: Where a cheque is admittedly signed by the drawer and the drawer fails to prove that the payee completed the instrument without authority or consent, filling in the remaining particulars does not amount to material alteration and the presumption under Section 139 of the Negotiable Instruments Act, 1881, remains unrebutted.

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