Signed cheques with dates filled later valid under Section 20 NI Act, borrower's appeal dismissed

Kerala HC dismissed defendant's appeal in money suit for Rs. 6 lakhs borrowed during 2006-07. Defendant argued that plaintiff's filling of dates in otherwise complete signed cheques constituted material alteration invalidating them. Court held that under Section 20 N.I. Act, handing over signed cheques confers prima facie authority to complete them. Filling dates in signed cheques with other entries complete does not constitute material alteration. Plaintiff established cheque dishonour through lawyer notices and proved claim through oral and documentary evidence. No evidence of repayment shown. Trial court's decree upheld.

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Issues Involved:
1. Whether the defendant borrowed an amount of Rupees 6 lakhs from the plaintiff during 2006-07.
2. Whether on 25.3.2008 defendant issued a letter of acknowledgment to the plaintiff as contended by the plaintiff.
3. Whether the plaintiff is entitled to realize the amount claimed in the plaint from the defendant.
4. Relief and costs.

Detailed Analysis:

Issue 1: Borrowal of Rs. 6 lakhs
The defendant admitted to borrowing money but contended that it was Rs. 4,75,000/-, not Rs. 6,00,000/-. The plaintiff claimed the loan was Rs. 6,00,000/- and provided six cheques as evidence, which the defendant did not dispute regarding the amounts filled in. The trial court found the plaintiff's claim probable, as the defendant's explanation for issuing cheques totaling Rs. 8,00,000/- was unconvincing and unsupported by evidence.

Issue 2: Issuance of Acknowledgment Letter
The plaintiff asserted that the defendant issued a debt acknowledgment letter on 25.03.2008, promising repayment with 12% interest. The defendant claimed the letter was falsely created on a blank stamp paper provided as security. However, the court noted that the defendant’s argument lacked credibility, as he admitted to signing and delivering the cheques, thereby granting the plaintiff prima facie authority under Section 20 of the Negotiable Instruments Act to complete the cheques.

Issue 3: Entitlement to Realize the Claimed Amount
The plaintiff established that the cheques were dishonored due to insufficient funds and that the defendant was duly notified. The defendant's claim of having repaid Rs. 2,00,000/- was unsupported by any receipt or evidence. The court held that the plaintiff's evidence, including oral testimony and documentary proof, justified the claim for Rs. 8,28,864/- (principal and interest).

Issue 4: Relief and Costs
The trial court decreed that the defendant should pay Rs. 8,28,864/- with 12% interest per annum from the date of the suit till realization and also bear the costs. The appellate court upheld this decision, finding no fault in the trial court's appreciation of evidence and reasoning.

Conclusion:
The appeal was dismissed, affirming the trial court's judgment that the defendant must pay the decreed amount with interest and costs. The court emphasized that the plaintiff had lawful authority to complete the cheques under Section 20 of the Negotiable Instruments Act and that the defendant's defenses were unsubstantiated.

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