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ALOKE KUMAR BHATTACHARYA (practice)     25 February 2019

Dishonoure by non acceptance for material alteration n.i.act

Drawer sent a crossed instrument without printing the surname of payee on the face of the cheque but payee manually writing the surname & his A/C number presented the cheque for clearing and transfering of funds.Can it be dishonoured for non acceptance by drawee. Pl.advise.


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 2 Replies

G.L.N. Prasad (Retired employee.)     26 February 2019

Any alteration/modification/Addition in material contents namely name of the payee, amount, date etc., amount to material alteration and can only be honoroured by drawee bank if there is authentication with full signature of the drawer/depositor.

ALOKE KUMAR BHATTACHARYA (practice)     26 February 2019

Mr.A has an sb.account in  X  bank. " Mr.A"  received one account payee cheque in which his name"  A"  was printed  but not full name. The drawer forgot to write the payee's  sb account number after the name of   "Mr.A "      NOW -

" Mr.A" added his full name after "A" with  his sb.account number  and presented for payment before his "X"  bank. The cheque was drawn on the same  "X " bank

CAN DRAWEE BANK REFUSE TO PAY ON GROUND OF DISHONOURED BY NON ACCEPTANCE ?


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