Mr. Swamy is maintaining a Savings Bank Account at XYZ Branch of ABC Bank. A cheque dated 31st March, 2020 for ₹ 8,500 drawn by him, has been paid by the branch on 5th April, 2020. After one month when he got updated his

Bank is not liable where a Cheque has been materially altered, but does not appear to have been altered. The banker liable to pay the same get a valid discharge when the bank pays the same according to apparent tenor. Under Section-10 of the Negotiable Instruments Act, 1881, 'Payment in due course' means a payment made in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstance, which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned. Under Section 89 of the Negotiable Instruments Act, 1881, where a cheque has been materially altered but does not appear to have been so altered, a banker liable to pay the same, get a discharge when he pays the same according to apparent tenor. Therefore the action of the Bank is correct.