Question 365. - A bank cashed a cheque for the wrong person with "order" ruled out and "bearer" written in. The drawer of the cheque claims reimbursement for the amount on the ground that the change did not bear his initials. The bank claims that the cheque was payable to bearer, therefore, the drawer has no claim. Who is right?

Answer. - The alteration is a "material" one within the meaning of section 146 of the Bills of Exchange Act and unless it was made by the drawer or with his consent, he is within his rights in requiring reimbursement.