Negotiable Instruments Act Section 87 — Effect of material alteration

CHAPTER VII OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES

General

Summary

If a negotiable instrument like a cheque or promissory note is changed in a material way, it becomes invalid against anyone who was a party to it at the time of the change and did not agree to it. However, this does not apply if the change was made to carry out what the original parties intended all along. If the person holding the instrument (the indorsee) makes such a change, the person who transferred it to them (the indorser) is freed from all liability to them regarding the payment for it. These rules are subject to the provisions of sections 20, 49, 86, and 125 of the Act.

Official Text

Any material alteration of a negotiable instrument renders the same void as against anyone who is a party thereto at the time of making such alteration and does not consent thereto, unless it was made in order to carry out the common intention of the original parties; Alteration by indorsee.—And any such alteration, if made by an indorsee, discharges his indorser from all liability to him in respect of the consideration thereof. The provisions of this section are subject to those of sections 20, 49, 86 and 125.