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Section 87: Affect of material alteration

Negotiable Instruments Act • Official Statutory Text & Practice Guide

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Act 1881
Section 86 All 148 Sections of Negotiable Instruments Act Section 88

Legal Commentary & Landmark Judgments: Section 87

Section 87 regulates the effect of material alteration, enacting that any material alteration of a negotiable instrument renders it completely void as against anyone who was a party thereto at the time of alteration and did not consent, unless made to carry out the original common intention.

  • Material Alteration Defined: Any change in date, sum payable, interest rate, time of payment, place of payment, or addition of a party that alters the legal character of the paper.
  • Consequence of Total Voidness: The instrument becomes completely void and unenforceable; the altering party loses all remedies on the paper and on the underlying transaction.
  • Exceptions: Valid if made with consent of parties, or to correct a clerical error to carry out common original intention, or converting a blank indorsement under Section 49.
Key Landmark Precedents:
  • Loonkaran Sethia v. Ivan E. John (1977) 1 SCC 379: The Supreme Court authoritatively held that any material alteration destroys the legal integrity of the instrument; the altering party cannot sue upon the document in court.
  • Jayantilal Goel v. Zubeda Khanum (AIR 1986 AP 120): Held that altering the date or adding an interest clause without the maker's consent is a material alteration under Section 87 rendering the note void.
  • T. Nagappa v. Y.R. Muralidhar (2008) 5 SCC 633: The Supreme Court affirmed that an accused in a Section 138 trial has a fundamental right to seek expert forensic opinion to prove material alteration under Section 87.
Courtroom Practice & Strategic Litigation Guidance:

Section 87 is one of the most effective defences in cheque bounce and promissory note trials. If the complainant altered the date (e.g., from 2021 to 2024 to defeat limitation) or altered the amount figures, move an immediate application under Section 45 of the Indian Evidence Act / Section 63 BSA for forensic ink examination to declare the instrument void under Section 87.

Section 86 All 148 Sections of Negotiable Instruments Act Section 88