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Section 88: Acceptor or endorser bound notwithstanding previous alteration

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 87 All 148 Sections of Negotiable Instruments Act Section 89

Legal Commentary & Landmark Judgments: Section 88

Section 88 provides an exception to Section 87, enacting that an acceptor or indorser is bound by their acceptance or indorsement notwithstanding any previous material alteration.

  • Estoppel Against Subsequent Parties: A person who accepts or indorses an instrument AFTER it has been altered is legally bound by the instrument in its altered state.
  • Warranty of Genuineness: By signing, the subsequent party warrants that the instrument as seen and signed by them is a valid, enforceable obligation.
  • Protection for Subsequent Holders: Prevents subsequent signers from using earlier alterations to defeat the claims of holders in due course.
Key Landmark Precedents:
  • Master v. Miller (1791) 4 TR 320: The foundational authority on alteration, establishing that subsequent indorsers who adopt the paper are estopped from disputing prior changes.
  • Seth Loon Karan Sethiya v. Ivan E. John (1977) 1 SCC 379: Discussed the statutory boundary between voidness under Section 87 and subsequent party liability under Section 88.
Courtroom Practice & Strategic Litigation Guidance:

If representing a holder suing an indorser who claims 'the date was altered before I received it', invoke Section 88. An indorser who indorsed the paper in its altered state is strictly bound to subsequent holders.

Section 87 All 148 Sections of Negotiable Instruments Act Section 89