AI Overview...
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Sec. 87 of the Negotiable Instruments Act (N.I. Act) - Defines material alteration as any change made outside the body of a negotiable instrument that affects its legal rights or liabilities. Such alterations, if proven, render the instrument void or unenforceable. Multiple sources confirm that material alterations include changes in the amount, date, or endorsements on a cheque or promissory note, which are significant enough to affect the instrument's validity HERMAN CASTELINO VS SURESH KUDVA - Karnataka, Kammali Venkata Subbayya VS Velamuri Viswanatham - Andhra Pradesh, Umesh Chandra son of Champa Lal Jain VS Sharad Deshkar son of Shankar Raoji Deshkar - Rajasthan, Avon Organics Ltd. , (A Company incorporated under companies Act, 1956) VS Poineer Products Limited - Andhra Pradesh.
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Effect of Material Alteration - When a material alteration is established, the instrument becomes void or cannot be enforced in its altered form. Courts have held that alterations like changing the date, amount, or endorsements without proper authorization constitute material alterations, impacting the enforceability of the instrument Umesh Chandra son of Champa Lal Jain VS Sharad Deshkar son of Shankar Raoji Deshkar - Rajasthan, Kammali Venkata Subbayya VS Velamuri Viswanatham - Andhra Pradesh.
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Legal Consequences - If a cheque or promissory note is materially altered, the holder cannot claim rights based on the altered instrument, and such alterations can be used as a defense against enforcement or dishonor claims. For instance, filling or correcting amounts or dates without proper endorsement or acknowledgment constitutes material alteration, affecting the instrument's validity 00200049181, Maturi Sandesh VS Challa Venkateswara Rao - Andhra Pradesh.
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Limitations and Exceptions - Not all modifications are deemed material; endorsements or minor corrections that do not alter the instrument's substance may not constitute material alterations. The courts also recognize that alterations outside the body of the instrument, such as endorsements, may or may not be material depending on the context and whether they affect the instrument’s legal rights Bhanwarlal VS Gulabchand - Rajasthan.
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Case Law and Judicial Findings - Courts have found that alterations like changing the date or amount after execution, especially if done outside the body of the instrument, are material and render the instrument void. Conversely, some endorsements or corrections made within the instrument’s body, with proper acknowledgment, may not be deemed material Lakshmi Finance Corporation a firm located at Stone-housepet, Nellore VS N. S. Pantulu - Andhra Pradesh, Veera Exports VS T. Kalavathy - Rajasthan.
Analysis and Conclusion:
Under Sec. 87 of the N.I. Act, material alteration involves significant changes outside the original terms of a negotiable instrument that affect its legal enforceability. Such alterations—especially in amounts, dates, or endorsements—are deemed to make the instrument void or unenforceable. The courts emphasize that the nature and extent of the alteration determine its materiality, and proper acknowledgment or authorization is crucial to avoid invalidity. Therefore, in cases of alleged material alteration, the key considerations are whether the change affects the instrument's substance and whether it was made with proper authority or acknowledgment.
Search Results for "Sec 87 Material Altercation"
2022 0 Supreme(Kar) 293 • India - Karnataka
H. B. PRABHAKARA SASTRY
Sec. 87 of the N.I. ... Act - Cheque Dishonour - Sec. 138 of the N.I. Act - Sec. 87 of the N.I. ... Finding of the Court: The court found that there was a material alteration in the cheque, rendering it void as per ... Thus, undoubtedly, it is a material alteration in the cheque. 21. Sec. 87 of the N.I. ... He has admitted a suggestion that there was material alterati....
• India - Andhra Pradesh
GOPAL RAO EKBOTE
NEGOTIABLE INSTRUMENTS ACT, 1881 - SECTION 87 - ALTERATION OF NEGOTIABLE INSTRUMENT - MATERIAL ALTERATION - EFFECT - LIMITATION ... ACT, 1963 - SECTION 19 - ACKNOWLEDGMENT OF PAYMENT - MATERIAL ALTERATION - EFFECT. ... A-3, being a receipt, is not a negotiable instrument and therefore Sec. 87 is not applicable. 2. ... Sec. 87 of the Act at the very outset says that material alteration#HL....
2003 0 Supreme(AP) 1 • India - Andhra Pradesh
DUBAGUNTA SUBRAHMANYAM
alteration as per provision in Sec.87 of N.I Act - Both Courts below decreed suit holding that endorsements are not material ... NEGOTIABLE INSTRUMENTS ACT, Sec.87 - Suit for recovery of money based on pro-notes - Defendant contends that debt under ... amounts and discharged pro-notes and that payment endorsements corrected from 1993 as 1994 and that alterations amount to material ... It is the contention of the appellant - defendant that these alter....
1995 0 Supreme(Raj) 650 • India - Rajasthan
P.C.JAIN
Negotiable Instruments Act, 1881, Sec. 87 and Stamps Act, Sec. 15 – Alteration in pro-note–Any alteration made out-side the body ... of Sec.87 of the Act of 1881. ... executing the endorsement or document Ex.3 on the back of pro-note Ex.1, the plaintiff cannot be indicated for making any actionable material ... ... Section 87 of the Act of 1881 deals with the effect of material alteration, which ....
1958 0 Supreme(Raj) 183 • India - Rajasthan
BHANDARI
(a) Negotiable lnstruments Act, sec. 87—Material alteration—Affixing Stamps later and cancelling. ... (b) Negotiable Instruments Act. sec. 57—Material alteration—Attesting unattested document. ... (c) Document—Alteration—-Attesting a unattested document. ... ... The English Rule has been adopted in India to its full extent in the case of negotiable instruments in sec. 87 of the Negotiable Instrument Act, l881 lay....
2003 0 Supreme(AP) 799 • India - Andhra Pradesh
S.R.K.PRASAD
NEGOTIABLE INSTRUMENTS ACT, Secs.138,139,141 & 142 and Sec.87 - Blank cheque - Dishonour - Material alteration - Accused issued ... ... Material alteration - Complainant filling up amount portion in ... words and figures and putting date as per his own choice, certainly amounts to a material alteration - Blank cheque cannot be ... Section 87 of the Act reads as under:"effect of material alteration#....
1993 0 Supreme(Mad) 141 • India - Madras
ABDUL HADI
Negotiable Instruments Act, 1881-Section 87-Alteration of date in pronote whether material-Pronote can be held void on that ground ... Further, the abovesaid Sec.87 only speaks to the effect or consequence of material alteration. It does not say what "material alteration" is or in what cases there would be material alteration. ... The lower appellate court has found that there is such an #HL_START....
2001 0 Supreme(Raj) 1187 • India - Rajasthan
K.T.THOMAS, S.N.VARIAVA
take advantage of it later by saying that the cheque became void as there is material alteration thereto. ... Negotiable Instrument Act, 1881, Sec. 138 & 87 – Dishonour of cheque on second time – Dishonoured cheque corrected by drawer as to ... date – Again dishonoured – Complaint u/Sec.138 of Act 1881 filed – Held – There is no provision in the Act or in any other law which ... he cannot take advantage of it later by saying that the cheque became void as there is material al....
1979 0 Supreme(AP) 364 • India - Andhra Pradesh
K.RAMACHANDRA RAO
There are no material alterations in the suit promissory notes within the meaning of Sec. 87 of the Negotiable Instruments Act so ... NEGOTIABLE INSTRUMENTS ACT, Sec. 87 - Endorsements made on the suit promissory notes by promiser in order to create mortgage by deposit ... That ruling does not render any assistance to the learned counsel for the defendant to support his argument that there was material alteration of the suit promissory notes by making the endorsements....
1982 0 Supreme(AP) 290 • India - Andhra Pradesh
N.N.SHARMA
making certain material alterations - Plaintiff was not entitled to sue the defendant an basis of pro note as stood prior to alteration ... Negotiable Instrument Act, Sec. 87 - Evidence Act S.91 Plaintiff lending money on the basis of pronote - Money advanced - Plaintiff ... transaction and the pronote is executed to set out the terms of contract then the plaintiff Suing on pronote if found to have caused material
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