Section 87 of The Negotiable Instruments Act, 1881

87.  Effect of material alteration.— Any material alteration of a negotiable instrument renders the same void as against any one 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.


If the alteration is made by a stranger without the knowledge of the promisee the other party is discharged if the instrument is in the possession of the promisee or his agent but if the instrument is altered by a stranger when the instrument was not in the custody of the promise the promisor is not discharged. But on the terms of this section such an alteration would be void as against any person who is a party to the instrument and does not consent to the alteration; Anirudhan v. Thomco’s Bank, AIR 1963 SC 746.

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