Chapter VII - Of Discharge from Liability on Notes, Bills and Cheques
Section 87
Section 87: Material alteration of an instrument
Section 87 addresses material alteration, consent and the common intention of the original parties, with a separate consequence for alteration by an indorsee.
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Need advice on Section 87?
This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Key rule and applicability
A material alteration makes the instrument void against an existing party who did not consent, unless the alteration carries out the original parties’ common intention. Alteration by an indorsee also has the stated effect on the indorser’s liability to that indorsee in respect of consideration.
Limits and related provisions
The rule is not that every change automatically voids the document against the whole world. Identify materiality, the party’s status at alteration, consent, common intention and the expressly preserved sections 20, 49, 86 and 125.
Hypothetical business example
Hypothetical: a holder changes an instrument’s amount after an earlier party signed. The claim requires evidence about materiality and that party’s consent or the original common intention, rather than assuming the changed document binds every signer unchanged.
Practical decision flow
Preserve the before-and-after instrument and alteration chronology.
Identify the affected party, consent and any common-intention evidence.
Read the specified saving provisions before concluding the extent of invalidity or discharge.
Practical checklist
Do
- Preserve the before-and-after instrument and alteration chronology.
- Identify the affected party, consent and any common-intention evidence.
- Read the specified saving provisions before concluding the extent of invalidity or discharge.
Avoid
- The rule is not that every change automatically voids the document against the whole world. Identify materiality, the party’s status at alteration, consent, common intention and the expressly preserved sections 20, 49, 86 and 125.
Glossary
- Material alteration
- An alteration whose materiality must be assessed under the applicable law and facts.
- Common intention
- The original parties’ shared intention referred to in the exception.
Frequently asked questions
Does the section require attention to consent?
Yes. It expressly addresses an existing party who does not consent.
Is an alteration carrying out common intention treated identically?
The main paragraph states an exception for carrying out the original parties’ common intention.
Which sections are expressly preserved?
Sections 20, 49, 86 and 125.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026