Effect of material alteration
Full Text
Effect of material alteration.—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.
Plain English Summary
Renders a negotiable instrument void against any non-consenting party if it undergoes a material alteration, unless done to reflect the original parties' common intent.
Key Legal Elements
- Any material alteration renders the instrument void against non-consenting parties
- An exception applies if the alteration was made to carry out the original parties' common intention
- Alteration by an indorsee discharges their endorser from liability regarding consideration
- Subject to Sections 20, 49, 86, and 125
Practical Note
Very important defense in cheque bounce cases. Material alteration includes changes to the date, amount, payee's name, or interest rate without drawer's consent. Any such unauthorized alteration makes the cheque void, and no prosecution can succeed under Section 138. Valid alterations (like filling in an inchoate instrument under Section 20 or crossing under Section 125) are exempted.
हिंदी पाठ
महत्वपूर्ण परिवर्तन का प्रभाव।—परक्राम्य लिखत में किया गया कोई भी महत्वपूर्ण परिवर्तन (material alteration) उसे हर उस व्यक्ति के विरुद्ध शून्य (void) बना देता है जो ऐसे परिवर्तन के समय उसका पक्षकार था और उसने इसके लिए अपनी सहमति नहीं दी थी, जब तक कि वह मूल पक्षों के सामान्य इरादे (common intention) को पूरा करने के लिए न किया गया हो;
पृष्ठांकिती द्वारा परिवर्तन।—और यदि ऐसा कोई परिवर्तन किसी पृष्ठांकिती (indorsee) द्वारा किया जाता है, तो वह उसके पृष्ठांकक (indorser) को उसके प्रतिफल के संबंध में उसके प्रति सभी दायित्वों से मुक्त कर देता है।
इस धारा के उपबंध धारा 20, 49, 86 और 125 के उपबंधों के अधीन हैं।