Section 88 NI Act: Acceptor or indorser bound notwithstanding previous alteration

Negotiable Instruments Act, 1881

Section 88 NI Act at a Glance

Section 88 NI Act provides that an acceptor or indorser of a negotiable instrument is bound by that acceptance or indorsement despite any previous alteration of the instrument.

Section 88 NI Act Bare Act Text

88. Acceptor or indorser bound notwithstanding previous alteration.

An acceptor or indorser of a negotiable instrument is bound by his acceptance or indorsement notwithstanding any previous alteration of the instrument.

Section 88 NI Act in Simple Words

Section 88 NI Act governs the liability of a person who accepts or indorses a negotiable instrument after the instrument has already been altered. It states that an acceptor or indorser of a negotiable instrument is bound by that acceptor's acceptance or that indorser's indorsement notwithstanding any previous alteration of the instrument.

When Section 88 NI Act Applies

  • A negotiable instrument has undergone a previous alteration.
  • A person subsequently accepts the instrument as an acceptor or indorses it as an indorser.
  • That acceptor or indorser is bound by the acceptance or indorsement notwithstanding the previous alteration.

Example of Section 88 NI Act

Jatin draws a bill of exchange in Coimbatore for ₹30,000 on Arjun, payable to Gurpreet. Before Arjun accepts it, the amount on the bill is altered to ₹40,000. Arjun then accepts the bill as it stands. Under Section 88 NI Act, Arjun is bound by the acceptance notwithstanding the previous alteration of the bill.

FAQs on Section 88 NI Act

What is Section 88 NI Act?▼

Section 88 NI Act states that an acceptor or indorser of a negotiable instrument is bound by the acceptance or indorsement notwithstanding any previous alteration of the instrument. An alteration that took place before the acceptance or indorsement does not release that acceptor or indorser from liability.

Can an indorser avoid liability under Section 88 NI Act because the instrument was altered before the indorsement?▼

No. Under Section 88 NI Act, an indorser is bound by the indorsement notwithstanding any previous alteration of the negotiable instrument.

How does Section 88 NI Act relate to Section 87 NI Act?▼

Section 87 NI Act renders a materially altered instrument void against a non-consenting person who was already a party at the time of making the alteration. Section 88 NI Act binds an acceptor or indorser who accepts or indorses the instrument after a previous alteration has already been made.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·