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The Negotiable Instruments Act, 1881: page 21

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         (c) where no place of payment being specified on the order, it undertakes the payment at a
     specified place, and not otherwise or elsewhere; or where, a place of payment being specified in the
     order, it undertakes the payment at some other place and not otherwise or elsewhere;
         (d) where it undertakes the payment at a time other than that at which under the order it would be
     legally due.
   87. 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.
     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.
     89. Payment of instrument on which alteration is not apparent.—1[(1)] Where a promissory note,
bill of exchange or cheque has been materially altered but does not appear to have been so altered, or
                                                                                  e
where a cheque is presented for payment which does not at the time of presentation appear to be crossed
                                                                           od
or to have had a crossing which has been obliterated, payment thereof by a person or banker liable to pay,
and paying the same according to the apparent tenor thereof at the time of payment and otherwise in due
                                                                    aC
course, shall discharge such person or banker from all liability thereon; and such payment shall not be
questioned by reason of the instrument having been altered or the cheque crossed.
     2                                                        di
     [(2) Where the cheque is an electronic image of a truncated cheque, any difference in apparent tenor
of such electronic image and the truncated cheque shall be a material alteration and it shall be the duty of
                                                         In
the bank or the clearing house, as the case may be, to ensure the exactness of the apparent tenor of
electronic image of the truncated cheque while truncating and transmitting the image.
    (3) Any bank or a clearing house which receives a transmitted electronic image of a truncated cheque,
shall verify from the party who transmitted the image to it, that the image so transmitted to it and received
by it, is exactly the same.]
    90. Extinguishment of rights of action on bill in acceptor's hands.—If a bill of exchange which
has been negotiated is, at or after maturity, held by the acceptor in his own right, all rights of action
thereon are extinguished.
                                                       CHAPTER VIII
                                                 OF NOTICE OF DISHONOUR
    91. Dishonour by non-acceptance.—A bill of exchange is said to be dishonoured by non-acceptance
when the drawee, or one of several drawees not being partners, makes default in acceptance upon being
duly required to accept the bill, or where presentment is excused and the bill is not accepted.
    Where the drawee is incompetent to contract, or the acceptance is qualified the bill may be treated as
dishonoured.
    92. Dishonour by non-payment.—A promissory note, bill of exchange or cheque is said to be
dishonoured by non-payment when the maker of the note, acceptor of the bill or drawee of the cheque
makes default in payment upon being duly required to pay the same.
     93. By and to whom notice should be given.—When a promissory note, bill of exchange or cheque
is dishonoured by non-acceptance or non-payment, the holder thereof, or some party thereto who remains


1. Section 89 re-numbered as sub-section (1) thereof by Act 55 of 2002, s. 5 (w.e.f. 6-2-2003).
2. Ins. by, s. 5, ibid, (w.e.f. 6-2-2003).


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