Law · Negotiable Instruments Act
A customer issues a cheque which is subsequently materially altered (e.g., the amount is changed from 10,000 rupees to 1,00,000 rupees). The alteration is not apparent on the face of the instrument. The Paying Banker pays the cheque for the altered amount in good faith and without negligence. Which section of the Negotiable Instruments Act, 1881, provides protection to the bank in this scenario?
- 1Section 31
- 2Section 89✓
- 3Section 131
- 4Section 85
Correct answer
Section 89
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