Negotiable Instruments Act, 1881 and Rights of Holder of Promissory Note

Negotiable Instruments Act, 1881 and Rights of Holder of Promissory Note

Section 20 - "Inchoate Stamped Instruments" -  A borrowed amount of Rs. 22,000/- from C and repaid it with interest - A argued that C took promissory note which C failed to return - A argued that C had made material alteration of promissory note - Held, entitlement of the holder of promissory note under Section 20 of the Negotiable Instruments Act, 1881, for filling up the blank promissory note, admittedly signed by a person, does not mean that he is also entitled to alter the contents or recitals or date of such promissory note at his own will and pleasure latter. Once it is filled up, if any correction or alteration is found in the recitals and the same is disputed by the executor, certainly such action of the holder would fall within the meaning of “material alteration” and will not be protected by Section 20 of the said Act." - Annadurai v. Rajendran [2016] GCtR 6485 (Madras)