Any change altering operation of the instrument or the rights and liabilities of the parties is a material alteration. If a cheque or any negotiable instrument is altered materially, it will not be paid. It appears from section-3 of the Negotiable Instrument Act 1881 that any alteration of the following constitutes material alteration:
- Date
- Sum payable
- Time of payment
- Place of payment
- Addition of place of payment without acceptor’s assent
It is needless to say that the above mentioned changes fundamentally alter the character of the cheques.