Inchoate stamped instruments
Section 20 of the Negotiable Instruments Act, 1881 deals with inchoate stamped instruments. Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in [India], and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof t The Act came into force on 01 Mar 1882.
Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in 1[India], and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete, as the case may be, upon it a negotiable instrument, for any amount specified therein and not exceeding the amount covered by the stamp. The person so signing shall be liable upon such instrument, in the capacity in which he signed the same, to any holder in due course for such amount: provided that no person other than a holder in due course shall recover from the person delivering the instrument anything in excess of the amount intended by him to be paid thereunder.
Section 20, The Negotiable Instruments Act, 1881 (Act 26 of 1881).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Bir Singh v. Mukesh Kumar
Court's Decision & Legal Precedent
Reading ss.20, 87 and 139 together, a person who signs a cheque and makes it over to the payee remains liable unless he rebuts the presumption that it was issued for a debt or liability. It is immaterial that the cheque was filled in by someone other than the drawer. A signed blank cheque voluntarily presented towards some payment may be completed by the payee without invalidating the instrument; subsequent filling-in of amount/particulars is not a material alteration under s.87 where amount, date and payee are not changed from what was intended. Fiduciary relationship between payee and drawer does not by itself defeat the s.139 presumption absent evidence of undue influence or coercion. Revisional court cannot re-appreciate concurrent factual findings absent perversity or jurisdictional error.
On this section: Direct teaching on s.20 inchoate instruments: voluntary delivery of a signed blank/incomplete cheque confers prima facie authority on the holder to complete it; completed cheque remains good against the signatory for s.138 purposes.
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C.venkatesan vs K.thiruvanavukkarasu
Court's Decision & Legal Precedent
Where the executant admits signing a blank stamped paper which was afterwards completed as an on-demand promissory note, Section 20 comes into play, execution stands proved and the presumption of consideration under Section 118 follows; having signed the blank paper, he cannot then plead material alteration.
On this section: Applies Section 20 to a blank signed stamp paper filled up by the holder as a promissory note, and holds the maker bound by the completed instrument with the burden on him to show want of consideration.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Dalal [Hiten P. Dalal v. Bratindranath Banerjee, (2001) 6 SCC 16 : 2001 SCC (Cri) 960] . 33. A meaningful reading of the provisions of the Negotiable Instruments Act including, in particular, Sections 20, 87 and 139, makes it amply clear that a person who signs a cheque and makes it over to the payee remains liable unless he adduces evidence to rebut the presumption that the cheque had been issued for payment of a debt or in discharge of a liability. It is immaterial that the cheque may have been filled in by any …
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… Dalal [Hiten P. Dalal v. Bratindranath Banerjee, (2001) 6 SCC 16 : 2001 SCC (Cri) 960] . 33. A meaningful reading of the provisions of the Negotiable Instruments Act including, in particular, Sections 20, 87 and 139, makes it amply clear that a person who signs a cheque and makes it over to the payee remains liable unless he adduces evidence to rebut the presumption that the cheque had been issued for payment of a debt or in discharge of a liability. It is immaterial that the cheque may have been filled in by any …
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… As a matter of fact holder of the cheque in due course while presenting it for the encashment is empowered to fill in the blank spaces if that cheque is signed by the drawer under section 20 of the Negotiable Instruments Act. If the cheque in dispute is presented by the complainant by filling in the blank spaces, I, see no legality therein. The accused has not denied the signature on the disputed cheque. He has also not denied his liability to pay outstanding amount of loan i.e. amount of that cheque. …
Questions about Section 20
What have the courts held on Section 20 of the Negotiable Instruments Act?
Bir Singh v. Mukesh Kumar (06 Feb 2019) is the leading judgment on this section among those set out below: Direct teaching on s.20 inchoate instruments: voluntary delivery of a signed blank/incomplete cheque confers prima facie authority on the holder to complete it; completed cheque remains good against the signatory for s.138 purposes. Another 1 judgment on this section is set out below, 1 of them from the Supreme Court. They run from 2018 to 2019.
How do I find court cases under Section 20 of the Negotiable Instruments Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: NI Act 20, section 20 NI Act, section 20 of the Negotiable Instruments Act. People searching for it also type ni act 20 percent. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Bir Singh v. Mukesh Kumar (06 Feb 2019).
What should I read with Section 20 of the Negotiable Instruments Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 20 of the Negotiable Instruments Act come into force?
Section 20 of the Negotiable Instruments Act, cited as NI Act 20, came into force on 01 Mar 1882, having been enacted on 09 Dec 1881. It is in force as at the date shown on this page.
Other sections of this Act
- 138. Dishonour of cheque for insufficiency, etc., of funds in the account312 words
- 142A. Validation for transfer of pending cases299 words
- 143. Power of Court to try cases summarily297 words
- 143A. Power to direct interim compensation291 words
- 142. Cognizance of offences290 words
- 141. Offences by companies287 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.