Promissory notes

Y (Querist) 19 October 2019 This query is : Resolved
I am lending money to a friend and planning to get a promissory note signed by him

Plz guide on preparation and precautions to be taken care for preparing PN

Should there be witness in promissory note (I read somewhere that adding witness should be avoided because if witness is added then promissory note becomes a bond)

Is a receipt for payment is mandotary ?
What should be the cost of stamp on which the PN is made?
If I am taking advance cheques then should I mention it in the PN(I read that if the cheque numbers are mentioned then it becomes security cheques and hence u cannot file legal suit
Also heard that taking advance PDC / blank cheque is illegal)
Is it safe to give 3-4 lakhs over PN

Request to plz clarify and also give a safe format of promissory note that should ensure safety of my money

Regards

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kavksatyanarayana (Expert) 20 October 2019
no witness is required for PN. search google for formate.

Dr J C Vashista (Expert) 21 October 2019
Mr./Ms. Y,
Do you have licence under the provisions of "Money Lending Act," to advance loan to ABCD XXX, if it is not a question paper and academic exercise?

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