Promissory Note

Querist : Anonymous (Querist) 02 October 2010 This query is : Resolved
What will the legal standing of a Demand Promissory Note (for companies)under following conditions

1. The promissory Note has been executed but no payment made to borrower for over a year.
2. The Promissory Note has been executed in the name of the company but does not bear seal of the company but is signed by the proprietor.
3. Rate of interest is not mentioned on the Promissory Note.
4.The amount claimed is less/more than the amount mentioned on the Promissory Note
5.What is the validity of such Promissory Note

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R.Ramachandran (Expert) 02 October 2010
Dear Anonymous,
Please tell whether it is a real problem, or your imaginary problem?

s.subramanian (Expert) 02 October 2010
Yes. That we want to know.

Querist : Anonymous (Querist) 03 October 2010
Subramanian Sir & Ramchandran Sir

It is not imaginary but a fact

Bank had executed a loan agreement and in addition had also obtained blank cheques and a promissory note as part of the loan agreement I never felt the necessity for the loan and hence never took it, but now I find that the same has been brought to the court as evidence which does not pertain to the particular loan but involves me and my firm.

R.Ramachandran (Expert) 03 October 2010
Mr. Anonymous,
What you are saying here is that though you issued blank cheques and a promissory note, they were issued in connection with a particular loan, which you never took, but the bank is using the said documents in connection with some other dues that you or your firm owe to the bank.
Am I correct in my understanding? First please confirm, before I proceed further.

Querist : Anonymous (Querist) 03 October 2010
Yes Ramchandran Sir

R.Ramachandran (Expert) 04 October 2010
You have to fight your case with several documentary proof to say that the cheques in question were not given in part or full payment of any enforceable debt.

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