promissory notes

ajith (Querist) 21 July 2010 This query is : Resolved
Is it permissable legally to take down a huge amount of 11Lakhs using promissory note under single person?
Can i know the way of using promissory notes?

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Raj Kumar Makkad (Expert) 21 July 2010
There is no any prescription to take any amount on credit on promissory note. This note denotes only the transaction and further promise to repay the mentioned money on certain date and also contains the terms of the interest etc. It is upon the lendor to have a license of lending the money and he is responsible for the source of his money and the consequences connected thereon.

Devajyoti Barman (Expert) 21 July 2010
The promissory note is a kind of undertaking of the borrower in writing to return the money at a given point of time.
If he defaults to make the payment the debtor can legally enforce the said note by various legal means.

G. ARAVINTHAN (Expert) 22 July 2010
no limit is prescribed under the Code

Rajeev kulshreshtha (Expert) 22 July 2010
there is no limit prescribed. A promissory note is a negotiable instrument in writing containing an unconditional undertaking,signed by the maker,to pay sum only to,or to the order of, or the bearer of the instrument.

Chanchal Nag Chowdhury (Expert) 24 July 2010
Yes. Read The Negotiable Instruments Act.

M/s. Y-not legal services (Expert) 04 December 2010
Promissory note is one of the instrument under the negotiable instruments act.. There no limitation for the amount..

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