Promissory note
VVM
(Querist) 25 January 2013
This query is : Resolved
Can a blank signed document be later converted into a promissory note. By affixing the revenue stamp later on and crossing it, without the knowledge of the person signing. And whether the person is bound by the document.
Raj Kumar Makkad
(Expert) 25 January 2013
Person signing is not bound and he has every right to contest but signature of blank paper is also a question mark over him. Why had he issued such blank paper? Just for the use in future so if the same has been used, what is the harm?
VVM
(Querist) 25 January 2013
But if there is no corresponding contract / consideration or any such thing can it still be proved?
Raj Kumar Makkad
(Expert) 25 January 2013
Yes. Still it can be proved because promissory note itself is a document/agreement.
VVM
(Querist) 25 January 2013
Is there any remedy in Law, so that there is no misuse of such signed blank paper which are misplaced / lost.
Anirudh
(Expert) 25 January 2013
Dear Mr. VVM,
Please tell who will keep signed blank paper and for what purpose? That too the signature will be in a place where something sufficient can be written over the said signature.
Can you say that who has stolen the blank paper from you?
Even if you say that you had lost any signed blank paper, HOW WILL YOU PROVE THAT THE PAPER ON WHICH THE PROMISSORY NOTE HAS BEEN PREPARED was the blank paper which was stolen?
I am not saying that it is not possible to explain, but it is not quite easy to do.
V R SHROFF
(Expert) 25 January 2013
If you know the person holding your blank signed paper, directly issue him notice , not to use it, and return it to you.
If you do not know who have it in possession, Go to Police, and lodge complain of stolen/ missed signed paper, that someone taken it out from ur custody, with motive to fraud, converting to valuable doc like pro note.
It will safeguard you, whenever someone try to sue you on that basis..
V R SHROFF
(Expert) 25 January 2013
Unless a PN delivered, it does not enforce liability on person executing Pro note. : of course u hv to prove non delivery.
Police compl can support ur claim [not delivered even if signed n.i.]
ajay sethi
(Expert) 25 January 2013
the million dollar question is why did you hand over signed blank document to another person . it would be diffcult to prove that sibnature obtained on blank document
prabhakar singh
(Expert) 25 January 2013
Legally speaking a document can not be said freely executed by party whose signature was obtained on blank paper.
But the question is why one signs a blank paper?
Once a blank paper has been used as negotiable instrument document,it is very hard for party disputing it to prove that a pre- signed blank sheet has been fabricated because law presumes consideration and initial burden is on party denying it's execution. A hard nut to crack.
Raj Kumar Makkad
(Expert) 28 January 2013
I do endorse the views of Ld. Prabhakar Singh.
