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V.G.Rao Advocate (Advocate)     05 April 2010

Is it a valid promissory note?

Hi all,

A Promissory note is written as Under On a Rs 100 NJS paper with a Heading "PROMISSORY NOTE"

I, Mr X, S/o Mr.Y, R/o Z, OCC: Pvt Service, hereby promise to pay to Mr. M , S/o Mr.N, R/o Hyd, Occ: Pvt  Service,

an amount of Rs XXXX which I had received from Mr.M on this  6th day of April 2009. I also agree to pay the aforesaid amount in TWO EQUAL installments of Rs XXXXX each i.e the first installment will be paid on or before 2nd of january 2010 and the second installment will be paid on or before 2nd feb 2010. I also state that I am signing the agreement being in sound state of mind and not under any influence of alcohol, drugs, or any external pressure of any sort.

Witnesses                                                                                                                        SD/- of EXECUTANT

1.    Sd/- 

 

Is it a Valid Promissory note ? if not why and how if any case law is there please provide.



Learning

 1 Replies

Pankaj Mehta (Advocate)     27 April 2010

if we make harmonious construction of this document, the document is an agreement as per stipulated under indian stamp act, in my opinion u need not to bother about what it is, if u plan to file a money suit, stat the document as agreement while proper stamp duty has been made, no hurdle can come about admissibility

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