prem (self) 22 January 2013

Promissory note validation

Hi,

One of my friend met a financier and he told that if you give money to me i will give you interest 5Rs per month for every 100 and told that he will be providing promsissory note for that and also he will give a post dated check for the amount which my friend will give.

Could you pleae advise if my friend give the money and as an agreement if he takes promissory note and also receives postdated check, is it good investment and also please tell whats the step to be taken if the financier defaults is there any way which we can get the money legally in case the financier defaults.

Pleae advise.

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4 Replies

adv. rajeev ( rajoo ) (practicing advocate) 22 January 2013

To recover the money limitation is 3 years from the date of execution of promissory note. If there is cheques then those cheques can be used to recover the money by putting the date. It is better to consult your lawyer so you can get the details

A . K . SETH (ADVOCATE--LEGAL ADVISOR) 22 January 2013

Go Ahead. Your money will be safe. Promissory note can also be renewed / replaced before expiry of Limitation period of 3 years. However,

M/s Laxmi Dyechem Vs. State of Gujrat & Ors. (decided on November 27, 2012) by Supreme Court;

2. M/s Modi Cements Ltd. Vs. Shri Kuchil Kumar Nandi—

AIR 1998 SC 1057 ;

3. K. I. George Vs. Muhammed Master-1999 (97) Comp Cas 664;

4. Hiten P. Dalal Vs. Bratindranath Banerjee ---July 11, 2011 by SC;

5. K. N. Beena Vs. Muniyappan & Anr.--SC—October 18, 2001;

6. M.S.Narayana Menon @ Mani Vs. State of Kerala & Anr.

Supreme Court of India --- July 04, 2006 ;

7. Ram Krishan Urban Co-Op. Credit Vs. Rajendra Bahgchand---

Bombay High Court ---Decided on 03-02-2010 ;

8. Joseph Vilangadan Vs. Phenomenal Health Care Services Ltd. &Anr.--

Bombay High Court ---Decided on 20-07-2010 ;

9. Phoolmati Devi Vs. State of U.P. & Anr.—decided on 02-12-2005 ;

Hon’ble Allahabad High Court

10. Navin S. Rupani Vs. State of U.P. & Anr.—decided on 02-12-2005 ;

Hon’ble Allahabad High Court

11. Saran Kumar Yadav Vs. State of U.P. & Anr.—decided on 13/12/2005

Hon’ble Allahabad High Court

perusal of above cases would help and rescue you to a great extent. All d best. For further quarry you may contact :::: asksethadvct@gmail.com

You are always welcome. akseth advocate

A . K . SETH (ADVOCATE--LEGAL ADVISOR) 22 January 2013

Prem can secure his interest for a further period of Three years by getting the Promissory Note revalidated/ renewed/ replaced before expiry of Three Years. :)

prem (self) 22 January 2013

Just like how we have bond papers like 100 rs, 1000Rs just like that even i need to take a six month validity, 1 year validity promissory notes according to the tenure we need to invest.

Also please advise what we can do if the financier files an Insolvency Petition.