A Promissory Note is an instrument in writing, not being a currency note, a cheque or a bill of exchange, containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument
Essentials of a promissory note
1. The promissory note must be in writing.
2. The promissory note must contain an undertaking to pay.
3. The promise to pay must be unconditional one.
4. It must be signed by the maker.
5. The maker must be a certain person.
6. The undertaking must be to pay a certain and definite sum of money only.
7. It must be payable on demand or at a fixed or determinable future time.
8. It should only payable on demand or at a fixed or determinable future time.
9. The payment must be in a legal money of the country and not in the form of food, grain or animal.
10. Revenue stamps or requisite value under the stamp Act of the country should be affixed.
11. Other matters of form like number, date, place etc, are usually found given in notes, but they are not essentials in law.
12. A bank note or a currency note is not a promissory note within the meaning of this section.
13. A promissory note cannot be made payable to bearer on demand.
Related Cases / Recent Cases / Case Law
- Abdul Shakur and others Vs Kotwaleshwar Prasad and others, AIR 1958 All 54: Allahabad High Court held that where the contention that certain pronotes had been obtained from the insolvent while he was under the influence of drink, has been found to be baseless. Mere general bad character of the insolvent would be quite irrelevant in a civl case to prove want of consideration.
Related Legislative Provisions
- Section 52 of Indian Evidence Act, 1872: In civil cases, character to prove conduct imputed irrelevant