Court : Karnataka
Reported in : I(2008)BC110; ILR2007KAR2388; 2006(6)KarLJ648; 2007(4)KCCRSN218; 2006(6)AIRKarR353.
..... promissory note is defined under section 4 of the negotiable instrument act 1881, which reads thus:promissory note is an instrument-in writing (not being a bank note or currency note) contending the unconditional undertaking signed by the maker to pay a certain sum of money only to or to the order of a certain person or the bearer of the instrument ..... considering the pith and substance of the suit document, the suit document cannot be termed as a promissory note under negotiable instrument act and it has to be treated as a bond and defined under section 2(a) and (b) of the karnataka stamp act 1957. ..... background, this court has to examine whether the suit document can be termed as a promissory note as per the provisions of the negotiable instrument act or as a bond as defined under section 2(a) and (b).7. ..... the terms and conditions of the suit document are in terms of the definition of the promissory note because this document is in writing containing an unconditional undertaking signed by the defendant to pay a sum ..... no doubt true that in the case of promissory note there is no necessity to get the document attested, similarly, if the witnesses attest the document, it cannot be held that it is not a promissory note. ..... the learned counsel for the petitioner contends that the suit document is a bond relying upon section 2(i)(a)(b)(ii), which reads as herein:any instrument contested by a witness not payable to order or bearer who are by a person obliges himself to pay the money to another .....
Tag this Judgment!Court : Mumbai
Reported in : AIR1997Bom225; 1997(2)BomCR267
..... when once, the execution of exhibits v and z are either admitted or proved then the presumption arises a under the negotiable instruments act the promissory notes are supported by consideration, the burden shifts on to the defendants to prove that the promissory notes are not supported by the consideration. ..... on the other hand, the learned counsel for the plaintiff submitted that even though no payments are made, under the promissory notes of 1978, they were taken for the outstanding dues by the firm and hence, the suit is within time since a contract for a past consideration is a valid contract.17. ..... since admittedly no consideration was paid, either on the date of the two promissory notes exhibits v and z or thereafter, the argument that fourth defendant has not received consideration appears to have some force.however, in the case this type, we have to find out the legal implication of fourth defendant becoming ..... it was, therefore, argued on behalf of the defendants that these two promissory notes are not supported by consideration since admittedly, no amount was paid either on 15-6-1978 or any time thereafter. ..... this is no evidence at all to rebut the presumption available to the plaintiff under section 118 of the negotiable instruments act. ..... section 25 of the contract act clearly provides that past consideration is good consideration for a valid contract. .....
Tag this Judgment!Court : Karnataka
Reported in : ILR1995KAR968; 1995(2)KarLJ591
..... to my mind, had this been a family transaction, the question of executing a promissory note would not have arisen even though learned counsel submits that it was given as collateral security. ..... the defendant has admitted the execution of the promissory note and the defence that has been pleaded is to my mind clearly an after-thought. ..... the basic document on which he relies is a demand promissory note signed by the defendant agreeing to repay the said amount with interest at 2% per month. ..... there is some value and sanctity to a promissory note and to my mind when once such a document is in evidence, it virtually outweighs everything else on record.4. ..... on an overall view of the case, to my mind it is not the calibre of the oral evidence but the intrinsic evidence of the promissory note that the court is required to go by. ..... if the amount was a mere deposit to defray educational expenses and if the balance of it or whole of it was in fact repaid, the defendant would not have allowed the promissory note to remain with the plaintiff. ..... if this defence is to be carefully evaluated in relation to the contents of the promissory note, it is impossible to reconcile the two. .....
Tag this Judgment!Court : Mumbai
Reported in : AIR1973Bom27; (1972)74BOMLR174; ILR1972Bom816; 1972MhLJ405
..... the result, therefore, is that even after the amendment of the negotiable instruments act, 1881, by the amending act 8 of 1919, ever promissory note which is a promissory note under section 4 of the negotiable instruments act, 1881, is also a promissory note for the purposes of the indian stamp act and in addition to that certain other documents, which fall under paragraph 2 of section 2(22) of the indian stamp act, under that act. ..... the amending act 8 of 1919, so far as it is relevant here, effected a change only in respect of the negotiable nature of a promissory note for the purposes of the negotiable instruments act, 1881, in that after the amendment all promissory note falling under section 4 of the negotiable instruments act, 1881, whether or not they contain the words such as `order' or bearer' or any other term expressing the render them negotiable are now negotiable instruments, unless they contain words prohibiting transfer or indicating an intention that they shall not be transferable. ..... it is, however, material to note that the definition of promissory note given in section 4 of the negotiable instruments act, 1881, or the section 2(22) of the indian stamp act did not undergo any change even after section 13 of the negotiable instruments act was amended by the amending act 8 of 1919. .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : AIR2002MP47; 2002(1)MPHT74; 2001(3)MPLJ153
..... section 4 of the negotiable instruments act, 1881 defines 'promissory note', which is reproduced below along with illustrations ..... , reported in 1943 nlj 76, has held that the negotiable instruments act, 1881, sections 13(1) and 80 does not apply to 'shah jog ..... document was held to be a bill of exchange as defined in section 5 of negotiable instruments act and it is the choice of the holder of the bill to treat it either as promissory-note or bill of exchange as regard to the provisions of section 17 of the negotiable instruments act. ..... the illustration (b) of section 4 of the negotiable instruments act, it is apparent that any acknowledgment to be indebted for a particular sum to be paid on demand for value received is a promissory-note.24. ..... is not covered by the definition of negotiable instrument in section 13(1) of the negotiable instruments act, although many of the incidents which apply to these 'hundis' are the same as those which apply to instruments governed by the negotiable instruments act that is because of mercantile usage and custom and not because of the act. ..... a document does not come under either category, not even when read in conjunction with explanations 1, 2 and 3 to section 13(1) of the negotiable instruments act, then it will be a 'hundi'. ..... section 5 of the negotiable instruments act relates to 'bill of ..... trial court held that the document is a promissory note and requires stamp duty under section 49b of the stamp act and the stamp affixed on the document is .....
Tag this Judgment!Court : Kerala
Reported in : AIR1973Ker22
..... the condition is that the executant shall pay the amount due under the instrument on settlement of accounts when the litigation referred to therein comes to an end, is not a promissory note as defined in section 4 of the negotiable instruments act, 1881.7. ..... not a promissory note as defined in the negotiable instruments act, 1881. ..... a promissory note as defined in section 4 of the negotiable instruments act, i881 ..... in understanding the scope of section 4 of the negotiable instruments act, the illustrations thereto will be of ..... a 'promissory note' is an instrument in writing (not being a bank-note or a currency-note) 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.illustrations.a signs instruments in the following terms:-- (a) 'i promise to pay b or order ..... all other sums which shall be due to him' is stated to be an instrument which is not a promissory note. ..... to (h) are all of instruments which are not promissory notes. ..... instruments respectively marked (c), (d), (c), (f), (g) and (h) are not promissory notes ..... instruments respectively marked (a) and (b) are promissory notes ..... in order to make it a negotiable instrument it may not be necessary to contain an undertaking 'to pay to the order' of the person or 'to the bearer' of the instrument. ..... be a bond, which is not consistent with his case based on a promissory note.in the light of the discussions above, i hold that ext. .....
Tag this Judgment!Court : Andhra Pradesh
Reported in : AIR2007AP177; 2007(3)ALD199; 2007(5)ALT59
..... however, it is relevant to note that the document in question can also be construed as a promissory note since it satisfied all the ingredients of a promissory note as defined in section 4 of the negotiable instruments act, 1881 read with section 2(22) of the indian stamp act, 1899.11. ..... it is also relevant to extract section 4 of the negotiable instruments act, 1881 which defines promissory note as under:4. ..... (22) promissory note :-'promissory note' means a promissory note as defined by the negotiable instruments act, 1881 (26 of 1881);it also includes a note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen;6. ..... 'promissory note':--a 'promissory note' is an instrument in writing (not being a banknote or a currency-note) 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.7. ..... at the outset, the definitions of 'bond and 'promissory note' as defined under section 2(5) and section 2(22) respectively of the indian stamp act, 1899 may be extracted hereunder:(5) bond. ..... thus, in my considered opinion, the document in question comes within the descriptions of both the bond and the promissory note as defined under section 2(5) and section 2(22) respectively of the indian stamp act, 1899.13. .....
Tag this Judgment!Court : Mumbai
Reported in : (1938)40BOMLR1053
..... act adopted the definition of a promissory note contained in the negotiable instruments act, 1881, section ..... the shadow resting upon these exhibits throughout the case was unreal; that documents of this nature which were clearly never intended to be negotiable instruments at all are not promissory notes and are not therefore, for want of a stamp, inadmissible in evidence. ..... fact that none of these documents were stamped, and if they were held to be promissory notes, section 35 of the indian stamp act precluded their admission in evidence for any purpose. ..... a 'promissory note' is an instrument in writing (not being a banknote or a currency note) 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.the suit went to trial in ..... many words that the two documents in question were promissory notes, but there is no doubt that when their judgment was pronounced there was a strong current of authority in india to the effect that documents of this character containing a promise to pay (and it could hardly be contended that those under consideration did not contain such a promise) came within the ban of section 35 of the indian stamp act. ..... the copies of which had been produced by the plaintiffs (meaning thereby the sitta and the two documents abstracted above) amounted to promissory notes and by reason of their being inadmissible in evidence no suit could be based thereon.'6. .....
Tag this Judgment!Court : Andhra Pradesh
Reported in : AIR1973AP342
..... a negotiable instrument, according to section 13 of the negotiable instruments act 1881, means a promissory note, bill of exchange or cheque payable either to ..... of law which have to be considered in dealing with the first question are :(a) section 4 of the negotiable instruments act which contains the definition of a ' promissory note ', (b) section 35 of the stamp act and (c) section 91 of the evidence act.section 4 of the negotiable instruments act is as follows : 'a 'promissory note' is an instrument in writing ( not being a bank-note or a currency note ) 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. ..... hit by the above provisions as all the essential terms that go to make out a promissory note under section 4 of the negotiable instruments act should be there to constitute a promissory note and any other evidence with regard to a term. i.e. ..... necessarily to look into the instrument first to find out whether it constitutes a promissory note as per the provisions of section 4 of the negotiable instruments act and then find out whether it is properly stamped, to see whether the provisions of section 35 of the stamp act are attracted. ..... terms of the contract between the parties, which may not find a place in the promissory note but still if the conditions mentioned in section 4 of the negotiable instruments act are satisfied it will be a valid promissory note. .....
Tag this Judgment!Court : Gujarat
Reported in : AIR1967Guj1; (1965)GLR778
..... since the first part of the definition of 'promissory note' given in section 2(22) of the indian stamp act defines a promissory note by reference to its definition in the negotiable instruments act, 1881, we must go to the negotiable instruments act, 1881, to see how it is defined in that act. ..... (7) this being the position it is clear that the instrument in the present case was a promissory note within the meaning of section 4 of the negotiable instrument act, 1881 and therefore, within the meaning of section 2(22) of the indian stamp act and being admittedly unstamped, it could not be received in evidence. ..... section 2(22) of the indian stamp act, defines a 'promissory note' to mean a promissory note as defined by the negotiable instruments act, 1881, and also includes a note promising the payment of any sum of money out of any particular fund which may nor may not be available, or upon any condition or contingency which may or may not be performed or happen. ..... section 4 of the negotiable instruments act, 1881, defines a 'promissory note' in the following terms:'(4). ..... it was argued before the learned judge that the instrument was not a promissory note since the aforesaid words which occurred in the instrument rendered the instrument not transferable and the instrument was, therefore, not a negotiable instrument and consequently could not be regarded as a promissory note within the meaning of the negotiable instruments act, 1881. .....
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