The central legal point established in the judgment is the interpretation of S.4 of the Negotiable Instruments Act, 1881, to determine the nature of a promissory note and the essential requisites for its validity.

1. The above appeal was heard on 19-9-1987 and it was dismissed on that day. Thereafter the appellant filed CMP No. 24632 of 1987 to readmit the appeal for hearing on the ground that the appeal happened to be dismissed without hearing the appellant's counsel. That petition was allowed and the appeal has been reheard.

2. Appellant is the 1st defendant in OS No. 330 of 1974 of the Sub-Court, Trichur. The 1st respondent (plaintiff) filed the suit for realisation of Rs. 8,048/50 with future interest at 9 per cent on the principal sum of Rs.6,000/- The learned Sub Judge decreed the suit for a sum of Rs. 6,000/- with interest at the rate of 9 percent per annum from 15-2-1972 up to the date of the judgment and interest thereafter at the rate of 6 per cent per annum on the principal sum fill realisation with costs. The Additional District Judge dismissed the appeal holding that the plaintiff is entitled to 9 percent interest from the date of Ext. A3 till the date of suit add 6 percent interest thereafter.

3. Contention of the appellant is that Ext.A1 being a promissory note and not properly stamped is not admissible in evidence and on that score the plaintiff has to be non-suited. Defendants have admitted the execution of Ext.A1. Counsel for the plaintiff contended that the recitals in Ext.A1 would clearly show that it can never be construed as a promissory note and therefore the contrary contention of the defendant is wholly untenable.

4. S.4 of true Negotiable Instruments Act, 1881 defines "promissory note" as 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 to the bearer of the instrument. The essential requisite of a promissory note is certainty as to the person to make the payment, the person to receive it, the time and place of payment, the conditions of liability and also as to the amount to be paid. No particular form of words is essential to constitute a promissory note. It may be in the form of a letter or in any other form of words which satisfy the requirements of S.4 of the Act and from which the intention to make a promissory note can be discerned. A mere receipt with no such promise to pay is not a promissory note. The question whether an instrument is a promissory note or not has to be ascertained by the words used in the document. It cannot be said that the absence of the word "promise" is sufficient to declare that the document is not a promissory note. Any form of expression or recitals in the concerned document from which it can be deduced that there was an undertaking to pay a certain sum is sufficient to construe the document as a promissory note. It has to be ascertained whether the words used in an instrument import an unconditional undertaking to pay the amount. It is not enough that the substantial effect of the instrument is to make the executant liable to pay money. For instance, letter containing a confirmation of an undertaking to pay unconditionally a specified sum to a person will not be a promissory note. A document which contains a promise to pay on demand a certain sum to a specified person is a promissory note though there may be no words of negotiability. The unconditional undertaking to pay a specified amount is the sine-qua-non in a promissory note. It is essential that the note must be payable at all events. The promise to pay must not be dependent upon a contingency. If the payment is dependent upon a contingency it would definitely amount to uncertainly and the document cannot be construed as a promissory note.

5. To consider whether a given document is a promissory note or not the following tests are helpful:

(i) Is the turn to be paid a sum of money and Is that sum certain?

(ii) Is the payment to be made to or to order of a person who is certain or to the bearer of the instrument?

(iii) Has the maker signed the document?

(iv) Is the