The main legal point established in the judgment is the interpretation of the essential ingredients of a promissory note and a bond as per the Negotiable Instruments Act and the Indian Stamp Act, and the correct procedure for dealing with a document found to be a bond under the Indian Stamp Act.

This petition is directed against an order (Annexure P-1), dated 4-9-2009 by the Additional District Judge, Panna in Civil Suit No. 1-B/2009, by which the Trial Court found that the document in question (Annexure P-2) is not a promissory note, but is a bond and the petitioner is liable to pay stamp duty and 10 times penalty.

2. Learned Counsel for petitioner assailed the impugned order on the ground that in fact the document in question is a promissory note. He has placed reliance to Section 4 of the Negotiable Instruments Act, 1881 (hereinafter referred to as "the Act of 1881") in support of his contention and submitted that the document in question falls within the four corners of Section 4 of the Act of 1881, but the Trial Court erred in arriving at a finding that the document is a bond. He has drawn attention of the Court to Section 2 (5) of the Indian Stamp Act, 1899 to show that the document in question does not fall within the definition of bond as defined in Section 2 (5) of the Indian Stamp Act. Lastly, it was submitted that even if the document is found to be a bond, then the Trial Court ought to have sent it to the Collector concerned for dealing with the document as per Section 40 of the Indian Stamp Act. In this regard, he has placed reliance to a judgment of Division Bench of this Court in Bhismat Pandey Vs. Phoola and others, 2009(4) M.P.H.T. 357 = 2009 (4) MPLJ 486.

3. Shri Abhishek Arjaria, learned Counsel for respondent supported the order passed by the Trial Court. He submitted that a Full Bench of this Court in Santsingh Ladharam Vs. Madandas Gyandas Panika and another, 1976 MPLJ 238, has considered this aspect in which considering the definition of the promissory note and bond found certain distinguishing features between the both. He has drawn attention of this Court to Paras 4 to 7 of the Full Bench judgment and submitted that in the light of the aforesaid judgment, the document has been rightly treated as a bond by the Trial Court. He has also placed reliance to a judgment of Single Bench of this Court in Dr. Praveen Nahar Vs. Krishan Gopal Sanghi and another, 2006(1) M.P.H.T. 485 = 2006 (I) MPJR 422, in support of his contention.

4. To appreciate the rival contention of the parties, it would be appropriate if the document (Annexure P-2) is referred verbatim which reads thus : -

@ Hindi @

From the perusal of the aforesaid document, it is apparent that Gyan Chandra after receiving Rs. 1,00,000/- from Ram Kishore had promised to repay within 2 years along with interest at bank rate. The document is signed by the executant and attested by two witnesses.

5. A Full Bench of this Court has considered different between promissory note and bond. For ready reference, Paras 3 to 7 of the judgment of the Full Bench in Santsingh Ladharam (supra), are referred, which read thus :-

"3. Section 2 (5) of the Stamp Act defines a bond thus :- "Bond" includes-

(a) any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;

(b) any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and

(c) any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another."

And, Section 2 (22) of the Stamp Act defines a promissory note by reference to the Negotiable Instruments Act thus :-

A "Promissory note" means a promissory note as defined by the Negotiable Instruments Act, 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.

In Section 4 of the Negotiable Instruments Act, "Promissory note" is defined in these words:-

"Promissory note" is an instrument in writing (not being a bank-note or a currency-note) containing an uncon