AI Overview...
- Ingredients of a Promissory Note under Section 4 of the Negotiable Instruments Act, 1881:
- A promissory note is a written, unconditional promise to pay a certain sum of money.
- It must be in writing and contain an unequivocal promise to pay.
- The document should specify the amount payable.
- It should be signed by the maker of the note.
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The document may be deemed a promissory note even if it also functions as an acknowledgment of debt or receipt, provided it fulfills the essential ingredients. (Sources: M. Ponnuthaiammal VS V. Alagarsamy Naicker - Madras, Parisutha Nadar VS Pichakkara Pillai - Madras, Shriniwas Pansari VS Hari Prasad Mehra - Patna)
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Additional Insights:
- The document's character as a promissory note is confirmed if it clearly indicates a promise to pay, not merely an acknowledgment or receipt. Registration is not mandatory if it qualifies as a promissory note. (Sources: Parisutha Nadar VS Pichakkara Pillai - Madras, Gandhimathi Corporation, VS Pachamuthu (Deceased) & Others - Madras)
- Presumption of consideration and execution arises under Section 118 of the Act, which supports the validity of a promissory note. The burden of proof shifts to the defendant if the document is prima facie a promissory note. (Sources: Gandhimathi Corporation, VS Pachamuthu (Deceased) & Others - Madras, T. G. Balaguru VS Ramachandran Pillai - Madras)
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The absence of specific words like to the order of or to bearer can affect whether the document qualifies as a promissory note, as noted in legal rulings dismissing documents that omit these ingredients. (Sources: Kotla Sudheer Kumar VS Mallavarapu Jojayya @ Jojaiah Chowdary - Andhra Pradesh)
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Legal Presumptions and Validations:
- Under Section 118, a presumption of consideration and execution is raised once the document is established as a promissory note, shifting the onus to the defendant to rebut this presumption. (Sources: T. G. Balaguru VS Ramachandran Pillai - Madras, Shriniwas Pansari VS Hari Prasad Mehra - Patna)
- The document must be free from omissions that would disqualify it from being a promissory note, such as missing essential words or signatures. (Sources: Kotla Sudheer Kumar VS Mallavarapu Jojayya @ Jojaiah Chowdary - Andhra Pradesh)
Conclusion:
A valid promissory note under Section 4 of the Negotiable Instruments Act must be a written, unconditional promise to pay a specific amount, signed by the maker, and contain clear language indicating the intent to pay. The document's character as a promissory note is supported by legal presumptions under Section 118, provided it fulfills all essential ingredients and does not omit necessary words or signatures.
Search Results for "Ingredients of Pro Note Section 4 of Negotiable Instruments Act"
2019 0 Supreme(Mad) 1465 • India - Madras
R.PONGIAPPAN
satisfying ingredients of Section 4 of Negotiable Instruments Act? ... Negotiable Instrument Act,1881 - Section 20 - Suit for Promissory Note - Defendant borrowed a sum of from ... - Held, According to Section 20 of Negotiable Instrument Act one of primary conditions of law is that person signing should deliver ... A1-Pro-#HL_....
2000 0 Supreme(Guj) 620 • India - Gujarat
D.C.SRIVASTAVA, H.K.RATHOD
Negotiable Instruments Act, 1881 - Section 4 - Suit for recovery - Defendant took money from the plaintiff ... three years - Thus, the suit was filed within three years from the date of execution of the pro-note and as such, the suit is well ... , hence, period of limitation will be calculated from the date of execution of the pro-note - Suit was filed within limitation - ... Section 118 of the Negotiable #HL_START....
2020 0 Supreme(Mad) 1377 • India - Madras
G.JAYACHANDRAN
Document Character - Recovery of Money - Negotiable Instrument Act, 1881, Section 4 - Sections 17, 33, 35, 36 of Stamp Act - Sections ... 17, 49 of Registration Act - Document Ex.A1 deemed to be a pro-note or in alternate a receipt/acknowledging the debt - Ex.A1 is ... treated as pro-note or acknowledgement of debt, registration is not required Fact of the Case:....
2010 0 Supreme(Mad) 2208 • India - Madras
M.VENUGOPAL
(A)Negotiable Instruments Act, 1881 (26 of 1881)-Sec.118-Registration Act, 1908(16 of 1908)-Sec.17-Negotiable instruments-Pro note-Execution-Consideration-Presumption-Memorandum ... Instruments Act, 1881 (26 of 1881)-Sec.118-Negotiable instruments-Pro note-Execution-Consideration-Presumption-Once the facts preceding ... the execution of the negotiable ....
2010 0 Supreme(Mad) 96 • India - Madras
R.BANUMATHI
Section 118 of Negotiable Instruments Act. ... signature in the negotiable instrument is not sufficient to rebut the statutory presumption raised under Section 118 of Negotiable ... ... Under Section 118(g) of Negotiable Instruments Act, holder of negotiable ... Under Section 118(g) of Negotiable Instruments Act, holder of negotiabl....
2010 Supreme(Online)(KER) 46201 • India - High Court of Kerala
V.K.MOHANAN, J
Criminal - Negotiable Instruments - Criminal Procedure Code - [Cr.P.C. Sec. 378(4), N.I. ... cases under Section 138 of the N.I. ... , the presumption of liability under Section 139 of the N.I. ... 138 of the N.I.Act and accordingly, held that the accused are not guilty under Section 138 of the N.I.Act. ... ....
1983 0 Supreme(Pat) 153 • India - Patna
BIRENDRA PRASAD SINHA, B.P.GRIYAGHEY
Negotiable Instrument Act. Sec. 4, and 118, Bihar Money Lenders Act 1938. ... the document is held to be a promissory note, a presumption of correctness arises U/S 118 of the Act. ... also forming a new contract with a promise to pay the same with interest-The transaction is a loan and the document a promissory note-Once ... It also fulfils ingredients of S.13 of the Negotiable Instruments Act whi....
2019 0 Supreme(Mad) 210 • India - Madras
M.V.MURALIDARAN
Fact of the Case: The appellant filed a case under section 138 of the Negotiable Instrument Act against the respondent ... Negotiable Instruments Act - Chit Fund - 138, 142 - Summary of Acts and Sections: The court discussed the provisions of Section ... under Section 138 of the Act. ... Since there is no reply nor repayment of the cheque amount, the appellant filed this case under section 138 o....
2017 0 Supreme(Mad) 887 • India - Madras
M.VENUGOPAL
NI Act – Section 139 – Criminal Procedure Code, 1973 – Section 255(1) – Appellant/Complainant has preferred ... 139 of NI Act was made and further, the Appellant/Complainant had failed to establish the ingredients of his case and finally came ... to the conclusion that the offence under Section 138 of NI Act was not established against the Respondent/Accused and resultantly ... 'on the side of the Respondent/Accuse....
2001 0 Supreme(AP) 1536 • India - Andhra Pradesh
S.ANANDA REDDY
INDIAN STAMP ACT, 1899, Secs.2(22),2(5) & 35 and Art.49(b) - NEGOTIABLE INSTRUMENTS ACT, Sec.4 - “Promissory note” - Defined - ... erroneous - Omission to incorporate in a document to pay “to, or to the order of a certain person”, “or to the bearer of the instrument ... as promissory note - Revision dismissed. ... It cannot also be a promissory note, because it does not satisfy all the ingredients of a promissory #HL_START....
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