PROMISSORY NOTE

A promissory not is an instrument on 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. The essential requisites of a promissory note are:

(i) It must be in writing signed by the maker;

(ii) The promise to pay must be unconditional;

(iii) The sum of money to be paid must be certain;

(iv) The drawer must be a certain person, and

(v) The drawee must be a certain person.

It may provide for payment on demand, or within a fixed time or on a specified date. Where it is silent on this

point, it is payable on demand.

Stamp duty is payable under Art. 49, schedule I, stamp Act. Registration is not required.

FORM OF PROMISSORY, NOTE

ON DEMAND I ………….. aged about ………….. years, son of ………….., resident of…………..,

promise to pay to ………….., aged about …………..years, son of resident of ………….., or order the

………….. sum of Rupees ………….., (Rs …………..) only, with interest at …………..% per annum until

repayment for value received.

DATED AND DELIVERED 

at …………… this the …………….. day of ………..20………….