In force · As amended up to 2026-08
CHAPTER II
OF NOTES, BILLSAND CHEQUES
4. "Promissory note."— 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 Rs. 500."
- (b) "I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value received."
- (c) "Mr. B, I O U Rs. 1,000."
- (d) "I promise to Pay B Rs. 500 and all other sums which shall be due to him."
- (e) "I promise to Pay B Rs. 500, first deducting thereout any money which he may owe me."
- (f) "I promise to Pay B Rs. 500 seven days after my marriage with C."
- (g) "I promise to Pay B Rs. 500 on D's death, provided D leaves me enough to pay that sum."
Source: India Code