Stamped receipt can be treated as a Pomissory Note.
BAALASUBRAMANNYAMM
(Querist) 13 June 2011
This query is : Resolved
Respected Experts,
I have given some amount on a "Stamped Receipt" to my frined. The contents of the said Receipt is that he has received money for his personal need and agreed to pay the same with 24% interest on my demand.
So shall it be treated as a Promissory Note or not, if I want to file a suit for recovery on the basis of the said receipt.
Pls. clarify.
PALNITKAR V.V.
(Expert) 13 June 2011
The writing contains all the essentials of a pro note. Even otherwise, you can file suit on the basis of the writing even if it is not treated as a promissory note.
Suresh Gupta
(Expert) 14 June 2011
it will not treated as Promisory note
RAJU O.F.,
(Expert) 14 June 2011
Stamped receipts only prove the payment of monies by your friend. Whether it was repayment of an earlier debt availed by you or not, whether you intended repayment with 24% simple, or compound interest, within a fixed period... all these you will have to prove if you want to sue against your friend on the basis of the stamped receipts with you. Affixing of stamp will not attach much sanctity; but only for two things: first- the Govt. wanted to get some revenue as stamp duty from the transaction and second, it is presumed that a person who signed over the revenue stamp knows the significance of the transaction and hence, he cannot deny receipt of money under the said receipt.
M V Gupta
(Expert) 14 June 2011
The contents of the receipt mentioned by you do not constitute a promissory note as defined in Sec. 4 of the Negotiable Instrumnets Act. It may at best be ragrded as an IOU note on the basis of which you can file regular suit for recovering the amount.
