AIR 2007 DELHI 175 ::2007 (5) ABR (NOC) 741 (DEL) ::2007 AIHC NOC 417 ::2008 CLC 363 ::(2007) 2 NIJ 364

Delhi High Court

Hon'ble Judge(s): Pradeep Nandrajog , J

(A) Negotiable Instruments Act (26 of 1881) , S.4, S.13— Stamp Act (2 of 1899) , S.2(22)— Promissory Note - Definition of for purposes of stamp duty in Stamp Act is wider than definition under NI Act. A comparison of the definition of a promissory note as defined vide sub-section (22) of Section 2 of the Indian Stamp Act 1899 and the definition of a promissory note as defined under Section 4 of the Negotiable Instruments Act 1881 read with the definition of a negotiable instruments as defined in section 13 of the Negotiable Instruments Act 1881 reveals that the definition of a promissory note in the Indian Stamp Act 1899 for the purposes of stamp duty, is wider than the definition of a promissory note under the Negotiable Instruments Act 1881, but it is only to the extent that in order to fall within the extended meaning, a document should be a promissory note in all respects except for the contingencies affecting the payment in the two cases envisaged in the proviso to Article 1 in the ordinary mercantile sense. The extended meaning only extends to a documents (a) which includes a promise to pay the sum named out of particular funds, such amount may or may not be available with the fund or (b) where promise to pay a sum depends upon happening of condition or contingency which may or may not happen. When payment is not dependent upon any condition envisaged ....