Doubt on promissory note... help me please...

Others 8157 views 7 replies

hai friends, can anyone help me please regarding.... NI ACT

what is the validity period for a promissory note.?

Replies (7)

 

Hi,

 

Unless there is a time period specified on the note after which it becomes null and void, a promise to pay something to someone is ALWAYS valid until it is satisfied, and it also is binding...

Generally Promissory note is valid for three years

Its valid upto the time period for which credit is granted..

 

In case of other NI like cheque  it's  credit period or 6 months whicever is less..

In promissiory note the validity period is th  maturity date, which is written on it

In prm note time period must be mentioned on it

time period specified in the pro note for execution of promise or 3 yrs which ever is earlier.The time period of 3 yrs is specified as per the law of limitation

Hope you are inquiring about extinguishment of right of the payee / creditor to sue in a court of law to recover the money from the maker of the promissory note. This is not mentioned in the NI Act and we have to refer the Limitation Act, 1963 for limitation under various Acts.

As per the schedule to Act:

The limitation period on promissory note payable at a fixed time after date is three years from the date when the note fall due.

For example, A of Bangalore executed a promissory note favoring B at Hyderabad for Rs. 10,000 on 01-10-2010 payable after 30-09-2010 at Delhi. B can sue A in a Court of law on or before 30-09-2014 i.e. 3 years from the due date of the promissory note.


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