Promissory Note Format Gujarati

DOCUMENT CONTROL AND SPECIFICATIONS

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STATUTORY & LEGAL COMPLIANCE NOTICE

IMPORTANT LEGAL NOTICE: This document is drafted in accordance with the Negotiable Instruments Act, 1881 of India. To be legally enforceable in the State of Gujarat, this instrument must be executed on non-judicial stamp paper of the appropriate denomination as per the Gujarat Stamp Act, 1958. Failure to affix the required revenue stamps or pay the requisite stamp duty may render this document inadmissible as evidence in a court of law. Parties are advised to consult with local counsel regarding the current stamp duty rates for "Promissory Notes" (Article 49 of the Schedule).

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PROMISSORY NOTE (વચનચિઠ્ઠી)

This PROMISSORY NOTE ("Note") is executed on this [Day] day of [Month], [Year], at [City/Town], Gujarat.

1. PARTIES AND RECITALS (પક્ષકારો અને પ્રસ્તાવના)

BORROWER (દેવાદાર): [Borrower Full Legal Name / Company Name], [Registration No. if applicable], residing at/having its registered office at [Complete Address, City, Gujarat, Pincode]. (Hereinafter referred to as the "Maker" or "Borrower").

LENDER (લેણદાર): [Lender Full Legal Name / Company Name], [Registration No. if applicable], residing at/having its registered office at [Complete Address, City, Gujarat, Pincode]. (Hereinafter referred to as the "Payee" or "Lender").

RECITALS: The Borrower acknowledges a bona fide debt owed to the Lender for the Principal Amount stated below, received as a loan for [State Purpose, e.g., Business Expansion/Personal Use], and hereby executes this unconditional promise to repay the same.

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2. EXHAUSTIVE OPERATIVE CLAUSES (કાર્યકારી કલમો)

2.1 PROMISE TO PAY (ચુકવણીનું વચન)

હું/અમે, આથી વચન આપું છું કે [Lender Name] ("લેણદાર") ને અથવા તેમના આદેશ મુજબ અથવા આ દસ્તાવેજ ધારકને માગણી થયેથી મુદ્દલ રકમ [Principal Amount in Figures] (અંકે રૂપિયા [Amount in Gujarati Words]) પૂરેપૂરી ચુકવી આપીશ. (I/We hereby unconditionally promise to pay to [Lender Name] ("Lender") or to their order, or to the bearer of this instrument, the principal sum of [Amount in USD/INR] on demand.)

2.2 COMPENSATION & INTEREST TERMS (વ્યાજ અને ચુકવણીની શરતો)

The Borrower shall pay interest on the unpaid Principal Amount at a rate of [Percentage]% per annum. Interest shall be calculated from the Effective Date until the date of full and final repayment. (કુલ મુદ્દલ રકમ પર વાર્ષિક [Percentage]% ના દરે વ્યાજ ચુકવવાનું રહેશે. વ્યાજની ગણતરી રકમ મળ્યા તારીખથી ચુકવણીની તારીખ સુધી કરવામાં આવશે.)

2.3 REPAYMENT MILESTONES (ચુકવણીના તબક્કા)

The repayment shall be made in [Number] installments of [Amount] each, due on the [Day] of every month, starting from [Start Date], or as a lump sum on [Maturity Date].

2.4 DEFAULT AND LATE INTEREST (ચુકવણીમાં કસૂર અને દંડકીય વ્યાજ)

In the event of a default in any payment due hereunder, the entire unpaid balance of the Principal Amount and accrued interest shall become immediately due and payable. A late penalty of [Percentage]% per month shall apply to any overdue amount.

2.5 TERM & TERMINATION (મુદત અને સમાપ્તિ)

This Note shall remain in full force and effect until the Lender issues a written "No Dues Certificate" or returns the original cancelled Note to the Borrower upon full satisfaction of the debt.

2.6 CONFIDENTIALITY & NON-DISCLOSURE (ગોપનીયતા)

The parties agree to keep the terms of this financial arrangement confidential and shall not disclose the same to any third party without prior written consent, except as required by tax authorities or legal process.

2.7 REPRESENTATIONS & WARRANTIES (રજૂઆત અને ખાતરી)

The Borrower represents that:

1. They have the legal capacity and authority to execute this Note.
2. This Note constitutes a legal, valid, and binding obligation.
3. The execution of this Note does not violate any existing agreement or law.

2.8 LIMITATION OF LIABILITY & INDEMNIFICATION (જવાબદારી અને નુકસાન ભરપાઈ)

The Borrower shall indemnify and hold the Lender harmless from any costs, legal fees, or losses arising from the Borrower's breach of this Note or any legal proceedings initiated for the recovery of the debt.

2.9 DISPUTE RESOLUTION & ARBITRATION (વિવાદ નિવારણ અને આર્બિટ્રેશન)

Any dispute arising out of this Note shall be referred to arbitration in [City Name], Gujarat, in accordance with the Arbitration and Conciliation Act, 1996. The language of arbitration shall be [Gujarati/English].

2.10 GOVERNING LAW & JURISDICTION (લાગુ કાયદો અને અધિકારક્ષેત્ર)

This Note is governed by the laws of India. The courts of [City Name], Gujarat shall have exclusive jurisdiction over any matters arising from this instrument.

2.11 MISCELLANEOUS (પરચૂરણ કલમો)

• Severability: If any part of this Note is held invalid, the remainder shall continue in effect.
• Entire Agreement: This Note constitutes the final agreement between the parties regarding this loan.
• Counterparts: This Note may be executed in counterparts, each of which shall be deemed an original.

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3. EXECUTION & FORMAL SIGNATURE BLOCKS

IN WITNESS WHEREOF, the Borrower has executed this Promissory Note on the date and place first written above.

FOR THE BORROWER (દેવાદાર માટે):

(Affix Revenue Stamp Here / અહીં રેવન્યુ સ્ટેમ્પ લગાડવો)

Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role] Company: [Company Legal Name, if applicable] Date: [Date] Place: [City, Gujarat]

FOR THE LENDER / PAYEE (લેણદાર માટે):

Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role] Date: [Date]

WITNESSES (સાક્ષીઓ):

1. Signature: __________________ Name: [Witness 1 Name] Address: [Witness 1 Address]

2. Signature: __________________ Name: [Witness 2 Name] Address: [Witness 2 Address]

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STEP-BY-STEP EXECUTION & FILING GUIDE

1. Preparation of Document

• Copy the text into Microsoft Word or Google Docs.
• Replace all bracketed information [...] with specific details. Ensure the Principal Amount is written in both figures and words to prevent tampering.

2. Stamp Duty Compliance

• In Gujarat, a Promissory Note must be stamped. Use a Revenue Stamp (typically INR 1 or as per current Article 49 of the Indian Stamp Act) and sign across the stamp so that the signature starts on the paper, crosses the stamp, and ends on the paper.
• For high-value corporate notes, it is recommended to execute the document on Non-Judicial Stamp Paper of the value prescribed by the Gujarat State Government.

3. Signatory Authority

• If the Borrower is a Company, ensure the signatory has a Board Resolution authorizing them to borrow funds and sign negotiable instruments.
• If the Borrower is an individual, ensure a self-attested copy of their PAN Card or Aadhaar Card is attached as an exhibit.

4. Execution via Digital or Physical Means

• Physical: Print on stamp paper, sign in blue ink, and have two witnesses sign.
• Digital: For institutional debt, platforms like DocuSign or Adobe Sign may be used, provided they comply with the Information Technology Act, 2000. However, for a "Negotiable Instrument" under Section 13 of the NI Act, physical execution with a revenue stamp remains the gold standard for enforceability in Indian trial courts.

5. Record Retention

• The Lender must retain the Original Promissory Note.
• The Borrower should retain a photocopy for their accounting records.
• Upon repayment, the Lender should mark the Note as "CANCELLED/PAID IN FULL" and return the original to the Borrower.