Promissory Note Format India

PROMISSORY NOTE (DEMAND)

Document ID: PN-[YYYYMMDD]-001 Effective Date: [Date, Month, Year] Version: 1.0 Governing Jurisdiction: [State/Union Territory, India]

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STATUTORY & LEGAL COMPLIANCE NOTICE

This Promissory Note is drafted in accordance with the Negotiable Instruments Act, 1881, as applicable in India. This document constitutes a formal legal instrument. Parties are advised that for enforceability in Indian courts, this instrument must be executed on Non-Judicial Stamp Paper of a value determined by the Indian Stamp Act, 1899, as amended by the relevant State Stamp Act where the instrument is executed. Failure to affix appropriate stamp duty may render this document inadmissible as evidence in court.

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1. PARTIES

This Promissory Note (“Note”) is made and executed on this [Day] day of [Month], [Year] by:

MAKER: [Maker Full Legal Name], residing at/having a registered office at [Principal Address] (hereinafter referred to as the "Maker").

PAYEE: [Payee Full Legal Name], residing at/having a registered office at [Principal Address] (hereinafter referred to as the "Payee").

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2. PRINCIPAL SUM AND PROMISE TO PAY

For value received, the Maker hereby unconditionally and irrevocably promises to pay to the order of the Payee the principal sum of Indian Rupees [Amount in Figures] (INR [Amount in Words] only) (the "Principal Amount").

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3. PAYMENT TERMS

3.1 Repayment Schedule: The Maker shall repay the Principal Amount to the Payee [Select: upon demand / on or before Date]. 3.2 Interest: The Principal Amount shall bear interest at the rate of [Percentage]% per annum, calculated from the Effective Date until the date of full and final repayment. 3.3 Method of Payment: All payments shall be made in Indian Rupees via NEFT/RTGS/IMPS to the account designated by the Payee in writing.

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4. DEFAULT AND ACCELERATION

If the Maker fails to pay the Principal Amount or any interest due under this Note on the due date, or if the Maker becomes insolvent, or files for bankruptcy, the entire outstanding Principal Amount and all accrued interest shall become immediately due and payable at the option of the Payee, without notice or demand.

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5. COLLECTION COSTS

In the event of default, the Maker shall be liable for all costs incurred by the Payee in the collection of this Note, including but not limited to reasonable attorney fees, court costs, and enforcement expenses.

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6. WAIVER OF PRESENTMENT

The Maker waives presentment for payment, notice of dishonor, protest, and notice of protest. The Maker acknowledges that this Note is a negotiable instrument under the Negotiable Instruments Act, 1881.

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7. GOVERNING LAW AND DISPUTE RESOLUTION

7.1 Governing Law: This Note shall be governed by and construed in accordance with the laws of India. 7.2 Jurisdiction: Any dispute arising out of or in connection with this Note shall be subject to the exclusive jurisdiction of the competent courts in [City/District, State].

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8. MISCELLANEOUS

8.1 Entire Agreement: This Note constitutes the entire agreement between the parties regarding the subject matter hereof. 8.2 Amendments: No modification or amendment to this Note shall be effective unless in writing and signed by both parties. 8.3 Severability: If any provision of this Note is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

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9. EXECUTION & SIGNATURES

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

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

WITNESS 1: Signature: ______________________ Name: __________________________

WITNESS 2: Signature: ______________________ Name: __________________________

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STEP-BY-STEP EXECUTION & FILING GUIDE

1. Stamp Duty Verification: Before signing, visit the state’s official stamp duty portal (e.g., Stock Holding Corporation of India / e-Stamping portal). Purchase e-stamp paper for the appropriate value corresponding to the Principal Amount and the nature of the instrument in the state of execution.
2. Drafting: Copy the above text into your word processor. Replace all bracketed [ ] information with the actual legal details. Do not leave any brackets empty.
3. Signatory Authority: If the Maker or Payee is a corporate entity, ensure the signatory possesses a Board Resolution authorizing the execution of the promissory note.
4. Execution: Ensure the document is signed by the Maker and witnessed by at least two (2) independent witnesses. Each page should be initialed by both parties.
5. Digital Execution: If using DocuSign or Adobe Sign, ensure the platform meets the requirements of the Information Technology Act, 2000. Note that while digital signatures are legally recognized, a physical wet-ink signature on a properly stamped document remains the "gold standard" for litigation in Indian courts.
6. Record Retention: Keep the original stamped document in a fireproof, secure physical environment. Do not store only a digital copy, as the original instrument may be required for court filings in the event of default.