Law: Negotiable Instruments Act (XXVI of 1881)

Section: 4 , 12

Law: Stamp Act (II of 1899)

Section:

Law: Civil Procedure Code (V of 1908)

Section:

Negotiable Instruments Act (XXVI of 1881)--- ----S.4---Promissory Note---Consideration---Not necessary that the consideration for a pronote or any other document should be paid on the same date on which the pronote or the document is executed---Even a consideration paid earlier in time is a good consideration. Negotiable Instruments Act (XXVI of 1881)--- ----S.4---Promissory Note---Mere fact that there was an oral understanding between the parties to return the amount within three months, would not take away the unconditional effect of the pronote. Negotiable Instruments Act (XXVI of 1881)--- ---S.4---Stamp Act (II of 1899), S.12---Promissory Note---When the promissory note and the receipt of the Promissory Note are on the same leaf, the mere fact that some of the stamps were on the portion which fell on the back of the printed receipt would not lead the Court to treat those stamps as on a paper other than that of the pronote. Stamp Act (11 of 1899)--- ----S.12 (2)---Cancellation of adhesive stamps---Object and modes. The plain reading of subsection (3) of section 12 of The Stamp Act would show that the adhesive stamps are to be cancelled by writing on or across the stamp his name or initials and the date by the executant and/or in any other effectual manner. From the perusal of section 12 (3) of the Stamp Act it is clear that writing his name or putting his initial by the executant is not the only mode of cancellation of the stamp. Adhesive stamps can also be cancelled in other ways. The object of cancellation of adhesive stamps is to prevent the same stamp from being used again. The cancellation is required for the purposes of preventing fraud. If an adhesive stamp is affixed on a document and it is cancelled by drawing a line across it, it cannot be used again unless it is removed from the document, which may not be possible without in some measure causing some visible damage to the stamp itself. Such a cancellation is effective because this section does not contemplate that a person required to cancel such a stamp must do so in such a manner that it may become impossible for a criminal-minded person to use such stamp again in any circumstances whatsoever.…