Negotiable instruments act

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shivani (Querist)
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11 April 2017 respected sir/mam,

i couldnt understand the phrase: a note payable to the maker is not a promissorynote unless it is endorsed by the maker.

can u please help me?

CA Gopal Somani

CA Gopal Somani (Expert)
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12 April 2017 It's like you can't write a promissory note saying that "I promise to pay myself Rs ..... on the day....."
But if you endorse it in somebody's name (transfer it to somebody) then it becomes a promissory note as you have to pay the amount to somebody else.
So a note will not be called as promissory note if it is payable to maker him/herself. But when he/she endorse it (transfer it) to somebody else's name then it becomes promissory note.

i hope it will be clear. Let me know if you have further questions.