धारा 18

A promissory note is an instrument in writing containing an unconditional undertaking to pay a certain sum of money to the order of a person or to the bearer of the instrument. As per Section 18 of the Negotiable Instruments Act, 1881, 'A promissory note is an instrument in writing containing an unconditional undertaking to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.' A promissory note is a type of negotiable instrument and is governed by the provisions of the Negotiable Instruments Act, 1881. The Supreme Court in the case of State Bank of India vs. M. K. Bhargava (2005) has held that a promissory note is a type of negotiable instrument and that it is governed by the provisions of the Negotiable Instruments Act, 1881.