1. PECULAR PROBLEMS :- INSUFFICIENTLY STAMPED PRONOTE; PRONOTE WITH INCOMPLETE COLUMNS; PRONOTE SECRIBED BY PLAINTIFF HIMSELF OR SOME COLUMNS FILLED BY PLAINTIFF HIMSELF; STAMP NOT PROPERLY CANCELLED; ENDORSEMENT OF PARTPAYMENTS WITH OUT SIGNATURE OR TUMBING OF DEBTOR; LACK OF ATTESTATORS AND SCRIBER ; SELF SCRIBED OR BY THIRD PARTY BUT WITHOUT MENTIONING THE NAME AND SIGNATURE WHO SCRIBED THE PRONOTE;PARTPAYMENTS MADE BY THIRD PERSONS; 2. Sec. 20 of NEGOTIABLE INSTRUMENTS ACT SAYS THAT WHEN A STAMPED PAPER OF PRONOTE GIVEN WITHOUT FILLING UP COLUMS OR A WHITE PAPER WITH DULY STAMPED AND SIGNED WITH WHOLLY BLANK OR PARTLY FILLED, WAS GIVEN TO THE PLAINTIFF, THEN IT IS DEEMED THAT THE DEFENDANT AUTHORISED THE PLAINTIFF TO FILL THE COLUMN AND PLACE THE AMOUNT UP TO THE LIMIT OF STAMP VALUE; HENCE BY FILLING UP THE COLUMNS WITH REAL FACTS, THE PLAINTIFF CAN FILE A SUIT FOR RECOVERY OF THE AMOUNT INDEBTED BY THE DEFENDANT TO HIM; 3. SEC. 28,29 AND 35 OF NEGOTIABLE INSTRUMENTS ACT :- SAYS THAT IF AN AGENT SIGNS IN THE CAPACITY OF AGENT FOR HIS PRICIPAL ON THE PRONOTE OR MADE AN ENDORSEMENT ON IT . HIS PRICIPAL IS LIABLE ELSE HE ALONE IS LIABLE. LIKE WISE WHEN A LEGAL REPRESENTATIVE ENDORSED HIS SIGNATURE ON BEHALF OF DECEASED DEBTOR, HE HIMSELF LIABLE FOR TOTAL AMOUNT, IF NOT PLACED ANY CONDITIONS, ELSE, HIS SHARE IS ONLY LIABLE OUT OF ASSESTS OF DECEASED HE RECEIVED;4. AS PER ARTICLE 49 OF SCHEDULE -I OF INDIAN STAMP ACT - [a] when payable on demand - [i] when the amount or value does not exceed Rs. 250/- = TEN PAISE ; [ii] when the amount or value exceeds Rs.250/- but does not exceed Rs. 1000/- = FIFTEEN PAISE; [iii] in any other case = TWENTY PAISE; [b] when payable other Wise than on demand = the same duty as a Bill of exchange [No. 13] for the same amount payable otherwise than on demand AS PER AMENDMENT DATED 1-3-2004.
28. Liability of agent signing.-An agent who sign his name to a promissory note, bill of exchange or cheque without indicating thereon that he signs as agent, or that he does not intend thereby to incur personal responsibility, is liable personally on the instrument, except to those who induced him to sign upon the belief that the principal only would be held liable.
29. Liability of legal representative signing.-A legal representative of a deceased person who sign his name to a promissory note, bill of exchange or cheque is liable personally thereon unless he expressly limits his liability to the extent of the assets received by him as such.
35. Liability of endorser. In the absence of a contract to the contrary, whoever indorses and delivers a negotiable instrument before maturity, without in such endorsement, expressly excluding or making conditional his own liability, is bound thereby to every subsequent holder, in case of dishonour by the drawee, acceptor or maker, to compensate such holder for any loss or damage caused to him by such dishonor, provided due notice of dishonour has been given to, or received by, such endorser as hereinafter provided.
Every endorser after dishonour is liable as upon an instrument payable on demand.