Bill of Exchange

To determine the nature of instrument where there was a promise to pay, the best way was to see intention of the parties and what the instrument in the common acceptance of men of business or persons among whom the same was commonly used

Ordinarily, in order to amount to a promissory note, an instrument must simply contain a promise to pay and nothing else and true import of words "on demand" was that the debt was due and payable immediately

Such endorsement did not mean that the same was not payable immediately or without any demand

Promissory note typically contained all terms pertaining to indebtedness, such as principal amount, interest rate, maturity date, date and place of issuance, and issuer's signature

Difference between a promissory note and a bill of exchange was that the latter was transferable and could bind one party to pay a third party that was not involved in its creation

Bills of exchange orders a debtor to pay a particular amount within a given period of time issued by a creditor and promissory note was issued by a debtor and was a promise to pay a particular amount of money in a given period

Bill of exchange must clearly detail the amount of money, the date, and the parties involved (including the drawer and drawee)

Bill of exchange ordered a drawee to pay as per the drawer's directions and promissory note, however, was not an order but a promise to pay

Liability of maker of a promissory note was absolute, while that of a drawer of a bill of exchange was conditional and promissory notes could not be payable to their makers, while the drawer and the payee in bills can be the same person.

Sections 10(?)(?)(?), 12(1)(?), (?) & (?), 23(1), (2), (3), (5), (6), (7), (12), (14), (27), 25(1) (2) and 28 of the "Hasba Bill", 2005, passed by the Provincial Assembly of N.-W.F.P., are ultra vires the Constitution, therefore, the Governor of the N.-W.F.P. may not assent to the "Hasba Bill" in its present form.