Supreme Court: Can blank promissory note be redeemed?

A blank promissory note is a convenient tool commonly used in various types of transactions. It is a promissory note that is not filled in (usually missing the amount or the due date), while the creditor may fill in the missing information according to rules agreed upon in advance. From the creditor's point of view, it allows for faster and easier debt recovery. However, it has one disadvantage – if the creditor wants to enforce the claim under the blank promissory note, they must present it, filled-in, to the court. A problem then arises when the creditor loses or accidentally destroys the note, as their right to satisfaction is embodied in the deed.

Such an administrative error, namely the shredding of a blank promissory note, was at the heart of the case before the Supreme Court. Having accidently shredded a blank promissory note, the creditor sought it to be redeemed (reestablished) in court – a procedure whereby a lost or destroyed deed that must be presented to exercise a right (typically a security) is replaced. In the proceedings at hand, general courts confirmed that they considered the blank promissory note reestablished. However, the issuer disagreed and filed an extraordinary appeal against the appellate court’s decision. According to the issuer, the promissory note could not have been redeemed, as it did not incorporate any right that could be exercised. In their view, until all required information is filled in, a blank promissory note is not a complete promissory note.

A similar opinion has also been held by a part of legal theory. On the other hand, other opinions have argued that a blank promissory note can be redeemed in court, as it would be impossible to fill it in without it first being reestablished. It would also weaken the protection of the creditor (who should not be penalised for not yet having filled in the note) and the debtor (as it should be possible to prevent the misuse of the lost deed).

The Supreme Court held that generally, a blank promissory note is not a deed that cannot be redeemed in court, and thus it remained to be seen whether it is a deed that must be presented to exercise a right. The court then noted that a blank promissory note is issued precisely to become an actual (valid) promissory note in the future. Therefore, the court considered it to be such a deed and took the view that a blank promissory note can be redeemed (reestablished in court).