Negotiable Instruments Act MCQ question and answer

21

The notice of dishonour of cheque is to be given with in . . . . . . . of its knowledge to receiver.

A) 10 days B) 30 days C) Both (A) and (B) D) 15 days

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Answer & Solution

Answer: Option B

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22

In one of the recent judgements Supreme Court has held that section of the Amendment Act, shall have a retrospective effect (Applicable to complaints which were filed prior to 1^st September 2018, in respect to the appeals against the order of conviction and sentence for the offence under section 138 of the Act.

A) Section 148 B) Section 138 C) Section 141 D) Section 147

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Answer & Solution

Answer: Option A

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23

Where an indorser of an instrument excludes his liability and afterwards becomes the holder of the instrument, who are liable to him?

A) No one is liable to him B) All intermediate indorsers are liable to him C) Only the immediate prior indorser is liable to him D) None of the above

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Answer & Solution

Answer: Option B

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24

The presumption regarding dishonour of a cheque on production of a bank slip is

A) Rebuttable B) Irrebuttable C) Conclusive proof D) None of the above

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Answer & Solution

Answer: Option A

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25

The Negotiable Instruments Act provides for payment of interim compensation by the drawer of the cheque to the complainant. Such interim compensation should not exceed . . . . . . . . of the amount of the cheque.

A) 10% B) 20% C) 25% D) 15%

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Answer & Solution

Answer: Option B

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26

Cheque is always payable on demand.

A) True B) False C) Partly true D) Partly false

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Answer & Solution

Answer: Option A

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27

If the indorser signs his name and adds a direction to pay the amount mentioned in the instrument to a specified person, the indorsement is said to be:

A) Indorsement in blank B) Indorsement in full C) Indorsement in part D) Indorsement in specific

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Answer & Solution

Answer: Option B

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28

If a minor draws, indorses, delivers or negotiates an instrument, such instrument binds

A) All parties to the instrument including the minor B) Only the minor and not other parties to the instrument C) All parties to the instrument except the minor D) None of the above

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Answer & Solution

Answer: Option C

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29

The cognizance of offence under Section 138 of Negotiable Instruments Act can be taken by the J.M.F.C. having territorial jurisdiction at the

A) Place of the issuance of the cheque B) Place of the delivery of the statutory notice C) Place when the complainant chooses to present the cheque for encashment by his Bank D) Place where the cheque is dishonoured by the bank on which it is drawn

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Answer & Solution

Answer: Option D

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30

For the purpose of attracting the provisions of Section 138 of the Negotiable Instruments Act, a cheque has to be presented to the bank within a period of

A) Six months B) 15 days from the date on which it is drawn C) Three months from the date on which it is drawn or within the period of its validity whichever is earlier D) None of the above

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Answer & Solution

Answer: Option C

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Negotiable Instruments Act MCQ question and answer | Law MCQ question