Negotiable Instruments Act MCQ question and answer

61

Which one of the following court is empowered to try the offence relating to dishonour of cheque for insufficiency etc. under the Negotiable Instruments Act, 1881?

A) Judicial Magistrate the Second Class B) Judicial Magistrate the First Class C) Banking Ombudsman D) None of the above

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Answer & Solution

Answer: Option B

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62

When presentment for payment is to be made under section 65 of the Act?

A) Presentment for payment can be made at any reasonable time. B) Presentment for payment must be made during the usual hours of business and, if at a bank within banking hours. C) There is no such stipulation on time for presentment. D) None of the above.

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Answer & Solution

Answer: Option B

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63

Instruction of "Stop Payment" remains valid for

A) Three months B) One Year C) Two years D) None of these

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Answer & Solution

Answer: Option D

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64

Under which provision of the Negotiable Instruments Act, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of twenty percent of the fine or compensation awarded by the trial Court?

A) Section 148 B) Section 143A C) Section 142 D) Section 143

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Answer & Solution

Answer: Option A

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65

What is the presumption under Section 139 of the Negotiable Instruments Act?

A) That the cheque was signed by the person who holds the account B) That the cheque was issued for discharge of any debt or liability C) That the cheque was issued after ensuring that there is sufficient funds in the account D) None of above

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Answer & Solution

Answer: Option B

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66

When the acceptor of an instrument also a drawer, notice of dishonour is

A) Necessary B) Not necessary C) Not always necessary but under certain circumstances mentioned in section 98A of the Act, it is a must D) None of the above

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Answer & Solution

Answer: Option B

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67

Which Section provides that the offences under the Negotiable Instruments Act are compoundable?

A) Section 137 B) Section 141 C) Section 147 D) Section 149

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Answer & Solution

Answer: Option C

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68

If in a cheque amount ordered to paid is written differently in figure and in words

A) The cheque will be void B) The amount written in words shall be undertaken or ordered to be paid C) It will be presumed that it was altered D) None of these

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Answer & Solution

Answer: Option B

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69

When a cheque has become invalid because of the expiry of the stipulated period, can it be re-validated by the drawer by alteration of dates?

A) Yes, the drawer can re-validate the cheque by alteration of dates B) No, the drawer cannot re-validate it by so alteration of dates C) Although the drawer cannot revalidate the cheque, but the drawee can at his discretion revaliate it D) None of the above

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Answer & Solution

Answer: Option A

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70

The Negotiation of instrument to any person receiving it by paying consideration, before maturity and in good faith is termed as . . . . . . .

A) Holder B) Holder In due course C) Both (A) and (B) D) None of them

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Answer & Solution

Answer: Option B

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Negotiable Instruments Act MCQ question and answer | Law MCQ question