Negotiable Instruments Act MCQ question and answer

71

A post-dated cheque remains only a bill of exchange till the date on its face and only from that date it becomes a cheque being payable on demand. This observation was made by the court in case of

A) Anil Kumar Sawhney v. Gulshan Rai, (1999) 4 SCC 424 B) Anil Kumar Sawhney v. Gulshan Rai, (1993) 4 SCC 424 C) Jogy David v. K. K. Babu, (1998) 94 Comp Cas 711 (Ker) D) Punna Devi v. John Inpex Pvt. Ltd., (1996) 2 Bank LLR 482

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Answer & Solution

Answer: Option B

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72

Which of the following High Court's held that the blank cheque is not a cheque in the eye of law

A) Delhi B) Bombay C) Calcutta D) Allahabad

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Answer & Solution

Answer: Option B

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73

A draws a cheque in favour of B, a minor. B endorses it in favour of C and C endorses in favour of D. The cheque is dishonoured. Which of the following is not correct about liabilities of the parties?

A) C and D can claim from B B) C can claim payment from A C) D can claim against C and A D) C and D cannot claim from B

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Answer & Solution

Answer: Option A

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74

Maximum sentence of fine which a J.M.F.C. can impose for offence under section 138 of the Negotiable Instruments Act:-

A) Twice the amount of cheque B) Twenty thousand C) One lac D) Ten thousand

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Answer & Solution

Answer: Option A

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75

Negotiation by endorsement' has been explained under the Negotiable Instruments Act, 1881 in

A) Section 28 B) Section 38 C) Section 48 D) Section 58

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Answer & Solution

Answer: Option C

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76

A bill is drawn payable to 'A' or order. 'A' indorses it to 'B', the indorsement not containing the words "or order" or any equivalent words. Can 'B' negotiate the instrument?

A) Yes B) No C) Not always D) None of the above

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Answer & Solution

Answer: Option A

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77

The presumption as to the date of a negotiable instrument under section 118 is that, every negotiable instrument bearing a date was made or drawn

A) Prior to that date B) On such date C) May be on or prior to that date D) None of the above

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Answer & Solution

Answer: Option B

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78

Which one of the following is not meant by the term 'Company' for the purpose of the Section 141 of the Negotiable Instruments Act, 1881?

A) A firm B) Any body corporate C) Any educational institute D) Other association of individuals

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Answer & Solution

Answer: Option C

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79

Can the holder of a negotiable instrument indorsed in blank convert the indorsement into an indorsement in full?

A) No, such a conversion is not possible under the Negotiable Instruments Act, 1881 (Section 49) B) Yes, the holder can, without signing his own name, and by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank into an indorsement in full (Section 49) C) Yes, the holder can by signing his own name and by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank to an indorsement in full (Section 49) D) None of the above

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Answer & Solution

Answer: Option B

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80

A bill of exchange contains a/an

A) Unconditional undertaking B) Unconditional order C) Conditional undertaking D) Conditionalorder

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Answer & Solution

Answer: Option B

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Negotiable Instruments Act MCQ question and answer | Law MCQ question