Negotiable Instruments Act MCQ question and answer

1

A Court can take the cognizance of an offence under section 138 of Negotiable Instruments Act?

A) Upon Police Report B) Upon Complaint C) Upon self Knowledge of Magistrate D) Upon other's knowledge

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Answer & Solution

Answer: Option B

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2

M drew a cheque amounting to Rs. 2 lakh payable to N and subsequently delivered to him. After receipt of cheque N endorsed the same to C but kept it in his safe locker. After sometime, N died, and P found the cheque in N's safe locker. State the nature of the Instrument as amounting to indorsement under the Negotiable Instruments Act, 1881.

A) Yes its an endorsement, as P becomes the holder of the cheque that he found in the N's safe locker B) No, its not an endorsement, as P does not become the holder of the cheque C) Yes, its an endorsement, as P was a ultimate custodian of the cheque D) No, its not an endorsement, as Nendorsed it to Cand not to the P

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Answer & Solution

Answer: Option B

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3

What is the punishment prescribed for the offence punishable under Section 138 of the Negotiable Instruments Act?

A) Imprisonment for a term which may be extended to two years or with fine which may extend to twice the amount of the cheque or with both B) Imprisonment for a term which may be extended to one year or with fine which may extend to the amount equivalent to the amount of the cheque or with both C) Imprisonment for a term which may be extended to two years or with fine which may extend to the amount equivalent to the amount of the cheque or with both D) Imprisonment for a term which may be extended to two years or with fine which may extend to thrice the amount of the cheque or with both

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Answer & Solution

Answer: Option A

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4

Section 138 of the Negotiable Instruments Act provides penal provisions in case of dishonour of cheque, if it is presented to the Bank within a period of three months:

A) From the date on which it is drawn only B) From the date on which payee makes demand C) From the date on which demand of payee accepted D) From the date on which it is drawn or within the period of its validity whichever is earlier

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Answer & Solution

Answer: Option D

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5

The complaint for taking cognizance of the offence under Section 138 of the Negotiable Instruments Act, 1881 has to be made:

A) Within 15 days of the cause of action B) Within one month of the cause of action C) Within three months of the cause of action D) Within six months of the cause of action

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Answer & Solution

Answer: Option B

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6

In which judgment, under the Negotiable Instruments Act, 1881 the Hon'ble Supreme Court held that though compounding requires consent of both the parties, but even in absence of such consent, the Court can, in the interest of justice, on being satisfied that the complainant has been duly compensated, in its discretion, close the proceedings and discharge the accused:

A) Madhya Pradesh State Legal Service Authority v. Prateek Jain, 2015 (1) SCC (Cri) 211 B) Meters and Instruments Private Limited v. Kanchan Mehta, AIR 2017 SC 4594 C) JIK Industries Ltd. v. Amarlal V. Jumani & Anr., AIR 2012 SC 1079 D) Damodar S. Prabhu v. Sayyed Bala Lal H., AIR 2010 SC 1907

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Answer & Solution

Answer: Option B

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7

Offence under Section 138 of the Negotiable Instruments Act, 1881 is triable by the court on the basis of

A) Police report B) Report from third person C) Complaint by the holder or holder in due course D) Suo motu

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Answer & Solution

Answer: Option C

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8

Who among the following has defined jurisprudence as 'the knowledge of things divine and human, the science of right and wrong?'

A) Blackstone B) Hobbes C) Salmond D) Ulpian

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Answer & Solution

Answer: Option D

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9

Effect of 'not negotiable' crossing is mentioned under

A) Section 125 B) Section 130 C) Section 131 D) Section 128

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Answer & Solution

Answer: Option B

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10

What is the statutory notice period for intimating dishonour of cheque under Section 138 of the Negotiable Instruments Act?

A) 15 days B) One month C) Three months D) Three weeks

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Answer & Solution

Answer: Option B

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Negotiable Instruments Act MCQ question and answer | Law MCQ question