Negotiable Instruments Act MCQ question and answer

1

Appeal against an order of acquittal by J.M.F.C. in respect of an offence under section 138 Negotiable Instruments Act can be filed in:-

A) High Court B) Court of Sessions C) High Court with leave of Court D) C.J.M. Court

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

2

The question of the reasonableness of the time for presenting a bill of exchange for payment is a

A) Question of law B) Question of fact C) Mixed question of law and fact D) None of the above

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

3

A complaint, against the drawer of a cheque, dishonoured for insufficiency, etc., of funds, must be made:

A) Within one month of the date on which the cause-of-action arises under clause (c) of the proviso to Section 138 of the Negotiable Instruments Act, 1881 B) Within thirty days of the receipt of information from the bank regarding the return of the cheques as unpaid C) Within fifteen days of the expiration of notice sent to the drawer of such cheques by the payee, demanding payment of the amount D) Within six months from the date on which the cheque is drawn

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

4

Which Section of the Negotiable Instruments Act, 1881 excludes the defence that the "drawer had no reason to believe when he issued a cheque that it may be dishonoured on presentment for the reasons stated in Section 138 of the Act"?

A) Section 138 B) Section 139 C) Section 140 D) Section 141

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

5

Which provisions of the Negotiable Instruments Act mandates that the offences punishable under Section 138 of the Negotiable Instruments Act shall be tried summarily?

A) Section 141 B) Section 142 C) Section 143 D) Section 144

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

6

The term 'negotiation' in section 14 of the Negotiable Instruments Act, 1881 refers to

A) The transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder thereof B) The payment by a bank on a negotiable instrument after due verification of the instrument C) The bargaining between the parties to a negotiable instrument D) All of the above

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

7

Negotiable Instruments Act:- Whether a minor may draw, indorse, deliver and negotiate any instrument?

A) Only when he can understand the consequence of it B) Only when it is beneficial for him C) Only when it is made with mutual consent of both parties D) Yes, he may do so as to bind all parties except himself

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

8

Under section 76(b) of the Negotiable Instruments Act, 1881, the engagement to pay must have been entered into

A) At maturity (Mehar v. Hari Gaur, AIR 1935 Lah 666) B) After maturity (Sivaram v. Jayaram, AIR 1960 Mad 297 DB) C) Prior to maturity (Thakur Din v. Oudh Commercial Bank Ltd., AIR 1999 Oudh 16) D) None of the above

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

9

All cheques are bill of exchange, but all bills of exchange are not cheques

A) False B) Partly true and partly false C) True D) None of the above

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

10

Which one of the following is a prescribed period of limitation for taking cognizance to the Court against the offence committed under Section 138 of the Negotiable Instruments Act, 1881?

A) 60 days from the date of writing the cheque and if informed to the Court in writing only B) 90 days from the date of writing the cheque and if complaint made to the Court orally C) 15 days from the date of writing the cheque and if informed to the Court written or orally both D) 30 days from the date of cause of action arises if the complaint made in writing to the Court

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Negotiable Instruments Act MCQ question and answer | Law MCQ question