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
Answer: Option B
This Question Belongs to Law >> Negotiable Instruments Act
The term 'legal representative' in section 29 of the Negotiable Instruments Act, 1881
A. Does not include executors or administrator (Rama v. Praoin, AIR 1926 Mad 389)
B. Includes executors or administrator (K. Subbanna v. K. Subbarayudu, AIR 1926 Mad 390)
C. Includes executors but does not include administrators (P. Nayar v. T. Ramanna, AIR 1929 Mad 389)
D. Includes only administrators but does not include executors (P. K. Pati v. Damodar Sahu, AIR 1953 Ori 179)
In the case of a promissory note which is not negotiable
A. Notice of dishonour is compulsory
B. No notice of dishonour is necessary
C. Negotiable Instruments Act is silent on this aspect
D. Indorsement is necessary
The endorsement of a negotiable instrument is followed by delivery
A. Yes
B. No
C. Both (A) and (B)
D. None of the above
'Truncated Cheque' is dealt within which section of the Negotiable Instruments Act, 1881?
A. Section 5
B. Section 6
C. Section 7
D. Section 8
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