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Negotiable Instruments Act

Practice Test 2

1 / 100

Read Assertion (A) and Reason (R) and answer using below;
Assertion : Where a bill is unintentionally cancelled by the holder on his agent and the cancellation is not apparent thereon, the bill is discharged.
Reason (R): Above principle is laid down in Section 82 of the Negotiable Instruments Act.

2 / 100

The Negotiable Instruments Act, 1881 applies to

3 / 100

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

4 / 100

The presumptions under Section 118 of the Act do not include –

5 / 100

Can a ‘notice in writing’ envisaged in section 138(b) of the Negotiable Instruments Act, 1881, be sent by telegraph?

6 / 100

Director of a company is liable for an offence committed by the company under Section 138 of the Negotiable Instruments Act, 1881:

7 / 100

Supreme Court has laid down certain directions to criminal courts for speedy and expeditious disposal of cases falling under Section 138 of the Negotiable Instruments Act, 1881 in the case of

8 / 100

As per Section 118 of the Negotiable Instruments Act, presumption in regard to the date of a negotiable instrument is that every negotiable instrument bearing a date was made or drawn:

9 / 100

Offence under Negotiable Instruments Act are:

10 / 100

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

11 / 100

Which of the following is true about a ‘Bank Draft’?

12 / 100

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

13 / 100

Which of the following is not a negotiable instrument?

14 / 100

Under Negotiable Instruments Act, 1881, how many times, a holder of a cheque can present it before a bank during the period of its validity?

15 / 100

A takes a loan from B with promise to pay it back within six months. It is also stipulated that on the failure to pay within six months. A will be liable to pay double the amount borrowed

16 / 100

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

17 / 100

Which of the following section of Negotiable Instruments Act is related with presumption?

18 / 100

An authority to draw bills of exchange

19 / 100

No one other than RBI and Central Government can make a Promissory note payable to bearer.

20 / 100

The term “a cheque in the electronic form” is defined in the Negotiable Instruments Act, 1881 under:

21 / 100

In which section of Negotiable Instruments Act, “Public holiday” is explained?

22 / 100

Under section 11 of the Negotiable Instruments Act, a promissory note, bill of exchange or cheque drawn or made in India, and made payable in, or drawn upon any person resident in India is . . . . . . . .

23 / 100

In determining reasonable time for the purpose of a negotiable instrument

24 / 100

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

25 / 100

Under section 143 of the Negotiable Instruments Act, an endeavour shall be made to conclude the trial within . . . . . . . . months from the date of filing of the complaint.

26 / 100

In case presentation of instrument for acceptance or payment is delayed, . . . . . . .

27 / 100

In an appeal by the drawer against his conviction under section 138 of Negotiable Instruments Act, what minimum amount of fine or compensation can be ordered by the appellate court to be deposited by the appellant

28 / 100

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

29 / 100

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

30 / 100

The maximum amount which may be awarded as interim compensation under Section 143A of the Negotiable Instruments Act, 1881 is

31 / 100

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

32 / 100

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.

33 / 100

A draws a bill on B for 1 500 payable to the order of A. B accepts the bill, but subsequently dishonours it by non-payment. Asues B on the bill. B proves that it was accepted for value as to 1 400, and as an accommodation to the plaintiff as to the residue. Thus, as per the provisions of the Negotiable Instruments Act, 1881, A can only recover the following amount:

34 / 100

Chapter XVII containing sections 138 to 142 was introduced in the Negotiable Instruments Act

35 / 100

Under Negotiable Instruments Act, how many days after service of notice of demand on drawer, the Cause of Action arises against drawer, if he fails to make payment?

36 / 100

The maximum amount of fine which can be imposed under Section 138 of Negotiable Instruments Act is

37 / 100

Which of the following sections enables the court to cancel the bond and ball bond:

38 / 100

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?

39 / 100

How much time is given for complaint for ‘dishonour’ of cheque?

40 / 100

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?

41 / 100

Nothing in Section 138 Negotiable Instruments Act shall apply unless

42 / 100

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

43 / 100

A cheque which is torn into pieces is called

44 / 100

A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque is dishonoured by the bank on grounds of inadequate funds. As per the provisions of Negotiable Instruments Act, 1881:

45 / 100

In which section of Negotiable Instruments Act “holder in Due Course” is defined?

46 / 100

The Negotiable Instruments Act, 1881 became operative from the date of

47 / 100

Which of the following is true about ‘Inchoate Instrument’?

48 / 100

Under Section 23 of Negotiable Instruments Act, a promissory note or bill of exchange, dated 31st August, 2018 is made payable three months after date. The instrument is at maturity of the . . . . . . . . ?

49 / 100

The effect of a notice under clause (b) of section 138 of Negotiable Instruments Act is –

50 / 100

To whom of the following, payment of the amount due on a promissory note, bill of exchange or cheque must be made in order to discharge the maker or acceptor

51 / 100

Negotiable Instruments Act:- In a recent case Supreme Court has held that where the cheque amount with interest and cost as assessed by the Court is paid by a specified date, the Court is entitled to close the proceedings in exercise of its powers under Section 143 of the Act read with Section 258 Cr.P.C. That case is

52 / 100

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

53 / 100

In order to rebut the presumption under Section 138 & 118 of Negotiable Instruments Act accused

54 / 100

A person (payee) signs a blank cheque and gives the same to another person (holder) and the holder fills up the blank space pertaining to amount and date and presents the same in his bank account and it is dishonoured. In such a situation, which of the following statement would be correct?

55 / 100

If the words “not negotiable” are used with special crossing in a cheque, the cheque is

56 / 100

As per the provision of section 93, when a cheque is dishoroured by non-acceptance or non-payment the holder

57 / 100

Who is ‘holder in due course’?

58 / 100

The Drawer shall be held . . . . . . . . under section 138 if he has stopped payment after issuing the cheque.

59 / 100

A promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity

60 / 100

Amendment in Negotiable Instruments Act, 1881 made in 1988 has introduced an important provision relating to:

61 / 100

According to Section 13 of the Negotiable Instruments Act, 1881, which is not a “Negotiable Instrument”?

62 / 100

BATNA Stands for:

63 / 100

Effect of ‘not negotiable’ crossing is mentioned under

64 / 100

If the person committing an offence under Section 138 of the Negotiable Instruments Act, 1881, is a company, the following shall be deemed to be guilty of the offence:

65 / 100

Where a cheque is crossed generally the banker on whom it is drawn

66 / 100

Cognizance of an offence under section 138 can be taken by a court only on a/an

67 / 100

A note under section 99 of the Negotiable Instruments Act should contain among other things

68 / 100

Section 138 of the Negotiable Instruments Act, 1881, . . . . . . . . . . mens rea

69 / 100

Whether director is liable if the cheque issued on behalf of company is dishonored?

70 / 100

Match List I with List II and select the correct answer by using the given below the lists:

List I
List II

a. Cognizance of offences
1. Section 138 of the Negotiable Instruments Act, 1881

b. Offences by companies and firms
2. Section 142 of the Negotiable Instruments Act, 1881

c. Dishonour of cheque for insufficiency of funds
3. Section 143 of the Negotiable Instruments Act, 1881

d. Power of court to try cases summarily
4. Section 141 of the Negotiable Instruments Act, 1881

71 / 100

The Negotiable Instruments Act, 1881 came into force on

72 / 100

A bill of lading is:

73 / 100

If in an instrument the amount undertaken or ordered to be paid is stated differently in figures and in words

74 / 100

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:

75 / 100

Which option is correct, where a complaint under section 138 Negotiable Instruments Act is filed at premature stage i.e. before the expiry of period prescribed in demand notice of 15 days?

76 / 100

In which of the following case the elementary law is laid down that where there is no acceptance, no cause of action can have arisen to the payee against the drawee

77 / 100

Proceedings under section 138 Negotiable Instruments Act 1881 which defence shall not be allowed?

78 / 100

Cheque bouncing cases charged under section 138 of Negotiable Instruments Act is trailed by

79 / 100

A draws a bill on B. B accepts the bill without any consideration. The bill is transferred to C without consideration. C transferred it to D for value. Decide as per the provisions of the Negotiable Instruments Act, 1881 –

80 / 100

Which provision of the Act deals with ‘payment in due course’?

81 / 100

Can the legal representative of a deceased person negotiate a promissory note, bill of exchange or cheque payable to order by delivery only which was indorsed by the deceased but not delivered by him?

82 / 100

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

83 / 100

Which of the following circumstances will attract the provisions of Section 138 of Negotiable Instruments Act?

84 / 100

Section 141 of the Negotiable Instruments Act deals with the offences caused by the:

85 / 100

A Magistrate issuing a summons to an accused or a witness can send it

86 / 100

The Provision, that “no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class shall try offence punishable under Section 138”, exists under

87 / 100

The appeal against an order of acquittal passed by Judicial Magistrate First Class in respect of the offence under Section 138 of the Negotiable Instruments Act would lie to-

88 / 100

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:

89 / 100

Under section 138 of Negotiable Instruments Act, complaint may be made within from cause of action arises –

90 / 100

Dishonour by non-acceptance takes place

91 / 100

Which of the following is not a justified ground of dishonouring of cheque by banker?

92 / 100

In the absence of a contract to the contrary, the liability of the maker or drawer of a foreign negotiable instrument is regulated in all essential matters

93 / 100

Instruction of “Stop Payment” remains valid for

94 / 100

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

95 / 100

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

96 / 100

A minor borrowed some money on a promissory note. After attaining majority, he executed another promissory note in respect of the original loan plus the accrued interest. The creditor filed a suit to recover the money on the basis of the second promissory note. The suit is liable

97 / 100

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?

98 / 100

For what term of imprisonment an offender under section 138 of the Negotiable Instruments Act can be punished

99 / 100

That there must be specific allegation regarding the role played by each of the directors, then only they are liable for prosecution under section 138 of the Negotiable Instruments Act. In which of the following cases this statement was made:

100 / 100

Cheque doesn’t require any stamping.

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