Negotiable Instruments Act - Practice Test

[#121] 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

Correct Answer

(B) Within thirty days of the receipt of information from the bank regarding the return of the cheques as unpaid

[#122] 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

Correct Answer

(C) Section 140

[#123] 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

Correct Answer

(C) Section 143

[#124] 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

Correct Answer

(A) The transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder thereof

[#125] 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

Correct Answer

(D) Yes, he may do so as to bind all parties except himself

Negotiable Instruments Act - Study Mode

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

Correct Answer

[#122] 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"?

Correct Answer

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

Correct Answer

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

Correct Answer

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

Correct Answer