Negotiable Instruments Act - Practice Test

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

(A) Not liable

(B) Liable

(C) Not sure

(D) Both (A) and (B)

Correct Answer

(B) Liable

[#137] In which of the following cases did Supreme Court hold that complaint for dishonor of cheque can be filed at the place where cheque was lodged and not where cheque was issued?

(A) A. C. Narayan v. State of Maharashtra

(B) P. J. Agro v. Water Base Ltd.

(C) Bridgestone India (P) Ltd. v. Inderpal Singh

(D) Standard Chartered Bank v. State of Maharashtra

Correct Answer

(C) Bridgestone India (P) Ltd. v. Inderpal Singh

[#138] Whether director is liable if the cheque issued on behalf of company is dishonored?

(A) Yes, he is liable, if he was in charge of and was reasonable for the conduct of business of the company

(B) No, only company is liable

(C) No, director is not liable

(D) None of the above

Correct Answer

(A) Yes, he is liable, if he was in charge of and was reasonable for the conduct of business of the company

[#139] Which of the following is a correct statement of law as per Sections 138 and 142 of the Negotiable Instruments Act, 1881?

(A) A cheque is to be presented to the bank within a period of six months from the date it is drawn or within the period of its validity, whichever is earlier

(B) Notice within thirty days of receipt of information from the bank regarding return of cheque as unpaid, has to be served upon drawer, demanding payment of amount of money

(C) On failure of drawer of such cheque to make payment within fifteen days of receipt of such notice, the payee or holder of cheque has to file complaint within one month thereof

(D) All the above

Correct Answer

(D) All the above

[#140] In which of the following judgments has the Supreme Court held that only those courts within whose territorial limits the drawee bank is situated, would have jurisdiction to try the cases for offence under Section 138 of the Negotiable Instruments Act, 1881?

(A) K. Bhaskaran v. Sankaran Vaidhyan Balan and Another, (1999) 7 SCC 510

(B) Dashrath Rupsingh Rathood v. State of Maharashtra and Another, (2014) 9 SCC 129

(C) State of Bihar and Others v. Kalyanpur Cement Limited, (2010) 3 SCC 274

(D) None of the above

Correct Answer

(B) Dashrath Rupsingh Rathood v. State of Maharashtra and Another, (2014) 9 SCC 129

Negotiable Instruments Act - Study Mode

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

Correct Answer

[#137] In which of the following cases did Supreme Court hold that complaint for dishonor of cheque can be filed at the place where cheque was lodged and not where cheque was issued?

Correct Answer

[#138] Whether director is liable if the cheque issued on behalf of company is dishonored?

Correct Answer

[#139] Which of the following is a correct statement of law as per Sections 138 and 142 of the Negotiable Instruments Act, 1881?

Correct Answer

[#140] In which of the following judgments has the Supreme Court held that only those courts within whose territorial limits the drawee bank is situated, would have jurisdiction to try the cases for offence under Section 138 of the Negotiable Instruments Act, 1881?

Correct Answer