Negotiable Instruments Act - Practice Test

[#216] What is the meaning of payment of cheque crossed specially?

(A) The banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed, or his agent for collection

(B) The banker on whom the cheque is drawn shall not pay it otherwise than to a banker

(C) Payment of cheque amount across the counter

(D) Payment of cheque amount to the agent of payee

Correct Answer

(A) The banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed, or his agent for collection

[#217] Which of the following statements is correct in relation to bouncing of a cheque?

(A) Offence of cheque bouncing is a compoundable offence

(B) Every trial of cheque bouncing shall be concluded within 3 months

(C) In trial of such cases, provisions of u/s 262 to 265 of CrPC will not apply

(D) In case of conviction in summary trial of such cases, Magistrate shall pass a sentence of imprisonment for a term of 2 years

Correct Answer

(A) Offence of cheque bouncing is a compoundable offence

[#218] In a prosecution under Secth on 138 of Negotiable Instruments Act, 1881, it shall not be a defence that -

(A) The cheque does not bear his signature

(B) That the cheque was not issued for the discharged of any del It or other liability

(C) That the Cheque has not been presented to the bank within period of six months from the date on which it is drawn or from the Period of its validity whichever is earlier

(D) That the drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment

Correct Answer

(D) That the drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment

[#219] Before initiating criminal proceeding for dishonour of cheque, within how many days of receipt of information about dishonour should the payee of cheque issue a notice?

(A) 15 days

(B) 30 days

(C) 90 days

(D) No notice is required

Correct Answer

(A) 15 days

[#220] The criminal complaint for dishonor of cheque is to be filled in court within . . . . . . . . of the Drawer failing to pay.

(A) 30 days

(B) 1 month

(C) Both (A) and (B)

(D) None of them

Correct Answer

(B) 1 month

Negotiable Instruments Act - Study Mode

[#216] What is the meaning of payment of cheque crossed specially?

Correct Answer

[#217] Which of the following statements is correct in relation to bouncing of a cheque?

Correct Answer

[#218] In a prosecution under Secth on 138 of Negotiable Instruments Act, 1881, it shall not be a defence that -

Correct Answer

[#219] Before initiating criminal proceeding for dishonour of cheque, within how many days of receipt of information about dishonour should the payee of cheque issue a notice?

Correct Answer

[#220] The criminal complaint for dishonor of cheque is to be filled in court within . . . . . . . . of the Drawer failing to pay.

Correct Answer