Question 1:
A Court can take the cognizance of an offence under section 138 of Negotiable Instruments Act?
A.
Upon Police Report
B.
Upon Complaint
C.
Upon self Knowledge of Magistrate
D.
Upon other's knowledge
Answer: _________
Question 2:
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: _________
Question 3:
What is the punishment prescribed for the offence punishable under Section 138 of the Negotiable Instruments Act?
A.
Imprisonment for a term which may be extended to two years or with fine which may extend to twice the amount of the cheque or with both
B.
Imprisonment for a term which may be extended to one year or with fine which may extend to the amount equivalent to the amount of the cheque or with both
C.
Imprisonment for a term which may be extended to two years or with fine which may extend to the amount equivalent to the amount of the cheque or with both
D.
Imprisonment for a term which may be extended to two years or with fine which may extend to thrice the amount of the cheque or with both
Answer: _________
Question 4:
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:
A.
From the date on which it is drawn only
B.
From the date on which payee makes demand
C.
From the date on which demand of payee accepted
D.
From the date on which it is drawn or within the period of its validity whichever is earlier
Answer: _________
Question 5:
The complaint for taking cognizance of the offence under Section 138 of the Negotiable Instruments Act, 1881 has to be made:
A.
Within 15 days of the cause of action
B.
Within one month of the cause of action
C.
Within three months of the cause of action
D.
Within six months of the cause of action
Answer: _________
Question 6:
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:
A.
Madhya Pradesh State Legal Service Authority v. Prateek Jain, 2015 (1) SCC (Cri) 211
B.
Meters and Instruments Private Limited v. Kanchan Mehta, AIR 2017 SC 4594
C.
JIK Industries Ltd. v. Amarlal V. Jumani & Anr., AIR 2012 SC 1079
D.
Damodar S. Prabhu v. Sayyed Bala Lal H., AIR 2010 SC 1907
Answer: _________
Question 7:
Offence under Section 138 of the Negotiable Instruments Act, 1881 is triable by the court on the basis of
A.
Police report
B.
Report from third person
C.
Complaint by the holder or holder in due course
D.
Suo motu
Answer: _________
Question 8:
Who among the following has defined jurisprudence as 'the knowledge of things divine and human, the science of right and wrong?'
A.
Blackstone
B.
Hobbes
C.
Salmond
D.
Ulpian
Answer: _________
Question 9:
Effect of 'not negotiable' crossing is mentioned under
A.
Section 125
B.
Section 130
C.
Section 131
D.
Section 128
Answer: _________
Question 10:
What is the statutory notice period for intimating dishonour of cheque under Section 138 of the Negotiable Instruments Act?
A.
15 days
B.
One month
C.
Three months
D.
Three weeks
Answer: _________
Question 11:
Which of the following is true about 'Inchoate Instrument'?
A.
It is an ambiguous instrument
B.
It is an incomplete or blank negotiable instrument
C.
It is not a negotiable instrument
D.
It is a documentary bill
Answer: _________
Question 12:
Which of the following circumstances will attract the provisions of Section 138 of Negotiable Instruments Act?
A.
Cheque dishonour due to insufficiency of funds
B.
Cheque returned by the Bank unpaid on the ground that the account is closed
C.
Cheque returned by the Bank unpaid due to stop payment instruction by drawer
D.
In all of the above circumstances
Answer: _________
Question 13:
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-
A.
To the High Court directly
B.
To the Court of Session
C.
To the High Court with the leave of that Court
D.
To the Court of Chief Judicial Magistrate
Answer: _________
Question 14:
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:
A.
On such date
B.
Prior to that date
C.
May be on or prior to such date
D.
None of the above
Answer: _________
Question 15:
Offence under Negotiable Instruments Act are:
A.
Cognizable & compoundable
B.
Non Cognizable & compoundable
C.
Cognizable & Non compoundable
D.
Non Cognizable &non compoundable
Answer: _________
Question 16:
How much time is given for complaint for 'dishonour' of cheque?
A.
45 days of intimation of dishonour
B.
90 days of intimation of dishonour
C.
30 days of intimation of dishonour
D.
15 days of intimation of dishonour
Answer: _________
Question 17:
As per the provision of section 93, when a cheque is dishoroured by non-acceptance or non-payment the holder
A.
May or may not give notice to the oparties whom the holder seeks to make liable thereon
B.
Must given notice to the parties whom the holder seebs to made
C.
Must give notice to the parties whom the holder such to make liable, but after noting
D.
Must not give any notice to anyone
Answer: _________
Question 18:
Which provision of the Act deals with 'payment in due course'?
A.
Section 9
B.
Section 10
C.
Section 36
D.
Section 78
Answer: _________
Question 19:
In order to rebut the presumption under Section 138 & 118 of Negotiable Instruments Act accused
A.
Must prove the absence of consideration by direct evidence
B.
Must prove absence of consideration beyond reasonable doubt
C.
Must give some evidence in defence
D.
May rebut the presumption on the principle of preponderance of probability
Answer: _________
Question 20:
A cheque which is torn into pieces is called
A.
Stale cheque
B.
Mutilated cheque
C.
Postdated cheque
D.
Dishonored cheque
Answer: _________
Question 21:
Under section 138 of the Act, territorial jurisdiction does not arise on the following places:
A.
Where cheque is issued
B.
In the local limit where the cheque is presented in the bank
C.
Where the cheque is dishonoured by the bank
D.
From where the notice to pay the amount is issued
Answer: _________
Question 22:
In trial of an offence under Section 138 of the Negotiable Instruments Act, 1881, the provisions of Sections 262 of 265 of the Code of Criminal Procedure
A.
Shall apply (Section 143)
B.
Shall not apply (Section 143)
C.
Sometimes shall apply (Section 143)
D.
None of the above
Answer: _________
Question 23:
No court shall take cognizance of any offence punishable under Section 138 of The Negotiable Instruments Act, 1881 unless complaint is made, from the date of accrual of cause of action, within:
A.
15 days
B.
30 days
C.
60 days
D.
None of these
Answer: _________
Question 24:
A protest is made by
A.
By drawer
B.
The indorser
C.
A notary
D.
None of the above
Answer: _________
Question 25:
With effect from which date, the term of imprisonment under section 138 was increased to two years from one year?
A.
From 6 th February, 2002
B.
From 6 th February, 2003
C.
From 1 st April, 1989
D.
None of the above
Answer: _________
Question 26:
The undertaking contained in a promissory note, to pay a certain sum of money is:
A.
Conditional
B.
Unconditional
C.
May be conditional or unconditional depending upon the circumstances
D.
All of the above
Answer: _________
Question 27:
Under section 16 of the Negotiable Instrument Act, 'indorsement in blank' of an instrument means
A.
Where the indorser does not write anything on the instrument
B.
Where the indorser signs his name only on the instrument
C.
Where the indorser writes the name of the person who is directed to pay
D.
None of the above
Answer: _________
Question 28:
What is the punishment for offence under Section 13 of the Negotiable Instruments Act?
A.
2 years imprisonment or fine which may extend to twice the amount of cheque or both
B.
2 years imprisonment and fine upto twice the amount of cheque
C.
Imprisonment not less than 2 years and with fine of Rs. 10,000
D.
Imprisonment for not less than 2 years or fine of Rs. 10,000 or both
Answer: _________
Question 29:
Written complaint should be made to the court from the date of cause of action, within a period of:
A.
30 days
B.
45 days
C.
60 days
D.
90 days
Answer: _________
Question 30:
What sentence can be awarded to a convict for offence under Section 138 of the Negotiable Instruments Act, 1881:
A.
Imprisonment for a term, which may extend to three years or fine upto one lac rupees or with both
B.
Imprisonment for a term, which may extend to two years or fine, which may extend to twice the amount of cheque or with both
C.
Imprisonment for a term, which may extend to six months and fine equal to the amount of Cheque or with both
D.
Imprisonment for a term, which may extend to one year and with fine, which may extend to double the amount of Cheque or with both
Answer: _________
Question 31:
Mens rea has no place while determining penal liability under Section 138 of the Negotiable Instruments Act, 1881'. This statement is:
A.
Correct
B.
Wrong
C.
Partly correct
D.
Depends upon facts of the case
Answer: _________
Question 32:
It shall not be a defence in a prosecution for an offence under Section 138 that the drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment for the reasons stated in the Section. This statement is:
A.
False
B.
Partly true
C.
True
D.
None of the above
Answer: _________
Question 33:
Who among the following is empowered to take cognizance of any offence committed under Section 138 of the Negotiable Instruments Act, 1881
A.
The Chief Managing Director of the Bank
B.
The Banking Ombudsman
C.
The Metropolitan Magistrate or Judicial Magistrate of the 1 st Class
D.
The Executive Magistrate
Answer: _________
Question 34:
In every trial, under Section 143 of the Negotiable Instruments Act, 1881, an endeavour shall be made to conclude the trial:
A.
Within six months from the date of filling the complaint
B.
Within nine months from the date of filing the complaint
C.
Within twelve months from the date of filing the complaint
D.
Within one month from the date of filing the complaint
Answer: _________
Question 35:
If a prosecution for an offence under Section 138 the fact that drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment
A.
Shall be a defence
B.
Shall not be a defence
C.
Shall be sufficient to dislodge the presumption under Section 139
D.
Shall be a ground to refuse the issuance of process
Answer: _________
Question 36:
Dishonour by non-acceptance takes place
A.
When the bill is properly presented for acceptance, except where presentment is excused, but the drawee makes the default in accepting it
B.
When the bill is properly presented for acceptance, except where presentment is excused, but the drawee makes the default in paying it
C.
When the bill is properly presented for payment, except where presentment is excused, but the drawee fails to accept it
D.
None of the above
E.
Drawee is not found
F.
Drawee is incompetent
G.
Drawee is insolvent
H.
All of the above
Answer: _________
Question 37:
The Negotiable Instruments Act 1881, section 4 covers . . . . . . .
A.
Promissory note
B.
Bills of Exchange
C.
Cheque
D.
All of them
Answer: _________
Question 38:
Court can take cognizance of any offence punishable under Section 138 of the Negotiable Instruments Act
A.
Suo motu
B.
Upon a complaint in writing made by the payee
C.
Upon a police report
D.
None of the above
Answer: _________
Question 39:
Court shall not take cognizance of any offence punishable under Section 138 of the Negotiable Instruments Act, 1881 unless complaint is made within:
A.
One month
B.
Fifteen days
C.
Two months
D.
Three months
Answer: _________
Question 40:
The dishonour of cheque is a punishable offence under section . . . . . . . . of the Negotiable Instruments Act 1881.
A.
140
B.
139
C.
138
D.
141
Answer: _________
Question 41:
Match List-I with List-II and give the correct answer by using the given below the lists: List-I List-II a. Decision given by the Permanent Court of Arbitration 1. The Right of Minorities in the upper Silesia (Minority schools) b. The principle/doctrine of Forum Progratum was enunciated in the case 2. Pious Fund case c. A leading case on "reprisal" is: 3. The Asylum (Colombia v. Peru) Case d. Case decided by International Court of Justice under 'Contentious Jurisdiction' 4. Naulilaa incident
A.
a-2, b-1, c-4, d-3
B.
a-1, b-2, c-3, d-4
C.
a-3, b-4, c-1, d-2
D.
a-4, b-3, c-2, d-1
Answer: _________
Question 42:
A cheques can be presented, within a period of six months from the date on which it is drawn:
A.
Only once
B.
Two times only
C.
Four times only
D.
Any number of times
Answer: _________
Question 43:
Which provision of the Act deals with the effect of declaration -
A.
Section 33
B.
Section 35
C.
Section 36
D.
Section 32
Answer: _________
Question 44:
Read the following statements: (1) There is a rebuttable presumption that a cheque bearing a date was made or drawn on such date. (2) It cannot be presumed that the holder of a cheque is a holder in due course. (3) There is an irrebuttable presumption that the cheque was made or drawn for consideration. Select the correct answer:
A.
All three above statements are correct
B.
Only first statement is correct
C.
The first and second statements are correct
D.
None of the above
Answer: _________
Question 45:
The dishonour of cheque is punishable if it is dishonoured due to . . . . . . .
A.
Insufficient Balance in drawers account
B.
Account closed by drawer
C.
Stop payment by drawer
D.
All of these
Answer: _________
Question 46:
Every trial under Section 143 of the Negotiable Instruments Act shall be conducted as expeditiously as possible and an endeavour shall be made to conclude the trial:
A.
Within three months from the date of filing of the complaint
B.
Within one months from the date of filing of the complaint
C.
Within six months from the date of filing of the complaint
D.
Within one year from the date of filing of the complaint
Answer: _________
Question 47:
In which of the following, the Hon'ble Supreme Court held that in a case arising from Negotiable Instruments Act, successive sentences may be directed to run concurrently if both transactions are part of single transaction?
A.
(2010) 5 SCC 663, Damodar S. Prahbu v. Sayed Babalal H.
B.
(2016) 3 SCC 1, Done Ayengia v. State of Assam & Ors.
C.
(2009) 1 SCC 706, Mahindra & Mahindra Financial Services Ltd. & Anr. v. Rajiv Dubey
D.
(2016) 10 SCC 761, Shyam Pal v. Dayawati Besoya & Ors.
Answer: _________
Question 48:
In which of the following case, the Supreme Court held that for rebutting statutory presumption under Section 118(a) and 139 of the Act, the evidence adduced on behalf of the complainant could be relied upon?
A.
Prem Chand Vijay Kumar v. Yashpal Singh
B.
K. Bhaskaran v. Sankaran Vaidhyan Balan
C.
Goa Plast Ltd. v. Chico Ursula D'Souza
D.
M. S. Narayana Menon v. State of Kerala
Answer: _________
Question 49:
What is main objective of Section 138 of Negotiable Instruments Act
A.
Recovery of stolen property
B.
Recovery of seized vehicles from RTO
C.
Recovery of the cheque amount incase cheque issued by the payer is bounced
D.
None of the above
Answer: _________
Question 50:
Validity of Cheque is 6 months.
A.
True
B.
False
C.
Partly true
D.
Partly false
Answer: _________
Question 51:
Under Section 138 of the Act, maximum term of imprisonment is:
A.
One year
B.
Two years
C.
Three years
D.
Depends upon discretion of the Court
Answer: _________
Question 52:
Under Section 138 of the Negotiable Instruments Act 1881 Maximum punishment of imprisonment and fine is
A.
1 year and amount of cheque
B.
2 year and amount of cheque
C.
1 year and twice the amount of cheque
D.
2 year and twice the amount of cheque
Answer: _________
Question 53:
The term 'Negotiable instrument' is defined in the Negotiable Instruments Act, 1881, under section
A.
12
B.
13
C.
13A
D.
13B
Answer: _________
Question 54:
Which one of the following is not the essential requirement to fulfil an instrument intended to be a Promissory Note?
A.
The instrument must contain a promise to pay
B.
A mere acknowledgement of indebtedness is sufficient
C.
The sum of money to be paid must be certain
D.
Promise to pay must be unconditional
Answer: _________
Question 55:
In which of the following cases, did the Hon'ble Supreme Court decide the issue of territorial jurisdiction of the court to entertain a complaint under the Negotiable Instruments Act in reference to the Amending Ordinance of 2015?
A.
(2016) 2 SCC 75, Bridgestone India Pvt. Ltd. v. Inderpal Singh
B.
(2016) 11 SCC 105, K. S. Joseph v. Philip Carbon Black Ltd. & Ors
C.
(2016) 1 SCC (Cri) 173, Ultratech Cement Ltd. v. Rakesh Kumar Singh & Anr
D.
None of the above
Answer: _________
Question 56:
Under Section 97 of Negotiable Instruments Act when the party to whom notice of dishonor is dispatched is dead, but the party dispatching the notice is ignorant of his death, then
A.
The Notice is insufficient
B.
The Notice is sufficient
C.
Notice shall be given to legal representative
D.
None of these
Answer: _________
Question 57:
As per the Negotiable Instruments Act, 1881, when the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed tobe due on the . . . . . . . . .
A.
Said public holiday
B.
5 days succeeding public holiday
C.
Next succeeding business day
D.
Next preceding business day
Answer: _________
Question 58:
Following is not the essential conditions for applicability of Section 8 of the Act -
A.
The defendant must be the owner of the property
B.
The article must be movable property
C.
The plaintiff must be entitled to immediate possession of the article
D.
The article must be possession or control of the defendant
Answer: _________
Question 59:
The provision regarding summary procedure relating to suits upon bills of exchange, hundies and promissory notes are laid down in
A.
Order 37 of CPC
B.
Order 38 of CPC
C.
Order 39 of CPC
D.
None of the above
Answer: _________
Question 60:
A bill of lading is:
A.
A negotiable instrument like a bill of exchange
B.
A negotiable instrument like a promissory note
C.
Either (A) or (B)
D.
Neither (A) nor (B)
Answer: _________
Question 61:
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?
A.
Only once
B.
Twice
C.
Three
D.
Any number of times
Answer: _________
Question 62:
Where a cheque is crossed generally the banker on whom it is drawn
A.
Shall not pay it otherwise than to a banker
B.
Shall not pay it otherwise than to the holder
C.
Shall not pay it to a banker
D.
None of the above
Answer: _________
Question 63:
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
A.
Khandas Narandas v. Dahiabhai, ILR 3 Bom 182 (183)
B.
Venkayya Pantulu v. Surya Prakasamma, AIR 1940 Mad 879
C.
Karak Rubber Co. Ltd. v. Burden, (1972) 1 All ER 1210
D.
K. A. Lona v. D. H. Ibrahim, AIR 1981 Ker 816 (DB)
Answer: _________
Question 64:
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
A.
To be dismissed as the money was not advanced to the minor for necessaries
B.
To be dismissed as the first promissory note being void cannot constitute a valid consideration
C.
To be decreed as the second promissory note was executed when the debtor had become major
D.
To be decreed as the loan given under the first promissory note constitutes past consideration and the past consideration is valid under the Indian law
Answer: _________
Question 65:
Director of a company is liable for an offence committed by the company under Section 138 of the Negotiable Instruments Act, 1881:
A.
Because he is a Director
B.
If he is a person-in-charge of and responsible to the company for conduct of business of the company
C.
If he is a Director and shareholder with at least 5% shares
D.
If he is a resident of India
Answer: _________
Question 66:
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
A.
It is in the nature of penalty so only a reasonable rate of interest can be claimed
B.
It is in the nature of liquidated damages, so the stipulated amount can be claimed
C.
It is a valid agreement, so A is liable to pay double the amount borrowed
D.
It is an unconscionable clause and renders the entire agreement void
Answer: _________
Question 67:
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?
A.
Yes, the legal representative can negotiate the instrument by delivery only
B.
No, the legal representative can not negotiable an instrument by delivery only. He must re-indorse and deliver the instrument for negotiating it
C.
An instrument indorsed by a deceased person has no legal validity and is void
D.
None of the above
Answer: _________
Question 68:
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
A.
By the law of the place where the instrument is made payable (section 134)
B.
By the law of the place where the instrument is indorsed (section 134)
C.
By the law of the place where the instrument is made (section 134)
D.
None of the above
Answer: _________
Question 69:
The notice of dishonour of cheque is to be given with in . . . . . . . of its knowledge to receiver.
A.
10 days
B.
30 days
C.
Both (A) and (B)
D.
15 days
Answer: _________
Question 70:
In one of the recent judgements Supreme Court has held that section of the Amendment Act, shall have a retrospective effect (Applicable to complaints which were filed prior to 1 st September 2018, in respect to the appeals against the order of conviction and sentence for the offence under section 138 of the Act.
A.
Section 148
B.
Section 138
C.
Section 141
D.
Section 147
Answer: _________
Question 71:
Where an indorser of an instrument excludes his liability and afterwards becomes the holder of the instrument, who are liable to him?
A.
No one is liable to him
B.
All intermediate indorsers are liable to him
C.
Only the immediate prior indorser is liable to him
D.
None of the above
Answer: _________
Question 72:
The presumption regarding dishonour of a cheque on production of a bank slip is
A.
Rebuttable
B.
Irrebuttable
C.
Conclusive proof
D.
None of the above
Answer: _________
Question 73:
The Negotiable Instruments Act provides for payment of interim compensation by the drawer of the cheque to the complainant. Such interim compensation should not exceed . . . . . . . . of the amount of the cheque.
A.
10%
B.
20%
C.
25%
D.
15%
Answer: _________
Question 74:
Cheque is always payable on demand.
A.
True
B.
False
C.
Partly true
D.
Partly false
Answer: _________
Question 75:
If the indorser signs his name and adds a direction to pay the amount mentioned in the instrument to a specified person, the indorsement is said to be:
A.
Indorsement in blank
B.
Indorsement in full
C.
Indorsement in part
D.
Indorsement in specific
Answer: _________
Question 76:
If a minor draws, indorses, delivers or negotiates an instrument, such instrument binds
A.
All parties to the instrument including the minor
B.
Only the minor and not other parties to the instrument
C.
All parties to the instrument except the minor
D.
None of the above
Answer: _________
Question 77:
The cognizance of offence under Section 138 of Negotiable Instruments Act can be taken by the J.M.F.C. having territorial jurisdiction at the
A.
Place of the issuance of the cheque
B.
Place of the delivery of the statutory notice
C.
Place when the complainant chooses to present the cheque for encashment by his Bank
D.
Place where the cheque is dishonoured by the bank on which it is drawn
Answer: _________
Question 78:
For the purpose of attracting the provisions of Section 138 of the Negotiable Instruments Act, a cheque has to be presented to the bank within a period of
A.
Six months
B.
15 days from the date on which it is drawn
C.
Three months from the date on which it is drawn or within the period of its validity whichever is earlier
D.
None of the above
Answer: _________
Question 79:
The dishonour of Cheque is punishable for a maximum term up to . . . . . . . years.
A.
1 year
B.
5 years
C.
2 years
D.
4 years
Answer: _________
Question 80:
A cheque drawn on a bank in USA and made payable at USA was presented in Chennai. Can the complaint be filed in Chennai?
A.
Yes
B.
No
C.
Depends
D.
None of the above
Answer: _________
Question 81:
A post-dated cheque remains only a bill of exchange till the date on its face and only from that date it becomes a cheque being payable on demand. The statement is-
A.
False
B.
True
C.
Both (A) and (B)
D.
None
Answer: _________
Question 82:
Read Assertion (A) and Reason (R) and give the correct answer with the help of given below: Assertion (A): The surety has no right to restrain execution against him until the creditor exhausted all his remedies against the Principal Debtor. Reason (R): The Liability of the surety is co-extensive with that of the Principal Debtor, unless it is otherwise provided by contract.
A.
(A) and (R) are true and (R) is the correct explanation of (A)
B.
(A) and (R) are true but (R) is not the correct explanation of (A)
C.
(A) is false, but (R) is true
D.
(A) is true but (R) is false
Answer: _________
Question 83:
By the notice for dishonour of cheque the Drawer is to be granted . . . . . . . time for payment.
A.
10 days
B.
30 days
C.
7 days
D.
15 days
Answer: _________
Question 84:
Match List I with List II and give the correct answer by using the given below: List-I (Provisions) List-II (Sections of Negotiable Act) a. Cognizance of offences 1. Section 140 b. Power of Court to try cases summarily 2. Section 139 c. Defences which may not be allowed in any prosecution under Section 138 3. Section 143 d. Presumption in favour of holder 4. Section 142
A.
a-4, b-3, c-1, d-2
B.
a-1, b-2, c-3, d-4
C.
a-3, b-4, c-2, d-1
D.
a-2, b-1, c-4, d-3
Answer: _________
Question 85:
Where a promissory note is payable by instalments, and two or more instalments have become due, and the holder of the note sues only for one of the instalments and omits to sue for the other instalments.
A.
He can afterwards sue for these instalments
B.
He cannot afterwards sue for these instalments
C.
Either (A) or (B)
D.
None of these
Answer: _________
Question 86:
The Negotiable Instruments Act makes specific mention of three instruments, namely Cheque, Bill of exchange and
A.
Promissory note
B.
Hundi
C.
Bank Draft
D.
All the above
Answer: _________
Question 87:
What procedure of trial is provided to the Court against the matter related with penalties if comes under any Section of the Chapter XVII of the Negotiable Instruments Act, 1881?
A.
Session Trial
B.
Summary Trial
C.
Warrant Trial
D.
Summons Trial
Answer: _________
Question 88:
As per Section 147 of the Negotiable Instruments Act, 1881, every offence punishable under the Act is
A.
Compoundable
B.
Non-compoundable
C.
Cognizable
D.
Both (B) and (C) above
Answer: _________
Question 89:
Negotiable Instruments Act, 1881: If an amount written in an instrument is stated differently in figures and words, the amount stated in:
A.
Figures shall be paid
B.
Words shall be paid
C.
No amount shall be paid
D.
None of these
Answer: _________
Question 90:
A resides at Hyderabad, B at Calcutta and C at Delhi. A, B and C being together at Allahabad, B and C make a joint promissory note payable on demand, and deliver to A. A may sue B and C:
A.
At Allahabad where the cause of action arises
B.
At Calcutta, where B resides
C.
At Delhi, where C resides
D.
All of the above
Answer: _________
Question 91:
An offence under Section 138 Negotiable Instruments Act was tried summarily. But the court imposed on the accused a sentence of imprisonment for one year. The sentence is
A.
Legal
B.
Only irregular
C.
Only improper
D.
Irregular
Answer: _________
Question 92:
For cognizance to be taken of the offence of dishonour of cheque for insufficiency of funds in the account, which of the following are prerequisites:
A.
The cheque must have been presented to the bank within the period of its validity or within six months from the date on which it was drawn, whichever is earlier
B.
The complainant must prove by independent evidence that the cheque was issued for discharge of a debt or liability
C.
Both of the above
D.
None of the above
Answer: _________
Question 93:
A protest must contain
A.
The name of the person for whom the instrument has been protested
B.
The name of the person against whom the instrument has been protested
C.
The instrument it self or its literal transcript
D.
All of the above
Answer: _________
Question 94:
Which provision of the Act lays down that foreign bills must be protested for dishonour if so required by the law of the place where they are drawn?
A.
Section 100
B.
Section 102
C.
Section 104
D.
Section 103
Answer: _________
Question 95:
What's the maximum punishment under the Negotiable Instruments Act
A.
2 Years Only
B.
6 Years and or fine which is double amount the dishonour
C.
Any punishment below 7 years
D.
None of the above
Answer: _________
Question 96:
A demand notice in writing has to be given to the drawer by the payee under Section 138 of "The Negotiable Instruments Act," 1881, after receiving intimation from the Bank of Dishonour of cheque, within the period of:
A.
15 days
B.
30 days
C.
60 days
D.
None of the above
Answer: _________
Question 97:
The offence of dishonour of cheques, for insufficiency, etc., of funds, in the account of the drawer, is punishable with:
A.
Imprisonment for a term which may extend to one year or with fine which may extend to the amount of the cheques, or with both
B.
Imprisonment for a term which may extend to two year or with fine which may extend to twice the amount of the cheques, or with both
C.
Imprisonment for a term which may extend to six months or with fine which may extend five hundred rupees, or with both
D.
Imprisonment for a term which may extend to five year or with fine which may extend to five thousand rupees, or with both
Answer: _________
Question 98:
A complaint against an offence under section 138 of the Negotiable Instrument Act, 1881
A.
Must be in writing (section 142)
B.
May be oral or in writing (section 142
C.
Must be in writing containing a declaration by the drawee that he consents to such filing of the complaint (section 142)
D.
None of the above
Answer: _________
Question 99:
A post-dated cheque remains only a bill of exchange till the date on its face and only from that date it becomes a cheque being payable on demand. This observation was made by the court in case of
A.
Anil Kumar Sawhney v. Gulshan Rai, (1999) 4 SCC 424
B.
Anil Kumar Sawhney v. Gulshan Rai, (1993) 4 SCC 424
C.
Jogy David v. K. K. Babu, (1998) 94 Comp Cas 711 (Ker)
D.
Punna Devi v. John Inpex Pvt. Ltd., (1996) 2 Bank LLR 482
Answer: _________
Question 100:
Which of the following High Court's held that the blank cheque is not a cheque in the eye of law
A.
Delhi
B.
Bombay
C.
Calcutta
D.
Allahabad
Answer: _________
Question 101:
A draws a cheque in favour of B, a minor. B endorses it in favour of C and C endorses in favour of D. The cheque is dishonoured. Which of the following is not correct about liabilities of the parties?
A.
C and D can claim from B
B.
C can claim payment from A
C.
D can claim against C and A
D.
C and D cannot claim from B
Answer: _________
Question 102:
Maximum sentence of fine which a J.M.F.C. can impose for offence under section 138 of the Negotiable Instruments Act:-
A.
Twice the amount of cheque
B.
Twenty thousand
C.
One lac
D.
Ten thousand
Answer: _________
Question 103:
Negotiation by endorsement' has been explained under the Negotiable Instruments Act, 1881 in
A.
Section 28
B.
Section 38
C.
Section 48
D.
Section 58
Answer: _________
Question 104:
A bill is drawn payable to 'A' or order. 'A' indorses it to 'B', the indorsement not containing the words "or order" or any equivalent words. Can 'B' negotiate the instrument?
A.
Yes
B.
No
C.
Not always
D.
None of the above
Answer: _________
Question 105:
The presumption as to the date of a negotiable instrument under section 118 is that, every negotiable instrument bearing a date was made or drawn
A.
Prior to that date
B.
On such date
C.
May be on or prior to that date
D.
None of the above
Answer: _________
Question 106:
Which one of the following is not meant by the term 'Company' for the purpose of the Section 141 of the Negotiable Instruments Act, 1881?
A.
A firm
B.
Any body corporate
C.
Any educational institute
D.
Other association of individuals
Answer: _________
Question 107:
Can the holder of a negotiable instrument indorsed in blank convert the indorsement into an indorsement in full?
A.
No, such a conversion is not possible under the Negotiable Instruments Act, 1881 (Section 49)
B.
Yes, the holder can, without signing his own name, and by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank into an indorsement in full (Section 49)
C.
Yes, the holder can by signing his own name and by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank to an indorsement in full (Section 49)
D.
None of the above
Answer: _________
Question 108:
A bill of exchange contains a/an
A.
Unconditional undertaking
B.
Unconditional order
C.
Conditional undertaking
D.
Conditionalorder
Answer: _________
Question 109:
Which of the following are presumptions as to a negotiable instrument under section 118 of the Negotiable Instruments Act? Answer using given below: (1) Presumption of contractual capacity (2) Presumption of consideration (3) Presumption of maturity of instrument (4) Presumption of date
A.
Only (1) and (3)
B.
Only (2) and (4)
C.
Only (1) and (4)
D.
Only (1) and (2)
Answer: _________
Question 110:
Section 100 of Negotiable Instruments Act deals with:
A.
Protest
B.
Noting
C.
Notice
D.
Charge
Answer: _________
Question 111:
Which one of the following proviso clauses of Section 138, Negotiable Instruments Act requires notice of fifteen days in case of failure of payment of cheque?
A.
Clause (a)
B.
Clause (b)
C.
Clause (c)
D.
Clause (d)
Answer: _________
Question 112:
Relation of Section 138 of the Negotiable Instruments Act, 1881 is with
A.
Right of holder
B.
Right of holder in due course
C.
Punishment for dishonour of cheque
D.
None of the above
Answer: _________
Question 113:
Every instrument is presumed to made, drawn, endorsed or negotiated for . . . . . . .
A.
Choice
B.
Consideration
C.
Debt
D.
None of them
Answer: _________
Question 114:
Which of the following is not a negotiable instrument:
A.
Promissory note
B.
Fixed Deposit Receipt
C.
Bill of Exchange
D.
A cheque
Answer: _________
Question 115:
Which of the following negotiable instruments requires acceptance by the drawee before payment can be demanded?
A.
Promissory note
B.
Bill of exchange
C.
Cheque
D.
Both (B) and (C)
Answer: _________
Question 116:
Under which Act public holidays are declared:
A.
Negotiable Instruments Act, 1881
B.
Contract Act, 1872
C.
Public Employees Act, 1967
D.
Specific Relief Act
Answer: _________
Question 117:
Power of the Court to try cases summarily given under Section:
A.
143 of the Negotiable Instruments Act
B.
142 of the Negotiable Instruments Act
C.
138 of the Negotiable Instruments Act
D.
139 of the Negotiable InstrumentsAct
Answer: _________
Question 118:
"The term 'protest' used under the Negotiable Instruments Act, 1881 in Section 100 includes noting also." The statement is
A.
False
B.
Half true and half false
C.
True
D.
None of the above
Answer: _________
Question 119:
Appeal against an order of acquittal by J.M.F.C. in respect of an offence under section 138 Negotiable Instruments Act can be filed in:-
A.
High Court
B.
Court of Sessions
C.
High Court with leave of Court
D.
C.J.M. Court
Answer: _________
Question 120:
The question of the reasonableness of the time for presenting a bill of exchange for payment is a
A.
Question of law
B.
Question of fact
C.
Mixed question of law and fact
D.
None of the above
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 126:
Under section 76(b) of the Negotiable Instruments Act, 1881, the engagement to pay must have been entered into
A.
At maturity (Mehar v. Hari Gaur, AIR 1935 Lah 666)
B.
After maturity (Sivaram v. Jayaram, AIR 1960 Mad 297 DB)
C.
Prior to maturity (Thakur Din v. Oudh Commercial Bank Ltd., AIR 1999 Oudh 16)
D.
None of the above
Answer: _________
Question 127:
All cheques are bill of exchange, but all bills of exchange are not cheques
A.
False
B.
Partly true and partly false
C.
True
D.
None of the above
Answer: _________
Question 128:
Which one of the following is a prescribed period of limitation for taking cognizance to the Court against the offence committed under Section 138 of the Negotiable Instruments Act, 1881?
A.
60 days from the date of writing the cheque and if informed to the Court in writing only
B.
90 days from the date of writing the cheque and if complaint made to the Court orally
C.
15 days from the date of writing the cheque and if informed to the Court written or orally both
D.
30 days from the date of cause of action arises if the complaint made in writing to the Court
Answer: _________
Question 129:
The maximum amount of fine which can be imposed under Section 138 of Negotiable Instruments Act is
A.
Ten Thousand Rupees
B.
One Lakh Rupees
C.
Equal to the cheque's amount
D.
Twice of the cheque's amount
Answer: _________
Question 130:
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:
A.
1 900
B.
1 500
C.
1 400
D.
1 100
Answer: _________
Question 131:
Which of the following section of Negotiable Instruments Act is related with presumption?
A.
Section 119
B.
Section 137
C.
Section 139
D.
All of these
Answer: _________
Question 132:
Under section 138 of Negotiable Instruments Act, complaint may be made within from cause of action arises -
A.
15 days
B.
One month
C.
45 days
D.
Two months
Answer: _________
Question 133:
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:
A.
A person who, at the time the offence was committed, was in charge of, and was responsible for the conduct of the business of the company and not the company
B.
The company, in its name
C.
A Director of the Company nominated by the Central Government
D.
A person, in charge of and responsible for the conduct of the business of the company, as well as the company
Answer: _________
Question 134:
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
A.
a-1, b-2, c-3, d-4
B.
a-2, b-4, c-1, d-3
C.
a-3, b-1, c-4, d-2
D.
a-4, b-2, c-1, d-3
Answer: _________
Question 135:
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
A.
Clause (b) of Section 142 of the Negotiable Instruments Act, 1881
B.
Clause (a) of Section 142 of the Negotiable Instruments Act, 1881
C.
Clause (c) of Section 142 of the Negotiable Instruments Act, 1881
D.
Section 143 of the Negotiable Instruments Act, 1881
Answer: _________
Question 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)
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 141:
Can the Magistrate order an investigation on the allegation of an offence under Section 138 of Negotiable Instruments Act?
A.
Yes
B.
No
C.
Depends
D.
None of the above
Answer: _________
Question 142:
In which of the following cases the Supreme Court held that the provisions of Section 141 of the Negotiable Instruments Act, 1881 do not contain a condition that the prosecution of a company is sine qua non for prosecution of other persons. The liability of the Directors/Officers etc. is vicarious and will flow from the liability of the company/firm.
A.
Narsing Das Tapadia v. Govardhan Das Pattani
B.
Saketh India Ltd. v. India Securities Ltd.
C.
K. G. Sharma v. Pratap Autowheels
D.
Mohd. Isaq Gulsani v. Rajamouli
Answer: _________
Question 143:
Under section 118 of the Negotiable Instruments Act, the onus of proving absence of consideration in the execution of a negotiable instrument is on the
A.
Indorser (Zohra Jan v. Rajan Bibi, 28 IC 402)
B.
Executant (Zohra Jan v. Rajan Bibi, 28 IC 402)
C.
Drawee (R. S. Rajeswara Sethupathi v. Chidambaram Chettiar, AIR 1938 PC 123)
D.
None of the above
Answer: _________
Question 144:
Can a drawer escape from his liability?
A.
No, a drawer can never escape from his liability
B.
Yes, a drawer can limit or exclude his liability by inserting in the bill an express stipulation to that effect
C.
In certain cases although he can escape from his liability but always he cannot so escape
D.
None of the above
Answer: _________
Question 145:
The indorsement of a negotiable instrument followed by delivery
A.
Transfers to the indorsee the property in the bill, provided the indorsement must be an indorsement in full
B.
Does not transfer the property in the bill to anyone
C.
Transfers to the indorsee the property in the bill
D.
Transfers to the holder the property in bill
Answer: _________
Question 146:
Who is entitled to make a complaint for taking cognizance of the offence under Section 138 of the Negotiable Instruments Act, 1881?
A.
A public spirited citizen
B.
The drawee bank
C.
Only the holder of the cheque
D.
All of these
Answer: _________
Question 147:
Which of the Section of Negotiable Instruments Act, 1881 provides that "where a person is nominated as a Director of a company by virtue of his holding any office or employment in the Central Government or the State Government, as the case may be, he shall not be held liable for an-offence under Section 138 of the Act, committed by a company?"
A.
Proviso (one) to Section 141(1)
B.
Proviso (two) to Section 141(1)
C.
Sub-section 2 of Section 141
D.
None of the above
Answer: _________
Question 148:
A' signs an instrument in writing as under 'On demand, I promise, I promise to pay 'B' the sum of Rs. 10,000'. What is this called?
A.
Bill of exchange
B.
Simple note
C.
Promissory note
D.
Cheque
Answer: _________
Question 149:
In which of the following cases the Supreme Court held that 'filling up of blanks in a cheque by itself would not amount to forgery'?
A.
Surya Lekshmi cotton Mills v. Rajvir Industries
B.
M. S. Narayana Menon v. State of Kerela
C.
Subodh S. Salasker v. Jayaprakash M. Shah
D.
Rahul Builders v. Arihant Fertilizers and Chemicals
Answer: _________
Question 150:
Cheque is a special kind of Bill of Exchange.
A.
True
B.
False
C.
Partly true
D.
Partly false
Answer: _________
Question 151:
Which of the following is not an example of Negotiable Instrument?
A.
Promissory Note
B.
Bill of Exchange
C.
Share Certificate
D.
Cheque
Answer: _________
Question 152:
Cheques issued under same transaction, dishonoured one complaint in respect of all cheques is
A.
Maintainable
B.
Not maintainable
C.
Only when a single notice is sent
D.
None of the above
Answer: _________
Question 153:
In which judgment, the Hon'ble Supreme Court laid down that a complaint based on a second or successive dishonor of cheque is maintainable, if no complaint based on an earlier dishonor of cheque followed by statutory notice issued on the basis thereof had been filed:
A.
(2013) 1 SCC 177, M.S.R. Leathors v. S. Palaniappan & Anr
B.
(1998) 6 SCC 514, Sadanandan Bhadran v. Madhavan Sunil Kumar
C.
(1999) 4 SCC 567, Sil Import USA v. Exim Aides Silk Exporters Bangalore
D.
(2004) 13 SCC 498, Krishna Exports & Ors. v. Raju Das
Answer: _________
Question 154:
The case for dishonour of cheque is to be filled in the court of . . . . . . . .
A.
Judicial Magistrate First Class
B.
Metropolitan Magistrate
C.
Both (A) and (B)
D.
None of them
Answer: _________
Question 155:
Which is not a negotiable instrument?
A.
Bond
B.
Promissory note
C.
Bill of exchange
D.
Cheque
Answer: _________
Question 156:
Who among the following cannot cross a cheque?
A.
Drawer
B.
Holder
C.
Banker
D.
Foreigner
Answer: _________
Question 157:
The provisions of section 87 of the Negotiable Instruments Act, 1881, are subject to the provisions of
A.
Sections 20, 48, 68 and 125 of the Act
B.
Sections 20, 49, 68 and 122 of the Act
C.
Sections 20, 49, 86 and 125 of the Act
D.
Sections 20, 49, 66 and 125 of the Act
Answer: _________
Question 158:
Which one of the following Sections of the Negotiable Instruments Act, 1881, deals with offence committed by a company under Section 138?
A.
Section 139
B.
Section 140
C.
Section 141
D.
Section 142
Answer: _________
Question 159:
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?
A.
Judicial Magistrate the Second Class
B.
Judicial Magistrate the First Class
C.
Banking Ombudsman
D.
None of the above
Answer: _________
Question 160:
When presentment for payment is to be made under section 65 of the Act?
A.
Presentment for payment can be made at any reasonable time.
B.
Presentment for payment must be made during the usual hours of business and, if at a bank within banking hours.
C.
There is no such stipulation on time for presentment.
D.
None of the above.
Answer: _________
Question 161:
Instruction of "Stop Payment" remains valid for
A.
Three months
B.
One Year
C.
Two years
D.
None of these
Answer: _________
Question 162:
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?
A.
Section 148
B.
Section 143A
C.
Section 142
D.
Section 143
Answer: _________
Question 163:
What is the presumption under Section 139 of the Negotiable Instruments Act?
A.
That the cheque was signed by the person who holds the account
B.
That the cheque was issued for discharge of any debt or liability
C.
That the cheque was issued after ensuring that there is sufficient funds in the account
D.
None of above
Answer: _________
Question 164:
When the acceptor of an instrument also a drawer, notice of dishonour is
A.
Necessary
B.
Not necessary
C.
Not always necessary but under certain circumstances mentioned in section 98A of the Act, it is a must
D.
None of the above
Answer: _________
Question 165:
Which Section provides that the offences under the Negotiable Instruments Act are compoundable?
A.
Section 137
B.
Section 141
C.
Section 147
D.
Section 149
Answer: _________
Question 166:
If in a cheque amount ordered to paid is written differently in figure and in words
A.
The cheque will be void
B.
The amount written in words shall be undertaken or ordered to be paid
C.
It will be presumed that it was altered
D.
None of these
Answer: _________
Question 167:
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?
A.
Yes, the drawer can re-validate the cheque by alteration of dates
B.
No, the drawer cannot re-validate it by so alteration of dates
C.
Although the drawer cannot revalidate the cheque, but the drawee can at his discretion revaliate it
D.
None of the above
Answer: _________
Question 168:
The Negotiation of instrument to any person receiving it by paying consideration, before maturity and in good faith is termed as . . . . . . .
A.
Holder
B.
Holder In due course
C.
Both (A) and (B)
D.
None of them
Answer: _________
Question 169:
The liability under section 138 of the Negotiable Instruments Act, 1881 is
A.
Strict liability
B.
Vicarious liability
C.
Both (A) and (B)
D.
None of the above
Answer: _________
Question 170:
A person who receives a negotiable instrument in good faith for valuable consideration is known as
A.
Holder of value
B.
Holder
C.
Holder in rights
D.
Holder in due course
Answer: _________
Question 171:
How much punishment is provided under Section 138 of Negotiable Instruments Act, 1881?
A.
Imprisonment for term which may extend to two years or with fine which may extend to twice the amount of the cheque or with both
B.
Imprisonment for term which may extend to one year or with fine which may extend to twice the amount of the cheque or with both
C.
Imprisonment for term which may extend to two years or with fine which may extend to twice the amount of the cheque
D.
Only imprisonment for term which may extended to two years
Answer: _________
Question 172:
In which of the following case the Supreme Court held that the persons who are sought to be made vicariously liable for a criminal offence under section 141 should be at the time the offfence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company. Every person connected w ith the company shall not fall within the ambit of the provision?
A.
National Small Industries Corporation Ltd. v. Harmeet Singh Paintal, (2010) 3 SCC 330
B.
State of Bihar v. Kalyanpur Cement Ltd. (2010) 3 SCC 274
C.
Rakesh Kumar v. U.P.I.D.C. Ltd., AIR 2010 SC 2451
D.
None of the above
Answer: _________
Question 173:
Crossing of cheque affects the
A.
Negotiability of the cheque
B.
Mode of payment on the cheque
C.
Both (A) and (B)
D.
None of the above
Answer: _________
Question 174:
Under Section 118 of Negotiable Instruments Act, 1881, what presumption shall not be made?
A.
The holder of a cheque received the cheque for the discharge of any debt or other liability
B.
Consideration
C.
Time of acceptance
D.
Order of indorsements
Answer: _________
Question 175:
In a promissory note, the amount of money payable
A.
Must be certain
B.
May be certain or uncertain
C.
Is usually uncertain
D.
None of the above
Answer: _________
Question 176:
The date of maturity of a bill payable hundred days after sight and which is presented for sight on 4 th May, 2017, is (as per the provisions of the Negotiable Instruments Act, 1881):
A.
13 th August, 2017
B.
14 th August, 2017
C.
15 th August, 2017
D.
16 th August, 2017
Answer: _________
Question 177:
Which of the following is not a Bill of Exchange?
A.
Share
B.
Demand Draft
C.
Post-dated Cheque
D.
None of these
Answer: _________
Question 178:
Which of the following presumption is prescribed under section 118 Negotiable Instruments Act?
A.
Of consideration
B.
As to date
C.
As to time of acceptance
D.
All of these
Answer: _________
Question 179:
Negotiable Instruments Act:- "I promise to pay B Rs. 500, and all other sums which shall be due to him." This is a -
A.
Promissory note
B.
Bill of exchange
C.
An ambiguous instrument under section 17
D.
None of these
Answer: _________
Question 180:
Drawee in case of need' has been defined under the Negotiable Instruments Act, 1881 in
A.
Section 6
B.
Section 9
C.
Section 7
D.
Section 8
Answer: _________
Question 181:
Which written instrument signed by the maker is promissory note?
A.
Mr. 'B' I owe you one thousand rupees
B.
Mr. 'B' I will pay you ten thousand rupees after my marriage
C.
Mr. 'B' I will pay you money on demand
D.
Mr. 'B' I will pay you one thousand rupees on demand
Answer: _________
Question 182:
What are the defences available against proceedings under section 138 of Negotiable Instruments Act?
A.
Absence of a legally enforceable debt or liability
B.
Absence of legal notice of 15 days
C.
Lack of jurisdiction
D.
All of the above
Answer: _________
Question 183:
For the purposes of Section 141 Negotiable Instruments Act a company does not mean or include
A.
A body corporate
B.
A firm
C.
A proprietary concern
D.
An association of individuals
Answer: _________
Question 184:
Section 16 of Negotiable Instruments Act defines
A.
Restrictive endorsement
B.
Conditional endorsement
C.
Indorsement "in full" and Indorsement "in blank"
D.
All the above
Answer: _________
Question 185:
What is the term used to describe an endorsement in which the endorser excludes his own liability on the negotiable instrument in case of dishonour of the instrument?
A.
Partial endorsement
B.
Sans recourse endorsement
C.
Restrictive endorsement
D.
Conditional endorsement
Answer: _________
Question 186:
In which court, the complainant has to file an appeal against the order of acquittal under Section 138 of the Act?
A.
Court of session
B.
High Court
C.
Chief Judicial Magistrate
D.
Either Court of Session or High Court
Answer: _________
Question 187:
As per the provisions of section 26 of the Negotiable Instruments Act:
A.
A minor may draw instrument so as to bind all parties including himself
B.
A minor shall not draw instrument so as to bind any party
C.
A minor may draw instrument so as to bind all parties except himself
D.
A minor shall not indorse instruments
Answer: _________
Question 188:
BATNA Stands for:
A.
Bilateral agreement to negotiation and arbitration
B.
Best alternative to a negotiated agreement
C.
Bilateral Trade negotiated agreement
D.
None of the above
Answer: _________
Question 189:
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
A.
Indian Bank Association & Ors. v. Union of India
B.
Rangappa v. Mohan
C.
Associated Cement Company Limited v. Kesriwanand
D.
K. Bhaskaran v. S. V. Balan
Answer: _________
Question 190:
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
A.
M/s. Meters and Instruments Pvt. Ltd. & Anr. v. Kanchan Mehta
B.
K. M. Ibrahim v. K. P. Mohammad and other
C.
Damodar S. Prabhu v. Sayed Babalal H.
D.
M.P. State Legal Service Authority v. Prateek Jain
Answer: _________
Question 191:
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
A.
20%
B.
25%
C.
10%
D.
5%
Answer: _________
Question 192:
Section 141 of the Negotiable Instruments Act deals with the offences caused by the:
A.
Government Servants
B.
Individual and companies both
C.
Individual alone
D.
Companies
Answer: _________
Question 193:
An authority to draw bills of exchange
A.
Itself import an authority to indorse
B.
Does not itself import an authority to indorse
C.
Sometime import an authority to indorse
D.
None of the above
Answer: _________
Question 194:
Nothing in Section 138 Negotiable Instruments Act shall apply unless
A.
Cheque is presented within one month from the date of issuance of cheque
B.
Cheque presented within three month from the date of issuance of cheque
C.
The cheque has been presented to the bank within a period of six months or within the period of its validity whichever is earlier from the date on which it is drawn
D.
None of these
Answer: _________
Question 195:
The Negotiable Instruments Act, 1881 came into force on
A.
9 th December, 1881
B.
9 th December, 1882
C.
19 th December, 1881
D.
1 st March, 1882
Answer: _________
Question 196:
In case presentation of instrument for acceptance or payment is delayed, . . . . . . .
A.
The responsibility of all the parties thereto end
B.
It becomes ineligible for payment
C.
The delay can be excused if it is caused by circumstances outside the control of the holder and not because of his negligence, default or misconduct
D.
The delay can be excused if it is caused by circumstances outside the control of the holder, or due to his negligence, but not if caused due to default or misconduct
Answer: _________
Question 197:
Which of the following is not a justified ground of dishonouring of cheque by banker?
A.
The cheque is post-dated and presented before the ostensible date
B.
The banker had sufficient funds, but the funds are not properly applicable towards the payment of the cheque
C.
If the cheque is altered in parts
D.
If the cheque is duly presented
Answer: _________
Question 198:
Amendment in Negotiable Instruments Act, 1881 made in 1988 has introduced an important provision relating to:
A.
Easy negotiability
B.
Dishonour of cheque
C.
Bank draft
D.
Privileges of holder in due course
Answer: _________
Question 199:
For what term of imprisonment an offender under section 138 of the Negotiable Instruments Act can be punished
A.
For a term which may extend to two years
B.
For a term which may extend to one year
C.
For a term exceeding three years
D.
None of the above
Answer: _________
Question 200:
No one other than RBI and Central Government can make a Promissory note payable to bearer.
A.
True
B.
False
C.
Partly true
D.
Partly false
Answer: _________
Question 201:
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 -
A.
D can sue only A
B.
D can sue A or B only
C.
D can sue any of the parties A, B or C
D.
D cannot sue any of the parties A, B or C
Answer: _________
Question 202:
Cheque bouncing cases charged under section 138 of Negotiable Instruments Act is trailed by
A.
Bank Tribunal
B.
Consumer Forum
C.
Magistrate Court
D.
Sessions Court
Answer: _________
Question 203:
The term "a cheque in the electronic form" is defined in the Negotiable Instruments Act, 1881 under:
A.
Section 6(a)
B.
Section 6(b)
C.
Explanation 1(a) of Section 6
D.
None of these
Answer: _________
Question 204:
The maximum amount which may be awarded as interim compensation under Section 143A of the Negotiable Instruments Act, 1881 is
A.
10% of the amount of cheque
B.
20% of the amount of cheque
C.
30% of the amount of cheque
D.
40% of the amount of cheque
Answer: _________
Question 205:
Chapter XVII containing sections 138 to 142 was introduced in the Negotiable Instruments Act
A.
Act 65 of 1988
B.
Act 66 of 1988
C.
Act 67 of 1988
D.
Act 68 of 1988
Answer: _________
Question 206:
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:
A.
M is liable to X
B.
X can proceed against A
C.
No one is liable in this case
D.
M can proceed against A
Answer: _________
Question 207:
Which of the following is true about a 'Bank Draft'?
A.
It is a promissory note
B.
It is not a negotiable instrument
C.
It is very much like a cheque
D.
It is a bill of exchange
Answer: _________
Question 208:
Negotiable instrument is defined under
A.
Section 25 of Reserve Bank of India
B.
Section 13 of Banking Regulation Act
C.
Section 13 of Negotiable Instruments Act
D.
Section 3 of Banking Instruments Act
Answer: _________
Question 209:
When a Negotiable Instrument is dishonoured, the liable party pays compensation to
A.
Holder
B.
Bank
C.
Endorser
D.
Court
Answer: _________
Question 210:
The judgment in Dashrath Rupsingh Rathod v. State of Maharashtra related to
A.
Liability of Directors
B.
Limitation to file Complaint
C.
Summary trials
D.
Territorial jurisdiction
Answer: _________
Question 211:
A notice of protest under section 102 of the Negotiable Instruments Act, 1881
A.
May be given by the notary public who makes the protest
B.
Must always be given by the notary public who makes the protest
C.
Must be given by the holder
D.
None of the above
Answer: _________
Question 212:
The delay in filing a complaint under Section 138 of the Negotiable Instruments Act, 1881, can be condoned:
A.
Under Section 5 of the Indian Limitation Act, 1963
B.
Under Section 138 of the Negotiable Instruments Act, 1881
C.
Under Section 142 of the Negotiable Instruments Act, 1881
D.
Under Section 143 of the Negotiable Instruments Act, 1881
Answer: _________
Question 213:
Under which provision of the Negotiable Instruments Act, a person who is nominated as a Director of a company by virtue of his holding any office or employment in the Central Government or State Government or a Financial Corporation owned or controlled by the Central or State Government, is not liable for prosecution?
A.
Section 140
B.
Section 141
C.
Section 143
D.
Section 142
Answer: _________
Question 214:
Who should make a complaint to a court for the purpose of taking cognizance of an offence under section 138?
A.
The payer or as the case may be, the holder in due course of the cheque
B.
Any person who is effected can make a complaint
C.
The payee with the written permission of the drawee
D.
None of the above
Answer: _________
Question 215:
Within how much time from the date on which cause of action arises, the complaint for the offence punishable under Section 138 of the Negotiable Instruments Act should be filed?
A.
One month
B.
Thirty days
C.
Three months
D.
Six months
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 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
Answer: _________
Question 221:
Which Section of the Negotiable Instruments Act defines "Negotiable Instruments"
A.
Section 4
B.
Section 6
C.
Section 11
D.
Section 13
Answer: _________
Question 222:
If an instrument may be construed either as a promissory note or bill of exchange, it is
A.
A valid instrument
B.
An ambiguous instrument
C.
A returnable instrument
D.
None of the above
Answer: _________
Question 223:
Dishonour of cheque for insufficiency of funds etc. in the account related to
A.
Section 137 of Negotiable Instruments Act
B.
Section 138 of Negotiable Instruments Act
C.
Section 139 of Negotiable Instruments Act
D.
Section 141 of Negotiable Instruments Act
Answer: _________
Question 224:
For the purpose of Section 141 of The Negotiable Instruments Act, 1881 'company' means:
A.
Anybody corporate
B.
A firm
C.
Other association of individuals
D.
All of the above
Answer: _________
Question 225:
To constitute an offence under Section 138, Negotiable Instruments Act, within how many days the cheque should be presented to the bank from the date on which it is drawn?
A.
No limit
B.
1 month
C.
3 months
D.
6 months or within the period of its validity
Answer: _________
Question 226:
In which provision the Court may grant time to pay court fees in complaint under Section 138 of Negotiable Instruments Act, 1881?
A.
Under proviso of section 138 of Negotiable Instruments Act
B.
Under proviso of section 142 of Negotiable Instruments Act
C.
Section 33 of Court Fees Act, 1870
D.
Section 35 of Court Fees Act, 1870
Answer: _________
Question 227:
The hirer of it motor vehicle cannot be prosecuted under section 138 after the vehicle has been repossessed and the hire purchase agreement has been terminated. The statement is
A.
True
B.
False
C.
Partly correct
D.
None of the above
Answer: _________
Question 228:
Under Negotiable Instruments Act, promissory note can be drawn for minimum period of
A.
Thirty days
B.
Six months
C.
One year
D.
No time limit is fixed
Answer: _________
Question 229:
Offences under Negotiable Instruments Act are compoundable
A.
Under Section 145 Negotiable Instruments Act
B.
Under section 147 Negotiable Instruments Act
C.
Under section 142 Negotiable Instruments Act
D.
Under section 320 of Cr.P.c.
Answer: _________
Question 230:
Under the Limitation Act, 1963 the period of limitation for filing a suit by the payee against the drawer of a bill of exchange which has been dishonoured by non-acceptance is
A.
3 years from the date of the refusal to accept
B.
2 years from the date of the refusal to accept
C.
3 years from the date of the date of signing by the drawer
D.
3 years from the date of presentment
Answer: _________
Question 231:
Drawer and payee in a Bill of exchange may be same parties.
A.
True
B.
False
C.
Partly true
D.
Partly false
Answer: _________
Question 232:
Days of grace provided to the Instruments at maturity is (as per the provisions of the Negotiable Instruments Act, 1881)
A.
1 day
B.
2 days
C.
3 days
D.
5 days
Answer: _________
Question 233:
Which of the following is not correct with regard to presentment for acceptance?
A.
Only holder of the bill or his agent can present the bill
B.
Drawer himself can present the bill
C.
If the bill has been negotiated before acceptance, endorsee can present the bill
D.
The bill cannot be presented to legal presentations in case of death of drawee
Answer: _________
Question 234:
A' signs instruments in the following terms, which instruments are promissory note under Section 4 of the Negotiable Instruments Act, 1881?
A.
I promise to pay 'B' or order Rs. 500/- to be paid on demand
B.
I promise to pay 'B' Rs. 5000/- and all other some which shall be due to him
C.
I promise to pay 'B' Rs. 5000/- first deducting there out any money which he may own me
D.
I promise to pay 'B' Rs. 5000/- ten days after my marriage with 'C'
Answer: _________
Question 235:
In which of the following cases the Supreme Court gave guidelines for speedy and expeditious trial of cheque bouncing cases
A.
Indian Bank Association v. Union of india
B.
Nishant Aggarwal v. Kailash Kumar Sharma
C.
Dashrath Rupsingh Rathod v. State of Maharashtra
D.
None of the above
Answer: _________
Question 236:
Which among the following is not true with respect to negotiable instruments?
A.
There must be an unconditional order or promise for payment
B.
A cheque cannot be considered as a bill of exchange
C.
If the time of payment is linked to the death of a person, it is nevertheless a negotiable instrument
D.
It is freely transferable and delivery of the instrument is essential
Answer: _________
Question 237:
Under Negotiable Instruments Act, for filing a complaint under section 138 of the Act essential condition is -
A.
The cheque was returned as signature on it not matched
B.
The cheque was returned for insufficient funds in the account
C.
The cheque was returned as it was presented after expiry
D.
In all of above
Answer: _________
Question 238:
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:
A.
Devi Iyers v. Nawab Jan
B.
Y. Srelatha v. Mukand Chand Bothra
C.
Tord Engineers India Ltd. v. Nagarjuna Finance Ltd.
D.
BIPs System Ltd. v. State
Answer: _________
Question 239:
A note under section 99 of the Negotiable Instruments Act should contain among other things
A.
Place of the notary
B.
Charges of notary
C.
Both (A) and (B)
D.
None of the above
Answer: _________
Question 240:
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?
A.
30 days
B.
45 days
C.
15 days
D.
90 days
Answer: _________
Question 241:
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
A.
Holder of the instrument
B.
Indorser of the instrument
C.
Indorsee of the instrument
D.
None of the above
Answer: _________
Question 242:
If in an instrument the amount undertaken or ordered to be paid is stated differently in figures and in words
A.
The instrument is void due to uncertainty
B.
The amount stated in figure shall be the amount undertaken or ordered to be paid
C.
The amount stated in words shall be the amount undertaken or ordered to be paid
D.
None of the above
Answer: _________
Question 243:
In which section of Negotiable Instruments Act, "Public holiday" is explained?
A.
Section 21
B.
Section 22
C.
Section 24
D.
Section 25
Answer: _________
Question 244:
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.
A.
9
B.
3
C.
6
D.
12
Answer: _________
Question 245:
According to Section 13 of the Negotiable Instruments Act, 1881, which is not a "Negotiable Instrument"?
A.
Instrument of Debt
B.
Promissory Note
C.
Bill of exchange
D.
Cheque
Answer: _________
Question 246:
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?
A.
The holder has committed forgery
B.
The cheque will have to be treated as invalid
C.
The Bank would not accept the cheque
D.
The holder will be entitled to maintain a complaint filed upon the cheque being dishonoured upon being presented in the bank
Answer: _________
Question 247:
What is the presumption to be drawn under Section 139 of the Negotiable Instruments Act?
A.
That the holder of the cheque received the cheque for the discharge, in whole or in part, of any debt or other liability
B.
That the drawer had duly signed the cheque
C.
That the cheque was dishonoured for want of sufficient funds
D.
That the cheque in question had not expired on the date of its presentation
Answer: _________
Question 248:
Offences under the Negotiable Instruments Act are triable by
A.
Sessions Judge
B.
Judicial Magistrate First Class
C.
Executive Magistrate
D.
Judicial Magistrate Second Class
Answer: _________
Question 249:
Cognizance of an offence under section 138 can be taken by a court only on a/an
A.
Police report (section 142)
B.
Complaint (section 142)
C.
Application to the District Judge (section 142)
D.
None of the above
Answer: _________
Question 250:
Proceedings under section 138 Negotiable Instruments Act 1881 which defence shall not be allowed?
A.
The cheque is not signed by drawer
B.
Complaint is not holder or holder in due course
C.
Drawer had no reason to believe when he issued the cheque it may be dishonoured
D.
He had not issued the cheque in discharge of legal liability
Answer: _________
Question 251:
Under Section 23 of Negotiable Instruments Act, a promissory note or bill of exchange, dated 31 st August, 2018 is made payable three months after date. The instrument is at maturity of the . . . . . . . . ?
A.
30 th November, 2018
B.
31 st November, 2018
C.
1 st December, 2018
D.
3 rd December, 2018
Answer: _________
Question 252:
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 . . . . . . . .
A.
Inland instrument
B.
Foreign instrument
C.
Negotiable instrument
D.
Indorsement
Answer: _________
Question 253:
If the words "not negotiable" are used with special crossing in a cheque, the cheque is
A.
Not transferable
B.
Transferable
C.
Negotiable under certain circumstances
D.
None of the above
Answer: _________
Question 254:
A Magistrate issuing a summons to an accused or a witness can send it
A.
By speed post
B.
By courier services
C.
By a courier services as are approved by a court of session
D.
Both (A) and (C)
Answer: _________
Question 255:
The Negotiable Instruments Act, 1881 became operative from the date of
A.
9 th December, 1881
B.
31 st December, 1881
C.
1 st March, 1881
D.
31 st March, 1881
Answer: _________
Question 256:
Section 138 of the Negotiable Instruments Act, 1881, . . . . . . . . . . mens rea
A.
Partially excludes
B.
Includes
C.
Sometime includes
D.
None of the above
Answer: _________
Question 257:
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?
A.
Court has no option but to dismiss the complaint
B.
Such complaint should not be accepted at all
C.
Cognizance can be taken afterwards when cause of action arises
D.
None of the above
Answer: _________
Question 258:
Cheque doesn't require any stamping.
A.
True
B.
False
C.
Partly true
D.
Partly false
Answer: _________
Question 259:
Under the provisions of section 143 of the Negotiable Instruments Act, 1881, all offences under the Act are to be tried by
A.
Any Judicial Magistrate
B.
Judicial Magistrate of the First Class or by a Metropolitan Magistrate
C.
Only a District Judge
D.
None of the above
Answer: _________
Question 260:
The Negotiable Instruments Act, 1881 provides for making which of the following presumptions as special rule of evidence, until the contrary is provided:
A.
That every negotiable instrument bearing a date was not made or drawn on such date
B.
That every transfer of negotiable instrument was not made before its maturity
C.
That a lost promissory note, bill of exchange or cheque was duly stamped
D.
All the above
Answer: _________
Question 261:
Negotiable Instruments Act:- When the cause of action accrue, if the cheque issued by blte drawer is dishonour?
A.
On the date receipt of information by bank regarding the return of cheque as unpaid
B.
On the date when notice is issued by payee to the drawer
C.
On the date drawer of cheque fails to make the payment of cheque amount to payee within 15 days from the receipt of demand notice
D.
None of these
Answer: _________
Question 262:
At sight under section 21 of the Negotiable Instruments Act, 1881 means
A.
On presentation
B.
On demand
C.
On coming into vision
D.
None of the above
Answer: _________
Question 263:
Who are the partners in a bill of exchange?
A.
Drawer & Drawee
B.
Payee
C.
Both (A) and (B)
D.
None of the above
Answer: _________
Question 264:
Bill of exchange and Promissory Note is required to be made on a stamp paper.
A.
True
B.
False
C.
Partly true
D.
Partly false
Answer: _________
Question 265:
Can a magistrate pass an order an investigation on the assertion of an offence under section 138 of Negotiable Instruments Act, 1881.
A.
No
B.
Yes
C.
Both A and B
D.
None of the above
Answer: _________
Question 266:
Chapter XVII contain sections
A.
138 to 142
B.
136 to 142
C.
112 to 124
D.
None of the above
Answer: _________
Question 267:
While drawing a bill of exchange, a person whose name is given in addition to the drawee who can be resorted in case of need, is called
A.
Acceptor
B.
Acceptor for honour
C.
Drawee in case of need
D.
Drawer
Answer: _________
Question 268:
The provIsion of section 147 of the Negotiable Instruments Act, 1881, that every offence punishable under this Act shall be compoundable was inserted by the
A.
Amending Act of 1988
B.
Amending Act of 1980
C.
Amending Act of 2002
D.
None of the above
Answer: _________
Question 269:
Which of the following statements is false?
A.
The defence of non est factum was evolved by the judiciary to save the position of a person who signed a document but could not read it due to his blindness or illiteracy
B.
In course of time, the defence of non est factum came to be applied to other areas also besides blindness and illiteracy
C.
The doctrine of non est factum applies in case of a misrepresentation inducing a mistaken belief regarding the class and character of a supposed document
D.
The doctrine originally applied to the negotiable instruments but it came under criticism and after being overhauled by the House of Lords, it applies only to contracts
Answer: _________
Question 270:
Who, of the followings, are not liable for prosecution under Section 141 of the Negotiable Instruments Act, 1881?
A.
Any person nominated as director by virtue of holding any office or employment in Central Government
B.
Any person nominated as director by virtue of holding any office or employment in State Government
C.
Any person nominated as director by virtue of holding any office or employment a central or state owned or controlled Financial Corporation
D.
All of the above
Answer: _________
Question 271:
What is the term used to describe an instrument, which is not discharged even by non-presentation of the instrument to the acceptor for payment?
A.
Cheque
B.
Bill of exchange
C.
Accommodation
D.
Bill in sets
Answer: _________
Question 272:
'Indorser' is defined in which section of the Negotiable Instruments Act, 1881?
A.
Section 13
B.
Section 14
C.
Section 15
D.
Section 16
Answer: _________
Question 273:
Who as the drawer of a cheque can be prosecuted for non-payment of the cheque due to insufficient funds under section 138 of the Negotiable Instruments Act, 1881:
A.
Only a human being
B.
Only a body corporate
C.
Only a firm
D.
All of these
Answer: _________
Question 274:
Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the given below. Assertion (A): A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer. Reason (R): Because it is said so under Section 13 of the Negotiable Instruments Act, 1881.
A.
Both (A) and (R) are correct and (R) is the correct explanation of (A)
B.
(A) is false, but (R) is true
C.
Both (A) and (R) are false
D.
(A) is true, but (R) is false
Answer: _________
Question 275:
Under Negotiable Instruments Act, 1881, an instrument in writing containing an unconditional under taking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument is a . . . . . . . .
A.
Promissory Note
B.
Bill of Exchange
C.
Currency Note
D.
Truncated Cheque
Answer: _________
Question 276:
Cheque is a
A.
Promissory note
B.
Bill of Exchange
C.
Both (A) and (B)
D.
None of the above
Answer: _________
Question 277:
What is the presumption under section 137 of the Negotiable Instruments Act, 1881?
A.
A negotiable instrument drawn in a foreign country is genuine
B.
The law of any foreign country regarding promissory notes, bills of exchange and cheques is same as that of India
C.
Both (A) and (B)
D.
None of the above
Answer: _________
Question 278:
Under Negotiable Instruments Act, "Bill of Exchange" is defined under
A.
Section 5
B.
Section 10
C.
Section 12
D.
Section 13
Answer: _________
Question 279:
The effect of a notice under clause (b) of section 138 of Negotiable Instruments Act is -
A.
The payee forfeits the right to again present the cheque for payment
B.
The payee can present the cheque for payment
C.
The payee can present the cheque with the permission of the court
D.
None of the above
Answer: _________
Question 280:
Can a 'notice in writing' envisaged in section 138(b) of the Negotiable Instruments Act, 1881, be sent by telegraph?
A.
No [V. Raju v. P. Subbarama Naidu, AIR 1931 Mad 301]
B.
Yes [M. V. Muthuramlingam v. D. Narayanswamy, (1995) 3 Comp Cas 77 Mad]
C.
Yes [A. B. Steels v. Krishna Finance, (1996) 86 Comp Cas 295 (Mad)]
D.
None of the above
Answer: _________
Question 281:
A promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity
A.
On the 30 th day after the day on which it is expressed to be payable
B.
On the 3 rd day after the day on which it is expressed to be payable
C.
On the 5 th day after the day on which it is expressed to be payable
D.
On the 4 th day after the day on which it is expressed to be payable
Answer: _________
Question 282:
Who is 'holder in due course'?
A.
A person who holds negotiable instrument in the name of his spouse
B.
A person who holds negotiable instrument in his name
C.
A person who becomes possessor of negotiable instrument without consideration
D.
A person who becomes possessor of negotiable instrument payable to bearer for consideration
Answer: _________
Question 283:
In determining reasonable time for the purpose of a negotiable instrument
A.
Public holidays are excluded
B.
Public holidays are included
C.
Only the holidays observed by banks are excluded
D.
None of the above
Answer: _________
Question 284:
In which section of Negotiable Instruments Act "holder in Due Course" is defined?
A.
Section 07
B.
Section 10
C.
Section 09
D.
Section 13
Answer: _________
Question 285:
The Negotiable Instruments Act, 1881 applies to
A.
The whole of India including State of Jammu and Kashmir
B.
The whole of India except the State of Jammu and Kashmir
C.
Those states as notified by the Union Government from time to time in the Official Gazette
D.
The whole of India except the State of Jammu and Kashmir and the North-Eastern States
Answer: _________
Question 286:
Which of the following is not a negotiable instrument?
A.
Cheque
B.
Pronote
C.
Hundies
D.
None of these
Answer: _________
Question 287:
The presumptions under Section 118 of the Act do not include -
A.
Presumption that holder of a cheque received the cheque for discharge of any debt or other liability
B.
Presumption as to time of acceptance
C.
Presumption as to date
D.
Presumption as to order of endorsement
Answer: _________
Question 288:
Which of the following sections enables the court to cancel the bond and ball bond:
A.
466-a
B.
446
C.
448
D.
450
Answer: _________
Question 289:
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)
Answer: _________
Question 290:
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
Answer: _________
Question 291:
The endorsement of a negotiable instrument is followed by delivery
A.
Yes
B.
No
C.
Both (A) and (B)
D.
None of the above
Answer: _________
Question 292:
'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
Answer: _________
Question 293:
Presumption under Section 139 of the Negotiable Instruments Act, 1881 is in respect of-
A.
That the cheque was signed by the accused
B.
That the cheque was dishonoured by the banker
C.
That the cheque was issued for discharge of any debt
D.
That the cheque is valid under banking laws
Answer: _________
Question 294:
Under section 118 of the Negotiable Instruments Act, 1881, it is presumed, until the contrary is proved, that every transfer of a negotiable instrument was made
A.
After its maturity
B.
Before its maturity
C.
At its maturity
D.
None of the above
Answer: _________
Question 295:
An offence under section 138 of Negotiable Instruments Act is Compoundable
A.
If the cheque amount is upto one lakh rupees
B.
If the cheque amount is upto five lakhs rupees
C.
If the cheque amount is upto ten lakhs rupees
D.
Cheque of any amount
Answer: _________
Question 296:
Chapter XVII was inserted into the Negotiable Instruments Act, 1881 by the Amendment of the Act in the year:
A.
1888
B.
1988
C.
1998
D.
1989
Answer: _________
Question 297:
Under Section 143 of the Negotiable Instruments Act, 1881 the trial shall be made to conclude after filing of complaint within . . . . . . . . period?
A.
2 months
B.
4 months
C.
6 months
D.
8 months
Answer: _________
Question 298:
Which one of the following Sections of the Negotiable Instruments Act empowers to the Judicial Magistrate of the First Class or Metropolitan Magistrate to try the offence relating to dishonour of cheque for insufficiency etc.?
A.
Section 143(1)
B.
Section 143(2)
C.
Section 143(3)
D.
Section 143(4)
Answer: _________
Question 299:
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.
A.
Both (A) and (R) are true and (R) is the correct explanation of (A)
B.
Both (A) and (R) are true and (R) is not the correct explanation of (A)
C.
(A) is right but (R) is wrong
D.
(A) is wrong but (R) is right
Answer: _________
Question 300:
The offence of 'dishonor' of cheque excludes -
A.
Strict liability
B.
Absolute liability
C.
Mens rea
D.
All of the above
Answer: _________
Answer Key
1:
B
2:
B
3:
A
4:
D
5:
B
6:
B
7:
C
8:
D
9:
B
10:
B
11:
B
12:
D
13:
B
14:
A
15:
A
16:
C
17:
B
18:
B
19:
D
20:
B
21:
D
22:
A
23:
B
24:
C
25:
B
26:
B
27:
B
28:
A
29:
A
30:
B
31:
A
32:
C
33:
C
34:
A
35:
B
36:
A, H
37:
A
38:
B
39:
A
40:
C
41:
A
42:
D
43:
B
44:
B
45:
D
46:
C
47:
D
48:
C
49:
C
50:
B
51:
B
52:
D
53:
B
54:
B
55:
A
56:
B
57:
D
58:
B
59:
A
60:
D
61:
D
62:
A
63:
A
64:
A
65:
B
66:
B
67:
B
68:
C
69:
B
70:
A
71:
B
72:
A
73:
B
74:
A
75:
B
76:
C
77:
D
78:
C
79:
C
80:
B
81:
B
82:
A
83:
D
84:
A
85:
B
86:
A
87:
B
88:
A
89:
B
90:
D
91:
A
92:
A
93:
D
94:
C
95:
D
96:
B
97:
B
98:
A
99:
B
100:
B
101:
A
102:
A
103:
C
104:
A
105:
B
106:
C
107:
B
108:
B
109:
B
110:
A
111:
C
112:
C
113:
B
114:
B
115:
B
116:
A
117:
A
118:
C
119:
B
120:
C
121:
B
122:
C
123:
C
124:
A
125:
D
126:
C
127:
C
128:
D
129:
D
130:
C
131:
D
132:
B
133:
D
134:
B
135:
C
136:
B
137:
C
138:
A
139:
D
140:
B
141:
B
142:
D
143:
B
144:
B
145:
C
146:
C
147:
B
148:
C
149:
A
150:
A
151:
C
152:
A
153:
A
154:
C
155:
A
156:
D
157:
C
158:
C
159:
B
160:
B
161:
D
162:
A
163:
B
164:
B
165:
C
166:
B
167:
A
168:
B
169:
A
170:
D
171:
A
172:
A
173:
B
174:
A
175:
A
176:
B
177:
A
178:
D
179:
D
180:
C
181:
D
182:
D
183:
C
184:
C
185:
B
186:
A
187:
C
188:
B
189:
A
190:
A
191:
A
192:
D
193:
B
194:
C
195:
D
196:
C
197:
D
198:
B
199:
A
200:
A
201:
C
202:
C
203:
C
204:
B
205:
B
206:
B
207:
C
208:
C
209:
A
210:
D
211:
A
212:
C
213:
B
214:
A
215:
A
216:
A
217:
A
218:
D
219:
A
220:
B
221:
D
222:
B
223:
B
224:
D
225:
C
226:
C
227:
A
228:
D
229:
B
230:
A
231:
A
232:
C
233:
D
234:
A
235:
C
236:
B
237:
B
238:
C
239:
B
240:
C
241:
A
242:
C
243:
D
244:
C
245:
A
246:
D
247:
A
248:
B
249:
B
250:
C
251:
D
252:
A
253:
B
254:
D
255:
A
256:
A
257:
C
258:
A
259:
B
260:
C
261:
C
262:
B
263:
C
264:
A
265:
A
266:
D
267:
C
268:
C
269:
D
270:
D
271:
B
272:
C
273:
D
274:
A
275:
A
276:
B
277:
B
278:
A
279:
A
280:
B
281:
B
282:
D
283:
A
284:
C
285:
A
286:
C
287:
B
288:
A
289:
B
290:
B
291:
A
292:
B
293:
C
294:
B
295:
D
296:
B
297:
C
298:
A
299:
A
300:
D
Solution: Understanding Dishonor of Cheque: Imagine you write a check to someone, but there isn't enough money in your account to cover it. This is called "dishonor" of the check – the bank refuses to pay. Legal Responsibility: When a check bounces, there are legal consequences. The law generally holds the person who wrote the bad check responsible. Types of Liability: There are different kinds of legal responsibility (liability). Let's look at the options: Strict Liability: Means you're responsible even if you didn't intend to do anything wrong. Think of it like a speeding ticket
you get it even if you didn't mean to go over the speed limit. Absolute Liability: This is the strictest type. It means you are responsible no matter what, even if there's a valid reason for the dishonor (like a bank error). Mens Rea: This is the "guilty mind." It refers to the intention to commit a crime. In the context of a dishonored check, it means did you *knowingly* write a check knowing there wasn't enough money? The Question: The question asks what the offense of "dishonor" of a check *excludes*. This means what element is NOT necessarily required to prove someone guilty. The Answer: The offense of dishonor often *does* involve strict liability (you're responsible for the bounced check) but it doesn't always require absolute liability or necessarily *mens rea* (intention to defraud). Therefore, the answer is that it often excludes mens rea . The law sometimes holds people responsible even without proving they intended to defraud anyone.