Negotiable Instruments Act — Part 1 MCQs with Explanations

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.

Includes executors or administrator (K. Subbanna v. K. Subbarayudu, AIR 1926 Mad 390) is the correct answer to “The term 'legal representative' in section 29 of the Negotiable Instruments Act, 1881”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

No notice of dishonour is necessary is the correct answer to “In the case of a promissory note which is not negotiable”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Yes is the correct answer to “The endorsement of a negotiable instrument is followed by delivery”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Section 6 is the correct answer to “'Truncated Cheque' is dealt within which section of the Negotiable Instruments Act, 1881”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

That the cheque was issued for discharge of any debt is the correct answer to “Presumption under Section 139 of the Negotiable Instruments Act, 1881 is in respect of-”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Before its maturity is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Cheque of any amount is the correct answer to “An offence under section 138 of Negotiable Instruments Act is Compoundable”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

1988 is the correct answer to “Chapter XVII was inserted into the Negotiable Instruments Act, 1881 by the Amendment of the Act in the year:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

6 months is the correct answer to “Under Section 143 of the Negotiable Instruments Act, 1881 the trial shall be made to conclude after filing of complaint within . . . . . . . . period”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Section 143(1) is the correct answer to “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.”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Words shall be paid is the correct answer to “Negotiable Instruments Act, 1881: If an amount written in an instrument is stated differently in figures and words, the amount stated in:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

All of the above is the correct answer to “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:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Legal is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

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 is the correct answer to “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:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

All of the above is the correct answer to “A protest must contain”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Section 104 is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

None of the above is the correct answer to “What's the maximum punishment under the Negotiable Instruments Act”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

30 days is the correct answer to “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:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

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 is the correct answer to “The offence of dishonour of cheques, for insufficiency, etc., of funds, in the account of the drawer, is punishable with:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Must be in writing (section 142) is the correct answer to “A complaint against an offence under section 138 of the Negotiable Instrument Act, 1881”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

a-2, b-1, c-4, d-3 is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Any number of times is the correct answer to “A cheques can be presented, within a period of six months from the date on which it is drawn:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Section 35 is the correct answer to “Which provision of the Act deals with the effect of declaration -”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Only first statement is correct is the correct answer to “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:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

All of these is the correct answer to “The dishonour of cheque is punishable if it is dishonoured due to . . . . . . .”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Within six months from the date of filing of the complaint is the correct answer to “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:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

(2016) 10 SCC 761, Shyam Pal v. Dayawati Besoya & Ors. is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Goa Plast Ltd. v. Chico Ursula D'Souza is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Recovery of the cheque amount incase cheque issued by the payer is bounced is the correct answer to “What is main objective of Section 138 of Negotiable Instruments Act”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Strict liability is the correct answer to “The liability under section 138 of the Negotiable Instruments Act, 1881 is”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Holder in due course is the correct answer to “A person who receives a negotiable instrument in good faith for valuable consideration is known as”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

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 is the correct answer to “How much punishment is provided under Section 138 of Negotiable Instruments Act, 1881”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

National Small Industries Corporation Ltd. v. Harmeet Singh Paintal, (2010) 3 SCC 330 is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Mode of payment on the cheque is the correct answer to “Crossing of cheque affects the”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

The holder of a cheque received the cheque for the discharge of any debt or other liability is the correct answer to “Under Section 118 of Negotiable Instruments Act, 1881, what presumption shall not be made”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Must be certain is the correct answer to “In a promissory note, the amount of money payable”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

14th August, 2017 is the correct answer to “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):”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Share is the correct answer to “Which of the following is not a Bill of Exchange”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

All of these is the correct answer to “Which of the following presumption is prescribed under section 118 Negotiable Instruments Act”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.