Negotiable Instruments Act — Part 2 MCQs with Explanations

False is the correct answer to “Validity of Cheque is 6 months.”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Two years is the correct answer to “Under Section 138 of the Act, maximum term of imprisonment is:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

2 year and twice the amount of cheque is the correct answer to “Under Section 138 of the Negotiable Instruments Act 1881 Maximum punishment of imprisonment and fine is”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

13 is the correct answer to “The term 'Negotiable instrument' is defined in the Negotiable Instruments Act, 1881, under section”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

A mere acknowledgement of indebtedness is sufficient is the correct answer to “Which one of the following is not the essential requirement to fulfil an instrument intended to be a Promissory Note”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

(2016) 2 SCC 75, Bridgestone India Pvt. Ltd. v. Inderpal Singh is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

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

Next preceding business day is the correct answer to “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 . . . . . . . . .”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

The article must be movable property is the correct answer to “Following is not the essential conditions for applicability of Section 8 of the Act -”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Order 37 of CPC is the correct answer to “The provision regarding summary procedure relating to suits upon bills of exchange, hundies and promissory notes are laid down in”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

That the drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment is the correct answer to “In a prosecution under Secth on 138 of Negotiable Instruments Act, 1881, it shall not be a defence that -”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

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

1 month is the correct answer to “The criminal complaint for dishonor of cheque is to be filled in court within . . . . . . . . of the Drawer failing to pay.”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Section 13 is the correct answer to “Which Section of the Negotiable Instruments Act defines "Negotiable Instruments"”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

An ambiguous instrument is the correct answer to “If an instrument may be construed either as a promissory note or bill of exchange, it is”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Section 138 of Negotiable Instruments Act is the correct answer to “Dishonour of cheque for insufficiency of funds etc. in the account related to”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

All of the above is the correct answer to “For the purpose of Section 141 of The Negotiable Instruments Act, 1881 'company' means:”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

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

Section 33 of Court Fees Act, 1870 is the correct answer to “In which provision the Court may grant time to pay court fees in complaint under Section 138 of Negotiable Instruments Act, 1881”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

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

No time limit is fixed is the correct answer to “Under Negotiable Instruments Act, promissory note can be drawn for minimum period of”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Under section 147 Negotiable Instruments Act is the correct answer to “Offences under Negotiable Instruments Act are compoundable”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

3 years from the date of the refusal to accept is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

True is the correct answer to “Drawer and payee in a Bill of exchange may be same parties.”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

3 days is the correct answer to “Days of grace provided to the Instruments at maturity is (as per the provisions of the Negotiable Instruments Act, 1881)”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

The bill cannot be presented to legal presentations in case of death of drawee is the correct answer to “Which of the following is not correct with regard to presentment for acceptance”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

I promise to pay 'B' or order Rs. 500/- to be paid on demand is the correct answer to “A' signs instruments in the following terms, which instruments are promissory note under Section 4 of the Negotiable Instruments Act, 1881”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Dashrath Rupsingh Rathod v. State of Maharashtra is the correct answer to “In which of the following cases the Supreme Court gave guidelines for speedy and expeditious trial of cheque bouncing cases”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

A cheque cannot be considered as a bill of exchange is the correct answer to “Which among the following is not true with respect to negotiable instruments”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

The cheque was returned for insufficient funds in the account is the correct answer to “Under Negotiable Instruments Act, for filing a complaint under section 138 of the Act essential condition is -”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

All the above is the correct answer to “Which of the following is a correct statement of law as per Sections 138 and 142 of the Negotiable Instruments Act, 1881”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Dashrath Rupsingh Rathood v. State of Maharashtra and Another, (2014) 9 SCC 129 is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

No is the correct answer to “Can the Magistrate order an investigation on the allegation of an offence under Section 138 of Negotiable Instruments Act”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Mohd. Isaq Gulsani v. Rajamouli is the correct answer to “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.”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Executant (Zohra Jan v. Rajan Bibi, 28 IC 402) is the correct answer to “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”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Yes, a drawer can limit or exclude his liability by inserting in the bill an express stipulation to that effect is the correct answer to “Can a drawer escape from his liability”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Transfers to the indorsee the property in the bill is the correct answer to “The indorsement of a negotiable instrument followed by delivery”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Only the holder of the cheque is the correct answer to “Who is entitled to make a complaint for taking cognizance of the offence under Section 138 of the Negotiable Instruments Act, 1881”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

Proviso (two) to Section 141(1) is the correct answer to “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?"”. This question is standard in competitive examination syllabi for Negotiable Instruments Act.

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