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Negotiable Instrument Act - 2 (UGC/ NET)

Negotiable Instrument Act - 2

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

A ‘holder in due course’ is a person

  1. entitled to possess the negotiable instrument in his own name and to recover the amount
  2. who becomes a possessor of the negotiable instrument for consideration
  3. who holds the instrument as an agent of the payee
  4. who possesses the instrument only for the purpose of presentation for payment
Question 2 Multiple Choice (Single Answer)

A protest must contain

  1. the name of the person for whom the instrument has been protested
  2. the name of the person against whom the instrument has been protested
  3. the instrument itself or its literal transcript
  4. All of the above
Question 3 Multiple Choice (Single Answer)

‘Payment in due course’ requires the payment to be made

  1. in accordance with the apparent tenor of the instrument
  2. in good faith
  3. without negligence
  4. All of the above
Question 4 Multiple Choice (Single Answer)

As per the provisions of Section 93, when a cheque is dishoroured by non-acceptance or non-payment, the holder

  1. may or may not give notice to the parties whom the holder seeks to make liable thereon
  2. must give notice to the parties whom the holder seeks to make liable
  3. must give notice to the parties whom the holder seeks to make liable, but after noting
  4. must not give any notice to anyone
Question 5 Multiple Choice (Single Answer)

Court can take cognizance of any offence punishable under Section 138 of the Negotiable Instrument Act

  1. suo motu
  2. upon a complaint in writing made by the payee
  3. upon a police report
  4. None of these
Question 6 Multiple Choice (Single Answer)

Which of the following presumptions regarding negotiable instruments is not correct?

  1. Every negotiable instrument bearing a date was made or drawn on such date.
  2. Every transfer of a negotiable instrument was made before its maturity.
  3. A lost promissory note, bill of exchange or cheque was not duly stamped.
  4. Every accepted bill of exchange was accepted within a reasonable time after its date and before its maturity.
Question 7 Multiple Choice (Single Answer)

Which of the following defences is/are available against proceedings under Section 138 of Negotiable Instruments Act?

  1. Absence of a legally enforceable debt or liability
  2. Absence of legal notice of 15 days
  3. Lack of jurisdiction
  4. All of the above
Question 8 Multiple Choice (Single Answer)

Which of the following courts is empowered to try an offence relating to dishonor of cheque for insufficiency?

  1. Judicial Magistrate Second Class
  2. Judicial Magistrate First Class
  3. Banking Ombudsman
  4. None of these
Question 9 Multiple Choice (Single Answer)

No notice of dishonour is necessary

  1. when it is dispensed with by the party entitled thereto
  2. in order to charge the drawer when he has countermanded payment
  3. when the party charged could not suffer damage for want of notice
  4. All of the above
Question 10 Multiple Choice (Single Answer)

Under Section 138 of the NI Act, territorial jurisdiction does not arise

  1. where the cheque is issued
  2. in the local limit where the cheque is presented in the bank
  3. where the cheque is dishonoured by the bank
  4. from where the notice to pay the amount is issued
Question 11 Multiple Choice (Single Answer)

In which court does a complainant has to file an appeal against the order of acquittal under Section 138 of the NI Act?

  1. Court of session
  2. High Court
  3. Chief Judicial Magistrate
  4. Either Court of Session or High Court
Question 12 Multiple Choice (Single Answer)

Section 141 of the Negotiable Instrument Act deals with the offences caused by the

  1. government servants
  2. individuals and companies both
  3. individual alone
  4. companies
Question 13 Multiple Choice (Single Answer)

The Magistrate may send summons to accused under NI Act

  1. by speed post or by such courier services as are approved by a Court of Session
  2. by speed post only
  3. by messenger
  4. by police
Question 14 Multiple Choice (Single Answer)

Every offence punishable under NI Act shall be

  1. non-compoundable
  2. compoundable
  3. non-bailable
  4. All of the above
Question 15 Multiple Choice (Single Answer)

Which of the following cheques is/are paid only through a bank account?

  1. Uncrossed cheque
  2. Crossed cheque
  3. Both crossed and uncrossed cheques
  4. None of these
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