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Negotiable Instruments Act Law 100 MCQ With Free Exam SET:-1

Q91. 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: Section 143(1)

Q92. 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: 6 months

Q93. 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: 1988

Q94. 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: Cheque of any amount

Q95. 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: Before its maturity

Q96. 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: That the cheque was issued for discharge of any debt

Q97. ‘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: Section 6

Q98. 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: Yes

Q99. 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: No notice of dishonour is necessary

Q100. 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: Includes executors or administrator (K. Subbanna v. K. Subbarayudu, AIR 1926 Mad 390)