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Negotiable Instruments Act Law 100 MCQ With Free Exam SET:-1
Q11. 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: Compoundable
Q12. 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: Summary Trial
Q13. 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: Promissory note
Q14. 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: He cannot afterwards sue for these instalments
Q15. 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: a-4, b-3, c-1, d-2
Q16. 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: 15 days
Q17. 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: (A) and (R) are true and (R) is the correct explanation of (A)
Q18. 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: True
Q19. 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: No
Q20. 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: 2 years