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

Q31. Under Negotiable Instruments Act, for filing a complaint under section 138 of the Act essential condition is –

(A) The cheque was returned as signature on it not matched
(B) The cheque was returned for insufficient funds in the account
(C) The cheque was returned as it was presented after expiry
(D) In all of above

Answer: The cheque was returned for insufficient funds in the account

Q32. Which among the following is not true with respect to negotiable instruments ?

(A) There must be an unconditional order or promise for payment
(B) A cheque cannot be considered as a bill of exchange
(C) If the time of payment is linked to the death of a person, it is nevertheless a negotiable instrument
(D) It is freely transferable and delivery of the instrument is essential

Answer: A cheque cannot be considered as a bill of exchange

Q33. In which of the following cases the Supreme Court gave guidelines for speedy and expeditious trial of cheque bouncing cases

(A) Indian Bank Association v. Union of india
(B) Nishant Aggarwal v. Kailash Kumar Sharma
(C) Dashrath Rupsingh Rathod v. State of Maharashtra
(D) None of the above

Answer: Dashrath Rupsingh Rathod v. State of Maharashtra

Q34. A’ signs instruments in the following terms, which instruments are promissory note under Section 4 of the Negotiable Instruments Act, 1881 ?

(A) I promise to pay ‘B’ or order Rs. 500/- to be paid on demand
(B) I promise to pay ‘B’ Rs. 5000/- and all other some which shall be due to him
(C) I promise to pay ‘B’ Rs. 5000/- first deducting there out any money which he may own me
(D) I promise to pay ‘B’ Rs. 5000/- ten days after my marriage with ‘C’

Answer: I promise to pay ‘B’ or order Rs. 500/- to be paid on demand

Q35. Which of the following is not correct with regard to presentment for acceptance ?

(A) Only holder of the bill or his agent can present the bill
(B) Drawer himself can present the bill
(C) If the bill has been negotiated before acceptance, endorsee can present the bill
(D) The bill cannot be presented to legal presentations in case of death of drawee

Answer: The bill cannot be presented to legal presentations in case of death of drawee

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Q36. Days of grace provided to the Instruments at maturity is (as per the provisions of the Negotiable Instruments Act, 1881)

(A) 1 day
(B) 2 days
(C) 3 days
(D) 5 days

Answer: 3 days

Q37. Drawer and payee in a Bill of exchange may be same parties.

(A) True
(B) False
(C) Partly true
(D) Partly false

Answer: True

Q38. 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

(A) 3 years from the date of the refusal to accept
(B) 2 years from the date of the refusal to accept
(C) 3 years from the date of presentment
(D) 3 years from the date of the date of signing by the drawer

Answer: 3 years from the date of the refusal to accept

Q39. Offences under Negotiable Instruments Act are compoundable

(A) Under Section 145 Negotiable Instruments Act
(B) Under section 147 Negotiable Instruments Act
(C) Under section 142 Negotiable Instruments Act
(D) Under section 320 of Cr.P.c.

Answer: Under section 147 Negotiable Instruments Act

Q40. Under Negotiable Instruments Act, promissory note can be drawn for minimum period of

(A) Thirty days
(B) Six months
(C) One year
(D) No time limit is fixed

Answer: No time limit is fixed