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

Q41. 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

(A) True
(B) False
(C) Partly correct
(D) None of the above

Answer: True

Q42. In which provision the Court may grant time to pay court fees in complaint under Section 138 of Negotiable Instruments Act, 1881 ?

(A) Under proviso of section 138 of Negotiable Instruments Act
(B) Under proviso of section 142 of Negotiable Instruments Act
(C) Section 33 of Court Fees Act, 1870
(D) Section 35 of Court Fees Act, 1870

Answer: Section 33 of Court Fees Act, 1870

Q43. 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 ?

(A) No limit
(B) 1 month
(C) 3 months
(D) 6 months or within the period of its validity

Answer: 3 months

Q44. For the purpose of Section 141 of The Negotiable Instruments Act, 1881 ‘company’ means:

(A) Anybody corporate
(B) A firm
(C) Other association of individuals
(D) All of the above

Answer: All of the above

Q45. Dishonour of cheque for insufficiency of funds etc. in the account related to

(A) Section 137 of Negotiable Instruments Act
(B) Section 138 of Negotiable Instruments Act
(C) Section 139 of Negotiable Instruments Act
(D) Section 141 of Negotiable Instruments Act

Answer: Section 138 of Negotiable Instruments Act

Q46. If an instrument may be construed either as a promissory note or bill of exchange, it is

(A) A valid instrument
(B) An ambiguous instrument
(C) A returnable instrument
(D) None of the above

Answer: An ambiguous instrument

Q47. Which Section of the Negotiable Instruments Act defines “Negotiable Instruments”

(A) Section 4
(B) Section 6
(C) Section 11
(D) Section 13

Answer: Section 13

Q48. The criminal complaint for dishonor of cheque is to be filled in court within . . . . . . . . of the Drawer failing to pay.

(A) 30 days
(B) 1 month
(C) Both (A) and (B)
(D) None of them

Answer: 1 month

Q49. 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 ?

(A) 15 days
(B) 30 days
(C) 90 days
(D) No notice is required

Answer: 15 days

Q50. In a prosecution under Secth on 138 of Negotiable Instruments Act, 1881, it shall not be a defence that –

(A) The cheque does not bear his signature
(B) That the cheque was not issued for the discharged of any del It or other liability
(C) That the Cheque has not been presented to the bank within period of six months from the date on which it is drawn or from the Period of its validity whichever is earlier
(D) That the drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment

Answer: That the drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment