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

Q51. The provision regarding summary procedure relating to suits upon bills of exchange, hundies and promissory notes are laid down in

(A) Order 37 of CPC
(B) Order 38 of CPC
(C) Order 39 of CPC
(D) None of the above

Answer: Order 37 of CPC

Q52. Following is not the essential conditions for applicability of Section 8 of the Act –

(A) The defendant must be the owner of the property
(B) The article must be movable property
(C) The plaintiff must be entitled to immediate possession of the article
(D) The article must be possession or control of the defendant

Answer: The article must be movable property

Q53. As per the Negotiable Instruments Act, 1881, when the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed tobe due on the . . . . . . . . .

(A) Said public holiday
(B) 5 days succeeding public holiday
(C) Next succeeding business day
(D) Next preceding business day

Answer: Next preceding business day

Q54. Under Section 97 of Negotiable Instruments Act when the party to whom notice of dishonor is dispatched is dead, but the party dispatching the notice is ignorant of his death, then

(A) The Notice is insufficient
(B) The Notice is sufficient
(C) Notice shall be given to legal representative
(D) None of these

Answer: The Notice is sufficient

Q55. In which of the following cases, did the Hon’ble Supreme Court decide the issue of territorial jurisdiction of the court to entertain a complaint under the Negotiable Instruments Act in reference to the Amending Ordinance of 2015 ?

(A) (2016) 2 SCC 75, Bridgestone India Pvt. Ltd. v. Inderpal Singh
(B) (2016) 11 SCC 105, K. S. Joseph v. Philip Carbon Black Ltd. & Ors
(C) (2016) 1 SCC (Cri) 173, Ultratech Cement Ltd. v. Rakesh Kumar Singh & Anr
(D) None of the above

Answer: (2016) 2 SCC 75, Bridgestone India Pvt. Ltd. v. Inderpal Singh

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Q56. Which one of the following is not the essential requirement to fulfil an instrument intended to be a Promissory Note ?

(A) The instrument must contain a promise to pay
(B) A mere acknowledgement of indebtedness is sufficient
(C) The sum of money to be paid must be certain
(D) Promise to pay must be unconditional

Answer: A mere acknowledgement of indebtedness is sufficient

Q57. The term ‘Negotiable instrument’ is defined in the Negotiable Instruments Act, 1881, under section

(A) 12
(B) 13
(C) 13A
(D) 13B

Answer: 13

Q58. Under Section 138 of the Negotiable Instruments Act 1881 Maximum punishment of imprisonment and fine is

(A) 1 year and amount of cheque
(B) 2 year and amount of cheque
(C) 1 year and twice the amount of cheque
(D) 2 year and twice the amount of cheque

Answer: 2 year and twice the amount of cheque

Q59. Under Section 138 of the Act, maximum term of imprisonment is:

(A) One year
(B) Two years
(C) Three years
(D) Depends upon discretion of the Court

Answer: Two years

Q60. Validity of Cheque is 6 months.

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

Answer: False