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Negotiable Instruments Act Law 100 MCQ With Free Exam SET:-1
Q81. A complaint against an offence under section 138 of the Negotiable Instrument Act, 1881
(A) Must be in writing (section 142)
(B) May be oral or in writing (section 142
(C) Must be in writing containing a declaration by the drawee that he consents to such filing of the complaint (section 142)
(D) None of the above
Answer: Must be in writing (section 142)
Q82. The offence of dishonour of cheques, for insufficiency, etc., of funds, in the account of the drawer, is punishable with:
(A) Imprisonment for a term which may extend to one year or with fine which may extend to the amount of the cheques, or with both
(B) Imprisonment for a term which may extend to two year or with fine which may extend to twice the amount of the cheques, or with both
(C) Imprisonment for a term which may extend to six months or with fine which may extend five hundred rupees, or with both
(D) Imprisonment for a term which may extend to five year or with fine which may extend to five thousand rupees, or with both
Answer: Imprisonment for a term which may extend to two year or with fine which may extend to twice the amount of the cheques, or with both
Q83. A demand notice in writing has to be given to the drawer by the payee under Section 138 of “The Negotiable Instruments Act,” 1881, after receiving intimation from the Bank of Dishonour of cheque, within the period of:
(A) 15 days
(B) 30 days
(C) 60 days
(D) None of the above
Answer: 30 days
Q84. What’s the maximum punishment under the Negotiable Instruments Act
(A) 2 Years Only
(B) 6 Years and or fine which is double amount the dishonour
(C) Any punishment below 7 years
(D) None of the above
Answer: None of the above
Q85. Which provision of the Act lays down that foreign bills must be protested for dishonour if so required by the law of the place where they are drawn ?
(A) Section 100
(B) Section 102
(C) Section 104
(D) Section 103
Answer: Section 104
Q86. A protest must contain
(A) The name of the person for whom the instrument has been protested
(B) The name of the person against whom the instrument has been protested
(C) The instrument it self or its literal transcript
(D) All of the above
Answer: All of the above
Q87. For cognizance to be taken of the offence of dishonour of cheque for insufficiency of funds in the account, which of the following are prerequisites:
(A) The cheque must have been presented to the bank within the period of its validity or within six months from the date on which it was drawn, whichever is earlier
(B) The complainant must prove by independent evidence that the cheque was issued for discharge of a debt or liability
(C) Both of the above
(D) None of the above
Answer: The cheque must have been presented to the bank within the period of its validity or within six months from the date on which it was drawn, whichever is earlier
Q88. An offence under Section 138 Negotiable Instruments Act was tried summarily. But the court imposed on the accused a sentence of imprisonment for one year. The sentence is
(A) Legal
(B) Only irregular
(C) Only improper
(D) Irregular
Answer: Legal
Q89. A resides at Hyderabad, B at Calcutta and C at Delhi. A, B and C being together at Allahabad, B and C make a joint promissory note payable on demand, and deliver to A. A may sue B and C:
(A) At Allahabad where the cause of action arises
(B) At Calcutta, where B resides
(C) At Delhi, where C resides
(D) All of the above
Answer: All of the above
Q90. Negotiable Instruments Act, 1881: If an amount written in an instrument is stated differently in figures and words, the amount stated in:
(A) Figures shall be paid
(B) Words shall be paid
(C) No amount shall be paid
(D) None of these
Answer: Words shall be paid