important mcqs- part 3 · 2021. 7. 6. · section 100 negotiable instrument act,1881 - protest. all...

Important MCQs- Part 3(Negotiable Instruments Act, 1881)

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1. Which of the following instrument signed by the maker is a promissory

note?

(a)Mr B, I owe you Rs 1000

(b)Mr B, I will pay you Rs 1000 after my marriage

(c) Mr B, I will pay you money on demand

(d)Mr B, I will pay you Rs 1000 on demand

(e)None of the above


1. Which of the following instrument signed by the maker is a promissory

note?

(a)Mr B, I owe you Rs 1000

(b)Mr B, I will pay you Rs 1000 after my marriage

(c) Mr B, I will pay you money on demand

(d)Mr B, I will pay you Rs 1000 on demand

(e)None of the above

A “Promissory note” is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrumentOption a is acknowledgement of debt but not undertaking to payOption b has condition involvedOption c does not specify certain amountOption d fulfils all criteria of definition of promissory note


2. Under Section 138 of the Negotiable Instrument Act, territorial jurisdiction

does not arise on the following places :

a. Where the payee maintains account in a bank

b. In the local limit where the cheque is presented in the bank

c. Where the cheque is dishonoured by the bank

d. From where the notice to pay the amount is issued

e. Territorial jurisdiction arises from all the places above


2. Under Section 138 of the Negotiable Instrument Act, territorial jurisdiction

does not arise on the following places :

a. Where the payee maintains account in a bank

b. In the local limit where the cheque is presented in the bank

c. Where the cheque is dishonoured by the bank

d. From where the notice to pay the amount is issued

e. Territorial jurisdiction arises from all the places above

Section 142(2)- The offence under section 138 shall be inquired into and tried only by a court within whose local jurisdiction,— (a) if the cheque is delivered for collection through an account, the branch of the bank where the payee or holder in due course, as the case may be, maintains the account, is situated; or (b) if the cheque is presented for payment by the payee or holder in due course, otherwise through an account, the branch of the drawee bank where the drawer maintains the account, is situated.


3. If the indorser signs his name and adds a direction to pay the amount

mentioned in the instrument to a specified person, the indorsement is said

to be

a) Indorsement in blanc

b) Partial indorsement

c) Indorsement in full

d) Specific endorsement

e) None of the above


3. If the indorser signs his name and adds a direction to pay the amount

mentioned in the instrument to a specified person, the indorsement is said

to be

a) Indorsement in blanc

b) Partial indorsement

c) Indorsement in full

d) Specific endorsement


Section 16 of Negotiable Instrument Act - Indorsement “in blank” and “in full”.—(1) If the indorser signs his name only, the indorsement is said to be “in blank,” and if he adds a direction to pay the amount mentioned in the instrument to, or to the order of, a specified person, the indorsement is said to be “in full”; and the person so specified “Indorsee”.—is called the “indorsee” of the instrument


4. A complaint against an offence under Section 138 of the Negotiable

Instrument Act

a) Must be in writing

b) May be in oral or in writing

c) Must be in writing and followed by affidavit

d) May be oral statement before notary



4. A complaint against an offence under Section 138 of the Negotiable

Instrument Act

a) Must be in writing

b) May be in oral or in writing

c) Must be in writing and followed by affidavit

d) May be oral statement before notary


Section 142 of Negotiable Instrument Act 1881 – 1(a)no court shall take cognizance of any offence punishable under section 138 except upon a complaint, in writing, made by the payee or, as the case may be, the holder in due course of the cheque; (b) such complaint is made within one month of the date on which the cause of action arises under clause (c) of the proviso to section 138


5. Which of the following is not a negotiable instrument?

a) Cheque

b) Pronote

c) Hundis

d) Bill of Exchange

e) All are negotiable instrument


5. Which of the following is not a negotiable instrument?

a) Cheque

b) Pronote

c) Hundis

d) Bill of Exchange

e) All are negotiable instrument

Pronote means promissory note. According to NI Act- promissory note, cheque, bill of exchange are negotiable instruments.


6. Which of the following is true about a bank draft?

a) It is a promissory note

b) It is not a negotiable instrument

c) It is similar to a cheque

d) It is a bill of exchange



6. Which of the following is true about a bank draft?

a) It is a promissory note

b) It is not a negotiable instrument

c) It is similar to a cheque

d) It is a bill of exchange


Section 131A. Application of Chapter to drafts.—The provisions of this Chapter shall apply to any draft, as defined in section 85A, as if the draft were a cheque.


7. When a promissory note or bill of exchange has been dishonoured by

non-acceptance or non-payment, the holder may cause such dishonour to

be noted by a notary public and certified thereupon. This certificate is

called-

a) Noting

b) Notice

c) Protest

d) Discharge

e) Protest for better security


7. When a promissory note or bill of exchange has been dishonoured by

non-acceptance or non-payment, the holder may cause such dishonour to

be noted by a notary public and certified thereupon. This certificate is

called-

a) Noting

b) Notice

c) Protest

d) Discharge

e) Protest for better security

Section 100 Negotiable Instrument Act,1881 - Protest


8. The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision

allowing a court trying an offence related to cheque bouncing, to direct the

drawer (person who writes the cheque) to pay interim compensation to the

complainant. The interim compensation will not exceed ___% of the cheque

amount?

a) 15%

b) 25%

c) 20%

d) 22%

e) 28%


8. The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision

allowing a court trying an offence related to cheque bouncing, to direct the

drawer (person who writes the cheque) to pay interim compensation to the

complainant. The interim compensation will not exceed ___% of the cheque

amount?

a) 15%

b) 25%

c) 20%

d) 22%

e) 28%

The Bill inserted a provision-Section 143A allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant. This interim compensation may be paid under certain circumstances, including where the drawer pleads not guilty of the accusation. The interim compensation will not exceed 20% of the cheque amount, and will have to be paid by the drawer within 60 days of the trial court’s order to pay such a compensation.


9. The offence of dishonor of the cheque excludes

a) Strict liability

b) Absolute liability

c) Mens rea

d) Both b and c

e) All a,b,c


9. The offence of dishonor of the cheque excludes

a) Strict liability

b) Absolute liability

c) Mens rea

d) Both b and c

e) All a,b,c

In Mayuri Pulse Mills and Ors. v. Union of India and Ors. the High Court of Bombay had said that the element of men rea is not a necessary element to constitute a crime under Section 138 of the Negotiable Instruments Act, 1881. The court under the case pronounced that in some cases it is not necessary for the element of mens rea to be present in the commission of the crime. In such situations, the legislature can impose either strict or absolute liability on the offender of the crime.


10. Where a cheque is crossed specially to more than one banker, except

when crossed to an agent for the purpose of collection,……

a. The banker on whom it is drawn shall pay to the last mentioned banker

b. The banker on whom it is drawn shall pay equally to all the bankers mentioned

c. The banker to whom it is drawn shall refuse payment.

d. The banker on whom it is drawn shall pay to any one of the mentioned banker

e. None of the above.


10. Where a cheque is crossed specially to more than one banker, except

when crossed to an agent for the purpose of collection,……

a. The banker on whom it is drawn shall pay to the last mentioned banker

b. The banker on whom it is drawn shall pay equally to all the bankers mentioned

c. The banker to whom it is drawn shall refuse payment.

d. The banker on whom it is drawn shall pay to any one of the mentioned banker

e. None of the above.

Section 127 of Negotiable Instrument Act,1881. Payment of cheque crossed specially more than once.—Where a cheque is crossed specially to more than one banker, except when crossed to an agent for the purpose of collection, the banker on whom it is drawn shall refuse payment thereof.

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important mcqs- part 3 · 2021. 7. 6. · section 100 negotiable instrument act,1881 - protest. all...

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