200+ MCQs Banking and Negotiable Instruments Law Question Bank

1:- The Negotiable Instruments Act, 1881 is an Act to define and amend the law relating to:
A. cheques
B. bills of exchange
C. promissory notes
D. All of the above

2:- “Banker” includes:
A. Any person acting as an employee of any bank and any post office saving bank.
B. Any person acting as a banker and any post office saving bank
C. Any person acting as an agent of any bank and any post office saving bank.
D. Any person acting as a Managing Director of any bank and any post office saving bank

3:- Which is NOT an example of “Promissory Note”:
A. “I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value received.”
B. “Mr B, I.O.U Rs. 1,000.”
C. “I promise to pay B or order Rs. 500”.
D. None of the above

4:- In a Promissory Note, how many parties are involved:
A. One
B. Two
C. Three
D. Four

5:- Which is NOT correct about the “Promissory Note”:
A. It contains a conditional undertaking.
B. It contains the amount mentioned on it.
C. It is an instrument in writing.
D. It is signed by the maker

6:- The Negotiable Instruments Act, 1881 extends to:
A. Only to Capital cities of the States.
B. The whole of India.
C. The whole of India except the State of Jammu and Kashmir.
D. The whole of India except the Union Territories.

7:- Which is a “Promissory Note”:
A. I promise to pay B Rs. 500 and to deliver to him my black horse on 1st January next.
B. I promise to pay B Rs. 500 seven days after my marriage withC.
C. “I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value received.”
D. I promise to pay B Rs. 500 on D’s death, provided D leaves me enough to pay that sum.

8:- Section 5 of the NI Act deals with:
A. Bills of Exchange
B. Holder in due course
C. Cheque
D. Promissory Note

9:- A ‘Cheque’ is a Bills of exchange and has been defined under:
A. The Negotiable Instruments Act, 1881
B. The General Clauses Act, 1897
C. The Reserve Bank of India Act, 1934
D. The Banking Regulation Act, 1949

10:- In an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of or compensation awarded by the trial Court:
A. Ten per cent of the fine
B. Fifteen per cent of the fine
C. Twenty per cent of the fine
D. Twenty five per cent of the fine

11:- The interim compensation payable under section 143 A may be recovered as if it were a fine:
A. As if it is a decree of a court
B. As per the provisions of Income Tax act, 1961
C. As per the provisions of the Code of Criminal Procedure, 1973
D. None of the above

12:- All offences under Chapter XVII shall be tried by:
A. A Metropolitan Magistrate
B. A Judicial Magistrate of the first class
C. Either A or B
D. None of the above

13:- Which court can entertain any offence punishable under section 138:
A. Court not inferior to that of a Judicial Magistrate of the first class
B. Any court having jurisdiction may entertain such case
C. Court not inferior to that of a Metropolitan Magistrate
D. Options A and C are correct

14:- The liability of the drawer of a foreign bills of exchange is regulated in all essential matters by the law of the place where:
A. The instrument has been negotiated
B. The instrument has been endorsed
C. The instrument is payable
D. The instrument is made

15:- When a bill is said to be dishonoured:
A. Where presentment is excused and the bill is not accepted
B. One of several drawees makes default in acceptance upon being duly required to accept the bill
C. By non-acceptance by the drawee
D. All of the above

16:- What are the liabilities of a collecting banker:
A. To serve notice of dishonour on the customer so that customer can claim the amount from his debtors
B. To present cheque within a reasonable time else liable for damages
C. To handover the proceeds after the realisation without delay
D. All of the above

17:- Where the holder of an instrument endorses it in a manner that does not incur any liability as an endorser, such endorsement is called as:
A. Sans recourse Endorsement
B. Conditional endorsement
C. Facultative endorsement
D. Restrictive Endorsement

18:- A promissory note, bill of exchange or cheque payable to order, is negotiable:
A. By endorsement and delivery thereof
B. By the holder by endorsement
C. By delivery thereof
D. None of the above

19:- When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due:
A. On the same day
B. On the next preceding business day
C. On the next business day
D. On the next succeeding business day

20:- A negotiable instrument, dated 30th August, 2017, is made payable three months after date. What will be the maturity date:
A. The instrument is at maturity on the 1 December, 2017
B. The instrument is at maturity on the 2nd December, 2017
C. The instrument is at maturity on the 3rd December, 2017
D. The instrument is at maturity on the 4 December, 2017

21:- Instrument entitled to ‘period of grace’ is:
A. a bill or note payable on demand
B. a cheque
C. a bill or note in which no time is mentioned
D. a bill or note payable ‘after sight’

22:- When a promissory note or bill of exchange are payable, in which no time for payment is specified:
A. They are payable within 3 months
B. They are payable within 6 months
C. They are payable on demand
D. They are payable within a reasonable time

23:- Where an instrument may be construed either as a promissory note or bill of exchange:
A. A void instrument
B. A valid negotiable instrument
C. It is called as ambiguous instrument
D. It is called as unambiguous instrument

24:- When a promissory note, bill of exchange or cheque is transferred to any person, so as to constitute the person the holder thereof, the instrument is said to be:
A. Mortgaged
B. Assigned
C. Negotiated
D. Pledged

25:- Which section of the NI Act defines the words, ‘Negotiable Instrument’:
A. Section 15
B. Section 14
C. Section 13A
D. Section 13

26:- A promissory note, bill of exchange or cheque is payable__________which is expressed to be so payable or on which the only or last endorsement is an endorsement in blank:
A. to order
B. to bearer
C. holder in due course
D. holder

27:- A promissory note, bill of exchange or cheque drawn or made out of India and made payable in, or drawn upon any person resident in India shall be deemed to be:
A. Incomplete instrument
B. Inchoate instrument
C. Foreign instrument
D. Inland instrument

28:- A ‘Holder in due course’ of a Negotiable Instrument:
A. Can sue on the instrument in his own name
B. Can sue only if permitted by the competent court of law
C. Can sue on the instrument if permitted by the payee
D. Cannot sue on the instrument in his own name

29:- Who is entitled at the time of loss or destruction of a note, bill or cheque:
A. Drawee
B. Drawer
C. Holder
D. Payee

30:- The “holder” of a promissory note, bill of exchange or cheque means:
A. Any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto
B. Any person entitled in his own name or his agent to the possession thereof and to receive or recover the amount due thereon from the parties thereto
C. Any person having the possession of such instrument and to receive or recover the amount due thereon from the parties thereto
D. Any person holding the physical custody of such instruments

31:- The maker of a bill of exchange or cheque is called:
A. The drawee
B. The payee
C. The drawer
D. The banker

32:- A cheque is a ……………………….drawn upon a specified banker and payable on demand:
A. Bill of exchange
B. Hundi
C. Promissory note
D. None of the above

33:- What is NOT true about the “bills of exchange”:
A. It is an instrument in writing
B. It is signed by the maker
C. Certain sum of money is mentioned on the instrument
D. It contains a conditional order

34:- The definition of ‘Promissory Note’ has been defined in the NI Act in:
A. Section 7
B. Section 6
C. Section 5
D. Section 4

35:- The NI Act, 1881 came into force with effect from:
A. First day of April, 1882
B. First day of April, 1881
C. First day of March, 1882
D. First day of March, 1881

36:- A “promissory note” is an instrument to pay a certain sum of money:
A. to the order of, a certain person, or to the bearer of the instrument
B. To the bearer of the instrument
C. To the order of, a certain person
D. None of the above

37:- The nature of “promissory note” is:
A. It contains an unconditional order to the drawee to pay the payee
B. It contains an unconditional promise by maker to pay the payee
C. It is drawn on specified banker to pay on demand
D. None of the above

38:- In case of “bills of exchange”, the acceptance is:
A. It depends on the case to case basis
B. Necessary if the bill is payable after sight
C. Not necessary
D. None of the above

39:- How many parties are there in the Bills of Exchange:
A. Four
B. Three
C. Two
D. One

40:- What is NOT true about a cheque:
A. It may contain a conditional order
B. Cheque must be signed by the maker
C. The cheque must contain the date
D. The amount must be specifically mentioned in figures and words

41:- The person who is directed by the maker of a bill of exchange or cheque to pay is called the:
A. Payee
B. Drawee
C. Endorsee
D. Drawer

42:- The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the:
A. Banker
B. Drawee
C. Drawer
D. Payee

43:- A Holder in due course is a person who becomes the possessor of the instrument:
A. before maturity
B. for consideration
C. without any notice as to the defect in title of the Transferor
D. all of the above

44:- Inland instrument means:
A. A promissory note, bill of exchange or cheque drawn or made in India and made payable in or drawn upon any person resident in India shall be deemed to be an inland instrument
B. A promissory note, bill of exchange or cheque drawn or made in India and made payable in or drawn upon any person resident outside India shall be deemed to be an inland instrument
C. A promissory note, bill of exchange or cheque drawn or made outside India and made payable in, or drawn upon any person resident in India shall be deemed to be an inland instrument
D. None of the above

45:- A “negotiable instrument” means:
A. cheque payable either to order or to bearer
B. bill of exchange
C. a promissory note
D. all the options are correct

46:- Whether a negotiable instrument may be made payable:
A. In the alternative to one of two
B. To one or some of several payees
C. To two or more payees jointly
D. All the options are correct

47:- Which among the following is a negotiable instrument:
A. Banker’s Demand Draft
B. Currency note
C. Letter of Credit
D. Letter of guarantee

48:- Where the endorser signs his name on the back of the instrument only, the endorsement is said to be:
A. In full
B. In blank
C. Facultative endorsement
D. Conditional endorsement

49:- Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), every offence punishable under the NI Act shall be:
A. Non-compoundable
B. Compoundable
C. Non-bailable
D. Bailable

50:- The interim-compensation shall be paid within…………….. from the date of the order or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the drawer of the cheque:
A. Sixty days
B. Fifty days
C. Forty days
D. Thirty days

51:- Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange?
A. Section 5
B. Section 6
C. Section 4
D. Section 13
e. Section 8

52:- Which of the followings are not the Negotiable Instruments as defined by the Statute?
A. Banker’s Note
B. Promissory Note
C. Bill of Exchange
D. Cheques
e. All of the Instruments are Negotiable Instruments

53:- Which of the following is/are true about the Negotiable Instruments Act, the Promissory Note is …
(I) Definition of Promissory Note is given in section 8 of the Negotiable Instrument Act
(II) Containing an unconditional undertaking
(III) To pay a certain sum of money only to a specific person or the bearer
(IV) The seller is bound to accept the promissory note
(V) A document was written and signed by the payer/maker

a. (I), (II) and (III)
B. (II), (III) and (V)
C. (II), (III), and (IV)
D. (I), (III) and (IV)
e. All of the above

54:- Dishonour of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument Act 1881…
A. Section 90
B. Section 91
C. Section 92
D. Section 93
e. Section 94

55:- 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. 30%
D. 33%
e. 20%

56:- Which of the following is/are true about Bill of Exchange?
(I) A bill of exchange requires in its inception two parties.
(II) A bill of exchange or “draft” is a written order by the drawer to the drawee to pay money to the payee.
(III) Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date.
(IV) Definition of ‘Bill of Exchange’ is mentioned in Section 6 of the Negotiable Instrument Act.

a. (I) and (IV)
B. (I), (II) and (IV)
C. (II) and (III)
D. (III) and (IV)
e. All of the above

57:- If the holder of a bill of exchange allows the drawee more than ___ hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder.
A. 24
B. 12
C. 36
D. 48
e. 60

58:- Section 6 of the Negotiable Instruments Act defines ___
A. Cheque
B. Bill of Exchange
C. Promissory Notes
D. Dishonour by non-payment
e. Dishonour by non-acceptance

59:- If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __
A. All the parties except minor
B. All the parties including minor
C. Minor Only
D. Minor and Only Drawer
e. Minor and the Drawee

60:- Which of the following is/are false about Dishonour of Cheque?
(I) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in the account.
(II) Such cheque has been presented to the bank within a period of twelve months from the date on which it is drawn or within the period of its validity, whichever is earlier
(III) Imprisonment for such offence may be extended for period of five year
(IV) Section 138 apply unless – the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

a. (I) and (IV)
B. (II) and (III)
C. (II),(III) and (IV)
D. Only (IV)
e. Only (III)

61:- The Negotiable Instruments Act, 1881 is an Act to define and amend the law relating to:
A. cheques
B. bills of exchange
C. promissory notes
D. All of the above

62:- “Banker” includes:
A. Any person acting as an employee of any bank and any post office saving bank
B. Any person acting as a banker and any post office saving bank
C. Any person acting as an agent of any bank and any post office saving bank
D. Any person acting as a Managing Director of any bank and any post office saving bank

63:- Which is NOT an example of “Promissory Note”:
A. “I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value received.”
B. “Mr B, I.O.U Rs. 1,000.”
C. “I promise to pay B or order Rs. 500”
D. None of the above

64:- In a Promissory Note, how many parties are involved:
A. One
B. Two
C. Three
D. Four

65:- Which is NOT correct about the “Promissory Note”:
A. It contains a conditional undertaking
B. It contains the amount mentioned on it
C. It is an instrument in writing
D. It is signed by the maker

66:- The Negotiable Instruments Act, 1881 extends to:
A. Only to Capital cities of the States
B. The whole of India
C. The whole of India except the State of Jammu and Kashmir
D. The whole of India except the Union Territories

67:- Which is a “Promissory Note”?
A. I promise to pay B Rs. 500 and to deliver to him my black horse on 1st January next
B. I promise to pay B Rs. 500 seven days after my marriage with C
C. “I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value received.”
D. I promise to pay B Rs. 500 on D’s death, provided D leaves me enough to pay that sum

68:- Section 5 of the NI Act deals with:
A. Bills of Exchange
B. Holder in due course
C. Cheque
D. Promissory Note

69:- A ‘Cheque’ is a Bills of exchange and has been defined under:
A. The Negotiable Instruments Act, 1881
B. The General Clauses Act, 1897
C. The Reserve Bank of India Act, 1934
D. The Banking Regulation Act, 1949

70:- In an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of or compensation awarded by the trial Court:
A. Ten per cent of the fine
B. Fifteen per cent of the fine
C. Twenty per cent of the fine
D. Twenty five per cent of the fine

71:- The interim compensation payable under section 143 A may be recovered as if it were a fine:
A. As if it is a decree of a court
B. As per the provisions of Income Tax Act, 1961
C. As per the provisions of the Code of Criminal Procedure, 1973
D. None of the above

72:- All offences under Chapter XVII shall be tried by:
A. A Metropolitan Magistrate
B. A Judicial Magistrate of the first class
C. Either A or B
D. None of the above

73:- Which court can entertain any offence punishable under section 138:
A. Court not inferior to that of a Judicial Magistrate of the first class
B. Any court having jurisdiction may entertain such case
C. Court not inferior to that of a Metropolitan Magistrate
D. Options A and C are correct

74:- The liability of the drawer of a foreign bills of exchange is regulated in all essential matters by the law of the place where:
A. The instrument has been negotiated
B. The instrument has been endorsed
C. The instrument is payable
D. The instrument is made

75:- When a bill is said to be dishonoured:
A. Where presentment is excused and the bill is not accepted
B. One of several drawees makes default in acceptance upon being duly required to accept the bill
C. By non-acceptance by the drawee
D. All of the above

76:- What are the liabilities of a collecting banker:
A. To serve notice of dishonour on the customer so that customer can claim the amount from his debtors
B. To present cheque within a reasonable time else liable for damages
C. To handover the proceeds after the realisation without delay
D. All of the above

77:- Where the holder of an instrument endorses it in a manner that does not incur any liability as an endorser, such endorsement is called as:
A. Sans recourse Endorsement
B. Conditional endorsement
C. Facultative endorsement
D. Restrictive Endorsement

78:- A promissory note, bill of exchange or cheque payable to order, is negotiable:
A. By endorsement and delivery thereof
B. By the holder by endorsement
C. By delivery thereof
D. None of the above

79:- When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due:
A. On the same day
B. On the next preceding business day
C. On the next business day
D. On the next succeeding business day

80:- A negotiable instrument, dated 30th August, 2017, is made payable three months after date. What will be the maturity date:
A. The instrument is at maturity on the 1 December, 2017
B. The instrument is at maturity on the 2nd December, 2017
C. The instrument is at maturity on the 3rd December, 2017
D. The instrument is at maturity on the 4 December, 2017

81:- Instrument entitled to ‘period of grace’ is:
A. a bill or note payable on demand
B. a cheque
C. a bill or note in which no time is mentioned
D. a bill or note payable ‘after sight’

82:- When a promissory note or bill of exchange are payable, in which no time for payment is specified:
A. They are payable within 3 months
B. They are payable within 6 months
C. They are payable on demand
D. They are payable within a reasonable time

83:- Where an instrument may be construed either as a promissory note or bill of exchange:
A. A void instrument
B. A valid negotiable instrument
C. It is called as ambiguous instrument
D. It is called as unambiguous instrument

84:- When a promissory note, bill of exchange or cheque is transferred to any person, so as to constitute the person the holder thereof, the instrument is said to be:
A. Mortgaged
B. Assigned
C. Negotiated
D. Pledged

85:- Which section of the NI Act defines the words, ‘Negotiable Instrument’:
A. Section 15
B. Section 14
C. Section 13A
D. Section 13

86:- A promissory note, bill of exchange or cheque is payable__________which is expressed to be so payable or on which the only or last endorsement is an endorsement in blank:
A. to order
B. to bearer
C. holder in due course
D. holder

87:- A promissory note, bill of exchange or cheque drawn or made out of India and made payable in, or drawn upon any person resident in India shall be deemed to be:
A. Incomplete instrument
B. Inchoate instrument
C. Foreign instrument
D. Inland instrument

88:- A ‘Holder in due course’ of a Negotiable Instrument:
A. Can sue on the instrument in his own name
B. Can sue only if permitted by the competent court of law
C. Can sue on the instrument if permitted by the payee
D. Cannot sue on the instrument in his own name

89:- Who is entitled at the time of loss or destruction of a note, bill or cheque:
A. Drawee
B. Drawer
C. Holder
D. Payee

90:- The “holder” of a promissory note, bill of exchange or cheque means:
A. Any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto
B. Any person entitled in his own name or his agent to the possession thereof and to receive or recover the amount due thereon from the parties thereto
C. Any person having the possession of such instrument and to receive or recover the amount due thereon from the parties thereto
D. Any person holding the physical custody of such instruments

91:- The maker of a bill of exchange or cheque is called:
A. The drawee
B. The payee
C. The drawer
D. The banker

92:- A cheque is a ……………………….drawn upon a specified banker and payable on demand:
A. Bill of exchange
B. Hundi
C. Promissory note
D. None of the above

93:- What is NOT true about the “bills of exchange”:
A. It is an instrument in writing
B. It is signed by the maker
C. Certain sum of money is mentioned on the instrument
D. It contains a conditional order

94:- The definition of ‘Promissory Note’ has been defined in the NI Act in:
A. Section 7
B. Section 6
C. Section 5
D. Section 4

95:- The NI Act, 1881 came into force with effect from:
A. First day of April, 1882
B. First day of April, 1881
C. First day of March, 1882
D. First day of March, 1881

96:- A “promissory note” is an instrument to pay a certain sum of money:
A. To the order of a certain person, or to the bearer of the instrument
B. To the bearer of the instrument
C. To the order of a certain person
D. None of the above

97:- The nature of “promissory note” is:
A. It contains an unconditional order to the drawee to pay the payee
B. It contains an unconditional promise by maker to pay the payee
C. It is drawn on specified banker to pay on demand
D. None of the above

98:- In case of “bills of exchange”, the acceptance is:
A. The acceptance is
B. It depends on the case-to-case basis; necessary if the bill is payable after sight
C. Not necessary
D. None of the above

99:- How many parties are there in the Bills of Exchange:
A. Four
B. Three
C. Two
D. One

100:- What is NOT true about a cheque:
A. It may contain a conditional order
B. Cheque must be signed by the maker
C. The cheque must contain the date
D. The amount must be specifically mentioned in figures and words

101:- The person who is directed by the maker of a bill of exchange or cheque to pay is called the:
A. Payee
B. Drawee
C. Endorsee
D. Drawer

102:- The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the:
A. Banker
B. Drawee
C. Drawer
D. Payee

103:- A Holder in due course is a person who becomes the possessor of the instrument:
A. Before maturity
B. For consideration
C. Without any notice as to the defect in title of the Transferor
D. All of the above

104:- Inland instrument means:
A. A promissory note, bill of exchange or cheque drawn or made in India and made payable in or drawn upon any person resident in India shall be deemed to be an inland instrument
B. A promissory note, bill of exchange or cheque drawn or made in India and made payable in or drawn upon any person resident outside India shall be deemed to be an inland instrument
C. A promissory note, bill of exchange or cheque drawn or made outside India and made payable in, or drawn upon any person resident in India shall be deemed to be an inland instrument
D. None of the above

105:- A “negotiable instrument” means:
A. Cheque payable either to order or to bearer
B. Bill of exchange
C. A promissory note
D. All the options are correct

106:- Whether a negotiable instrument may be made payable:
A. In the alternative to one of two
B. To one or some of several payees
C. To two or more payees jointly
D. All the options are correct

107:- Which among the following is a negotiable instrument:
A. Banker’s Demand Draft
B. Currency note
C. Letter of Credit
D. Letter of guarantee

108:- Where the endorser signs his name on the back of the instrument only, the endorsement is said to be:
A. In full
B. In blank
C. Facultative endorsement
D. Conditional endorsement

109:- Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), every offence punishable under the NI Act shall be:
A. Non-compoundable
B. Compoundable
C. Non-bailable
D. Bailable

110:- The interim-compensation shall be paid within __________ from the date of the order or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the drawer of the cheque:
A. Sixty days
B. Fifty days
C. Forty days
D. Thirty days

111:- The Court trying an offence under section 138 may order the drawer of the cheque to pay interim compensation to the complainant, which shall:
A. Not exceed ten per cent of the amount of the cheque
B. Not exceed fifteen per cent of the amount of the cheque
C. Not exceed twenty per cent of the amount of the cheque
D. Not exceed twenty five per cent of the amount of the cheque

112:- In the case of any conviction in a summary trial under section 143, it shall be lawful for the Magistrate to pass a sentence of imprisonment for a term:
A. Not exceeding two years and an amount of fine exceeding five thousand rupees
B. Not exceeding one year and an amount of fine exceeding five thousand rupees
C. Not exceeding six months and an amount of fine exceeding five thousand rupees
D. Not exceeding one month and an amount of fine exceeding five thousand rupees

113:- With respect to multicity cheque dishonor, the offence under section 138 shall be inquired into and tried only by a court within whose local jurisdiction:
A. 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
B. 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
C. Both the options A and B are correct
D. None of the above

114:- Notwithstanding anything contained in the Code of Criminal Procedure, 1973, 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, and such complaint is made within the date on which the cause of action arises under clause (c) of the proviso to section 138:
A. Within three months
B. Within two months
C. Within one month
D. Within fifteen days

115:- For invoking section 138 of NI Act, the payee or the holder in due course of the cheque, as the case may be, shall have to make a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, of the receipt of information by him from the bank regarding the return of the cheque as unpaid:
A. Within five days
B. Within ten days
C. Within fifteen days
D. Within twenty days

116:- What are the conditions for availing statutory protections available to a banker under section 131:
A. The payment is received for a customer of the Bank
B. Cheque is crossed generally or specially before it is presented to the paying bank
C. Banker has in good faith and without negligence received payment
D. All of the above

117:- The protection to paying bank for crossed cheque is covered under which section of NI Act:
A. Section 138
B. Section 131
C. Section 128
D. Section 85

118:- Section 118 of the NI Act deals with the presumptions as to negotiable instruments until the contrary is proved. Which among the following is NOT such presumption:
A. As to stamps – that a lost promissory note, bill of exchange or cheque was not duly stamped
B. As to date – that every negotiable instrument bearing a date was made or drawn on such date
C. As to time of acceptance – that every accepted bill of exchange was accepted within a reasonable time after its date and before its maturity
D. As to time of transfer – that every transfer of a negotiable instrument was made before its maturity

119:- When no rate of interest is specified in the instrument, interest on the amount due thereon shall, notwithstanding any agreement relating to interest between any parties to the instrument, be calculated from the date at which the same ought to have been paid by the party charged, until tender or realization of the amount due thereon, or until such date after the institution of a suit to recover such amount as the Court directs:
A. At the rate of six per centum per annum
B. At the rate of twelve per centum per annum
C. At the rate of eighteen per centum per annum
D. At the rate of twenty-four per centum per annum

120:- What is the liability of a banker when a cheque has been materially altered but does not appear to have been so altered, and payment thereof has been made according to the apparent tenor thereof at the time of payment and otherwise in due course:
A. The banker shall be liable to make good the loss suffered by the customer
B. The banker shall discharge from all liability thereon, and such payment shall not be questioned by reason of the instrument having been altered
C. The concerned official of the bank will be charge sheeted
D. The banker shall be liable for such wrong payment of the cheque which has been so altered

121:- Under which section a paying banker is protected where a cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee bank is discharged by payment in due course:
A. Section 131
B. Section 86
C. Section 85A
D. Section 85

122:- Who can make negotiation of a negotiable instrument? Which is not the right of a holder:
A. All of several joint makers, drawers, payees or indorsees
B. Sole maker, drawer, payee or indorsee
C. Both A and B are correct
D. None of the above

123:- Where an endorsement by express words restricts or excludes the right of further negotiability of the instrument, it is called:
A. Blank endorsement
B. Partial endorsement
C. Conditional endorsement
D. Restrictive endorsement

124:- The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque must pay the cheque when duly required so to do, and, in default of such payment, must compensate the drawer for any loss or damage caused by such default. This is governed by which section of the NI Act:
A. Section 131
B. Section 85
C. Section 31
D. Section 30

125:- A promissory note or bill of exchange, dated 31st August, 2017, is made payable three months after date. What will be the maturity date:
A. The instrument is at maturity on the 1 December, 2017
B. The instrument is at maturity on the 2 December, 2017
C. The instrument is at maturity on the 3 December, 2017
D. The instrument is at maturity on the 4 December, 2017

126:- A negotiable instrument dated 29 January, 2018, is made payable at one month after date. What will be its maturity date:
A. The instrument is at maturity on the 28 February, 2018
B. The instrument is at maturity on the second day after the 28th February, 2018
C. The instrument is at maturity on the third day after the 28 February, 2018
D. The instrument is at maturity on the fourth day after the 28 February, 2018

127:- The days of grace of maturity of promissory note or bill of exchange is:
A. The maturity day after the day on which it is expressed to be payable
B. The second day after the day on which it is expressed to be payable
C. The third day after the day on which it is expressed to be payable
D. The fourth day after the day on which it is expressed to be payable

128:- Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in India, and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete, as the case may be, upon it a negotiable instrument, for any amount specified therein and not exceeding the amount covered by the stamp. What is this called under the NI Act:
A. Complete instrument
B. Indorsement
C. Inchoate stamped instrument
D. None of the above

129:- Where the amount mentioned on the cheque differs in words and figures, which amount should be considered:
A. The amount stated in figures
B. The amount stated in words
C. Both A and B are not correct and cheque is required to be returned
D. It depends upon the discretion of the banker

130:- When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to indorse the same. This activity is called as:
A. Selling of instrument
B. Endorsement
C. Transfer of instrument
D. None of the above

131:- Who is called as Drawee in case of need:
A. When the bill or in any endorsement thereon the name of any person is given in addition to the drawee to be resorted to in case of need, such person is called a “drawee in case of need”
B. When the bill or in any endorsement thereon the name of any person is given, is called a “drawee in case of need”
C. When the drawee have the need of the bills of exchange
D. When the bill or in any endorsement thereon the names of more than one person is given in addition to the drawee to be resorted to in case of need, such person is called a “drawee in case of need”

132:- Define Cheque:
A. A “cheque” is a bill of exchange drawn on any banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form
B. A “cheque” is a bill of exchange and expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form
C. A “cheque” is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form
D. A “cheque” is a bill of exchange drawn on a specified banker and it includes the electronic image of a truncated cheque and a cheque in the electronic form

133:- What is ‘bills of exchange’:
A. A “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument
B. A “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing any person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument
C. A “bill of exchange” is an instrument in writing containing a conditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument
D. A “bill of exchange” is an instrument containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument

134:- A promissory note, bill of exchange or cheque payable to bearer is negotiable:
A. By blank indorsement
B. By indorsement
C. By delivery thereof
D. By restrictive indorsement

135:- The term ‘legal representative’ in section 29 of the Negotiable Instruments Act, 1881
A. Does not include executors or administrator (Rama v. Praoin, AIR 1926 Mad 389)
B. Includes executors or administrator (K. Subbanna v. K. Subbarayudu, AIR 1926 Mad 390)
C. Includes executors but does not include administrators (P. Nayar v. T. Ramanna, AIR 1929 Mad 389)
D. Includes only administrators but does not include executors (P. K. Pati v. Damodar Sahu, AIR 1953 Ori 179)

136:- In the case of a promissory note which is not negotiable
A. Notice of dishonour is compulsory
B. No notice of dishonour is necessary
C. Negotiable Instruments Act is silent on this aspect
D. Indorsement is necessary

137:- The endorsement of a negotiable instrument is followed by delivery
A. Yes
B. No
C. Both (A) and (B)
D. None of the above

138:- ‘Truncated Cheque’ is dealt within which section of the Negotiable Instruments Act, 1881?
A. Section 5
B. Section 6
C. Section 7
D. Section 8

139:- Presumption under Section 139 of the Negotiable Instruments Act, 1881 is in respect of-
A. That the cheque was signed by the accused
B. That the cheque was dishonoured by the banker
C. That the cheque was issued for discharge of any debt
D. That the cheque is valid under banking laws

140:- Under section 118 of the Negotiable Instruments Act, 1881, it is presumed, until the contrary is proved, that every transfer of a negotiable instrument was made
A. After its maturity
B. Before its maturity
C. At its maturity
D. None of the above

141:- An offence under section 138 of Negotiable Instruments Act is Compoundable
A. If the cheque amount is upto one lakh rupees
B. If the cheque amount is upto five lakhs rupees
C. If the cheque amount is upto ten lakhs rupees
D. Cheque of any amount

142:- Chapter XVII was inserted into the Negotiable Instruments Act, 1881 by the Amendment of the Act in the year:
A. 1888
B. 1988
C. 1998
D. 1989

143:- Under Section 143 of the Negotiable Instruments Act, 1881 the trial shall be made to conclude after filing of complaint within ……….. period?
A. 2 months
B. 4 months
C. 6 months
D. 8 months

144:- Which one of the following Sections of the Negotiable Instruments Act empowers the Judicial Magistrate of the First Class or Metropolitan Magistrate to try the offence relating to dishonour of cheque for insufficiency etc.?
A. Section 143(1)
B. Section 143(2)
C. Section 143(3)
D. Section 143(4)

145. 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

146. 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 toA. 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

147. 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

148. 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

149. 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 itself or its literal transcript
D. All of the above

150. 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

151. 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

152. 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

153. 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

154. 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

155. Match List-I with List-II and give the correct answer by using the given below the lists:
List-I                List-II
A. Decision given by the Permanent Court of Arbitration    1. The Right of Minorities in the upper Silesia (Minority schools)
B. The principle/doctrine of Forum Progratum was enunciated in the case    2. Pious Fund case
C. A leading case on “reprisal” is:    3. The Asylum (Colombia v. Peru) Case
D. Case decided by International Court of Justice under ‘Contentious Jurisdiction’    4. Naulilaa incident

A. a-2, b-1, c-4, d-3
B. a-1, b-2, c-3, d-4
C. a-3, b-4, c-1, d-2
D. a-4, b-3, c-2, d-1

156. A cheque can be presented, within a period of six months from the date on which it is drawn:
A. Only once
B. Two times only
C. Four times only
D. Any number of times

157. The offence of ‘dishonour’ of cheque excludes –
A. Strict liability
B. Absolute liability
C. Mens rea
D. All of the above

158. Which provision of the Act deals with the effect of declaration –
A. Section 33
B. Section 35
C. Section 36
D. Section 32

159. Read the following statements:
(1) There is a rebuttable presumption that a cheque bearing a date was made or drawn on such date.
(2) It cannot be presumed that the holder of a cheque is a holder in due course.
(3) There is an irrebuttable presumption that the cheque was made or drawn for consideration.

Select the correct answer:
A. All three above statements are correct
B. Only first statement is correct
C. The first and second statements are correct
D. None of the above

160. The dishonour of cheque is punishable if it is dishonoured due to:
A. Insufficient Balance in drawer’s account
B. Account closed by drawer
C. Stop payment by drawer
D. All of these

161. Every trial under Section 143 of the Negotiable Instruments Act shall be conducted as expeditiously as possible and an endeavour shall be made to conclude the trial:
A. Within three months from the date of filing of the complaint
B. Within one month from the date of filing of the complaint
C. Within six months from the date of filing of the complaint
D. Within one year from the date of filing of the complaint

162. In which of the following, the Hon’ble Supreme Court held that in a case arising from Negotiable Instruments Act, successive sentences may be directed to run concurrently if both transactions are part of single transaction?
A. (2010) 5 SCC 663, Damodar S. Prahbu v. Sayed Babalal H.
B. (2016) 3 SCC 1, Done Ayengia v. State of Assam & Ors.
C. (2009) 1 SCC 706, Mahindra & Mahindra Financial Services Ltd. & Anr. v. Rajiv Dubey
D. (2016) 10 SCC 761, Shyam Pal v. Dayawati Besoya & Ors.

163. In which of the following case, the Supreme Court held that for rebutting statutory presumption under Section 118(a) and 139 of the Act, the evidence adduced on behalf of the complainant could be relied upon?
A. Prem Chand Vijay Kumar v. Yashpal Singh
B. K. Bhaskaran v. Sankaran Vaidhyan Balan
C. Goa Plast Ltd. v. Chico Ursula D’Souza
D. M. S. Narayana Menon v. State of Kerala

164. What is main objective of Section 138 of Negotiable Instruments Act
A. Recovery of stolen property
B. Recovery of seized vehicles from RTO
C. Recovery of the cheque amount in case cheque issued by the payer is bounced
D. None of the above

165. The liability under section 138 of the Negotiable Instruments Act, 1881 is
A. Strict liability
B. Vicarious liability
C. Both (A) and (B)
D. None of the above

166. A person who receives a negotiable instrument in good faith for valuable consideration is known as
A. Holder of value
B. Holder
C. Holder in rights
D. Holder in due course

167. How much punishment is provided under Section 138 of Negotiable Instruments Act, 1881?
A. Imprisonment for term which may extend to two years or with fine which may extend to twice the amount of the cheque or with both
B. Imprisonment for term which may extend to one year or with fine which may extend to twice the amount of the cheque or with both
C. Imprisonment for term which may extend to two years or with fine which may extend to twice the amount of the cheque
D. Only imprisonment for term which may extended to two years

168. In which of the following case the Supreme Court held that the persons who are sought to be made vicariously liable for a criminal offence under section 141 should be at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company. Every person connected with the company shall not fall within the ambit of the provision?
A. National Small Industries Corporation Ltd. v. Harmeet Singh Paintal, (2010) 3 SCC 330
B. State of Bihar v. Kalyanpur Cement Ltd. (2010) 3 SCC 274
C. Rakesh Kumar v. U.P.I.D.C. Ltd., AIR 2010 SC 2451
D. None of the above

169. Crossing of cheque affects the
A. Negotiability of the cheque
B. Mode of payment on the cheque
C. Both (A) and (B)
D. None of the above

170. Under Section 118 of Negotiable Instruments Act, 1881, what presumption shall not be made?
A. The holder of a cheque received the cheque for the discharge of any debt or other liability
B. Consideration
C. Time of acceptance
D. Order of indorsements

171. In a promissory note, the amount of money payable
A. Must be certain
B. May be certain or uncertain
C. Is usually uncertain
D. None of the above

172. The date of maturity of a bill payable hundred days after sight and which is presented for sight on 4th May, 2017, is (as per the provisions of the Negotiable Instruments Act, 1881):
A. 13th August, 2017
B. 14th August, 2017
C. 15th August, 2017
D. 16th August, 2017

173. Which of the following is not a Bill of Exchange?
A. Share
B. Demand Draft
C. Post-dated Cheque
D. None of these

174. Which of the following presumption is prescribed under section 118 Negotiable Instruments Act?
A. Of consideration
B. As to date
C. As to time of acceptance
D. All of these

175. Validity of Cheque is 6 months.
A. True
B. False
C. Partly true
D. Partly false

176. 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

177. 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

178. The term ‘Negotiable instrument’ is defined in the Negotiable Instruments Act, 1881, under section
A. 12
B. 13
C. 13A
D. 13B

179. 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

180. 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

181. 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

182. 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 to be due on the . . . . . . . . .
A. Said public holiday
B. 5 days succeeding public holiday
C. Next succeeding business day
D. Next preceding business day

183. Following is not the essential condition 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 in possession or control of the defendant

184. 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

185. In a prosecution under Section 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 debt 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

186. 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

187. The criminal complaint for dishonour of cheque is to be filed in court within . . . . . . . . of the Drawer failing to pay.
A. 30 days
B. 1 month
C. Both (A) and (B)
D. None of them

188. Which Section of the Negotiable Instruments Act defines “Negotiable Instruments”?
A. Section 4
B. Section 6
C. Section 11
D. Section 13

189. 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

190. Dishonour of cheque for insufficiency of funds etc. in the account relates 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

191. 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

192. 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

193. 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

194. The hirer of a 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

195. 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

196. 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.

197. 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 signing by the drawer
D. 3 years from the date of presentment

198. Drawer and payee in a Bill of exchange may be same parties.
A. True
B. False
C. Partly true
D. Partly false

199. 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

200. 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 representatives in case of death of drawee

201. ‘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 sums which shall be due to him
C. I promise to pay ‘B’ Rs. 5000/- first deducting there out any money which he may owe me
D. I promise to pay ‘B’ Rs. 5000/- ten days after my marriage with ‘C’

202. 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

203. 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

204. 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

205. Which of the following is a correct statement of law as per Sections 138 and 142 of the Negotiable Instruments Act, 1881?
A. A cheque is to be presented to the bank within a period of six months from the date it is drawn or within the period of its validity, whichever is earlier
B. Notice within thirty days of receipt of information from the bank regarding return of cheque as unpaid, has to be served upon drawer, demanding payment of amount of money
C. On failure of drawer of such cheque to make payment within fifteen days of receipt of such notice, the payee or holder of cheque has to file complaint within one month thereof
D. All the above

206. In which of the following judgments has the Supreme Court held that only those courts within whose territorial limits the drawee bank is situated, would have jurisdiction to try the cases for offence under Section 138 of the Negotiable Instruments Act, 1881?
A. K. Bhaskaran v. Sankaran Vaidhyan Balan and Another, (1999) 7 SCC 510
B. Dashrath Rupsingh Rathod v. State of Maharashtra and Another, (2014) 9 SCC 129
C. State of Bihar and Others v. Kalyanpur Cement Limited, (2010) 3 SCC 274
D. None of the above

207. Can the Magistrate order an investigation on the allegation of an offence under Section 138 of Negotiable Instruments Act?
A. Yes
B. No
C. Depends
D. None of the above

208. In which of the following cases the Supreme Court held that the provisions of Section 141 of the Negotiable Instruments Act, 1881 do not contain a condition that the prosecution of a company is sine qua non for prosecution of other persons. The liability of the Directors/Officers etc. is vicarious and will flow from the liability of the company/firm.
A. Narsing Das Tapadia v. Govardhan Das Pattani
B. Saketh India Ltd. v. India Securities Ltd.
C. K. G. Sharma v. Pratap Autowheels
D. Mohd. Isaq Gulsani v. Rajamouli

209. Under Section 118 of the Negotiable Instruments Act, the onus of proving absence of consideration in the execution of a negotiable instrument is on the
A. Indorser (Zohra Jan v. Rajan Bibi, 28 IC 402)
B. Executant (Zohra Jan v. Rajan Bibi, 28 IC 402)
C. Drawee (R. S. Rajeswara Sethupathi v. Chidambaram Chettiar, AIR 1938 PC 123)
D. None of the above

210. Can a drawer escape from his liability?
A. No, a drawer can never escape from his liability
B. Yes, a drawer can limit or exclude his liability by inserting in the bill an express stipulation to that effect
C. In certain cases although he can escape from his liability but always he cannot so escape
D. None of the above

211. The indorsement of a negotiable instrument followed by delivery
A. Transfers to the indorsee the property in the bill, provided the indorsement must be an indorsement in full
B. Does not transfer the property in the bill to anyone
C. Transfers to the indorsee the property in the bill
D. Transfers to the holder the property in bill

212. Who is entitled to make a complaint for taking cognizance of the offence under Section 138 of the Negotiable Instruments Act, 1881?
A. A public spirited citizen
B. The drawee bank
C. Only the holder of the cheque
D. All of these

213. Which of the Section of Negotiable Instruments Act, 1881 provides that “where a person is nominated as a Director of a company by virtue of his holding any office or employment in the Central Government or the State Government, as the case may be, he shall not be held liable for an offence under Section 138 of the Act, committed by a company?”
A. Proviso (one) to Section 141(1)
B. Proviso (two) to Section 141(1)
C. Sub-section 2 of Section 141
D. None of the above

214. A’ signs an instrument in writing as under ‘On demand, I promise to pay ‘B’ the sum of Rs. 10,000′. What is this called?
A. Bill of exchange
B. Simple note
C. Promissory note
D. Cheque

215. The dishonour of Cheque is punishable for a maximum term up to . . . . . . . years.
A. 1 year
B. 5 years
C. 2 years
D. 4 years

216. A cheque drawn on a bank in USA and made payable at USA was presented in Chennai. Can the complaint be filed in Chennai?
A. Yes
B. No
C. Depends
D. None of the above

217. A post-dated cheque remains only a bill of exchange till the date on its face and only from that date it becomes a cheque being payable on demand. The statement is-
A. False
B. True
C. Both (A) and (B)
D. None

218. Read Assertion (A) and Reason (R) and give the correct answer with the help of given below:
Assertion (A): The surety has no right to restrain execution against him until the creditor exhausted all his remedies against the Principal Debtor.
Reason (R): The Liability of the surety is co-extensive with that of the Principal Debtor, unless it is otherwise provided by contract.

A. (A) and (R) are true and (R) is the correct explanation of (A)
B. (A) and (R) are true but (R) is not the correct explanation of (A)
C. (A) is false, but (R) is true
D. (A) is true but (R) is false

219. By the notice for dishonour of cheque the Drawer is to be granted . . . . . . . time for payment.
A. 10 days
B. 30 days
C. 7 days
D. 15 days

220. Match List I with List II and give the correct answer by using the given below:
List-I (Provisions) – List-II (Sections of Negotiable Instruments Act)
A. Cognizance of offences – 1. Section 140
B. Power of Court to try cases summarily – 2. Section 139
C. Defences which may not be allowed in any prosecution under Section 138 – 3. Section 143
D. Presumption in favour of holder – 4. Section 142

A. a-4, b-3, c-1, d-2
B. a-1, b-2, c-3, d-4
C. a-3, b-4, c-2, d-1
D. a-2, b-1, c-4, d-3

221. Where a promissory note is payable by instalments, and two or more instalments have become due, and the holder of the note sues only for one of the instalments and omits to sue for the other instalments.
A. He can afterwards sue for these instalments
B. He cannot afterwards sue for these instalments
C. Either (A) or (B)
D. None of these

222. The Negotiable Instruments Act makes specific mention of three instruments, namely Cheque, Bill of exchange and
A. Promissory note
B. Hundi
C. Bank Draft
D. All of the above

223. What procedure of trial is provided to the Court against the matter related with penalties if comes under any Section of the Chapter XVII of the Negotiable Instruments Act, 1881?
A. Session Trial
B. Summary Trial
C. Warrant Trial
D. Summons Trial

224. As per Section 147 of the Negotiable Instruments Act, 1881, every offence punishable under the Act is
A. Compoundable
B. Non-compoundable
C. Cognizable
D. Both (B) and (C) above

225. Negotiable Instruments Act:- “I promise to pay B Rs. 500, and all other sums which shall be due to him.” This is a –
A. Promissory note
B. Bill of exchange
C. An ambiguous instrument under section 17
D. None of these

226. Drawee in case of need’ has been defined under the Negotiable Instruments Act, 1881 in
A. Section 6
B. Section 9
C. Section 7
D. Section 8

227. Which written instrument signed by the maker is promissory note?
A. Mr. ‘B’ I owe you one thousand rupees
B. Mr. ‘B’ I will pay you ten thousand rupees after my marriage
C. Mr. ‘B’ I will pay you money on demand
D. Mr. ‘B’ I will pay you one thousand rupees on demand

228. What are the defences available against proceedings under section 138 of Negotiable Instruments Act?
A. Absence of a legally enforceable debt or liability
B. Absence of legal notice of 15 days
C. Lack of jurisdiction
D. All of the above

229. For the purposes of Section 141 Negotiable Instruments Act a company does not mean or include
A. A body corporate
B. A firm
C. A proprietary concern
D. An association of individuals

230. Section 16 of Negotiable Instruments Act defines
A. Restrictive endorsement
B. Conditional endorsement
C. Indorsement “in full” and Indorsement “in blank”
D. All the above

231. What is the term used to describe an endorsement in which the endorser excludes his own liability on the negotiable instrument in case of dishonour of the instrument?
A. Partial endorsement
B. Sans recourse endorsement
C. Restrictive endorsement
D. Conditional endorsement

232. In which court, the complainant has to file an appeal against the order of acquittal under Section 138 of the Act?
A. Court of session
B. High Court
C. Chief Judicial Magistrate
D. Either Court of Session or High Court

233. As per the provisions of section 26 of the Negotiable Instruments Act:
A. A minor may draw instrument so as to bind all parties including himself
B. A minor shall not draw instrument so as to bind any party
C. A minor may draw instrument so as to bind all parties except himself
D. A minor shall not indorse instruments

234. BATNA Stands for:
A. Bilateral agreement to negotiation and arbitration
B. Best alternative to a negotiated agreement
C. Bilateral Trade negotiated agreement
D. None of the above