Which of the following statements is false?
A. The defence of non est factum was evolved by the judiciary to save the position of a person who signed a document but could not read it due to his blindness or illiteracy
B. In course of time, the defence of non est factum came to be applied to other areas also besides blindness and illiteracy
C. The doctrine of non est factum applies in case of a misrepresentation inducing a mistaken belief regarding the class and character of a supposed document
D. The doctrine originally applied to the negotiable instruments but it came under criticism and after being overhauled by the House of Lords, it applies only to contracts
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Who, of the followings, are not liable for prosecution under Section 141 of the Negotiable Instruments Act, 1881?
A. Any person nominated as director by virtue of holding any office or employment in Central Government
B. Any person nominated as director by virtue of holding any office or employment in State Government
C. Any person nominated as director by virtue of holding any office or employment a central or state owned or controlled Financial Corporation
D. All of the above
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What is the term used to describe an instrument, which is not discharged even by non-presentation of the instrument to the acceptor for payment?
A. Cheque
B. Bill of exchange
C. Accommodation
D. Bill in sets
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'Indorser' is defined in which section of the Negotiable Instruments Act, 1881?
A. Section 13
B. Section 14
C. Section 15
D. Section 16
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Who as the drawer of a cheque can be prosecuted for non-payment of the cheque due to insufficient funds under section 138 of the Negotiable Instruments Act, 1881:
A. Only a human being
B. Only a body corporate
C. Only a firm
D. All of these
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Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the given below.
Assertion (A): A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Reason (R): Because it is said so under Section 13 of the Negotiable Instruments Act, 1881.
A. Both (A) and (R) are correct and (R) is the correct explanation of (A)
B. (A) is false, but (R) is true
C. Both (A) and (R) are false
D. (A) is true, but (R) is false
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Under Negotiable Instruments Act, 1881, an instrument in writing containing an unconditional under taking, 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 instrument is a . . . . . . . .
A. Promissory Note
B. Bill of Exchange
C. Currency Note
D. Truncated Cheque
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Cheque is a
A. Promissory note
B. Bill of Exchange
C. Both (A) and (B)
D. None of the above
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What is the presumption under section 137 of the Negotiable Instruments Act, 1881?
A. A negotiable instrument drawn in a foreign country is genuine
B. The law of any foreign country regarding promissory notes, bills of exchange and cheques is same as that of India
C. Both (A) and (B)
D. None of the above
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Under Negotiable Instruments Act, "Bill of Exchange" is defined under
A. Section 5
B. Section 10
C. Section 12
D. Section 13
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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. This observation was made by the court in case of
A. Anil Kumar Sawhney v. Gulshan Rai, (1999) 4 SCC 424
B. Anil Kumar Sawhney v. Gulshan Rai, (1993) 4 SCC 424
C. Jogy David v. K. K. Babu, (1998) 94 Comp Cas 711 (Ker)
D. Punna Devi v. John Inpex Pvt. Ltd., (1996) 2 Bank LLR 482
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Which of the following High Court's held that the blank cheque is not a cheque in the eye of law
A. Delhi
B. Bombay
C. Calcutta
D. Allahabad
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A draws a cheque in favour of B, a minor. B endorses it in favour of C and C endorses in favour of D. The cheque is dishonoured. Which of the following is not correct about liabilities of the parties?
A. C and D can claim from B
B. C can claim payment from A
C. D can claim against C and A
D. C and D cannot claim from B
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Maximum sentence of fine which a J.M.F.C. can impose for offence under section 138 of the Negotiable Instruments Act:-
A. Twice the amount of cheque
B. Twenty thousand
C. One lac
D. Ten thousand
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Negotiation by endorsement' has been explained under the Negotiable Instruments Act, 1881 in
A. Section 28
B. Section 38
C. Section 48
D. Section 58
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A bill is drawn payable to 'A' or order. 'A' indorses it to 'B', the indorsement not containing the words "or order" or any equivalent words. Can 'B' negotiate the instrument?
A. Yes
B. No
C. Not always
D. None of the above
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The presumption as to the date of a negotiable instrument under section 118 is that, every negotiable instrument bearing a date was made or drawn
A. Prior to that date
B. On such date
C. May be on or prior to that date
D. None of the above
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Which one of the following is not meant by the term 'Company' for the purpose of the Section 141 of the Negotiable Instruments Act, 1881?
A. A firm
B. Any body corporate
C. Any educational institute
D. Other association of individuals
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Can the holder of a negotiable instrument indorsed in blank convert the indorsement into an indorsement in full?
A. No, such a conversion is not possible under the Negotiable Instruments Act, 1881 (Section 49)
B. Yes, the holder can, without signing his own name, and by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank into an indorsement in full (Section 49)
C. Yes, the holder can by signing his own name and by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank to an indorsement in full (Section 49)
D. None of the above
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A bill of exchange contains a/an
A. Unconditional undertaking
B. Unconditional order
C. Conditional undertaking
D. Conditionalorder
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