A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque is dishonoured by the bank on grounds of inadequate funds. As per the provisions of Negotiable Instruments Act, 1881:

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

M drew a cheque amounting to Rs. 2 lakh payable to N and subsequently delivered to him. After receipt of cheque N endorsed the same to C but kept it in his safe locker. After sometime, N died, and P found the cheque in N's safe locker. State the nature of the Instrument as amounting to indorsement under the Negotiable Instruments Act, 1881.

A

Yes its an endorsement, as P becomes the holder of the cheque that he found in the N's safe locker

B

No, its not an endorsement, as P does not become the holder of the cheque

C

Yes, its an endorsement, as P was a ultimate custodian of the cheque

D

No, its not an endorsement, as Nendorsed it to Cand not to the P

Which Section of the Negotiable Instruments Act, 1881 excludes the defence that the "drawer had no reason to believe when he issued a cheque that it may be dishonoured on presentment for the reasons stated in Section 138 of the Act"?

A

Section 138

B

Section 139

C

Section 140

D

Section 141

Which of the following is/are false about Dishonour of Cheque?
1. Section 138 defines Dishonour of cheque in terms of issues such as insufficiency of funds in the account.
2. 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.
3. Imprisonment for such offence may be extended for period of five year.
4. 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

1 and 4

B

2 and 3

C

2, 3 and 4

D

Only 4

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

A, a bank officer, got compulsorily retired in 2014. Since the bank authorities did not release the leave encashment in his favour, he filed writ petition WP 2001 (W) of 2017 in Ranchi High Court for the same and also for the interest on the unpaid amount. The writ petition was disposed of by a learned Single Judge in December 2018 directing the bank to release the privileged leave encashment benefits to the petitioner to the extent he was entitled to in accordance with law within a certain period. The prayer for interest was not specifically denied by the court. The bank filed an appeal against the order. The Division Bench of Ranchi High Court in February, 2019 declined to admit the appeal. The bank authorities released the leave encashment in favour of the petitioner. However, A files a writ petition again for a direction to the bank to disburse interest to A at the rate of 18% per annum on leave encashment released by the bank. This petition is covered under which of the following?

A

Section II, Code of Civil Procedure

B

Section II, Expl. 5, Code of Civil Procedure

C

Section II, Expl. 4, Code of Civil Procedure

D

Order 2, Rule 2, Code of Civil Procedure

A draws a bill on B for ¹ 500 payable to the order of A. B accepts the bill, but subsequently dishonours it by non-payment. Asues B on the bill. B proves that it was accepted for value as to ¹ 400, and as an accommodation to the plaintiff as to the residue. Thus, as per the provisions of the Negotiable Instruments Act, 1881, A can only recover the following amount:

A

¹ 900

B

¹ 500

C

¹ 400

D

¹ 100

A draws a bill on B. B accepts the bill without any consideration. The bill is transferred to C without consideration. C transferred it to D for value. Decide as per the provisions of the Negotiable Instruments Act, 1881 -

A

D can sue only A

B

D can sue A or B only

C

D can sue any of the parties A, B or C

D

D cannot sue any of the parties A, B or C

Consider the following statements for deflection and null type instruments: 1. Deflection type of instruments are more accurate than null type of instruments. 2. Deflection type of instruments can be highly sensitive as compared with the null type of instruments. 3. Null type of instruments are more suitable for measurements under dynamic conditions than deflection type of instruments. Which of the above statements are not correct?

A

1 and 2 only

B

1 and 3 only

C

1, 2 and 3

D

2 and 3 only

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

A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque is dishonoured by the bank on grounds of inadequate funds. As per the provisions of Negotiable Instruments Act, 1881:

Related Questions