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Practice Sets on Negotiable Instruments Act 1881 for Judicial Services and other Govt Exams
Negotiable Instruments Act 1881 Practice Set 1Take Test
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Chattisgarh Civil Judge (JD) Preliminary Exam Mock Test 01Take Test
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Delhi Judicial Services(DJS) Exam Mock Test 01Take Test
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Where can I get Test Series and Practice Sets on Negotiable Instruments Act 1881

Negotiable Instruments Act 1881tesTopper provides a remarkable plateform for practicing Negotiable Instruments Act 1881 for all state judicial services examinations and public prosecutors officers examinations such as Higher judicial services, additional district judge exam, judicial magistrate exams, civil judge junior division examination, Assistant prosecutors examination, central buearue of investigation public prosecutors, assistant district attorney, district prosecution officer exam, RJS,DJS, pcs j, cj, hjs, apo, ada, adpo, jm, and all other judicial services examination called with whatever name.

Practice Sets on Negotiable Instruments Act 1881 are important part of any judicial services examination. Atleast 5-10 questions from this sections were asked during the exam. tesTopper has good collection on questions based on Negotiable Instruments Act 1881 from previous year examinations and ffrom our Legal Experts Team at tesTopper. 

Judicial Services aspirants can also see previous years questions papers , model papers on different subject such as Indian Penal Code, Indian Evidence Act, Indian Contract Act, Muslim law, Hindu law, Criminal Procedure Code , Negotiable Instruments Act 1881 and all central acts which come into thier competititive examination for different year such as 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023. The vacancies whenever notified by the various high court or state public service commission are also displayed on the site for user perusal so that they may fill thier examination form on time.

The result as declared by the high court of public service commission is also displayed for preliminary and mains exams. tesTopper provides practice sets on Negotiable Instruments Act 1881 which is suitable for all states such as andhra pradesh, assam, bihar, chhattisgarh, chandigarh, delhi, gujarat, hp-himachal pradesh, haryana, jharkhand, kerela, karnataka, mizoram, manipur, madhya pradesh, maharashtara, odisha, punjab, panjab, rajasthan, sikkim, tamilnadu, uk-uttarakhand, up-uttar pradesh, west bengal etc. Online mock facility is also provided so that user can test thier knowledge by appearing in online test series.

What to Study in Negotiable Instruments Act 1881 for Judiciary Exams

Negotiable Instruments Act 1881 is an act in India dating from the British colonial rule, that is still in force largely unchanged. The Act was originally drafted in 1866 by the 3rd India Law Commission and introduced in December, 1867 in the Council and it was referred to a Select Committee.

Meaning and Definition

    • A Negotiable Instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.
    • It must be freely transferable either by delivery (when it is payable to the bearer of the document) or by endorsement and delivery (when the document is payable to order).
    • The transferee taking the instrument in good faith and for consideration gets a good title to the same even if the title of the transferor is defective.
    • The party holding the instrument should be entitled to maintain a suit thereon in case the instrument gets dishonored while in his custody.

Characteristics of Negotiable Instruments

    • Writing and Signed by Its Maker
    • Unconditional
    • Fixed Sum of Money
    • Transferable
    • Absolute And Good Title
    • Right to Recovery

Relevant Provisions of RBI Act 1934

    • A bill of exchange or hundi cannot originally be made payable to ‘bearer on demand’.
    • A promissory note cannot be originally made payable to bearer.

Kinds of Negotiable Instruments

    • Promissory note
    • Bill of exchange
    • Cheque

Important Sections of Negotiable Instruments Act: 

There are total 147 sections in the Negotiable Instruments Act.

    1. Section 4 – Promissory note
    2. Section 5 – Bill of exchange
    3. Section 6 – Cheque
    4. Section 13 – Negotiable Instruments
    5. Section 92 – Dishonour by non-payment
    6. Section 118 – Presumptions as to Negotiable Instruments

Promissory Note

    • An unconditional promise in writing made by one person (maker) to another person( payee)
    • Signed by the maker
    • Stamped
    • Promise to pay
    • On demand or at a fixed or determinable future time
    • A sum certain in money
    • Pay in terms of legal tender money only
    • To, or to the order of, a specified person or to the bearer.
    • The parties i.e. the maker and the payee must be certain.

Bill of Exchange

    • An order in writing directing a person to pay a sum of money to a specified person.
    • Duly signed by its drawer
    • Accepted by its drawee
    • Properly stamped
    • Express order to pay
    • Definite sum of money
    • Definite and unconditional order
    • Parties to a bill must be certain

Cheque

    • A bill of exchange drawn on a specified banker, and not expressed to be payable otherwise than on demand
    • Includes the electronic image of a truncated cheque
    • Includes a cheque in electronic form
    • issued on a specified banker only
    • The amount specified is always certain, and must be clearly mentioned
    • The payee is always certain.
    • Must bear a date
    • Types -Open cheque, Crossed cheque, Bearer cheque, Order cheque

Important Points in Negotiable Instruments Act 1881

SectionsParticulars
Chapter IPreliminary
1Short title
2Repeal of enactments
3Interpretation clause
Chapter IINotes, Bills And Cheques
4“Promissory note
5“Bill of exchange”
6“Cheque”
7“Drawer”, “drawee”
8Holder
9“Holder in due course”
10“Payment in due course”
11“Inland instrument”
12“Foreign instrument”
13“Negotiable instrument”
14Negotiation
15Endorsement
16Endorsement “in blank” and “in full”-“endorsee”
17Ambiguous instruments
18Where amount is stated differently in figures and words
19Instruments payable on demand
20Inchoate stamped instruments
21At sight, On presentment, After sight
22“Maturity”
23Calculating maturity of bill or note payable so many months after date or sight
24Calculating maturity of bill or note payable so many days after date or sight
25When day of maturity is a holiday
Chapter IIIParties To Notes, Bills And Cheques
26Capacity to make, etc., promissory notes, etc.
27Agency
28Liability of agent signing
29Liability of legal representative signing
30Liability of drawer
31Liability of drawee of cheque
32Liability of maker of note and acceptor of bill
33Only drawee can be acceptor except in need or for honor
34Acceptance by several drawees not partners
35Liability of endorser
36Liability of prior parties to holder in due course
37Maker, drawer and acceptor principals
38Prior party a principal in respect of each subsequent party
39Suretyship
40Discharge of endorser’s liability
41Acceptor bound, although endorsement forged
42Acceptance of bill drawn in fictitious name
43Negotiable instrument made, etc. without consideration
44Partial absence or failure of money-consideration
45Partial failure of consideration not consisting of money
45AHolder’s right to duplicate of lost bill
Chapter IVNegotiation
46Delivery
47Negotiation by delivery
48Negotiation by endorsement
49Conversion of endorsement in blank into endorsement in full
50Effect of endorsement
51Who may negotiate
52Endorser who excludes his own liability or makes it conditional
53Holder deriving title from holder in due course
54Instrument endorsed in blank
55Conversion of endorsement in blank into endorsement in full
56Endorsement for part of sum due
57Legal representative cannot by delivery only negotiate instrument endorsed by deceased
58Instrument obtained by unlawful means or for unlawful consideration
59Instrument acquired after dishonor or when overdue
60Instrument negotiable till payment or satisfaction
Chapter VPresentment
61Presentment for acceptance
62Presentment of promissory note for sight
63Drawee’s time for deliberation
64Presentment for payment
65Hours for presentment
66Presentment for payment of instrument payable after date or sight
67Presentment for payment of promissory note payable by installments
68Presentment for payment of instrument payable at specified place and not elsewhere
69Instrument payable at specified place
70Presentment where no exclusive place specified
71Presentment when maker, etc., has no known place of business or residence
72Presentment of cheque to charge drawer
73Presentment of cheque to charge any other person
74Presentment of instrument payable at demand
75Presentment by or to agent, representative of deceased, or assignee of insolvent
76When presentment unnecessary
77Liability of banker for negligently dealing with bill presented for payment
Chapter VIPayment And Interest
78To whom payment should be made
79Interest when rate specified
80Interest when no rate specified
81Delivery of instrument on payment or indemnity in case of loss
Chapter VIIDischarge From Liability On Notes, Bills And Cheques
82Discharge from liability
83Discharge by allowing drawee more than forty-eight hours to accept
84When cheque not duly presented and drawer damaged thereby
85Cheque payable to order
85ADrafts drawn by one branch of a bank on another payable to order
86Parties not consenting discharged by qualified or limited acceptance
87Affect of material alteration
88Acceptor or endorser bound notwithstanding previous alteration
89Payment of instrument on which alteration is not apparent
90Extinguishment of rights of action on bill in acceptor’s hands
Chapter VIIINotice Of Dishonour
91Dishonor by non-acceptance
92Dishonor by non-payment
93By and to whom notice should be given
94Mode in which notice may be given
95Party receiving must transmit notice of dishonor
96Agent for presentment
97When party to whom notice given is dead
98When, notice of dishonor is unnecessary 
Chapter IXNoting And Protest
99Noting
100Protest
101Contents of protest
102Notice of protest
103Protest for non-payment after dishonor by non-acceptance
104Protest of foreign bills
104AWhen noting equivalent to protest
Chapter XReasonable Time
105Reasonable time
106Reasonable time of giving notice of dishonor
107Reasonable time for transmitting such notice
Chapter XIAcceptance And Payment For Honour And Reference In Case Of Need
108Acceptance for honor
109How acceptance for honor must be made
110Acceptance not specifying for whose honor it is made
111Liability of acceptor for honor
112When acceptor for honor may be charged
113Payment for honor
114Right of payer for honor
115Drawee in case of need
116Acceptance and payment without protest
Chapter XIICompensation
117Rules as to compensation
Chapter XIIISpecial Rules Of Evidence
118Presumptions as to negotiable instruments Until the contrary is proved, the following presumption shall be made
119Presumption on proof of protest
120Estoppel against denying original validity of instrument
121Estoppel against denying capacity of payee to endorse
122Estoppel against denying signature or capacity of prior party
Chapter XIVCrossed Cheques
123Cheque crossed generally
124Cheque crossed specially
125Crossing after issue
126Payment of cheque crossed generally
127Payment of cheque crossed specially more than once
128Payment in due course of crossed cheque
129Payment of crossed cheque out of due course
130Cheque bearing not negotiable
131Non-liability of banker receiving payment of cheque
131AApplication of chapter to drafts
Chapter XVBills In Sets
132Set of bills
133Holder of first acquired part entitled to all
Chapter XVIInternational Law
134Law governing liability of maker, acceptor or endorser of foreign instrument
135Law of place of payment governs dishonor
136Instrument made, etc. out of India, but in accordance with the law of India
137Presumption as to foreign law
Chapter XVIIPenalties In Case Of Dishonour Of Certain Cheques For Insufficiency Of Funds In The Accounts
138Dishonor of cheque for insufficiency, etc., of funds in the accounts
 Supreme Court 3762
139Presumption in favor of holder
140Defense which may not be allowed in any prosecution under section 138
141Offences by companies
142Cognizance of offences
ScheduleEnactment [Repealed]

Practice Sets for State Judicial Services & Other Law Exams

Judicial Services aspirants can practice unlimited on any of the following modules important for judicial services. In almost all state judicial services exams, these modules contain significant no of questions. We at tesTopper collected and prepared almost 300+ Module tests for judicial services aspirants.

Module Practice Sets
Constitution of India

Code of Civil Procedure, 1908

Transfer of Property Act, 1882

Indian Contract Act, 1872
Specific Relief Act, 1963
Limitation Act, 1963
MP Accommodation Control Act, 1961
MP Land Revenue Code, 1959
Indian Evidence Act, 1872
Indian Penal Code, 1861
Code of Criminal Procedure, 1973
Negotiable Instruments Act, 1881
Hindu Marriage Act
Muslim Law
Sale of Goods Act 1930
Special Relief Act 1963
Public International Law

 

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Negotiable Instruments Act 1881

Practice Sets on Negotiable Instruments Act 1881 are important part of any judicial services examination. Atleast 5-10 questions from this sections were asked during the exam. tesTopper has good collection on questions based on Negotiable Instruments Act 1881 from previous year examinations and ffrom our Legal Experts Team at tesTopper. 

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