BP · VIDEOLECTURE

NI Act Part 2, Lien

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for VIDEO LECTURES OF ASHISH SIR (FOR ALL SCALES) — Bank Promotions.

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Q

What is a Negotiable Instrument as defined under the Negotiable Instruments Act, 1881?

A

A negotiable instrument is a written document that entitles the holder to a sum of money and is transferable by delivery or endorsement, conferring a good title on the transferee who takes it in good faith and for value.

Q

What is a 'bearer instrument' under the Negotiable Instruments Act?

A

An instrument payable to the person who holds it.

Q

Which sections of the NI Act deal with dishonour of cheques?

A

Sections 138 to 147 of the Negotiable Instruments Act deal with the offence and penalties related to dishonour of cheques due to insufficiency of funds or if it exceeds the amount arranged to be paid.

Q

What is the period of validity of a cheque as per RBI guidelines?

A

Three months from the date of issue.

Q

What is the time limit for presenting a cheque for payment under the NI Act?

A

A cheque must be presented for payment within three months from the date of issue; if presented after this period, the bank will return it as 'stale cheque' or 'out of date'.

Q

What is an 'order instrument' under the NI Act?

A

An instrument payable to a specific person or their order.

Q

What notice must the payee give to the drawer after a cheque is dishonoured under Section 138?

A

The payee must give a written notice to the drawer within 30 days of receiving information of dishonour, demanding payment of the cheque amount within 15 days of receipt of the notice.

Q

What is a 'promissory note' as defined under the NI Act?

A

An unconditional written promise to pay a specified sum.

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