Quiz 2: Final Assessment — Legal Notices and Pre-Litigation Strategy

Question 1 of 10

Under Section 138 of the Negotiable Instruments Act, the demand notice must be sent within how many days of receipt of intimation of dishonour?

A7 days B15 days C30 days D60 days

Question 2 of 10

After the Section 138 demand notice is sent, the drawer has how many days to pay before the complaint can be filed?

A7 days B15 days from receipt of the notice C30 days from dispatch of the notice D60 days from dishonour

Question 3 of 10

Section 80 of the Code of Civil Procedure requires how many months' notice before filing a suit against the government?

A1 month B2 months C3 months D6 months

Question 4 of 10

Under the Insolvency and Bankruptcy Code, an operational creditor must give the corporate debtor how many days to pay or dispute the debt before filing an insolvency application?

A7 days B10 days C15 days D30 days

Question 5 of 10

Under Section 141 of the Negotiable Instruments Act, an independent director of a company where a cheque bounces:

AIs automatically liable regardless of involvement BMay be liable but can defend by showing lack of involvement in day-to-day operations or that the offence was committed without knowledge and despite due diligence CHas absolute immunity as an independent director DCannot be prosecuted under Section 138

Question 6 of 10

A legal notice is sent by a lawyer, and the recipient responds through their own lawyer, denying all claims. Practical significance?

ANothing — the notice has failed and litigation must be avoided BThe exchange crystallises the dispute for eventual litigation, establishing each party's position and creating the record on which the case will be argued CThe notice must be re-sent by the client directly DThe dispute is automatically closed

Question 7 of 10

A commercial party wants to invoke an arbitration clause in a contract. The first step is:

AFile a suit in civil court for a declaration that arbitration must occur BSend a formal notice invoking the arbitration clause, nominating an arbitrator (if the clause provides for party-appointed arbitrators), and requesting the counterparty to nominate CDirectly appoint an arbitrator and commence proceedings DWait for the counterparty to initiate arbitration

Question 8 of 10

A Section 138 notice is served but the drawer claims she was traveling and did not personally receive it. The sender obtains proof of delivery to the address on record. Can the Section 138 case proceed?

ANo — actual receipt is required BYes — dispatch to the correct or last known address with proof of delivery is treated as valid service COnly after a second notice to the new address DOnly if the drawer's new address can be found

Question 9 of 10

A legal notice threatens criminal proceedings for cheating if not paid. This threat is:

AStandard practice and legally acceptable BPotentially problematic — threatening criminal proceedings to secure a civil payment can amount to extortion or professional misconduct if there are no genuine grounds for criminal action CAutomatically valid as it is drafted by a lawyer DA necessary escalation clause

Question 10 of 10

After a legal notice is sent and ignored, the sender wishes to pursue recovery of Rs. 15 lakh for unpaid services. The most efficient litigation route is:

AA regular civil suit which may take years BA summary suit under Order 37 CPC based on the written contract CA criminal complaint under Section 420 IPC DA consumer complaint under the Consumer Protection Act

Quiz 2 — Final Assessment