Quiz 3: Advanced — Negotiable Instruments Act & Section 138

Question 1 of 5

A payee has a dishonoured cheque and has filed a Section 138 complaint. The drawer also owes money under a separate civil claim. The payee wants to recover all amounts. Can both proceedings run simultaneously?

ANo — filing a Section 138 complaint bars any civil claim on the same cheque BYes — Section 138 proceedings and a civil suit or summary suit for recovery can run simultaneously; they are not mutually exclusive CYes — but the civil suit must be filed in the same court as the Section 138 complaint DNo — the payee must choose between criminal and civil proceedings

Question 2 of 5

A payee presents the same cheque three times within the validity period, and it bounces all three times. The payee sends three separate demand notices for each dishonour. How many separate Section 138 complaints can the payee file?

AOnly one — the same cheque can only give rise to one Section 138 offence BThree — each dishonour on presentation gives rise to a separate cause of action CTwo — the first and last presentations only DOne — and the payee must elect which dishonour to rely on

Question 3 of 5

A complaint is filed in the court where the complainant's bank branch is located in City A. The accused appears and argues that the cheque was issued in City B and the drawer's bank is also in City B. The accused applies for transfer of the case. Post-2015 amendment, what is the correct position?

AThe case must be transferred to City B because the cheque was issued there BThe court in City A has jurisdiction because that is where the complainant's bank branch is located; the accused's application for transfer should be rejected on this basis CThe court must transfer the case to the drawer's bank location DJurisdiction depends on where the parties agreed in the underlying contract

Question 4 of 5

A corporate drawer is convicted under Section 138. The court orders imprisonment of 1 year. Can a company serve a prison sentence?

AYes — companies are artificial persons in law and bear all punishments BNo — a company being an artificial person cannot be imprisoned; only the directors who are found liable personally can be sentenced to imprisonment CYes — the prison sentence is served by the company's registered agent DNo — companies can only be fined, not imprisoned; Section 138 imprisonment applies only to natural persons

Question 5 of 5

A cheque is drawn on 1 January 2024. It is presented on 31 March 2024 (the last day of the 3-month validity period). It is dishonoured on 31 March 2024. The payee receives the CRM on 5 April 2024. The demand notice must be sent by:

A31 March 2024 B30 April 2024 C5 May 2024 D5 April 2024

Quiz 3 — Advanced