List – I List – II i. Inchoate stamped instrument a. Union Bank of India Vs. Ankur Corp. ii. Liability of acceptor of a negotiable instrument b. Section 31 of the Negotiable Instrument Act iii. Liability of an endorser c. Section 35 of the Negotiable Instrument Act. iv. Liability of the drawee of a cheque. d. Section 20 of the Negotiable Instrument Act.
Codes :
The question requires matching specific legal concepts related to negotiable instruments from List-I with their corresponding legal provisions or case law from List-II.
Matching Negotiable Instrument Concepts
Inchoate Stamped Instrument
An inchoate stamped instrument is a document that is signed and stamped but left incomplete, to be filled in later according to the terms agreed upon. This concept is covered under Section 20 of the Negotiable Instruments Act.
- i. Inchoate stamped instrument corresponds to d. Section 20 of the Negotiable Instrument Act.
Liability of Acceptor
The liability of an acceptor of a negotiable instrument refers to the obligation of the person who accepts a bill of exchange or promissory note. The correct match indicates that the case of Union Bank of India Vs. Ankur Corp. is relevant to this liability.
- ii. Liability of acceptor of a negotiable instrument corresponds to a. Union Bank of India Vs. Ankur Corp.
Liability of Endorser
The liability of an endorser arises when a person signs a negotiable instrument on the back to transfer title or guarantee payment. This liability is governed by Section 35 of the Negotiable Instruments Act.
- iii. Liability of an endorser corresponds to c. Section 35 of the Negotiable Instrument Act.
Liability of Drawee of a Cheque
The liability of the drawee of a cheque (typically a bank) is related to its obligation to pay the instrument. While the drawee's primary liability is often to the drawer, specific sections govern interactions. In this context, it is matched with Section 31 of the Negotiable Instruments Act.
- iv. Liability of the drawee of a cheque corresponds to b. Section 31 of the Negotiable Instrument Act.
Correct Code Selection
Based on the matching above:
- i - d
- ii - a
- iii - c
- iv - b
Therefore, the correct code is i-d, ii-a, iii-c, iv-b.
Important Questions from Negotiable instrument Act, 1881
- Which of the following is not true in the context of a promissory note?
- Which of the following is not a negotiable instrument?
- Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code 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. - Read Assertion (A) and Reason (R) and answer using code below :
Assertion (A) : Where a bill is unintentionally cancelled by the holder or his agent and the cancellation is not apparent thereon, the bill is discharged.
Reason (R) : Above principle is laid down in Section 82 of the Negotiable Instruments Act.
Code : - Which one of the following statements is true ?
