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Directions: Read the following passage and answer the question.
The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.
In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.
One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBI's rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.
It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.
The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.
Q. Javed issued a cheque to Neeta as a gift for Neeta's marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javed's cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?
  • a)
    No, Neeta can't file a suit against Javed as Javed gave the cheque out of love and affection.
  • b)
    Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.
  • c)
    No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.
  • d)
    Either 1 or 2
Correct answer is option 'A'. Can you explain this answer?
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Directions: Read the following passage and answer the question.The Neg...
No, Neeta can't file a suit against Javed as Javed gave the cheque out of love and affection. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation.
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Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Jack filed a suit against Jill. Jack claimed the interim compensation of Rs. 5,000 for the dishonored amount of Rs. 5,00,000. Jill was not found liable for the dishonored cheque. Jill demanded the refund of the interim compensation along with interest. Will Jill be granted refund?

Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Suman issued a cheque to Manish on 25.11.2019. Manish went to Dubai and came back on 26.02.2020. After that he deposited the cheque in the bank and the cheque got dishonored. Manish filed a suit against Suman. Will Manish get compensation?

Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Athena issued a cheque to Amit of Rs 7,00,000 on 24.12.2019. The Cheque was dishonored on 02.02.2020. Amit filed a case against Athena and demanded interim compensation of Rs. 1,75,000. Will the compensation of the above amount be provided?

Since the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (LAAR) came into force in 2013, Section 24(2) of the Act has been mired in controversy. Section 24(2) states that in case of land acquisition proceedings, if a developer fails to take possession of land acquired under the old laws for five years, or if compensation is not paid to the owner, the land acquisition process would lapse. The process would then have to be re-initiated under LAAR, which would allow the owner to get better compensation.In 2014, a three-judge bench of the apex court held that acquisition proceedings initiated under the 1894 Act, which were initiated five years before the 2013 law was enacted, would lapse if the land in question was not taken control of, or if compensation was not paid to the land-owners. However, in 2018, another three-judge bench declared the previous judgment per incuriam. This happens when a judgment does not follow a statutory provision or a binding precedent that may have been relevant. In such scenarios, a judgment can be declared to be without any legal force and hence not treated as a valid precedent. The fresh judgment held that if a landowner refuses to accept the compensation offered by the developer, they cannot take advantage of their own wrongdoing and have the acquisition proceedings lapse under the old law. This came as a relief for developers.Days after the 2018 judgment, another three-judge bench stayed the operation of the 2018 judgment and directed the high courts across the country to not decide any case on the basis of the new ruling, and requested apex court judges to defer hearing and not pass any orders in other cases pending before the Supreme Court. This bench essentially took objection to the 2018 three-judge bench overruling a precedent laid down by a coordinate bench, because in common law, judgments by larger benches or those with equal number of judges are binding on other benches. Hence, a three-judge bench cannot override the judgment of another three-judge bench. It can only record its difference of opinion and request for the case to be considered by a larger bench, to set a binding precedent.The controversy now revolves around Justice Arun Mishra heading the five-judge Constitution bench that would settle the precedent, since he was part of the 2018 bench that overruled the 2014 judgment. Since the announcement, two farmer associations have already written to the CJI, objecting to Justice Mishra hearing the matter, despite him having already expressed his opinion in the 2018 judgment. In their letters, the All India Farmer Association and the Delhi Gramin Samaj have highlighted the fact that Justice Mishra would have a conflict of interest in deciding the case.Q. Which among the following was the part of ruling of the Supreme Court judgment in the year 2014?

Direction: You have been given some passages followd by questions based on each passage. You are required to choose the mot appropriate option which follows from the passage. Only the information given in the passage should be used for choosing the answer and no external knowledge of law howsoever prominent is to be applied.The Parliament passed the Consumer Protection Act, 2019, which promises to strengthen the rights of consumers and provides a mechanism for redressal of complaints regarding defects in goods and deficiency in services.Union Food and Consumer Affairs Minister stressed that the overall purpose of the legislation was to ease the process of addressing grievances of consumers. TheAct also seeks to bring in ecommerce under their jurisdiction and hold celebrities accountable for false and misleading advertisements of products that they endorse. The Act proposed strict action against the advertiser in case of misleading advertisements but not against the media through which the advertisement is being publicised. It also provides for product liability action on account of harm caused to consumers due to defective products or deficient services.Product liability means the liability of a product manufacturer, service provider or seller to compensate a consumer for any harm or injury caused by a defective good or deficient service.Under the Act, a consumer is defined as a person who buys any good or avails a service for a consideration. It does not include a person who obtains a good for resale or a good or service for commercial purpose. It covers transactions through all modes including offline, and online through electronic means, teleshopping, multilevel marketing or direct selling. Only a consumer can bring an action under the Act.Certain consumer rights have been defined in the Act, including the right to: (i) be protected against marketing of goods and services which are hazardous to life and property; (ii) be informed of the quality, quantity, potency, purity, standard and price of goods or services; (iii) be assured of access to a variety of goods or services at competitive prices; and (iv) seek redressal against unfair or restrictive trade practices.The central government will set up a Central Consumer Protection Authority (CCP

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Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer?
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Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer?.
Solutions for Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
Here you can find the meaning of Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the following passage and answer the question.The Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881 was passed on July 23, 2018 by the Lok Sabha. The Central Government has notified amendment to one of the most essential legislation, i.e. the Negotiable Instrument (Amendment) Act, 2018. In the age of netbanking, businesses across India use cheques. Cheques are issued for the purpose of keeping the money as security in any business. They are valid only for three months. After three months of period, the particular cheque gets cancelled and has no value. Cheques also include the post-dated ones, to make and receive payments from vendors, suppliers and customers.In some cases, such cheques bounce and the matter ends up in court. The complaint can be filed under Section 138. After the cheque bounces, one has to send a notice to the defaulter of the cheque given by. If the creditor does not get any reply from the debtor, then within 15 days, the creditor of the cheque can send a notice to the debtor and file a case. If a cheque bounces and the amount is not paid to you, then send a demand notice letter to the party (drawer) that gave cheque to you, and inform them about the actions under the Negotiable Instruments Act, 1881.One can file a complaint from the place where the cheque was drawn, cheque was presented, returned by the bank or the place from where he or she sent a demand notice to the defaulter/debtor. One cannot take legal action if the cheque given to you was for gift, advertisement or a donation. According to RBIs rule, the bank has the right to stop issuing cheque books to the customer who had a record of bounced cheque more than 4 times.It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.The Negotiable Instrument (Amendment) Act, 2018 aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order.Q.Javed issued a cheque to Neeta as a gift for Neetas marriage. After the marriage, Neeta and Javed had a fight. After that Neeta deposited Javeds cheque in bank as she had to make payments to the wedding planner. The cheque got dishonored. Neeta filed a suit against Javed and claimed damages. Can Neeta sue Javed?a)No, Neeta cant file a suit against Javed as Javed gave the cheque out of love and affection.b)Yes, Neeta can file a suit against Javed as she suffered damages from the non payment to the wedding planner.c)No, Neeta cannot file a suit as they had a fight prior the cheque got dishonored and Javed is no more liable for gift.d)Either 1 or 2Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CLAT tests.
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