N. S. Toor Solutions for Chapter: Banking Law and Practice, Exercise 10: TEST YOUR SELF

Model Bank is approached by Mr. Rameshwar with a cheque of Rs.3 lakh drawn in his favour, by a public limited company dealing with another branch of the bank. He endorses the cheque and requests that the bank may collect the cheque and issue a fixed deposit for two years today itself:

In respect of which of the following, the protection is allowed under the provision of Section 131 of the Negotiable Instrument Act in the context of a collection of cheque by the collecting banker:

When a bank is collecting a cheque of a newly opened saving bank deposit account as the first entry in the account, then _____.

A customer in your branch deposited a cheque for collection from some other bank. The cheque kept on lying with the branch for a long period for its collection and in the meantime, the drawer has become bankrupt:

Unauthorized interference in the property of another person, that becomes a punishable offense is called:

On which of the following a collecting bank will get protection against conversion u/s 131 of NI Act?

Hari Haran, a partner of firm Hari Haran and Associates endorses a cheque payable to himself, in favour of the firm and requests the bank for collection and credit to the firm's account. What will the bank do?

A cheque of Rs.15000 issued in favour of M/s Manish Kumar & Sons is deposited by the proprietor of the firm Mr. Manish Kumar in his personal saving bank account, which the collecting bank refuses to collect, to guard itself against conversion, while Manish Kumar insists on that: