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CSEET · Business Laws and Management · Elements of Law relating to Negotiable Instruments

Match the item in List I with the period or limit in List II under Section 138 of the Negotiable Instruments Act, 1881. List I: (P) Presentment of cheque; (Q) Notice of demand to drawer; (R) Drawer's time to pay after notice; (S) Maximum imprisonment. List II: (1) Fifteen days; (2) Two years; (3) Within six months or validity, whichever is earlier; (4) Thirty days.

The correct matching is P-3, Q-4, R-1, S-2: presentment within six months or validity whichever is earlier, notice within thirty days, fifteen days for the drawer to pay after notice, and imprisonment up to two years.

  1. AP-3, Q-4, R-1, S-2Correct
  2. BP-4, Q-3, R-1, S-2
  3. CP-3, Q-1, R-4, S-2
  4. DP-2, Q-4, R-1, S-3

Explanation

Presentment must occur within six months or the validity period, whichever is earlier (P-3). Notice is due within thirty days of information of dishonour (Q-4). The drawer has fifteen days after receiving notice to pay (R-1). Imprisonment may extend to two years (S-2). Option 3 swaps the notice and payment periods.

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