Test Preparation on IBPS SO Mains Law Officer Mock Test-2

On the death of a partner, operations in the CC account are to be stopped. Which of the following rationale is true with regard to the statement given?

1As per section 42 of the Partnership Act, once the partner dies, the firm is automatically dissolved.
2To avoid application of Clayton’s rule in case of debit balance vide section 59 to 61 of Indian Contract Act.
3To protect the interest of the Bank
4All of the above
5None of these

All these statements are true-

Ramesh deposits a cheque for collection at 11.00 a.m. and the bank allows credit to save the bank account against this. At 11.30 a.m. the bank receives a garnishee order on the a/c:

1Garnishee order will apply to the amount credited in the account if it is still available in the account
2It will not apply to the amount of the cheque, credited to the account.
3The bank would ask Ramesh.
4bank would seek clarification from the court
5None of these

Garnishee order will apply to the amount credited in the account if it is still available in the account

If the same documents are signed by different parties other than partnership firms on different dates, which date will be the date of the document?

1Earliest date of the document shall be concerned
2the Last date of the document shall be concerned
3Any of the two dates can be concerned
4Any date between the two dates can be concerned
5None of these

If several parties to a document sign it on different dates, the practice is to reckon the last of such dates as the date of the document. However, the limitation period, as far as a partnership firm is concerned, starts from the earliest date, i.e., the date on which one of the partners first signed the document on behalf of the firm (IBA Bulletin, Feb 1990).

Advances against their own shares are not allowed by banks because these are prohibited under:

The Banking Regulation Act, 1949 is a legislation in India that regulates all banking firms in India. Passed as the Banking Companies Act 1949, it came into force on 16 March 1949 and changed to Banking Regulation Act 1949 from 1 March 1966. It is applicable in Jammu and Kashmir since 1956.

A Garnishee order is issued by which of the following?

1By RBI to the scheduled bank for stopping payment in an account.
2By Income Tax Recovery Officer attaching funds in the account maintained by the bank.
3By competent court for attaching funds due to a judgment debtor by a third party for payment to the judgment creditor.
4By District Magistrate requiring the bank to remit to his office a certain sum of money to the debit of a particular account.
5None of these

By competent court for attaching funds due to a judgment debtor by a third party for payment to the judgment creditor.

What are the main issues with which SARFAESI Act, 2002 deals with?

1Securitisation of Assets.
2Setting up of an Asset Reconstruction Company.
3Enforcement of Securities.
4All of the above.
5None of these

The SARFAESI Act was enacted with a distinct purpose to facilitate banks and financial institutions to recover dues in a speedy manner by enforcement of security interests without the intervention of the court. The object of the debt recovery laws is to reduce non-performing assets and increase liquidity in the market.