📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      When the day of maturity of a promissory note or bill of

      exchange is a public holiday, Section 25 provides that the instrument is deemed due on:
      A The next succeeding business day Correct Answer Incorrect Answer
      B The same day regardless of the holiday Correct Answer Incorrect Answer
      C Any day chosen by the holder Correct Answer Incorrect Answer
      D The first day of the following month Correct Answer Incorrect Answer
      E The next preceding business day Correct Answer Incorrect Answer

      Solution

      Section 25 provides that when the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day. The Explanation clarifies that 'public holiday' includes Sundays and any other day declared by the Central Government by notification in the Official Gazette. The key point tested is 'preceding', not 'succeeding'.

      Practice Next
      More Banking Related Laws Questions
      ask-question