The Bankers’ Books Evidence Act, 1891, is a legislation in India that pertains to the admissibility of bank records as evidence in court proceedings. It allows for the inspection of books and records maintained by banks under certain circumstances, particularly when ordered by a court or judge. This set of notes will provide detailed information on the inspection of books under this act, including multiple-choice questions (MCQs) and answers.
1. What does the Bankers’ Books Evidence Act, 1891, primarily deal with? a. Regulation of banking operations b. Admissibility of bank records as evidence c. Banking license issuance d. Customer account management
Answer: b. Admissibility of bank records as evidence
2. Under what circumstances can the court or judge order the inspection of bank books under this act? a. In all civil cases involving banks b. Only in cases of criminal investigations c. In civil and criminal cases where bank records are relevant d. Only with the consent of the bank
Answer: c. In civil and criminal cases where bank records are relevant
3. Who is authorized to make an order for the inspection of bank books under this act? a. Any bank customer b. The bank manager c. A court or judge d. The police
Answer: c. A court or judge
4. What is the primary purpose of allowing inspection of bank books under this act? a. To enable banks to maintain secrecy of their records b. To facilitate the investigation of banking frauds and crimes c. To ensure that banks comply with taxation laws d. To expedite loan approvals for customers
Answer: b. To facilitate the investigation of banking frauds and crimes
5. Can the bank refuse inspection of its books ordered by a court or judge under this act? a. No, the bank must comply with the order. b. Yes, the bank can refuse at its discretion. c. Yes, but only with the consent of the customer involved. d. No, unless the bank has reasonable grounds to believe it will be prejudicial.
Answer: d. No, unless the bank has reasonable grounds to believe it will be prejudicial.
6. What happens if a bank refuses to comply with an order for inspection of its books without reasonable grounds? a. The bank is fined heavily. b. The bank’s license is revoked. c. The bank is held in contempt of court. d. The bank is exempt from any penalties.
Answer: c. The bank is held in contempt of court.
7. Who can request copies of the bank records inspected under this act? a. Only the bank b. Only the court c. Both the parties involved in the case d. The police
Answer: c. Both the parties involved in the case
8. How does the Bankers’ Books Evidence Act, 1891, contribute to the legal process? a. It helps protect bank records from any form of scrutiny. b. It streamlines the process of obtaining bank records for legal purposes. c. It allows banks to destroy records once a case is concluded. d. It prevents banks from sharing customer information with authorities.
Answer: b. It streamlines the process of obtaining bank records for legal purposes.
9. Can bank employees be compelled to testify based on the information obtained from bank books under this act? a. Yes, they must testify in all cases. b. No, bank employees are protected from testifying. c. Yes, but only with their consent. d. It depends on the nature of the case.
Answer: d. It depends on the nature of the case.
10. Which year was the Bankers’ Books Evidence Act, 1891, enacted? a. 1891 b. 1900 c. 1925 d. 1935
Answer: a. 1891