B.A. LL.B. (Five Years) Sem 10 Law of Banking and Negotiable Instruments Nov 2023 60/40 Question Paper - Mumbai University | munotes

Questions asked in this paper

• N.B: Figures to the right include full marks assigned to the questions.

Q.1 Q.1: Answer in not more than two sentences, attempt any six (12 Marks - 2 marks each)

1. (a) Write any two presumptions applicable to negotiable instruments.
   Read the model answer
2. (b) Define "Banks" under The Recovery of Debts due to Banks and Financial Institutions Act 1993.
   Read the model answer
3. (c) When an instrument becomes a bearer instrument?
   Read the model answer
4. (d) What is Bank Rate as per RBI Act 1934?
   Read the model answer
5. (e) What is the liability of RBI in respect of stamp duty on banknotes?
   Read the model answer
6. (f) Define a Bill of Exchange?
   Read the model answer
7. (g) What are the Demand and Time Liabilities as per the banking Regulation Act?
   Read the model answer
8. (h) What is the Mode of Proof of Entries in the Bankers' Book Evidence Act 1891?
   Read the model answer
9. (i) Whether a minor can become a party to a negotiable instrument?
   Read the model answer
10. (j) What is "At Sight" "On Presentment" and "After Sight" under the N.I. Act, 1881?
    Read the model answer

Q.2 Q.2: Short notes, attempt any two (12 Marks - 6 marks each)

1. (a) Local board.
   Read the model answer
2. (b) Noting and Protest.
   Read the model answer
3. (c) Crossing of Cheques.
   Read the model answer
4. (d) Reserve bank as Banker's bank.
   Read the model answer

Q.3 Q.3: Answer with reasons, attempt any two (12 Marks - 6 marks each)

1. (i) State whether the following instruments, duly signed by Mr. A are valid promissory notes: (a) "I promise to deliver 10 bags of rice to Mr. B" (b) "I promise to pay rupees one thousand only to Mr. B after one month".
   Read the model answer
2. (ii) (a) A banking Company commences its business and its subscribed capital is less than half of the authorized capital. (b) Can a Banking Company deal in buying or selling or bartering the goods in addition to the business of banking? (c) Can a banking Company create any charge upon any of its unpaid capital?
   Read the model answer
3. (iii) State with reasons whether the following instruments are inland instruments or foreign instruments? (a) A Bill drawn in Calcutta on a merchant in Mumbai but endorsed in Paris. (b) A Bill drawn in Mumbai on a merchant in Chennai and accepted payable in America. (c) A Bill drawn in Chennai on a merchant in Brussels and accepted payable in Mumbai.
   Read the model answer
4. (iv) A cheque of Rs.10,000,000/- (Rupees One Crore Only), issued on 5th January, 2023 was dishonoured and returned by the Bank on 5th February, 2023 for insufficiency of funds. A complaint is to be filed under Sec.138. (a) In which court will the complaint be filed? (b) Within how many days should the notice be sent? (c) Within how many days does the complaint have to be filed and state the penal provision.
   Read the model answer

Q.4 Q.4: Long answer type questions, attempt any two (24 Marks - 12 marks each)

1. (a) State the provisions about board of directors and chairman of banking companies.
   Read the model answer
2. (b) Write the meaning of "indorsement". Discuss the various kinds of indorsements under the Negotiable Instruments Act?
   Read the model answer
3. (c) State the provisions regarding dishonor of a negotiable instrument.
   Read the model answer
4. (d) What is the business that the RBI may transact under Section 17 and which it may not transact under Section 19 of the RBI Act?
   Read the model answer

Read from the scan above, so a character or two may differ. The scan is the original.