B.A. LL.B. (Five Years) Sem 10 Law of Banking and Negotiable Instruments Oct 2025 75/25 Question Paper - Mumbai University | munotes

Questions asked in this paper

Q.1 Q.1: Answer in two sentences, any six (12 Marks - 2 marks each)

1. (1) Define a promissory note.
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2. (2) What is liability of Drawer and Drawee in case of Bill of Exchange?
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3. (3) Who is a holder in due course?
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4. (4) Define the term 'banker'.
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5. (5) What do you understand by crossing of a cheque?
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6. (6) What is the evidentiary value of certified copies under the Bankers' Books Evidence Act?
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7. (7) What is the main function of Central Board of Directors?
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8. (8) Who can file an original application before the DRT for debt recovery?
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Q.2 Q.2: Write short notes on any two (12 Marks - 6 marks each)

1. (1) Duties of a Banker.
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2. (2) Types of Banks.
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3. (3) Structure and Jurisdiction of Debt Recovery Tribunals (DRTs).
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4. (4) Functions and power of RBI.
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Q.3 Q.3: Answer any two situational-based questions (12 Marks - 6 marks each)

1. (1) The respondent had paid Rs 80,000 to the accused with the expectation of securing his nephew a job in the Haryana police. Despite this payment, the job was not obtained. Consequently, the complainant requested a refund. On March 30, 2000, the accused issued a cheque to repay the amount, but the cheque was dishonoured upon presentation at the bank. (A) Can the complaint then be filed before the Metropolitan Magistrate. (B) Explain the various elements of Section 138 of the Negotiable Instruments Act.
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2. (2) On January 10, 2023, the City Civil Court of Bombay issued a garnishee order (order nisi) against Mr. B, who holds an account with SBI Bank. The bank received the order two days later. In the interim, Mr. B requested the withdrawal of funds from his bank account. Mr. C, the decree holder, objected to Mr. B's claim to these funds. (A) Determine the liability in this scenario. Can the withdrawal of money take place in this situation. (B) Explain garnishee order in detail.
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3. (3) Mr. C issued a cheque dated January 23, 2016, to Mr. D for the supply of goods. On the due date, Mr. D discovered that the cheque was dishonoured due to insufficient funds. Mr. D subsequently filed a complaint dated March 23, 2016 against Mr. C in the Court, seeking interim compensation under the newly introduced Section 143A of the Negotiable Instruments Act. (A) What is Section 143A of the Negotiable Instruments Act? (B) Can Mr. D get interim compensation from Mr. C?
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4. (4) Can a banking Company create any charge upon any of its unpaid capital? 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.
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Q.4 Q.4: Answer any three from following (39 Marks - 13 marks each)

1. (1) Examine the structure, functions and powers of the Securities and Exchange Board of India (SEBI).
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2. (2) Explain the background, process of nationalization of banks in India and subsequent government policies and changes after 1991.
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3. (3) Explain the provisions regarding dishonored cheques and the procedure for filing a complaint under Section 138.
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4. (4) Explain the reasons why parties to a negotiable instrument can be released from their liability.
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5. (5) Explain the salient features of the Bankers Book of Evidence Act of 1891.
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