LL.B. (Three Years) Sem 6 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.

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

1. Q1 Write any two presumptions applicable to negotiable instruments.
2. Q2 Define "Banks" under The Recovery of Debts due to Banks and Financial Institutions Act 1993.
3. Q3 When an instrument becomes a bearer instrument?
4. Q4 What is Bank Rate as per RBI Act 1934?
5. Q5 What is the liability of RBI in respect of stamp duty on banknotes?
6. Q6 Define a Bill of Exchange?
7. Q7 What are the Demand and Time Liabilities as per the banking Regulation Act?
8. Q8 What is the Mode of Proof of Entries in the Bankers' Book Evidence Act 1891?
9. Q9 Whether a minor can become a party to a negotiable instrument?
10. Q10 What is "At Sight" "On Presentment" and "After Sight" under the N.I. Act, 1881?

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

1. Q11 Local board.
2. Q12 Noting and Protest.
3. Q13 Crossing of Cheques.
4. Q14 Reserve bank as Banker's bank.

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

1. Q15 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".
2. Q16 (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?
3. Q17 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.
4. Q18 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.

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

1. Q19 State the provisions about board of directors and chairman of banking companies.
2. Q20 Write the meaning of "indorsement". Discuss the various kinds of indorsements under the Negotiable Instruments Act?
3. Q21 State the provisions regarding dishonor of a negotiable instrument.
4. Q22 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?

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