LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments Nov 2022 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) Define Banking Policy under the B.R. Act. 1949.
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2. (b) What is meant by Unclaimed Deposits under the B.R. Act. 1949?
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3. (c) Define a 'Promissory Note'.
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4. (d) What are the liabilities of the Issue Department of the RBI?
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5. (e) What is the capital of the Reserve Bank of India?
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6. (f) What is an ambiguous instrument?
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7. (g) What is a Schedule Bank?
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8. (h) What is a Negotiable Instrument?
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9. (i) What is an Inland and Foreign Instrument?
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10. (j) What is Noting and Who does it?
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Q.2 Q.2: Write short notes, attempt any two (12 Marks - 6 marks each)

1. (a) Presumptions in respect of negotiable instrument.
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2. (b) Holder in due course.
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3. (c) Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
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4. (d) Banker's Book Evidence Act.
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Q.3 Q.3: Answer with reasons, attempt any two (12 Marks - 6 marks each)

1. (a) Whether the bank is justified in refusing the payment of a cheque in the following conditions: (i) A cheque dated 20.12.21 is presented for payment on 20.02.22. (ii) A cheque dated 20.12.21 is presented on 20.06.22. (iii) The amount in the cheque is stated in words as "Rupees Five Thousand Only" whereas in figures "500".
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2. (b) Analyse the following under the relevant provisions of the Banking Regulation Act, 1949: (i) Can a banking company carry on its business of banking in India without using the word 'bank', 'banker' or 'banking' as part of its name? (ii) A foreign banking company incorporated outside India desires to commence banking business in India and applies for a license to Reserve Bank. But the Government of that country does not allow opening of banks/branches by Indian banking companies.
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3. (c) A cheque of Rs.20,000,000/- (Rupees Two Crores Only), issued on 15th January, 2022 was dishonoured and returned by the Bank on 15th February, 2022 for insufficiency of funds. A complaint is to be filed under Sec.138. (i) In which court will the complaint be filed? (ii) Within how many days should the notice be sent? (iii) Within how many days does the complaint have to be filed?
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4. (d) State with reasons whether the following instruments are inland instruments or foreign instruments? (i) A Bill drawn in London upon a merchant in New York and accepted payable in New York. (ii) A Bill drawn in Mumbai on a merchant in Karnataka but endorsed in New York. (iii) A Bill drawn in Mumbai on a merchant in Karnataka and accepted payable in New York.
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Q.4 Q.4: Long answer type questions, attempt any two (24 Marks - 12 marks each)

1. (a) Discuss the provisions of The Negotiable Instruments Act with reference to Dishonour of Cheque with reference to Sections 138-141 of the N.I. Act.
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2. (b) Compare and Distinguish between a Promissory Note, a bill of exchange and a Cheque.
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3. (c) Discuss the various powers and functions of The Reserve Bank of India.
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4. (d) Discuss the provisions of the Banking Regulations Act relating to licensing of Banking Companies and their Branches and restriction if any on opening of new and transfer of existing place of business.
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