LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments May 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 What is "legal proceedings" under the Bankers Books Evidence Act?
3. Q3 When an instrument becomes a bearer instrument?
4. Q4 Which instruments are entitled to days of grace?
5. Q5 What is the liability of RBI in respect of stamp duty on banknotes?
6. Q6 What is the liability of the drawee of a cheque?
7. Q7 What are the Demand and Time Liabilities as per the banking Regulation Act?
8. Q8 What is the purpose for which the RBI is constituted?
9. Q9 Whether a minor can become a party to a negotiable instrument?
10. Q10 Write any two examples of instruments negotiable by custom.

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

1. Q11 Acceptance of Bill of Exchange.
2. Q12 Local Boards.
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 State whether permission from the RBI is required in the following cases: (a) ABC Bank wants to open two new branches. (b) PQR Bank wants to shift its branch to another location in the same city.
3. Q17 (a) Mr. A had indorsed a bill of exchange in favour of Mr. B. The bill was dishonoured by the acceptor. Is Mr. A liable to Mr. B? (b) Mr. A has drawn a cheque favouring Mr. B. Mr. A had sufficient funds in his account. Still the cheque was dishonoured by the drawee banker. To whom is the drawee banker responsible?
4. Q18 XYZ Bank wants to carry out the following transactions. Can it do so? (a) Remit the whole of the debt due to it by its directors (b) Grant loans on the security of its own shares.

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

1. Q19 Discuss the business that may be transacted by the RBI.
2. Q20 What is the difference between 'Holder' and 'Holder in Due Course'. What are the various rights and privileges of a Holder in Due Course?
3. Q21 State the provisions regarding dishonor of a negotiable instrument.
4. Q22 State the provisions about board of directors and chairman of banking companies.

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