LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments Nov 2014 Question Paper - Mumbai University | munotes

Questions asked in this paper

SECTION I - Q.1: Answer in not more than two sentences (20 Marks - 2 marks each)

1. Q1 What is an 'Ambiguous instrument'?
2. Q2 What is 'endorsement in full' and 'endorsement in blank'?
3. Q3 What is a Garnishee Order?
4. Q4 What is 'noting' and who does it?
5. Q5 What is 'maturity' and 'days of grace'?
6. Q6 What is the definition of "Rupee Coin" under the RBI Act, 1934.
7. Q7 What is the definition of 'banking' under the Banking Regulation Act, 1949?
8. Q8 What is definition of 'Unclaimed deposits' under the Banking Regulation Act, 1949?
9. Q9 Who is an executive head of RBI? How many members are there in central Board of RBI?
10. Q10 What is the mode of proof of entries in the Bankers Books Evidence Act, 1891.

SECTION II - Q.2: Write short notes on any four (20 Marks - 5 marks each)

1. Q11 Role of Securities and Exchange Board of India.
2. Q12 Licensing of banks and their branches.
3. Q13 Holder and Holder in due course under the Negotiable Instruments Act, 1881.
4. Q14 Bankers Book Evidence Act, 1891.
5. Q15 Noting and Protest.
6. Q16 Inland and foreign bills.

SECTION III - Q.3: Answer the following by giving reasons, any two (12 Marks - 6 marks each)

1. Q17 Analyse the following: (i) In respect of an account held by a customer 'A' the bank receive an attachment order for a value of Rs.1,00,000/-. Can it honour cheques out of funds over and above Rs. 1,00,000/-? (ii) 'A' is an account holder with a bank. On the 21-06-2014 a suit of insolvency is filed in the High Court by his creditors. The court appoints an official receiver on the 22-09-2014. The bank receives a cheque of Rs.50,000/- signed by the account holder on the 27-09-2014. Should the bank honour the cheque?
2. Q18 State whether the following are promissory notes or not and give reasons: (i) I promise to pay to 'B' Rs. 1,000/- and to deliver to him my car on 1-1-2015. (ii) I promise to pay 'B' Rs. 1,000/- on D's death, provided D leaves me enough to pay that sum. (iii) I promise to pay to 'B' Rs. 1,000/- and all other sums which shall be due to him.
3. Q19 Analyse the following under the relevant provisions of the Banking Regulation Act, 1949. (i) A banking company commences its business and its paid up capital is less than half of the authorized capital. (ii) Can a banking company deal in buying or selling or bartering of goods in addition to the business of banking? (iii) Can a banking company create any charge upon any of its unpaid capital?

SECTION IV - Q.4: Answer the following, any four (48 Marks - 12 marks each)

1. Q20 What is dishonor of a Negotiable Instrument? Explain the circumstances under which a bank is justified in dishonouring of a cheque?
2. Q21 What are the various presumptions as to Negotiable Instruments as special rules of evidence?
3. Q22 What is the difference between Holder and Holder in Due Course? Discuss various rights and privileges of a Holder in due course.
4. Q23 Explain how the BR Act, 1949 seeks to regulate managerial structure of a banking company in matters of composition, appointment and removal of the Directors of the Board, Chairman and other staff.
5. Q24 Discuss various provisions of Reserve Bank of India Act, 1934 and Banking Regulation Act, 1949 relating to maintenance of Cash Reserve Ratio (CRR) and Statutory Liquid Ratio (SLR).
6. Q25 Explain the provisions of Reserve Bank of India Act, 1934, relating to collection and furnishing of credit information.

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