LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments Nov 2015 Question Paper - Mumbai University | munotes

Questions asked in this paper

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

1. Q1 Define 'Drawer', 'Drawee' and 'Payee' of a Bill of exchange.
2. Q2 Define 'Crossing of a cheque' under Negotiable Instruments Act, 1881.
3. Q3 What is 'inland' and 'foreign' instrument?
4. Q4 What is payment in due course?
5. Q5 What is the period and the extended period for which a banking company can hold immovable property?
6. Q6 What are 'substantial interest' under the Banking Regulation Act, 1949.
7. Q7 Maximum period for which moratorium can be granted under Banking Regulation Act, 1949.
8. Q8 What is the definition of 'Rupee Coin' under RBI Act, 1939.
9. Q9 What is the mode of proof of entries in the Bankers Books Evidence Act, 1891.
10. Q10 What is the definition of "debt" under the Recovery of Debts due to the Banks and Financial Institutions Act, 1993.

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

1. Q11 Debt Recovery Tribunals.
2. Q12 Reserve Bank as the lender of last resort.
3. Q13 Maturity of Promissor Note and Bill of Exchange and calculation thereof.
4. Q14 Circumstances under which the banker is justified in dishounoring a cheque.
5. Q15 Inchoate stamped instruments.
6. Q16 Assets and liabilites of the issue department of Reserve Bank.

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

1. Q17 Analyse the validity of the following under the relevant provisions of Banking Regulation Act, 1949: (i) Reserve Bank issues a circular to all banks that they shall not charge interest over and above 6% p.a. on their educational loans. (ii) ABC Bank in Mumbai without taking permission of RBI opens up a new place of business in Goregaon East for the month of May to facilitate a trade fair.
2. Q18 Analyse the following under the relevant provisions of Banking Regulation Act, 1949: (i) ABC Bank has been doing banking business in India for last 10 years and has also been engaging in trading of goods. (ii) The Bank transfers 45% of its profits to its Reserve Fund to strengthen its capital base.
3. Q19 State giving reasons whether the drawee bank is justified in refusing payment of a crossed cheque: (i) The cheque is crossed generally and presented to the drawee bank across the counter for payment in cash. (ii) The cheque is crossed specially to a banker A and presented to the drawee bank by a banker B for collection. (iii) The cheque is crossed specially to two banks A and B and presented to drawee bank by bank A alone for collection.

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

1. Q20 Compare and contrast Promissory note, Bill of Exhange and a Cheque.
2. Q21 Explain the various provisions relating to notice of dishonour of negotiable instruments by non acceptance and non payment. When is notice of dishonour unncessary?
3. Q22 Discuss the various provisions of Negotiable Instruments Act, 1881 relating to noting and protesting.
4. Q23 Discuss the various provisions of Reserve Bank of India Act, 1934 and Banking Regulation Act, 1949 relating to maintenance of Cash Reserve Ratio (CCR) and Statutory Liquid Ratio (SLR).
5. Q24 Explain how the Banking Regulation Act, 1934 seeks to regulate managerial structure of a banking company in matters of compositions, appointment and removal of the Directors of the Board, Chairman and other staff.
6. Q25 Explain powers and functions of Securities and Exchange Board of India.

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