LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments Nov 2011 Question Paper - Mumbai University | munotes

Questions asked in this paper

• N.B: Figures to the right indicate full marks assigned to the questions.

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

1. Q1 Who is a holder in due course "as defined in" The Negotiable Instrument Act, 1881?
2. Q2 What is "Payment in due course" in the N. I. Act?
3. Q3 What is the effect of an endorsement?
4. Q4 What is "Inland" and Foreign instrument?
5. Q5 Who is called "Acceptor"?
6. Q6 What is the definition of "Reconstruction Bank" as defined in the Reserve Bank of India Act, 1934?
7. Q7 Whether the Reserve Bank is liable to the payment of any stamp duty under the Indian Stamp Act, 1899 in respect of bank notes issued by it?
8. Q8 What are the restrictions imposed by the Banking Regulation Act, 1949 on the power of the bank to remit debts?
9. Q9 What is the definition of "unclaimed deposits" as per the B. R. Act, 1949?
10. Q10 What is the qualification for appointment as "Presiding officer" of a Tribunal under the Recovery of Debts due to banks and Financial Institution Act, 1993?

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

1. Q11 Maturity of promissory note and bill of exchange and calculation thereof.
2. Q12 Discharge from liability on promissory notes, bills of exchanges and cheques.
3. Q13 Inchoate stamped instruments.
4. Q14 "Recovery of Debts Due to Banks and Financial Institutions Act, 1993" its objective jurisdiction and procedure.
5. Q15 Central Banking functions of Reserve Bank of India.
6. Q16 Prohibition of trading by banks.

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

1. Q17 State with reasons whether the following endorsements by 'B' on different negotiable instruments payable to bearer exclude the right of further negotiation: (i) "Pay the contents to 'C' only" (ii) "Pay 'C' for my use" (iii) "Pay C".
2. Q18 State with reasons whether the following instruments have been negotiated or not: (i) 'A' the holder of a negotiable instruments payable to bearer delivers it to 'B's agent to keep for 'B'. (ii) 'A' the holder of a negotiable instruments payable to bearer which is in the hands of 'A's banker who is at the time banker of 'B' also, directs the banker to transfer the instrument to 'B's credit in the banker's account with 'B'. The bank does so? (iii) 'A' holder of a negotiable instrument payable to bearer keeps it in a drawer. 'B' without the knowledge of 'A' steals it.
3. Q19 Analyse the Validity of the following under the relevant provisions of the Banking Regulation Act, 1949: (i) Reserve Bank issues a circular to all banks that they shall not charge interest over and above 12% p.a. on their housing advances. (ii) District Court of Pune passes a decree against Dena Bank that the rate of interes charged by it is excessive.

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

1. Q20 Define Bill of Exchange. What are the essential ingredients of a valid bill of exchange? How does it differ from Promissory Note? Compare Bill of Exchange, Cheque and Draft.
2. Q21 Explain the circumstances when the banker is justified in refusing the payment of a cheque.
3. Q22 Explain the various provisions relating to notice of dishonour of negotiable instruments by non-acceptance and non-payment. When such a notice of dishonour is unnecessary?
4. Q23 Discuss the various provisions of RBI Act, 1934 relating to: (i) Non-banking Financial Companies (NBFC) receiving deposits from public. (ii) Prohibition of acceptance of deposit by unincorporated bodies.
5. Q24 Discuss the provisions of the Banking Regulation Act, 1949 relating to: (i) Licensing of banking companies and their branches. (ii) Licensing of Co. Op. (Urban) banks and their branches.
6. Q25 Discuss the various provisions of Reserve Bank of India Act, 1934 and Banking Regulation Act relating to maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).

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