LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments 2017-18 Question Paper - Mumbai University | munotes

Questions asked in this paper

• N.B: 1. All questions are compulsory. 2. Figures to the right indicate full marks. 3. Use case law wherever required.

Q.1 Q.1: Answer in one or two sentences (20 Marks - 2 marks each)

1. (a) What is the period and the extended period for which a banking company can hold immovable property?
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2. (b) What is the definition of unclaimed deposits under Banking Regulation Act?
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3. (c) What is 'maturity' and 'days of grace'?
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4. (d) What is the definition of "Rupee Coin" under RBI Act, 1934?
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5. (e) What is the definition of 'Banking Policy' under the Banking Regulation Act, 1949?
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6. (f) What are the demand and time liability of a bank?
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7. (g) Who is an 'Acceptor for honour' under the Negotiable Instrument Act 1881?
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8. (h) Deposit of amount of debt due on filing appeal under the Recovery of Debts Due to Banks and Financial Instruments Act, 1993.
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9. (i) What is the mode of proof of entries in the Bankers Books Evidence Act, 1891?
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10. (j) What is an 'ambiguous instrument'?
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Q.2 Q.2: Short notes, attempt any four (20 Marks - 5 marks each)

1. (a) The Security and Exchange Board of India.
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2. (b) Licensing of banks under the Banking Regulation Act, 1949.
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3. (c) Bankers Book Evidence Act.
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4. (d) Inland and Foreign Bills.
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5. (e) Debt Recovery Tribunal.
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6. (f) Negotiation back.
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Q.3 Q.3: Attempt any two of the following (12 Marks - 6 marks each)

1. (a) 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 Rs.1,00,000/-? (ii) 'A' is an account holder with a bank. On the 21.6.2017 suit of insolvency is filed in the High Court by his creditors. The court appoints an official receiver on the 22.09.2017. The bank received a cheque of Rs. 50,000/- signed by the account holder on the 27.09.2017. Should the bank honour the cheque?
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2. (b) Discuss how a banker should deal with the following situation: (i) There is a credit balance in the account of A. The banker wishes to set off against an overdraft in the joint name of A and B. (ii) X a customer has deposited jewels worth Rs.5 lakhs for safe custody. Subsequently X becomes indebted to the bank. (iii) An income tax officer approaches the bank and requests to know the balance in the account of a valuable customer. He informs the bank that this information is require to recover arrears of tax payable to the Income tax Department.
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3. (c) On 01.03.2015 a customer 'A' keeps a fixed deposits of Rs.50 lakhs in a bank in his own name for a period of five years and nominates 'B' as his nominees who is not related to him. A dies on 25.01.2017 and 'B' claims the deposits. 'C' the nephew of 'A' also claims the deposit under a will which has not been probated: (i) What are the provisions under Banking Regulation Act 1949 regarding nomination for payment of depositors money? (ii) How should the bank deal with the claim of 'B' and 'C'?
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Q.4 Q.4: Attempt any four of the following (48 Marks - 12 marks each)

1. (a) Explain the various types of crossing and their effects on a cheque as permitted under the N.I. Act, 1881.
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2. (b) Explain the provision of Reserve Bank of India Act 1934 relating to collection and furnishing credit information.
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3. (c) What is the difference between Holder and Holder in due Course? Discuss various rights and privileges of a holder in due course.
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4. (d) Explain how the BR Act seeks to regulate managerial structural of banking company in matters of composition, appointment and removal of the directors of the Board, Chairman and other staff.
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5. (e) Explain the forms of business in which banking company may engage in under the provision of Banking Regulation Act 1949.
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6. (f) Compare and contrast Promissory Note, Bill of Exchange and a Cheque.
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