Mumbai University Solved Question Papers
Law of Banking and Negotiable Instruments
Previous Year Question Paper with Solution
BLS LLB 5 Years · Sem 10
May 2023 - 60/40 Examination
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BLS LLB 5 Years Sem 10 Law of Banking and Negotiable Instruments May 2023 - 60/40 Question Paper with Solutions
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First published on munotes.in on 24 October 2026.
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The question paper reproduced here is the paper as set by the University of Mumbai at the May 2023 - 60/40 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the May 2023 - 60/40 examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the May 2023 - 60/40 examination, reproduced as the University of Mumbai set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.
Duration 2 hours · Total marks 60 · 22 questions answered
Instructions printed on the paper
- N.B: Figures to the right include full marks assigned to the questions.
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q.1
Q.1: Answer in not more than two sentences, attempt any six
12 Marks - 2 marks each
(a)Write any two presumptions applicable to negotiable instruments.[2]
Answer
The rule. Section 118 of the Negotiable Instruments Act, 1881 lists presumptions that the court makes "until the contrary is proved". Two of them are:
- Of consideration (section 118(a)). Every negotiable instrument is presumed to have been made or drawn for consideration. So is every acceptance, indorsement, negotiation or transfer of it. The holder need not prove that he gave value.
- As to date (section 118(b)). Every negotiable instrument bearing a date is presumed to have been made or drawn on that date.
Other presumptions in the same section. An accepted bill was accepted within a reasonable time after its date and before maturity (clause (c)). A transfer was made before maturity (clause (d)). Indorsements were made in the order in which they appear (clause (e)). A lost instrument was duly stamped (clause (f)). And the holder is a holder in due course (clause (g)).
For cheques. Section 139 adds that the holder of a cheque received it for the discharge of a debt or other liability.
They can be rebutted. These are presumptions of law, so the court must draw them. But the other side may disprove them. In Kumar Exports v. Sharma Carpets, (2009) 2 SCC 513, the Supreme Court held that the accused can rebut them on a preponderance of probabilities. A bare denial is not enough.
Conclusion. Two presumptions are that the instrument was made for consideration and on the date it bears (section 118(a), (b)). Both stand until the contrary is proved.
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