Mumbai University Solved Question Papers
Law of Banking and Negotiable Instruments
Previous Year Question Paper with Solution
BLS LLB 5 Years · Sem 10
May 2025 - 75/25 Examination
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BLS LLB 5 Years Sem 10 Law of Banking and Negotiable Instruments May 2025 - 75/25 Question Paper with Solutions
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First published on munotes.in on 24 October 2026.
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Model answers written and edited by the munotes.in editorial desk.
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The question paper reproduced here is the paper as set by the University of Mumbai at the May 2025 - 75/25 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the May 2025 - 75/25 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 2025 - 75/25 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 2½ hours · Total marks 75 · 15 questions answered
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 two sentences, any six
12 Marks - 2 marks each
(1)Define a promissory note.[2]
Answer
Definition. Section 4 of the Negotiable Instruments Act, 1881 says: "A 'promissory note' is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument".
Its essentials.
- It is in writing.
- It contains an undertaking, that is a promise, to pay. A mere acknowledgment of debt is not enough.
- The promise is unconditional.
- It is signed by the maker.
- The sum is certain and is money only.
- The payee is a certain person, his order, or bearer.
The two parties. The maker promises to pay. The payee receives payment.
The Act's own examples. "I promise to pay B or order Rs. 500" is a note. So is "I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value received". But "Mr. B, I O U Rs. 1,000" is not, because it only acknowledges a debt. Nor is a promise to pay "and to deliver to him my black horse", since that is not money only.
Bearer notes. Only the Reserve Bank, or the Central Government where allowed, may issue a note payable to bearer (Reserve Bank of India Act, 1934, section 31(2)).
Conclusion. A promissory note is a written, signed and unconditional promise by the maker. It promises to pay a certain sum of money only, to a certain person, his order, or the bearer.
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