Mumbai University Solved Question Papers
Law of Banking and Negotiable Instruments
Previous Year Question Paper with Solution
BLS LLB 5 Years · Sem 10
May 2026 - 75/25 Examination
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BLS LLB 5 Years Sem 10 Law of Banking and Negotiable Instruments May 2026 - 75/25 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 2026 - 75/25 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the May 2026 - 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 2026 - 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 · 21 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 not more than two sentences, attempt any six
12 Marks - 2 marks each
(a)Define the term 'Negotiable Instrument'.[2]
Answer
Definition. Section 13(1) of the Negotiable Instruments Act, 1881 says: "A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer". So the Act names three instruments, and each must be payable to order or to bearer.
Order and bearer. An instrument is payable to order when it says so, or names a particular person as payee. It must also have no words forbidding transfer (Explanation (i)). It is payable to bearer when it says so, or when its only or last indorsement is an indorsement in blank (Explanation (ii)). Under section 13(2) it may be made payable to two or more payees jointly, or to one of several payees in the alternative.
What "negotiable" means. The instrument passes from hand to hand like money. A bearer instrument passes by mere delivery (section 47); an order instrument passes by indorsement and delivery (section 48). A holder in due course takes it free of the defects in his transferor's title (section 9), and consideration is presumed (section 118).
Others by custom. The list in section 13 is not closed. Instruments such as hundis are negotiable by custom, and section 1 saves local usage for instruments in an oriental language.
Conclusion. A negotiable instrument is a note, bill or cheque payable to order or to bearer. It can be transferred freely, so that an honest holder for value gets a good title.
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