Mumbai University Solved Question Papers
Law of Banking and Negotiable Instruments
Previous Year Question Paper with Solution
LLB 3 years · Sem 6
Dec 2012 Examination
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LLB 3 years Sem 6 Law of Banking and Negotiable Instruments Dec 2012 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 University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.
The question paper reproduced here is the paper as set by the University of Mumbai at the Dec 2012 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the Dec 2012 examination, in the order it was set.
MarksPage
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the Dec 2012 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 3 hours · Total marks 100 · 25 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
20 Marks - 2 marks each
(a)What is inland and foreign instruments?[2]
Answer
Inland instrument (section 11). Under the Negotiable Instruments Act, 1881, a promissory note, bill of exchange or cheque "drawn or made in India and made payable in, or drawn upon any person resident in, India shall be deemed to be an inland instrument". It is inland in either of two cases:
- it is drawn or made in India, and payable there; or
- its drawee resides in India, wherever it is drawn.
Foreign instrument (section 12). Any such instrument "not so drawn, made or made payable" is a foreign instrument.
Examples.
- A cheque drawn in Pune on a bank in Mumbai is inland.
- A bill drawn in Dubai on an importer living in Chennai is inland, because the drawee lives in India. The Calcutta High Court read section 11 this way in A.G. Kidston and Co. Ltd. v. Seth Brothers, AIR 1930 Cal 692.
- A bill drawn in Kolkata on a Singapore merchant, and payable in Singapore, is foreign.
Why it matters. Protest is compulsory for a foreign bill whenever the law of the place where it was drawn requires it (section 104). For an inland bill, protest is optional.
Conclusion. An instrument drawn or made in India and payable there, or one whose drawee lives in India, is inland (section 11). Every other instrument is foreign (section 12).
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