Mumbai University Solved Question Papers
Law of Banking and Negotiable Instruments
Previous Year Question Paper with Solution
LLB 3 years · Sem 6
May 2015 Examination
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LLB 3 years Sem 6 Law of Banking and Negotiable Instruments May 2015 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 2015 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the May 2015 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 May 2015 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 the following in not more than two sentences
20 Marks - 2 marks each
(a)Explain the term 'Order Nisi'?[2]
Answer
Meaning. "Nisi" is Latin for "unless". An order nisi is a court order that will take full effect unless the person it is addressed to shows good cause against it. In banking law the term is used for the first stage of a garnishee order. By that order a decree-holder attaches money that a bank owes to the judgment-debtor.
What it contains. Under the Code of Civil Procedure, 1908 it is the combination of two things:
- A prohibitory order (Order XXI Rule 46(1)). In the case of "a debt not secured by a negotiable instrument", the court prohibits "the creditor from recovering the debt and the debtor from making payment thereof until the further order of the Court". Applied to an account, the customer may not withdraw and the bank may not pay.
- A notice to the garnishee (Rule 46A). The court calls on the bank "either to pay into Court the debt due from him to the judgment-debtor or so much thereof as may be sufficient to satisfy the decree and costs of execution, or to appear and show cause why he should not do so".
Its effect. It binds the bank once served. The bank must stop paying the attached amount, though it may first set off what the customer already owes it.
What follows. If the bank shows no cause, the court makes the order absolute and directs it to pay (Rule 46B). If the bank disputes liability, the court may try the question like an issue in a suit (Rule 46C). Payment under the order discharges the bank against its customer (Rule 46F).
Conclusion. An order nisi is the provisional garnishee order that forbids a bank to pay the judgment-debtor (Order XXI Rules 46, 46A). It calls on the bank to pay into court or show cause. It becomes absolute if no cause is shown.
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