Mumbai University Solved Question Papers
Law of Banking and Negotiable Instruments
Previous Year Question Paper with Solution
LLB 3 years · Sem 6
Nov 2015 Examination
munotes.in
Mumbai
LLB 3 years Sem 6 Law of Banking and Negotiable Instruments Nov 2015 Question Paper with Solutions
Get access to whole semester resourcesSemester Pass
MU law student group
Free to join
First published on munotes.in on 24 October 2026.
Published by munotes.in, Mumbai.
Model answers written and edited by the munotes.in editorial desk.
Passages from this volume may be quoted, in print, online or by an AI system, with credit: name munotes.in and link to this volume's page. The volume may not be reproduced as a whole. Full terms at munotes.in/content-license.
munotes.in is an independent study resource for students of the University of Mumbai. It is not affiliated with the University of Mumbai, and is not endorsed by it.
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 Nov 2015 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the Nov 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 Nov 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.
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)Define 'Drawer', 'Drawee' and 'Payee' of a Bill of exchange.[2]
Answer
The definitions (section 7 of the Negotiable Instruments Act, 1881).
- Drawer. "The maker of a bill of exchange or cheque is called the drawer". He is the person who writes and signs the order to pay.
- Drawee. "The person thereby directed to pay is called the drawee". For a cheque, the drawee is always the banker on whom it is drawn.
- Payee. "The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the payee".
An example. Iyer, a spice trader of Kochi, writes: "Three months after date pay Malabar Bank or order Rs 50,000", addressed to Shah, his buyer in Ahmedabad, and signs it. Iyer is the drawer, Shah the drawee, and Malabar Bank the payee.
Related terms in the same section.
- When the drawee signs his assent on the bill and delivers it, or gives notice of signing to the holder, he becomes the acceptor.
- A person named in the bill, besides the drawee, to be resorted to in case of need is the drawee in case of need.
Their liabilities, in short. Until acceptance the drawer is liable as principal debtor, and after acceptance the acceptor is (section 37). The drawer must compensate the holder if the drawee or acceptor dishonours the bill, provided due notice of dishonour is given (section 30).
One person in two roles. The drawer may make the bill payable to his own order, so the drawer and payee may be the same person.
Conclusion. The drawer makes and signs the bill, and the drawee is the person directed to pay it (section 7). The payee is the person to whom, or to whose order, the money is to be paid.
The rest of the answers
The first answer is free. The rest come with the LL.B. 3 Years Semester 6 solved papers.
You have read the question paper and its first answer in full. Buy the solved papers once and you can read every answer of every solved paper in this semester.
Notes + Solved papers: ₹798 Already bought it? Sign in
Or solved papers only: ₹499
Or notes only: ₹499
The question paper itself stays free, and so does the syllabus.
Found an error in this volume? Report it and we will check it against the paper.