Mumbai University Solved Question Papers
Law of Banking and Negotiable Instruments
Previous Year Question Paper with Solution
LLB 3 years · Sem 6
Nov 2013 Examination
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LLB 3 years Sem 6 Law of Banking and Negotiable Instruments Nov 2013 Question Paper with Solutions
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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.
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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 Nov 2013 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the Nov 2013 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 2013 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)What is endorsement in Blank?[2]
Answer
Meaning. Under section 16(1) of the Negotiable Instruments Act, 1881, an indorsement is "in blank" when the indorser signs his name only. He names no indorsee. For example, the payee Ravi simply signs "Ravi" on the back of the cheque.
Its effect.
- It becomes bearer paper. An instrument indorsed in blank is payable to the bearer, even though it was originally payable to order (section 54). It is also payable to bearer if its only or last indorsement is in blank (section 13, Explanation (ii)).
- It passes by delivery. The next holder can transfer it by handing it over, with no further indorsement (section 47).
- It can be converted. The holder may write a direction to pay a named person above the indorser's signature. That converts it into an indorsement in full, and the holder does not become liable as an indorser (section 49).
- The indorser stays liable to later holders if the instrument is dishonoured, on due notice (section 35).
Its risk. Like any bearer instrument, it can be cashed by a finder or a thief. So a holder who receives an instrument indorsed in blank often converts it into a full indorsement.
Conclusion. An indorsement in blank is a bare signature. It turns the instrument into bearer paper that passes by delivery, until a holder converts it into a full indorsement.
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