LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments Dec 2012 Question Paper - Mumbai University | munotes

Questions asked in this paper

Q.1 Q.1: Answer in not more than two sentences (20 Marks - 2 marks each)

1. (a) What is inland and foreign instruments?
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2. (b) What is the qualification for appointment as 'presiding officer' of a Tribunal under Recovery of Debts due to Banks and Financial Institution Act 1993?
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3. (c) What are the demand and time liabilities of the banks?
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4. (d) Define 'Cheque' under Negotiable Instruments Act.
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5. (e) What is an "ambiguous instrument"?
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6. (f) What are the assets of the issue Department of the Reserve Bank?
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7. (g) What is the capital of the Reserve Bank and who holds it?
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8. (h) What is a 'Negotion'?
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9. (i) What is a 'Scheduled Bank'?
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10. (j) What is the defination of the Bankers' Books, under Bankers' Books Evidence Act, 1891?
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Q.2 Q.2: Write short notes on any four (20 Marks - 5 marks each)

1. (a) Reserve Bank as 'Government Bank' and advisor to the government.
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2. (b) The securities and Exchange Board of India (SEBI).
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3. (c) Inchoate stamped Instrument.
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4. (d) 'Holder' under Negotiable Instrument Act.
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5. (e) Licensing of banks and their branches.
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6. (f) Circumstances under which the banker is justified in dishonouring a cheque.
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Q.3 Q.3: Answer the following by giving reasons, any two (12 Marks - 6 marks each)

1. (a) Analyse the following under relevant provisions of the Banking Regulation Act. (i) A banking company commences its business and its subscribed capital is less than half of the authorised capital. (ii) Can a banking company deal in buying or selling or bartering the goods in addition to the business of banking? (iii) Can a banking company creak any charge upon any of its unpaid capital?
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2. (b) State giving reasons whether the drawee bank is justified in refusing the payment of a cheque. (i) The cheque is dated 01-05-2012 and is presented for payment on 01-04-2012. (ii) The cheque is dated 01-01-2012 and is presented for payment on 12-05-2012. (iii) The amount of the cheque stated in words as ₹ four hundred where as in figure as ₹ 40/- only.
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3. (c) Analyse the following under relevant provisions of the Banking Regulation Act. (i) Can a banking company carry on its business of banking in India without using the words 'banks', 'banker', 'banking' as parts of its name? (ii) Can a banking company hold any immovable property, othewise than acquired for its own use? (iii) Can a banking company pay Dividend on its shares before writting off completely its all capitalised expenses.
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Q.4 Q.4: Answer the following, any four (48 Marks - 12 marks each)

1. (a) Define Bill of Exchange? What are the essential ingrediants of a valid Bill of Exchange? Compare Bill of Exchange as cheque.
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2. (b) What are the core functions of Reserve Bank as a central Bank of India?
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3. (c) What is endorsement? Discuss the various types of endorsement under the Negotiable Instruments Act?
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4. (d) Discuss the provisions of Banking Regulation Act 1949 relating to restriction on opening of new and transfer of existing place of business.
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5. (e) Explain the provisions of Reserve Bank of India Act, relating to collection and furnishing of credit information.
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6. (f) Write Explanatory Note on Bankers' Books Evidence Act 1891.
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