LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments Apr 2014 Question Paper - Mumbai University | munotes

Questions asked in this paper

• N.B: (1) All questions are compulsory. (2) Figures to the right indicate full marks.

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

1. (a) What do you mean by 'approved securities'?
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2. (b) What is maturity of Bill of exchange?
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3. (c) What is countermanding of a cheque?
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4. (d) What are the liabilities of issue department of RBI?
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5. (e) Who can endorse a negotiable Instrument?
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6. (f) What is the duration for which a member of a local board can hold office under RBI Act?
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7. (g) What is a schedule Bank?
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8. (h) What is a negotiable Instrument?
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9. (i) Define 'Drawer' 'Drawee' and 'payee' of a Bill of exchange.
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10. (j) What is the intepretation of term 'demand and time liabilities' as per the Banking Regulation Act 1949?
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Q.2 Q.2: Write short notes on any four (20 Marks - 5 marks each)

1. (a) 'Holder' under Negotiable Instrument Act.
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2. (b) Bankers Books Evidence Act.
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3. (c) RBI as a Banker and adviser to the government.
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4. (d) Debt Recovery Tribunal.
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5. (e) Winding up of Banking Company.
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6. (f) Noting and protesting.
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Q.3 Q.3: Answer the following by giving reasons, any two (12 Marks - 6 marks each)

1. (a) State with reasons whether the following payments amount to payment in due course. (i) A bill of Exchange payable at a future date is paid before its maturity. (ii) An instrument is payable to 'A' or his order and it isn't endorsed by him is paid to B who is in actual possession of the instrument. (iii) An instrument is paid before maturity and is successfully endorsed to another person.
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2. (b) Analysis the following under the prevelant provisions of Banking Regulation Act 1949. (i) Can a banking company carry on its business of banking in India without using the words 'bank' 'banker' or 'banking' as part of its name? (ii) A foreign banking company incorporate outside India desire to commence banking business in India and applies for a license to RBI. But the Government of that country does not allow opening of banks/branches by Indian banking companies.
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3. (c) (i) 'A' approached the bank for a loan of Rs. 10 crores for his business. He is ready and willing to furnish the security and one of the directors of the bank is ready to become the guarantors can 'A' get a loan? (ii) 'x' a payee of a cheque for Rs. 100000/- presents it for encasement. The balance in the account is found to be Rs. 96000/- should the bank pay Rs. 96000/- to x if he is willing to accept in full satisfaction?
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Q.4 Q.4: Answer the following, any four (48 Marks - 12 marks each)

1. (a) Explain the composition of Central and Local Boards of Directors under RBI Act 1934.
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2. (b) What is crossing of a cheque? State the kinds of crossing.
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3. (c) Briefly discuss the provision of Banking Regulation Act 1949 relating to (i) Licensing of banking companies (ii) Constitution of Board of directors.
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4. (d) Define Bill of exchange. How does it differs from Promissory Note?
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5. (e) What is dishonour of a Negotiable Instrument? Explain the circumstances under which a bank is justified in dishonouring of a cheque.
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6. (f) Explain powers and functions of SEBI.
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