LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments Nov 2015 Question Paper - Mumbai University | munotes

Questions asked in this paper

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

1. (a) Define 'Drawer', 'Drawee' and 'Payee' of a Bill of exchange.
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2. (b) Define 'Crossing of a cheque' under Negotiable Instruments Act, 1881.
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3. (c) What is 'inland' and 'foreign' instrument?
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4. (d) What is payment in due course?
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5. (e) What is the period and the extended period for which a banking company can hold immovable property?
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6. (f) What are 'substantial interest' under the Banking Regulation Act, 1949.
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7. (g) Maximum period for which moratorium can be granted under Banking Regulation Act, 1949.
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8. (h) What is the definition of 'Rupee Coin' under RBI Act, 1939.
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9. (i) What is the mode of proof of entries in the Bankers Books Evidence Act, 1891.
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10. (j) What is the definition of "debt" under the Recovery of Debts due to the Banks and Financial Institutions Act, 1993.
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Q.2 Q.2: Write short notes on any four (20 Marks - 5 marks each)

1. (a) Debt Recovery Tribunals.
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2. (b) Reserve Bank as the lender of last resort.
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3. (c) Maturity of Promissor Note and Bill of Exchange and calculation thereof.
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4. (d) Circumstances under which the banker is justified in dishounoring a cheque.
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5. (e) Inchoate stamped instruments.
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6. (f) Assets and liabilites of the issue department of Reserve Bank.
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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 validity of the following under the relevant provisions of Banking Regulation Act, 1949: (i) Reserve Bank issues a circular to all banks that they shall not charge interest over and above 6% p.a. on their educational loans. (ii) ABC Bank in Mumbai without taking permission of RBI opens up a new place of business in Goregaon East for the month of May to facilitate a trade fair.
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2. (b) Analyse the following under the relevant provisions of Banking Regulation Act, 1949: (i) ABC Bank has been doing banking business in India for last 10 years and has also been engaging in trading of goods. (ii) The Bank transfers 45% of its profits to its Reserve Fund to strengthen its capital base.
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3. (c) State giving reasons whether the drawee bank is justified in refusing payment of a crossed cheque: (i) The cheque is crossed generally and presented to the drawee bank across the counter for payment in cash. (ii) The cheque is crossed specially to a banker A and presented to the drawee bank by a banker B for collection. (iii) The cheque is crossed specially to two banks A and B and presented to drawee bank by bank A alone for collection.
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Q.4 Q.4: Answer the following (48 Marks - 12 marks each)

1. (a) Compare and contrast Promissory note, Bill of Exhange and a Cheque.
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2. (b) Explain the various provisions relating to notice of dishonour of negotiable instruments by non acceptance and non payment. When is notice of dishonour unncessary?
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3. (c) Discuss the various provisions of Negotiable Instruments Act, 1881 relating to noting and protesting.
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4. (d) Discuss the various provisions of Reserve Bank of India Act, 1934 and Banking Regulation Act, 1949 relating to maintenance of Cash Reserve Ratio (CCR) and Statutory Liquid Ratio (SLR).
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5. (e) Explain how the Banking Regulation Act, 1934 seeks to regulate managerial structure of a banking company in matters of compositions, appointment and removal of the Directors of the Board, Chairman and other staff.
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6. (f) Explain powers and functions of Securities and Exchange Board of India.
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