LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments May 2016 Question Paper - Mumbai University | munotes

Questions asked in this paper

• N.B: (1) All questions are compulsory. (2) Figures to the right indicate marks. (3) Give reasons / case-law wherever necessary.

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

1. (a) Define a Bill of exchange.
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2. (b) What is endorsement in Blank.
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3. (c) What is 'inland' and 'foreign' instrument?
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4. (d) What is Negotiation?
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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 is 'substantial interest' under the Banking Regulation Act, 1949.
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7. (g) What is the interpretation of the term Banking, under the 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 "unclaimed deposits" under the Bnaking Regulation Act.
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Q.2 Q.2: Write short notes on any four (20 Marks - 5 marks each)

1. (a) SEBI.
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2. (b) Reserve Bank as Lender of Last Resort.
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3. (c) Noting and Protest.
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4. (d) Presumptions under NI Act as Special Rules of Evidence.
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5. (e) Debt Recovery Tribunal.
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6. (f) Assets and liabilities of the issue department of The 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) Which of the following payments amount to payment in due course. (i) Bill of Exchange payable at a future date is paid before its maturity. (ii) An instxrument is payable to 'A' or his 'order' and it is not endorsed by him but paid to 'B' who is in actual possession of the instrument. (iii) An instrument is paid before maturity and is subsequently endorsed to another person.
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2. (b) Analyse the following under the relevant provisions of The Banking Regulation Act, 1949: (i) ABC Bank has been doing banking business in India for the last 10 years and has also been engaging in trading of goods. (ii) The Bank transfers 45% of its profit 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 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, any four (48 Marks - 12 marks each)

1. (a) Compare and contrast Promissory note, Bill of Exchange and a Cheque.
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2. (b) What are the various provisions relating to dishonour of cheques under the NI Act and what is the procedure of filing a complaint under Section 138.
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3. (c) What is the composition of the Central Board and the Local Boards and their functions under RBI Act.
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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 (CRR) 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) What is the business that the RBI may transact under Section 17 and which the bank may not transact under Section 19 of the RBI Act.
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