LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments 2017-18 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. 3. Use case law wherever required.

SECTION I - Q.1: Answer in one or two sentences (20 Marks - 2 marks each)

1. Q1 What is the period and the extended period for which a banking company can hold immovable property?
2. Q2 What is the definition of unclaimed deposits under Banking Regulation Act?
3. Q3 What is 'maturity' and 'days of grace'?
4. Q4 What is the definition of "Rupee Coin" under RBI Act, 1934?
5. Q5 What is the definition of 'Banking Policy' under the Banking Regulation Act, 1949?
6. Q6 What are the demand and time liability of a bank?
7. Q7 Who is an 'Acceptor for honour' under the Negotiable Instrument Act 1881?
8. Q8 Deposit of amount of debt due on filing appeal under the Recovery of Debts Due to Banks and Financial Instruments Act, 1993.
9. Q9 What is the mode of proof of entries in the Bankers Books Evidence Act, 1891?
10. Q10 What is an 'ambiguous instrument'?

SECTION II - Q.2: Short notes, attempt any four (20 Marks - 5 marks each)

1. Q11 The Security and Exchange Board of India.
2. Q12 Licensing of banks under the Banking Regulation Act, 1949.
3. Q13 Bankers Book Evidence Act.
4. Q14 Inland and Foreign Bills.
5. Q15 Debt Recovery Tribunal.
6. Q16 Negotiation back.

SECTION III - Q.3: Attempt any two of the following (12 Marks - 6 marks each)

1. Q17 Analyse the following: (i) In respect of an account held by a customer 'A' the bank receive an attachment order for a value of Rs.1,00,000/-. Can it honour cheques out of funds over Rs.1,00,000/-? (ii) 'A' is an account holder with a bank. On the 21.6.2017 suit of insolvency is filed in the High Court by his creditors. The court appoints an official receiver on the 22.09.2017. The bank received a cheque of Rs. 50,000/- signed by the account holder on the 27.09.2017. Should the bank honour the cheque?
2. Q18 Discuss how a banker should deal with the following situation: (i) There is a credit balance in the account of A. The banker wishes to set off against an overdraft in the joint name of A and B. (ii) X a customer has deposited jewels worth Rs.5 lakhs for safe custody. Subsequently X becomes indebted to the bank. (iii) An income tax officer approaches the bank and requests to know the balance in the account of a valuable customer. He informs the bank that this information is require to recover arrears of tax payable to the Income tax Department.
3. Q19 On 01.03.2015 a customer 'A' keeps a fixed deposits of Rs.50 lakhs in a bank in his own name for a period of five years and nominates 'B' as his nominees who is not related to him. A dies on 25.01.2017 and 'B' claims the deposits. 'C' the nephew of 'A' also claims the deposit under a will which has not been probated: (i) What are the provisions under Banking Regulation Act 1949 regarding nomination for payment of depositors money? (ii) How should the bank deal with the claim of 'B' and 'C'?

SECTION IV - Q.4: Attempt any four of the following (48 Marks - 12 marks each)

1. Q20 Explain the various types of crossing and their effects on a cheque as permitted under the N.I. Act, 1881.
2. Q21 Explain the provision of Reserve Bank of India Act 1934 relating to collection and furnishing credit information.
3. Q22 What is the difference between Holder and Holder in due Course? Discuss various rights and privileges of a holder in due course.
4. Q23 Explain how the BR Act seeks to regulate managerial structural of banking company in matters of composition, appointment and removal of the directors of the Board, Chairman and other staff.
5. Q24 Explain the forms of business in which banking company may engage in under the provision of Banking Regulation Act 1949.
6. Q25 Compare and contrast Promissory Note, Bill of Exchange and a Cheque.

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