LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments Jun 2019 Question Paper - Mumbai University | munotes

Questions asked in this paper

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

1. Q1 What is the 'minimum capital requirement of a bank' according to the Banking Regulation Act, 1949?
2. Q2 What is the meaning of 'special crossing' in terms of a cheque?
3. Q3 What is a Garnishee Order?
4. Q4 What is 'noting' and who does it?
5. Q5 What is 'Legal Proceeding' under the Bankers Books Evidence Act, 1891?
6. Q6 Define 'debt' under the Debts due to Banks and Financial Institutions Act, 1993?
7. Q7 What is a 'Bank Rate' as per Reserve Bank of India Act, 1934?
8. Q8 What is a 'hundi' under the Negotiable Instrument Act, 1881?
9. Q9 Give two main objectives of enacting the Banking Regulation Act, 1949.
10. Q10 'Deposit Insurance Corporation' under the Reserve Bank of India Act, 1934.

SECTION II - Q.2: Write short notes on any four of the following (20 Marks - 5 marks each)

1. Q11 Kinds of endorsement.
2. Q12 Winding up of Banking Company.
3. Q13 Contrast between Promissory Note and Bill of Exchange.
4. Q14 Debt of Recovery Tribunals.
5. Q15 Composition of Central Board under the Reserve Bank of India, 1934.
6. Q16 Inland and Foreign Bills.

SECTION III - Q.3: Answer the following by giving reasons, any two (12 Marks - 6 marks each)

1. Q17 'A' draws a bill of exchange on 'B'. 'B' accepts the bill of exchange without any consideration. The bill of exchange is transferred to 'C' without consideration. 'C' transferred it to 'D' for value. Decide (i) Whether D can sue the prior parties of the bill. (ii) Whether prior parties other than D have any right of action inter-se.
2. Q18 'XYZ' BANK has been doing business of Banking in India for last 10 years. Now, the Bank wants to engage in trade by buying and selling goods to enhance its profits. The Bank also wants to transfer 40% of its profit to its Reserve Fund to strengthen its capital base. Can 'XYZ' Bank engage in trading and transfer of 40% of its profit to its Reserve Fund. If yes, under what provisions of the Banking Regulation Act, 1949.
3. Q19 Whether the Bank is justified in refusing the payment of a cheque in the following conditions. Give Reasons: (i) A cheque is issued on an account by 'A' and on the funds of this account the bank has a set off against a loan taken by 'A'. (ii) A cheque is issued on 01-01-2019 and is presented to the Bank for payment on 01-05-2019. (iii) 'XYZ' Bank receives a cheque dated 01-12-2018 drawn by 'M', the cheque is presented for payment on 10-01-2019, the Bank has been notified of the lunacy of 'M' as on 21-12-2018.

SECTION IV - Q.4: Write any four questions (48 Marks - 12 marks each)

1. Q20 What are the core functions of Reserve Bank as a Central Bank of India?
2. Q21 What is the difference between Holder and Holder in Due Course? Discuss the various rights and privileges of a Holder in due course?
3. Q22 Discuss the provisions of Banking Regulation Act, 1949 relating to (i) Licensing of Banking Company and their Branches (ii) Licensing of Co-operative (Urban) Banks and their Branches.
4. Q23 Discuss the provisions under Section 138 of the Negotiable Instrument Act, 1881.
5. Q24 Explain powers and functions of Securities and Exchange Board of India.
6. Q25 What are the various presumptions as to Negotiable Instruments as to special rules of evidence?

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