Law of Banking and Negotiable Instruments · Semester 5

Law of Banking and Negotiable Instruments · December 2015 (5-YDC)

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Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.

Official previous-year question paper (PDF scan) labelled 5-YDC in the source scan. Stored with Year 3 Semester 1 as provided.

Osmania University · Faculty of Law

Law of Banking and Negotiable Instruments · December 2015 (5-YDC)

December (5-YDC) 2015 · Law of Banking and Negotiable Instruments · Semester 5

PAPER - III : LAW OF BANKING AND NEGOTIABLE INSTRUMENTS
FACULTY OF LAW
B.A. LL.B. (5 YDC) V - Year IX - Semester Examination, December 2015
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following :
1. Issuing Notes.
2. Government Securities.
3. Fiduciary relationship.
4. Cheque.
5. Traveller's cheque.
6. Bankers Lien.
7. Letters of Credit.
8. Pledge.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following questions :
9. Explain the concept of Banking Business in India. Discuss its importance in modern times.
10. Discuss the law relating to the relationship between Customer and Banker.
11. Explain the salient features of Negotiable Instruments in India.
12. Define "Bank Guarantee". Discuss the importance of Letters of Credit in the present scenario.
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following questions :
13. 'A' signs an instrument in the following terms: "I am liable to B for a sum of Rs. 500/- to be paid
by installments". What is this instrument? Explain.
14. A sells a radio to 'M', a minor, who pays for it by his cheque. A endorses the cheque to B, who
takes it in good faith and for value. The cheque is dishonoured on presentation. Can 'B' enforce
payment of the cheque against 'A' or 'M'? Discuss.
15. When is a Negotiable Instrument considered as dishonoured? What are the duties of a holder
upon such dishonour?
16. A bill is endorsed to Mr. Ratnakar on order. Another person of the same name gets the bill and
presents it. The acceptor pays him. Is the acceptor liable to the real Ratnakar?

Part A · 6 marks

  1. Issuing Notes.
    Year and frequency →
  2. Government Securities.
    Year and frequency →
  3. Fiduciary relationship.
    3× in bank Topics: Nature of the relationship: debtor–creditor, agency and lien
    Year and frequency →
  4. Cheque.
    Year and frequency →
  5. Traveller's cheque.
    5× in bank Topics: Paying and collecting banker; forged cheques
    Year and frequency →
  6. Bankers Lien.
    5× in bank Topics: Paying and collecting banker; forged cheques
    Year and frequency →
  7. Letters of Credit.
    4× in bank
    Year and frequency →
  8. Pledge.
    Year and frequency →

Part B · 15 marks

  1. Explain the concept of Banking Business in India. Discuss its importance in modern times.
    Topics: Reserve Bank of India Act, 1934; Banking Regulation Act, 1949: business of banking
    Year and frequency →
  2. Discuss the law relating to the relationship between Customer and Banker.
    Topics: Nature of the relationship: debtor–creditor, agency and lien; Paying and collecting banker; forged cheques
    Year and frequency →
  3. Explain the salient features of Negotiable Instruments in India.
    2× in bank Topics: Reserve Bank of India Act, 1934
    Year and frequency →
  4. Define "Bank Guarantee". Discuss the importance of Letters of Credit in the present scenario.
    Year and frequency →

Part C · 10 marks

  1. 'A' signs an instrument in the following terms: "I am liable to B for a sum of Rs. 500/- to be paid by installments". What is this instrument? Explain.
    Year and frequency →
  2. A sells a radio to 'M', a minor, who pays for it by his cheque. A endorses the cheque to B, who takes it in good faith and for value. The cheque is dishonoured on presentation. Can 'B' enforce payment of the cheque against 'A' or 'M'? Discuss.
    Topics: Cause of action, notice, successive presentation and territorial jurisdiction
    Year and frequency →
  3. When is a Negotiable Instrument considered as dishonoured? What are the duties of a holder upon such dishonour?
    Topics: Holder, negotiation and liability of parties
    Year and frequency →
  4. A bill is endorsed to Mr. Ratnakar on order. Another person of the same name gets the bill and presents it. The acceptor pays him. Is the acceptor liable to the real Ratnakar?
    Year and frequency →