Osmania University · Faculty of Law
Law of Banking and Negotiable Instruments · December 2015
December 2015 · Law of Banking and Negotiable Instruments · Semester 5
PAPER - III : LAW OF BANKING AND NEGOTIABLE INSTRUMENTS
FACULTY OF LAW
LL.B. (3 YDC) III - Year V - Semester Examination, December 2015
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following :
1. Letter of Credit.
2. Forgery.
3. Crossed Cheque.
4. Traveller's Cheque.
5. Trustee.
6. Bill of Exchange.
7. Set-off.
8. Reserve Bank of India.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following questions :
9. Discuss the general relationship between the banker and the customer.
10. Examine the statutory protection provided to the Paying Banker under the Negotiable
Instruments Act.
11. What are the circumstances under which a Negotiable Instrument shall be dishonoured? What
steps shall be taken by the holder of a dishonoured bill?
12. Discuss the salient features of the Negotiable Instruments Act.
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following questions :
13. A signs an instrument in the following terms: "I promise to pay B or Order Rs. 500" — what is this
instrument?
14. An Income Tax Officer directly writes to a Banker to disclose certain details relating to his
customer's accounts. Examine whether the Banker can legally disclose the information.
15. 'A' drew cheques in favour of B. A's clerk forged B's endorsement and negotiated the cheques to
'C' who took them in good faith and for value. C received payment of the cheques. A claims to
recover the amount from C. Will he succeed?
16. 'X', a customer, has deposited jewels worth Rs. 50,000 for safe custody. Later he becomes a
debtor to the bank. Explain the legal right of the banker.