Osmania University · Faculty of Law
Law of Banking and Negotiable Instruments · January/February 2017
January/February 2017 · 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 / B.A. LL.B. (5 YDC)
B.B.A. LL.B. (5 YDC) V - Year IX - Semester, January / February 2017
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following :
1. Fiduciary Relationship.
2. Mixed Banking.
3. Bill of Exchange.
4. Days of Grace.
5. Blank Endorsement.
6. Bankers Set off.
7. Travellers' Cheques.
8. Collecting Banker.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following questions :
9. Explain the concept of banking and discuss the objectives and salient features of the Banking
Regulation Act.
10. Explain the general relationship between banker and customer in India.
11. What is meant by "Negotiable Instrument"? What are its characteristic features?
12. What is "Banker's Lien"? State the general precautions which a banker should take while
granting loans and advances.
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following questions :
13. The holder of a promissory note for Rs. 1,000 writes on it "pay Rs. 6,000" and endorses the note.
Examine the consequences of such an endorsement.
14. A cheque is drawn payable to 'X' or bearer. Y steals it and negotiates it to Z. Is it possible for 'X' to
get back the cheque from 'A'?
15. A bill payable to "X or Order" was stolen. Y forged X's endorsement and endorsed it to 'Z', who
takes it for value and in good faith. Shall Z acquire good title to it?
16. 'D' accepted a bill of exchange drawn in London. An endorsee, in arrangement with the drawer,
altered the place of drawing from "London" to America. Is 'D' liable on the bill?
.