Osmania University · Faculty of Law
Law of Banking and Negotiable Instruments · January/February 2018
January/February 2018 · 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 Examinations, January / February 2018
Subject : Law
PAPER - III : LAW OF BANKING AND NEGOTIABLE INSTRUMENTS
Code No. 9571
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following :
1. Banking Regulation Act.
2. Meaning of Bank's Customer.
3. Travelers Cheques.
4. Promissory Notes.
5. Payment in Due Course.
6. Banker's Lien.
7. Bank Guarantees.
8. Dividend Warrants.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following questions :
9. Explain the importance of banking business in the development of a country.
10. What are the circumstances under which a banker would be justified in disclosing the affairs of
its customer?
11. Define a "negotiable instrument" and describe the main characteristics of the instrument.
12. Discuss the main types of Letters of Credit in International Trade.
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following questions :
13. Reserve Bank of India (RBI) cancelled the license of KL Bank. KL Bank wants to challenge the
cancellation of license. Where can the appeal lie?
14. Mr. Srinu draws a cheque for Rs. 2,000/- and hands it over to Balu by way of gift. Is Balu a holder
in due course? Discuss the interest of Balu to receive the proceeds of the cheque.
15. There is a credit balance in the account of Mr. Gopal. The banker wishes to set this off against an
overdraft in the joint name of Gopal and Kamal. Will the bank exercise the right of set-off in this
situation?
16. 'B' obtains A's acceptance to a bill of exchange by fraud. B endorses it to 'C' who is a holder in
due course; C endorses the bill to 'D' who knows of the fraud. Can 'D' get a good title and
recover money from A?