Osmania University · Faculty of Law
Law of Banking and Negotiable Instruments · January 2019
January 2019 · 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)
BBA LL.B. (5 YDC) V Year IX Semester Examination, January 2019
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following :
1. Crossed Cheque.
2. Bankers Draft.
3. Fiduciary Relationship.
4. Bank Endorsement.
5. Collecting Banker.
6. Banker's Set-off.
7. Bank Guarantees.
8. Postal Order.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following questions :
9. Trace the history of the banking system in India and its importance in modern times.
10. Discuss the general relationship between banker and customer.
11. What is a "Negotiable Instrument"? Is a cheque a negotiable instrument? Explain.
12. Explain the meaning of the term '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. A customer of a bank deposited security with the banker. Decide what kind of right the banker
has against the security of the customer.
14. The holder of a promissory note for Rs. 10,000 writes on it "pay Rs. 6,000" and endorses the
note. Examine the consequences of such an endorsement.
15. A customer of the banker has a deposit of Rs. 1,50,000/- in his account. He issues a cheque for
Rs. 50,000/- to the banker for payment. The banker refuses to honour the cheque of the
customer. Examine the legal position.
16. If 'X', the endorser of a negotiable instrument on cheque, endorses it in blank and transfers it to
'Y', who in turn endorses it in favour of 'Z'. 'Z' in turn transfers it without any endorsement to 'Q'.
If the cheque is dishonoured, who can 'Q' sue? Decide.