Osmania University · Faculty of Law
Law of Banking and Negotiable Instruments · January 2020
January 2020 · 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) / B.Com. LL.B. (5YDC) V Year IX Semester Examination, January 2020
Time : 3 Hours Max. Marks : 80
PART - A (5 x 6 = 30 Marks)
Answer any FIVE of the following :
1. Meaning of Banking.
2. Bankers' Bank.
3. Banker as Trustee.
4. Demand Draft.
5. Inchoate Instrument.
6. Collecting Banker.
7. Banker's lien.
8. Bank Guarantees.
PART - B (2 x 15 = 30 Marks)
Answer any TWO of the following questions :
9. Explain the salient features of the Banking Regulation Act.
10. What is a cheque, and who can cross a cheque?
11. Discuss the statutory protection available to the paying banker.
12. What is a letter of credit? What are the different kinds of letters of credit?
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following questions :
13. A cheque is drawn "pay Suraj" without the words "or order" or "bearer". Is the cheque payable
only to Suraj in person, or is it transferable by him?
14. Mrs. Jaya, a customer of Canara Bank, had a locker facility from 2010. One day she deposited
jewellery in that locker with proper confirmation of locking, and returned a month later; the
manager informed her by phone that the locker was found opened and the jewellery missing.
She filed an FIR with the police and surrendered the locker-key to the bank. Is the bank liable to
compensate her for the loss of the jewellery?
15. The cheque is payable to 'M' or order. It is stolen and the thief forges M's signature and presents
it to the banker, who makes the payment in due course. Can M recover the amount from the
bank?
16. The instrument speaks of "I promise to pay B Rs. 500/- when B delivers the goods," signed by A.
Discuss the nature of the transaction between A and B, and whether the instrument becomes a
promissory note.