Osmania University · Faculty of Law
Law of Banking and Negotiable Instruments · February 2021
February 2021 · Law of Banking and Negotiable Instruments · Semester 5
PAPER - III : LAW OF BANKING AND NEGOTIABLE INSTRUMENTS
FACULTY OF LAW
LL.B. (3 YDC) / LL.B. (3 YDC) (Hons.) III - Year V Semester Examination
B.A. LL.B. / BBA LL.B. (5 YDC) & B.Com. LL.B. (5 YDC) IX Semester Examination, February 2021
Time : 2 Hours Max. Marks : 80
PART - A (4 x 10 = 40 Marks)
Answer any FOUR of the following :
1. Banker's role as a debtor in the debtor-creditor relationship.
2. Travellers Cheque.
3. Dividend Warrants.
4. Bank Guarantees.
5. Account Payee.
6. Letters of Credit.
7. Forgery.
8. Secured Advances.
PART - B (1 x 20 = 20 Marks)
Answer any ONE of the following questions :
9. Discuss the salient features of the Banking Regulation Act.
10. Examine the various kinds of relationship that exist between a banker and a customer.
11. Define a cheque and discuss the various kinds of cheques.
12. Explain clearly the statutory protection that is provided by the Negotiable Instruments Act to
paying bankers.
PART - C (1 x 20 = 20 Marks)
Answer any ONE of the following questions :
13. A person 'D' accepted a bill of exchange which is drawn in Melbourne. The endorsee, in
understanding with the drawer, altered the place of drawing of the bill of exchange from
Melbourne to Toronto. Is 'D' liable on the bill?
14. A person 'X' endorses a cheque in blank and transfers it to 'Y'. 'Y' in turn endorses it to 'Z'. 'Z' in
turn transfers it to 'M' without any endorsement. In the event of the cheque being dishonoured,
decide whom 'M' can sue.
15. If a cheque is payable to 'X' or order, and 'X' adds the words "pay to Y" or "pay to Y or order,"
examine the consequences of such an endorsement.
16. The holder of a promissory note for Rs. 25,000 endorses it and endorsee's the promissory note.
Explain the legal consequences of such an endorsement. [wording partly obscured in the source
photograph]