Osmania University · Faculty of Law
Law of Banking and Negotiable Instruments · April/May 2022
April/May 2022 · 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, April/May 2022
Time : 3 Hours Max. Marks : 80
PART - A (6x 4 = 24 Marks)
Answer any FIVE of the following:
1. Promissory Note
2. Garnishee Order
3. Customer
4. Mortgage
5. Banker’s Lien
6. Letter Of Credit
7. Credit Control
8. Payment in due course
9. Current Account
PART - B (2 x 18 = 36 Marks )
Answer any TWO of the following questions
10. Examine the legal character of the Banker-Customer relationship.
11. Examine the principles of good lending.
12. What is a Negotiable Instrument? Explain the general characteristics of Negotiable Instruments.
13. What is an Endorsement? What are the different kinds of endorsements?
PART - C (2 x 10 = 20 Marks)
Answer any TWO of the following questions :
14. A forged B's signature on a cheque stolen by him from B and presented the same for payment at
'X' Bank. The bank couldn't detect the forgery and made payment. Can B recover that amount
from 'X' Bank?
15. 'X' took a loan of Rs. 5,00,000 from a bank and didn't pay. He also has a safe deposit locker with
the same bank. The banker exercises a lien on the safe deposit locker and didn't allow him to
take anything from the locker. Can the bank exercise a lien?
16. Ramu kept his valuables in a safe deposit locker provided by the banker. The valuables were
stolen. Ramu sued the banker. Will Ramu succeed in his case? State whether the banker is liable.
Decide.
17. A promissory note was executed by Somu in favour of Ramu. Suddenly Somu dies. Can Ramu
claim against the legal heirs of Somu? Decide.