LLB 3 Sem Banking Law 4917 21 Feb 2022

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TKE Register No.

4917–21

(For the candidates admitted from 2009-2010 to 2016-2017)

B.L./LL.B. DEGREE EXAMINATIONS, FEBRUARY 2022.

(Three-year Regular Course)

Second Year – Third Semester

BANKING LAW
Time : Three hours Maximum : 100 marks

PART A — (3 × 12 = 36 marks)

Answer THREE of the following in not exceeding six pages each.

1. Define ‘‘negotiation’’ and state the difference between negotiability and


assignability.

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2. Explain the different types of endorsement and their significance.

3. Explain the statutory protection to the paying banker.

4. Explain the control of Reserve Bank of India over the other banks under the
RBI Act.

5. Explain the important provisions of the Financial Institutions Act, 1993.


PART B — (8 × 6 = 48 marks)
6. Write short answers on EIGHT of the following in not exceeding
two pages each :

(a) Material alteration

(b) Devaynes vs Noble Clayton

(c) Crossing of cheques

(d) Bill of Exchange

(e) Special type of customers

(f) Notice of dishonour

(g) Stale Note

(h) Banker’s general lien

(i) Inland Bill

(j) Term Deposits

PART C — (4 × 4 = 16 marks)
Answer FOUR of the following (in not exceeding two pages each) by referring to
relevant provisions of law and decided cases with cogent reasons.

7. ‘A’ draws a cheque in favour of ‘B’. In the body of the cheque the words Rupees
one thousand six hundred and sixty five are written whereas the figure read as
Rs. 1,615. How should the Paying Banker deal with such a cheque on
presentation?

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8. ‘A’ executes a promissory note on attaining majority in consideration of the
money advanced to him while he was a minor. Can ‘A’ be successfully sued on
the promissory note by the creditor?

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9. Two cheques which were drawn by a customer for Rs. 1,500 and Rs. 1,200 are
presented at the same time and the customer’s balance is sufficient to honour
the cheque for Rs. 1,200 only. The bank dishonours both the cheques. Decide.

10. ‘A’ signed a blank stamped paper and gave it to ‘B’ and authorized him to fill it
as a promissory note for Rs. 20,000. But ‘B’ fraudulently filled it up for
Rs. 50,000 payable to ‘C’, who in good faith, advanced Rs. 50,000. Can ‘C’
recover this amount from ‘A’? Decide.

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11. A customer deposits his valuable securities, documents and ornaments with
the bank for safe custody and safety from theft. Does the banker have any lien
over such valuables?

12. Decide the transactions :


(a) An undated cheque is presented for payment.
(b) A post-dated cheque is presented for payment.

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