3-Year LL.B. · Semester V

V: Paper-III: Law of Banking and Negotiable Instruments

Structured subject study centre with syllabus, unit-wise notes, quick references, important statutes and charts.

Subject introduction

Law of Banking and Negotiable Instruments: This course explores the legal and regulatory structure of banking operations in India, tracing the evolution of banking legislation and the intricate legal relationships between bankers and their customers. It provides a detailed study of negotiable instruments like cheques and promissory notes, the statutory protections afforded to paying and collecting bankers, various types of credit advances and securities (such as pledges and mortgages), and modern debt recovery mechanisms under the SARFAESI Act and Debt Recovery Tribunals.

Syllabus

PAPER - III

LAW OF BANKING AND NEGOTIABLE INSTRUMENTS

Unit-I: History of the Banking Regulation Act, Salient features, Banking Business and its importance in modern times, Different kinds of Banking, impact of Information Technology on Banking.
Unit-II: Relationship between Banker and Customer - Debtor and Creditor Relationship, Fiduciary Relationship, Trustee and Beneficiary, Principal and Agent, Bailor and Bailee, Guarantor.
Unit-III: Negotiable instruments and deemed negotiable instruments - Cheques, Crossed Cheques, Account Payee, Banker's Drafts, Dividend Warrants, etc., Salient features of The Negotiable Instruments Act.
Unit-IV: The Paying Banker - Statutory protection to Bankers, Collecting Banker - Statutory protection, Rights and obligations of paying and collecting bankers.
Unit-V: Banker's lien and set off, Advances - Pledge, Land, Stocks, Shares, Life Policies, Document of title to Goods, Bank Guarantees, Letters of Credit, Recovery of Bank loans and position under the SARFAESI Act, 2002, Jurisdiction and powers of Debt Recovery Tribunal.
Suggested Readings:
1. Tannan: Banking Law & Practice in India, Orient Law House, New Delhi.
2. Avtar Singh: Negotiable Instruments, Eastern Book Company, Lucknow.
3. P.N. Varshney: Banking Law & Practice, Sultan Chand & Sons, New Delhi.
4. Taxman: Law of Banking, India Law House.
5. B.R. Sharma and Dr. R.P. Nainta: Principles of Banking Law and Negotiable Instruments Act, Allahabad Law Agency.
6. Mukherjee's Banking Law and Practice, Premier Publications Company.
7. Bashyam and Adiga: Negotiable Instruments Act, Bharat Law House.
8. S.R. Myneni, Law of Banking, Asia Law House.