Paper III

Law of Banking and Negotiable Instruments

RBI Act, Banking Regulation Act, banker–customer relation, negotiable instruments, cheque dishonour under sections 138–142 and SARFAESI recovery.

Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.

Unit I: Reserve Bank and banking regulation

Reserve Bank of India Act, 1934 3 cases Banking Regulation Act, 1949: business of banking 3 cases

Unit II: Banker and customer

Nature of the relationship: debtor–creditor, agency and lien 3 cases Paying and collecting banker; forged cheques 3 cases

Unit III: Negotiable instruments: notes, bills and cheques

Definitions and essentials: NI Act sections 4–13 3 cases Holder, negotiation and liability of parties 3 cases

Unit IV: Dishonour of cheques: sections 138–142

Ingredients of the offence and vicarious liability 3 cases Cause of action, notice, successive presentation and territorial jurisdiction 3 cases

Unit V: SARFAESI and recovery of bank dues

Enforcement of security interest 3 cases DRT jurisdiction and the bar of the civil court 3 cases