LAW RELATING TO NEGOTIABLE INSTRUMENTS BANKING & INSURANCE

Module – I            Introduction of Negotiable Instruments Act

1.1                   History and nature of Negotiable Instruments.

1.2                   Different kinds of Negotiable Instruments viz.

Promissory Note, Bill of Exchange & Cheque; Definition and Nature

Module – II           ‘Holder’ and ‘Holder in Due Course’

2.1    Meaning of Holder and Holder in Due Course

2.2      Rights & privileges of holder in due course

Module – III         Transfer of Negotiable Instruments

• Meaning and effect of Negotiation, Assignment
• Meaning and effect of Negotiable Instruments -Who may indorse?
• Kinds of Indorsement – Indorsement in Blank and Full
• Conditional Indorsement, Restrictive Indorsement, Sans Recourse Indorsement, Partial Indorsement

Module – IV         Liability of Parties and Discharge from Liability

• Liability of accepter or Maker, Drawer, Drawee and Indorser
• Banker’s liabilities for Unjustified dishonour of cheque
• Discharge from liability by Cancellation, by Release, by Payment, by Material Alteration, by qualified acceptance by Negotiation

Module – V        Crossing of Cheques 

5.1                Meaning, Object and consequences of crossing;

5.2               Different Kinds of crossing – general, special, not-negotiable & account payee crossing

5.3               Who may Cross?

5.4              Rights and duties of paying banker

5.5               Protection of collecting banker 

Module – VI         Criminal Liability of drawer for issuing cheques without fund 

6.1   Criminal liability of drawer for issuing cheques without fund; prosecution of drawer; fine and composition; compounding of offence;

6.2  Cognizance of offences and Jurisdiction; summary trial and sentence

Part – B Banking

Module – VII        Banking System in India and Control by Reserve Bank  of India

7.1                   Definition of ‘bank’, ‘banker’, ‘banking’, ‘banking companies’

7.2                   Development of banking business and companies;

7.3                   Regulations and restrictions; Powers and control exercised by the Reserve Bank of India

PART – C INSURANCE

Module – VIII       Law of Insurance

8.1                   Nature and Scope of Insurance; Classification; General Principles – Proximate Cause

8.2                   Doctrine of Utmost Good Faith

8.3                   Rules of Construction of Insurance Policy

Suggested Reading: 

1. P. ‘Faizi’ & Ashish Aggarwal, Khergamvala on The Negotiable Instruments Act
2. Ranganath Misra, Bhashyam & Adiga’s The Negotiable Instruments Act
3. Avtar Singh, Negotiable Instruments
4. Krishnamurti Aiyar, Law Relating to the Negotiable Instruments Act

5. R. Datta & P.M. Bakshi, M.L. Tannan’s Banking – Law and Practice in India (21th ed., 2008)
6. K. Gupta, Banking – Law and Practice (2nd ed. 2008)
7. Mark Hapgood, Paget’s Law of Banking (13th ed., 2007)
8. S.N. Murthy & K.V.S. Sarma, Modern Law of Insurance in India (4th ed., 2002)
9. V.Joga Rao, M.N. Srinivasan’s Principles of Insurance Law (9th ed., 2009)