Banking Laws & Practices

An Overview

Signifcance/Importance of Law

Law is to maintain rights, uphold

justice

Redress wrongs

Law ensures public order, balance,

harmon, peace and tran!uilit
amongst the persons within the state
and inter"states#
Law"""$e%ned

Law signi%es a rule o& action and is applied

to all kinds o& action#

'e are &amiliar with laws o& nature, laws o&

mechanics# 'e are also conversant o& laws
o& honor, laws o& moralit, law o& (od#

We also listen about:

)riminal Procedure )ode# *)r P)+

)ivil Procedure )ode *)P)+

)ontract Act#

Banking )ompanies Ordinance

,ales -a. Act

)ompanies Ordinance etc#

Above are statutor enactments en&orced b

)ourts o& law, in a sstem/societ#

0ence law denotes entire bod o& legal principles

prevailing in a particular sstem/societ#
Some Concepts of Law:

1Law is not right alone or might alone, but a

per&ect combination between two#2
*,almond+

1Law is the command o& sovereign

containing a common rules o& li&e &or his
subjects and obliging them to obedience2
(John Erskin)

1)oercion is a weapon o& law which law has

&orged, but it is not the basis o& law2
*$e 3otmorenc+
,ome )oncepts o& Law4

1 Law is the bod o& principles

recogni5ed or en&orced b public or
regular tribunals in the
administration o& justice2
*Pound+
1 Law is the sstem o& rights and
obligations which the state en&orces2
*(reen+
Some Concepts of Law
1 6ou will not mistake m meaning or
suppose that 7 depreciate one o& the
great human studies i& 7 sa that we
cant learn law b learning law# 7& it is
to be an thing more than just a
techni!ue it is to be so much more
than itsel&, a part o& histor &
sociolog, a part o& ethics and
philosoph o& li&e2
(Lord Radclif)
)lassi%cation o& Law
8# 7mperative Law4

Three Essentials
o
(eneral rules
o
,ome authorit behind this law#
o
7t must be en&orced b superior
power#
2. Physical or Scientifc Law:
o Laws o& motion, (ravit, Astrolog
3. Moral laws
4. Conventional Law
Based on agreements o& interacting parties
en&orced at court o& law e#g# )ontract,
3emorandum o& Association#
5. Customary Law.
Rules, )ustoms &ollowed &or a long time#
6. Practical or ec!nical Law.
Law o& engineering, architecture, photograph#
". #nternational law
Rules, which govern sovereign ,tates in their
relations9 and conduct to one another#
Criminal ofence ers!s Ci"il
Lia#ilit$

)rime is an o:ence prohibited b law

e"g; tress passing, the&t, 3urder etc#

)ivil liabilit arises out o& breach o&

obligations e"g; breach o& an
agreement#