| 1. | Answer any four of the following: | | |
| | (a) | Point out with reasons whether the following agreements are valid or void: | (i) | Kamala promises Ramesh to lend Rs. 50,000 in lieu of consideration that Ramesh gets Kamala’s marriage dissolved and himself marries with her. | | (ii) | Sohan agrees with Mohan to sell his black horse. Unknown to both the parties, the horse was dead at the time of agreement. | | (iii) | Ram sells the goodwill of his shop to Shyam for Rs. 4,00,000 and promises not to carry on such business forever and anywhere in India. | | (iv) | In an agreement between Prakash and Girish, there is a condition that they will not institute legal proceeding against each other without consent. | | (v) | Ramamurthy, who is a citizen of India, enters into an agreement with an alien friend. |
| 5 | (0) |
| | (b) | A, B and C were joint owners of a truck and possession of the said truck was with B. X purchased the truck from B without knowing that A and C were also owners of the truck. Decide in the light of provisions of the Sale of Goods Act, 1930, whether the sale between B and X is valid or not ? | 5 | (0) |
| | (c) | What are the provisions regarding set on and set off of the allocable surplus under the Payment of Bonus Act, 1965 ? | 5 | (0) |
| | (d) | What do you mean by "implied authority" of the partners in a firm? Point out the extent of partner’s implied authority in case of emergency, referring to the provisions of the Indian Partnership Act, 1932. | 5 | (0) |
| | (e) | Bharat executed a promissory note in favour of Bhushan for Rs. 5 crores. The said amount was payable three days after sight. Bhushan, on maturity, presented the promissory note on 1st January, 2008 to Bharat. Bharat made the payments on 4th January, 2008. Bhushan wants to recover interest for one day from Bharat. Advise Bharat, in the light of provisions of the Negotiable Instruments Act, 1881, whether he is liable to pay the interest for one day ? | 5 | (0) |
| | (f) | Explain the provisions of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 regarding the following: | (i) | Rate of interest on amount due from the employer under the Act. | | (ii) | Maximum limit of interest rate | | (iii) | the period for which the employer is liable to pay the said interest. |
| 5 | (0) |
| 2. | (a) | Ravi sent a consignment of goods worth Rs. 60,000 by railway and got railway receipt. He obtained an advance of Rs. 30,000 from the bank and endorsed and delivered the railway receipt in favour of the bank by way of security. The railway failed to deliver the goods at the destination. The bank filed a suit against the railway for Rs. 60,000. Decide in the light of provisions of the Indian Contract Act, 1872, whether the bank would succeed in the said suit? | 5 | (0) |
| | (b) | State the privileges of a Cooperative Society registered under the Cooperative Society Act, 1912 relating to the exemption from Income–tax, Stamp duty and Registration fee. | 5 | (0) |
| 3. | (a) | R is the wife of P. She purchased some sarees on Credit from Q. Q demanded the amount from P. P Refused. Q filed a suit against P for the said amount. Decide in the light of provisions of the Indian Contract Act, 1872, whether Q would succeed? | 5 | (0) |
| | (b) | A, B and C are partners in a firm. As per terms of the partnership deed, A is entitled to 20 percent of the partnership property and profits. A retires from the firm and dies after 15 days. B and C continue business of the firm without settling accounts. What are the rights of A’s legal representatives against the firm under the Indian Partnership Act, 1932? | 5 | (0) |
| 4. | (a) | Mr. Amit was shopping in a self–service Super market. He picked up a bottle of cold drink from a shelf. While he was examining the bottle, it exploded in his hand and injured him. He files a suit for damagees against the owner of the market on the ground of breach of condition. Decide, under the Sale of goods Act, 1930, whether Mr. Amit would succeed in his claim? | 5 | (0) |
| | (b) | State the eligibility and disqualification of the members of a Multi–State Cooperative Society under the provisions of the Multi–State Cooperative Society Act, 1984 (as amended by the Act of 2002). | 5 | (0) |
|
| 5. | (a) | X draws a cheque in favour of Y. After having issued the cheque he informs Y not to present the cheque for payment. He also informs the bank to stop payment. Decide, under provisions of the Negotiable Instruments Act, 1881, whether the said acts of X constitute an offence against him ? | 5 | (0) |
| | (b) | Vimal is an employee in a Company. The following payments were made to him during the previous year: | (i) | Piece rate wages | | (ii) | Productivity bonus | | (iii) | Additional dearness allowance | | (iv) | Value of Puja gift. |
Examine as to which of the above payments from part of "basic Wage" of Vimal under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. | 5 | (0) |
| 6. | (a) | X is an employee in a Company. The amount of bonus payable to him during the year 2007–08 is Rs 14,000. The company deducted a sum of Rs 4,000 against the "Puja Bonus" already paid to him during the said year and paid the remaining amount. X files a suit against the company for recovery of the deducted amount. Decide, under the Payment of Bonus Act, 1965, whether X would be given any relief by the Court? | 5 | (0) |
| | (b) | State the ways in which a Society, registered under the Cooperative Societies Act, 1912 may invest its own funds. Whether the amount of such fund can be given to the members of the Society by way of profit? | 5 | (0) |
| 7. | Answer any four of the following | | |
| | (a) | ABC Pvt. Ltd., Company is a Private Company having five members only. All the members of the company were going by car to Mumbai in relation to some business. An accident took place and all of them died. Answer with reasons, under the Companies Act, 1956 whether existence of the company has also come to the end? | 5 | (0) |
| | (b) | Before the incorporation of the company, the promoters of the company entered into an agreement with Mr. Jainson to buy an immovable property on behalf of the company. After incorporation, the company refused to buy the said property. Advise Mr. Jainson whether he has any remedy under the provisions of the Companies Act, 1956? | 5 | (0) |
| | (c) | Explain the doctrine of "Ultra–vires". What are the legal effects of ultra–vires transactions under the Companies Act, 1956? | 5 | (0) |
| | (d) | Under the Articles of Association of Sunshine Ltd. Company directors had power to borrow up to Rs.10,000 without the consent of the general meeting. The Directors themselves lent Rs.35,000 to the company without such consent and took debentures of the Company. Decide under the provisions of the Companies Act, 1956, whether the company is liable? If so, what is the extent of liability of the company in this case? | 5 | (0) |
| | (e) | Explain the provisions and main contents of "Return of Allotment" under the Companies Act, 1956. | 5 | (0) |
| 8. | (a) | Explain the concept of "Sweat Equity Shares". Point out, under provisions of the Companies Act, 1956, the conditions of issuing of such shares and their position in the Share–capital of the Company. | 5 | (0) |
| | (b) | Peek Ltd. Co. issued and published its prospectus to invite the investors to purchase its shares. The said prospectus contained false statement. Mr. X purchased some partly paid shares of the company in good faith on the Stock Exchange. Subsequently, the company was wound up and the name of Mr. X was in the list of contributors. Decide: | (i) | Whether Mr. X is liable to pay the unpaid amount? | | (ii) | Can Mr. X sue the directors of the company to recover damagees? |
| 5 | (0) |
| 9. | (a) | The Articles Association of PQR Ltd. provided that documents upon the company may be served only through E–mail. Arvind sent a document to the company by registered post. The company did not accept the document on the ground that sending documents to the company by post was in violation of the Articles. As a result Arvind suffered loss. Decide the validity of argument of the company and claim of Arvind for damagees in the light of provisions of the Companies Act, 1956. | 5 | (0) |
| | (b) | The Directors of Mars India Ltd. desire to alter capital clause of Memorandum of Association of their company. Advise them, under the provisions of the Companies Act, 1956 about the ways in which the said clause may be altered and procedure to be followed for the said alteration. | 5 | (0) |
| 10. | (a) | The Chairman of the meeting of a company received a Proxy 54 hours before the time fixed for the start of the meeting. He refused to accept the Proxy on the ground that the Articles of the company provided that a Proxy must be filed 60 hours before the start of the meeting. Decide, under the provisions of the Companies Act, 1956 whether the Proxy holder can compel the Chairman to admit the Proxy? | 5 | (0) |
| | (b) | Ramesh, who is a resident of New Delhi, sent a transfer deed, for registration of transfer of shares to the company at the address of its Registered Office in Mumbai. He did not receive the shares certificates even after the expiry of four months from the date of dispatch of transfer deed. He lodged a criminal complaint in the Court at New Delhi. Decide, under the provisions of the Companies Act, 1956, whether the Court at New Delhi is competent to take action in the said matter? | 5 | (0) |
