| 1. | Answer any four of the following: | | |
| | (a) | Ramaswami proposed to sell his house to Ramanathan. Ramanathan sent his acceptance by post. Next day, Ramanathan sends a telegram withdrawing his acceptance. Examine the validity of the acceptance in the light of the following: | (i) | The telegram of revocation of acceptance was received by Ramaswami before the letter of acceptance. |
| (ii) | The telegram of revocation and letter of acceptance both reached together. |
| 5 | (0) |
| | (b) | Suraj sold his car to Sohan for Rs. 75,000. After inspection and satisfaction, Sohan paid Rs. 25,000 and took possession of the car and promised to pay the remaining amount within a month. Later on Sohan refuses to give the remaining amount on the ground that the car was not in a good condition. Advise Suraj as to what remedy is available to him against Sohan. | 5 | (0) |
| | (c) | Prakash Chandra is working as a salesman in a company on salary basis. The following payments were made to him by the company during the previous financial year— | (iii) | Commission on sales |
| (iv) | Employer’s contribution towards pension fund. |
| Examine as to which of the above payments form part of "salary" of Prakash Chandra under the provisions of the Payment of Bonus Act, 1965. |
| 5 | (0) |
| | (d) | Ram, Mohan and Gopal were partners in a firm. During the course of partnership, the firm ordered Sunrise Ltd. to supply a machine to the fim. Before the machine was delivered, Ram expired. The machine, however, was latter delivered to the firm. Thereafter, the remaining partners became insolvent and the firm failed to pay the price of machine to Sunrise Ltd. Explain with reasons: | (i) | Whether Ram’s private estate is liable for the price of the machine purchased by the firm? |
| (ii) | Against whom can the creditor obtain a decree for the recovery of the price? |
| 5 | (0) |
| | (e) | Point out the differences between "transfer by negotiation" and "transfer by assignment" under the provisions of the Negotiable Instruments Act, 1881. | 5 | (0) |
| | (f) | Explain the Law relating to extent of contribution by an employee to his Provident Fund under, the Employees Provident Fund and Miscellaneous Provisions Act, 1952. Can the amount of contribution be increased by the employee? | 5 | (0) |
| 2. | (a) | Examine the circumstances where under a party to a contract may be exempted from the performance of contract on the ground of 'Supervening impossibility' under the Indian Contract Act, 1872. | 5 | (0) |
| | (b) | State the grounds on the basis of which member of a Society registered under the Cooperative Societies Act, 1912 can be expelled? | 5 | (0) |
| 3. | (a) | Ravi becomes guarantor for Ashok for the amount which may be given to him by Nalin within six months. The maximum limit of the said amount is Rs. 1 lakh. After two months Ravi withdraws his guarantee. Upto the time of revocation of guarantee, Nalin had given to Ashok Rs. 20,000. Referring to the provisions of the Indian Contract Act, 1872 decide— | 5 | |
| | | (i) | Whether Ravi is discharged from his liabilities to Nalin for any subsequent loan. | | (0) |
| | | (ii) | Whether Ravi is liable if Ashok fails to pay the amount of Rs. 20,000 to Nalin? | | (0) |
| | (b) | When is the registration of a Partnership firm deemed to be complete under the Indian Partnership Act, 1932? What are the consequences when a partnership firm is not registered? | 5 | (0) |
| 4. | (a) | Point out the difference between the transactions of "Sale" and "hire–purchase" in the light of the provisions of the Sale of Goods Act. 1930. | 5 | (0) |
| | (b) | Explain the salient features of the "Employees Pension Scheme" as provided under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. | 5 | (0) |
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| 5. | (a) | When is an alteration in a negotiable instrument is deemed to be a "material alteration" under the Negotiable Instruments Act, 1881? What are the consequences of material alteration in a negotiable instrument? | 5 | (0) |
| | (b) | The executive of a Cooperative Society is willing to convert the Society into a Multi–State Cooperative Society. Advise as to what steps are required to be taken for the said conversion under the Multi–State Cooperative Societies Act, 2002. | 5 | (0) |
| 6. | (a) | Explain the procedure relating to computation of "Working days" for the purpose of payment of bonus under the Payment of Bonus Act, 1965. Can there be a deduction in the amount of bonus on the ground that the employee has not worked for all working days in an accounting year? | 5 | (0) |
| | (b) | What qualifications and disqualifications have been laid down for appointment of a person on the post of auditor of a Multi–State Cooperative Societies Act, 2002? | 5 | (0) |
| 7. | Answer any four of the following | | |
| | (a) | Mars India Ltd. owed to Sunil Rs. 1,000. On becoming this debt payable, the company offered Sunil 10 shares of Rs. 100 each in full settlement of the debt. The said shares were fully paid and were allotted to Sunil. Examine the validity of this allotment in the light of the provisions of the Companies Act, 1956. | 5 | (0) |
| | (b) | What is the meaning of "Certificate of Incorporation" under the provisions of the Companies Act, 1956? When may a Public Company commence business after issuing prospectus to subscribe its share? | 5 | (0) |
| | (c) | What are the provisions relating to "Information Memorandum" contained in Section 60B of the Companies Act, 1956 [inserted by the Companies (Amendment) Act, 2000]? | 5 | (0) |
| | (d) | The Directors of "Sunrise Computers Ltd." desire to change the Company's name to "Royal Computers Ltd." and seek your advice. Explain the procedure to be followed, for the said purpose, under the Companies Act, 1956. | 5 | (0) |
| | (e) | Explain the meaning of "Transmission of Shares" under the Companies Act, 1956. In what ways is "transmission of shares"different from "Transfer of Shares"? | 5 | (0) |
| 8. | (a) | The Registrar of Companies on examining the statutory report filed with him by M/s Jyothi Company Ltd., finds that the report has been certified as correct, by all the directors of the Company, except the Managing Director. The Registrar refuses to register the said document on the ground that it was not signed by the Managing Director of the Company. Answer the following in the light of the Companies Act, 1956: | 5 | |
| | | (i) | Whether the Registrar of Companies can hold the officers of the Company liable? | | (0) |
| | | (ii) | What provisions of the Companies Act have not been complied with by the company and its officers? | | (0) |
| | | (iii) | To what penalties are the Company and its officers liable? | | (0) |
| | (b) | To remove the Managing Director, 40% members of Global Ltd. submitted requisition for holding extra–ordinary general meeting. The company failed to call the said meeting and hence the requisitionists held the meeting. Since the Managing Director did not allow the holding of meeting at the registered office of the Company, the said meeting was held at some other place and a resolution for removal of the Managing Director was passed. Examine the validity of the said meeting and resolution passed therein in the light of the Companies Act, 1956. | 5 | (0) |
| 9. | (a) | What do you understand by "Charge" under the Companies Act, 1956?Distinguish between "Fixed charge" and "Floating charge". | 5 | (0) |
| | (b) | The Articles of Association of X Ltd. require the personal presence of 7 members to constitute quorum of General Meetings. The following persons were present in the extra–ordinary general meeting to consider the appointment of Managing Director: | (i) | A, the representative of Governor of Madhya Pradesh. | | (ii) | B and C, shareholders of preference shares, | | (iii) | D, representing Y Ltd. and Z Ltd. | | (iv) | E, F, G and H as proxies of shareholders |
Can it be said that the quorum was present in the meeting? | 5 | (0) |
| 10. | (a) | A Company served a notice of General Meeting upon its members. The notice stated that a resolution to increase the share capital of the Company would be considered at such meeting. A shareholder complains that the amount of the proposed increase was not specified in the notice. Is the notice valid? | 5 | (0) |
| | (b) | Answer the following in relation to the provisions of the Companies Act, 1956: | 5 | |
| | | (i) | Can the declaration of Board of Directors of interim dividend be revoked? | | (0) |
| | | (ii) | Who is empowered to declare final dividend? | | (0) |
