| 1. | Answer any six of the following: | 6x4=24 | |
| | (a) | Explain the concept of `misrepresentation' in matters of contract. Sohan induced Suraj to buy his motorcycle saying that it was in a very good condition. After taking the motorcycle, Suraj complained that there were many defects in the motorcycle. Sohan proposed to get it repaired and promised to pay 40% cost of repairs. After a few days, the motorcycle did not work at all. Now Suraj wants to rescind the contract. Decide giving reasons. | | (0) |
| | (b) | What are the differences between "negotiability" and "assignability"? | | (0) |
| | (c) | In what ways does a "Sale" differ from "Hire–purchase"? | | (0) |
| | (d) | State the modes by which a partner may transfer his interest in the firm in favour of another person, under the Indian Partnership Act, 1932. What re the rights of such a transferee? | | (0) |
| | (e) | The employer is a banking company. Point out so as to what items are required to be added to the "Net Profit" by the employer for calculating the "Gross Profit" in accordance with the First Schedule of the Payment of Bonus Act, 1965. | | (0) |
| | (f) | State the purpose for which Net Profits of a Multi-State Cooperative Society may be utilised under the provisions of the Multi-State Cooperative Societies Act, 1984. | | (0) |
| | (g) | What are the power of an "Inspector" under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952? | | (0) |
| 2. | (a) | Sunil delivered his car to Mahesh for repairs. Mahesh completed the work, but did not return the car to Sunil within reasonable time, though Sunil repeatedly reminded Mahesh for the return of car. In the meantime a big fire occurred in the neighbourhood and the car was destroyed. Decide whether Mahesh can be held liable under the provisions of the Indian Contract Act, 1872. | 6 | (0) |
| | (b) | What are the implied conditions in a contract of `sale of sample' under the Sale of Goods Act, 1930? State also the implied warranties operative under the said Act. | 6 | (0) |
| 3. | (a) | What do you understand by "Agency by Ratification"? What is the effect of ratification? Point out any four elements of a valid ratification. | 6 | (0) |
| | (b) | What do you understand by "Implied Authority" of a partner? Is such authority subject to any condition? Which of the acts of a partner come within the implied authority under the Indian Partnership Act, 1932? | 6 | (0) |
| 4. | (a) | What do you understand by "Crossing of cheques"? What is the object of crossing? State the implications of the following crossings: | 6 | |
| | | (i) | Restrictive crossing | | (0) |
| | | (ii) | Not–negotiable crossing | | (0) |
| | (b) | Describe the procedure provided under the Payment of Bonus Act, 1965 for computing the number of days for determining the amount of minimum bonus payable to an employee. How is proportionate reduction in bonus made? | 6 | (0) |
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| 5. | (a) | An employee leaves the establishment in which he was employed and gets re-employment in another establishment. He desires that his Provident Fund Account be transferred to the establishment wherein he has been employed. Explain the procedure laid down in the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 in this relation. | 6 | (0) |
| | (b) | Describe the procedure of registration of a Multi–State Cooperative Society laid down in the Multi–State Cooperative Societies Act, 1984. Which are the documents required to be filed at the time of registration of such a society? | 6 | (0) |
| 6. | (a) | Mohan, a member of a cooperative society, registered with unlimited liability, desires to withdraw from the membership of the society. Advise in the light of the provisions of the Cooperative Societies Act, 1912, whether Mohan can do so. What will be the consequences of such withdrawal from the society? | 6 | (0) |
| | (b) | State the grounds on the basis of which a cheque may be dishonoured by a banker, in spite of the fact that there is sufficient amount in the account of the drawer. | 6 | (0) |
| 7. | Answer any four of the following : | 5x4=20 | |
| | (a) | State the conditions of restrictions with which a private company is incorporated under the Companies Act, 1956. | | (0) |
| | (b) | Briefly explain the doctrine of "ultravires" under the Companies act, 1956. What are the consequences of ultravires acts of the company? | | (0) |
| | (c) | The Articles of Association of Mars Company Ltd. provide that documents may be served upon the ocmpany only through Fax. Ramesh despatches a document to the company by post, under certificate of posting. The company does not accept it on the ground that it is in violation of the Articles of Association. As a result Ramesh suffers loss. Examine with reference to the provisions of the Companies Act, 1956: | | |
| | | (i) | Whether refusal of document by the company is valid? | | (0) |
| | | (ii) | Whether Ramesh can claim damagees on this basis? | | (0) |
| | (d) | State the conditions which are required to be fulfilled before declaration of "interim Dividend" under the Companies Act, 1956. | | (0) |
| | (e) | Explain the provisions of the Companies act, 1956 relating to the procedure to be followed for transacting business of the general meeting of members of a company through postal ballot. | | (0) |
| 8. | (a) | A company was incorporated on 6th October, 2003. The certificate of incorporation of the company was issued by the Registrar on 15th October, 2003. The company on 10th October, 2003 entered into a contract which created its contractual liability. The company denies from the said liability on the ground that company is not bound by the contract entered into prior to issuing of certificate of incorporation. Decide, under the provisions of the Companies Act, 1956, whether the company can be exempted from the said contractual liability. | 5 | (0) |
| | (b) | Dinesh, a director in a company, gave in writing to the company that notice for any General Meeting and the Board of Directors' Meeting be sent to him at his address in India only by Registered Mail and for which he paid sufficient money. The company sent two notices to him, of such meetings, by ordinary mail, under certificate of posting. Dinesh did not receive the said notices and could not attend the meetings wherein some important decisions were taken. Dinesh challenges the legality of the meetings and the proceedings thereof on the ground of improper notice. Decide in the light of the provisions of the Companies Act, 1956: | (i) | Whether the condition of Dinesh is valid? |
| (ii) | Would you answer be still the same in case Dinesh remained outside India for two months (when such notices were given and meetings held). |
| 2.5+2.5 | (0) |
| 9. | (a) | Explain the provisions of the Companies Act, 1956 relating to holding of Annual General Meeting of the company with regard to the following: | (i) | Period within which the first and the subsequent Annual General Meetings must be held. |
| (ii) | Business which may be transacted at an Annual General Meeting. |
| 2.5+2.5 | (0) |
| | (b) | Explain the meaning of the term "Sweat Equity". What are the provisions of the Companies Act, 1956 relating to issue of `Sweat Equity'? | 5 | (0) |
| 10. | (a) | What are the provisions of the Companies Act, 1956 relating to the appointment of "Debenture Trustee" by a company? Whether the following can be appointed as `Debenture Trustees': | 5 | |
| | | (i) | A shareholder who has no beneficial interest | | (0) |
| | | (ii) | A creditor whom the company owes Rs. 499 only. | | (0) |
| | | (iii) | A person who has given a guarantee for repayment of amount of debentures issued by the company. | | (0) |
| | (b) | Examine the provisions of the Companies Act, 1956 regarding `nomination' in case of transmission of shares. | 5 | (0) |
