| 1. | Answer any six of the following: | | |
| | (a) | Mr. Seth an industrialist has been fighting a long drawn litigation with Mr. Raman another industrialist. To support his legal campaign Mr. Seth enlists the services of Mr. X a legal expert stating that an amount of Rs.5 lakhs would be paid, if Mr. X does not take up the brief of Mr. Raman. Mr. X agrees, but at the end of the litigation Mr. Seth refuses to pay. Decide whether Mr. X can recover the amount promised by Mr. Seth under the provisions of the Indian Contract Act, 1872. | 4 | (0) |
| | (b) | With a view to boost the sales Hanuman Automobiles sells a motor-car to Mr. A on trial basis for a period of three days with a condition that if Mr. A is not satisfied with the performance of the car, he can return back the car. However, the car was destroyed in a fire accident at the place of Mr. A before the expiry of three days. Decide whether Mr. A is liable for the loss suffered. | 4 | (0) |
| | (c) | Define the term `Cheque' as given in the Negotiable Instruments Act, 1881 and amended by the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 | 4 | (0) |
| | (d) | Explain the provisions of the Indian Partnership Act, 1932 relating to he creation of Partnership by holding out. Upto what extent such partner will be liable to the Partnership firm. | 4 | (0) |
| | (e) | Examine the powers of Government to grant exemption to an establishment from payment of bonus under the Payment of Bonus Act, 1965. | 4 | (0) |
| | (f) | Manorama Group of Industries sold its textile unit to Giant Group of Industries. Manorama Group contributed 25% of total contribution in Pension Scheme, which was due before sale under he provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952. The transferee company (Giant Group of Industries) refused to hear the remaining 75% contribution in the Pension Scheme. Decide, in the light of the Employees Provident Fund and Miscellaneous Provisions act, 1952, who will be liable to pay for the remaining contribution in case of transfer of establishment and upto what extent? | 4 | (0) |
| | (g) | State the restrictions imposed on a registered society under the Cooperative Societies Act, 1912 regarding investment or deposit of its surplus funds. | 4 | (0) |
| | (h) | State the provisions of law relating to functions of a Federal Cooperative Society under the Multi–state Cooperative Societies Act, 2002. | 4 | (0) |
| 2. | (a) | What is meant by Anticipatory Breach of Contract? Mr. Dubious Textile enters into a contract with Retail garments Show Room for supply of 1,000 pieces of Cotton shirts at Rs. 300 per shirt to be supplied on or before 31st December, 2004. However on 1st November, 2004 Dubious Textiles informs the Retail Garments Show Room that he is not willing to supply the goods as the price of Cotton shirts in the meantime has gone upto Rs.350 per shirt. Examine the rights of the Retail Garments Show Room in this regard. | 6 | (0) |
| | (b) | State briefly the essential element of a contract of sale under the Sale of Goods Act, 1930. Examine whether there should be an agreement between the parties in order to constitute a sale under the said Act. | 6 | (0) |
| 3. | (a) | Describe the provisions of Indian Partnership Act, 1932 regarding the admission of minor in the partnership firm. State the rights and liabilities of such minor before or after he attains majority. | 6 | (0) |
| | (b) | Distinguish between Contract of Indemnity and Contract of Guarantee. | 6 | (0) |
| 4. | (a) | State the privileges of a "Holder in due course" under the Negotiable Instruments Act, 1881. A induced B by fraud to draw a cheque payable to C or order. A obtained the cheque, forged C's indorsement and collected proceeds tothe cheque through his bankers. B the drawer wants to recover the amount from C's Bankers. Decide in the light of the provisions of Negotiable Instruments Act, 1881 — | (i) | Whether B the drawer, can recover the amount of the cheque from C’s Bankers? |
| (ii) | Whether C is the Fictitious Payee? |
| (iii) | Would your answer be still the same in case C is a fictitious person? |
| 6 | (0) |
| | (b) | On 1st January, 2002, Aryan Textiles Ltd. agreed with the employees for payment of an annual bonus linked with production or productivity instead of bonus based on profits subject to the limit of 30% of their salary/wages during the relevant accounting year. It was also agreed by the employees that they will not claim minimum bonus stated under Section 10 of the Payment of Bonus Act, 1965. As per the agreement the employees of Aryan Textiles Ltd. claimed annual bonus linked with production or productivity in the relevant accounting year. On refusal of the company the employees of the company moved to the court for relief.
Decide in reference to the provisions of the payment of Bonus Act, 1965 whether the employees will get the relief? Inspite of the aforesaid agreement whether the employees are still entitled to receive minimum bonus. | 6 | (0) |
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| 5. | (a) | Point out the classes of those establishments upon which the provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 does not apply. | 6 | (0) |
| | (b) | M/s Supreme Society Ltd., a Multi-state Cooperative Society, is contemplating to transfer some of its assets and liabilities to another Multi–State Cooperative Society. Advise the management of the society about the steps to be taken in this regard. | 6 | (0) |
| 6. | (a) | A group of people having common interest wish to form and registered a society under the Cooperative Societies Act, 1912. Describe briefly | (i) | the eligibility conditions to be fulfilled by the group for registration, and |
| (ii) | the power of Registrar to decide the eligibility conditions |
| 6 | (0) |
| | (b) | A draws a bill on B. B accepts the bill without any consideration. The bill is transferred to C without consideration. C transferred it to D for value. Decide — | (i) | Whether D can sue the prior parties of the bill, and |
| (ii) | Whether the prior parties other than D have any right of action intense? |
| Give your answer in reference to the Provisions of Negotiable Instruments Act, 1881. |
| 6 | (0) |
| 7. | Answer any four of the following | | |
| | (a) | Some of the creditors of M/s Get Rich Quick Ltd. have complained that the company was formed by the promoters only to defraud the creditors and circumvent the compliance of legal provisions of the Companies Act, 1956. In this context they seek your advice as to the meaning of corporate veil and when the promoters can be made personally liable for the debts of the company. | 5 | (0) |
| | (b) | M/s ABC Ltd. a company registered in the State of West Bengal desires to shift its registered office to the State of Maharashtra. Explain briefly the steps to be taken to achieve the purpose.
Would it make a difference, if the Registered Office is transferred from the Jurisdiction of one Registrar of Companies to the jurisdiction of another Registrar of Companies within the same State? | 5 | (0) |
| | (c) | M/s Honest Cycles Ltd. has received an application for transfer of 1,000 equity shares of Rs. 10 each fully paid up in favour of Mr. Balak. On scrutiny of the application form it was found that the applicant is minor. Advise the company regarding the contractual liability of a minor and whether shares can be allotted to the Balak by way of transfer. | 5 | (0) |
| | (d) | Explain briefly the distinction between shares and debentures and state whether a company can issue debentures with voting rights. | 5 | (0) |
| | (e) | What is meant by "Abridged prospectus". Under what circumstances a company issuing abridged prospectus need not accompany the prescribed details along with the application form for issue of shares? | 5 | (0) |
| 8. | (a) | M/s Low esteem Infotech Ltd. was incorporated on 1.4.2003. No General Meeting of the company has been held so far. Explain the provisions of the Companies Act, 1956 regarding the time limit for holding the first annual general meeting of the Company and the power of the Registrar to grant extension of time for the First Annual General Meeting. | 5 | (0) |
| | (b) | Whether a Company can buy–back its own shares? Explain in brief the provisions of Companies Act, 1956 relating to the sources of funds and conditions for buy–back its own shares by the company. | 5 | (0) |
| 9. | (a) | Annual General Meeting of a Public Company was scheduled to be held on 15.12.2003. Mr. A, a shareholder, issued two Proxies in respect of the shares held by him in favour of Mr. `X' and Mr. `Y'. The proxy in favour of Y was lodged on 12.12.2003 and the one in favour of Mr. X was lodged on 15.12.2003. The company rejected the proxy in favour of Mr. Y as the proxy in favour of Mr. Y was of dated 12.12.2003 and thus in favour of Mr. X was of dated 13.12.2003. Is the rejection by the company in order? | 5 | (0) |
| | (b) | The Board of Directors of M/s Reckless Investments Ltd. have allotted shares to the investors of the company without issuing a prospectus or filing a statement in lieu of prospectus with the Registrar of Companies, Mumbai. Explain the remedies available to the investors in this regard. | 5 | (0) |
| 10. | (a) | What is meant by Guarantee Company? state the similarities and dissimilarities between a guarantee Company and a Company having Share Capital. | 5 | (0) |
| | (b) | The Board of Directors of M/s Optimistic Company Ltd. propose to pay interim dividend of Rs. 2 per equity share of Rs. 10 each. Advise the board regarding: | (i) | the time limit for payment of interim dividend to the shareholders, and |
steps to be taken in case any dividend amount remains unpaid in the books of the company. | 5 | (0) |
