This Paper has 35 answerable questions with 0 answered.
| Roll No…………… | |
| Total No. of Questions — 10] | [Total No. of Printed Pages — 3 |
| Time Allowed : 3 Hours | Maximum Marks : 100 |
| Answers to questions are to be given only in English except in the cases of candidates who have opted for Hindi medium. If a candidate who has not opted for Hindi medium, answers in Hindi, his answers in Hindi will not be valued. |
| Questions 1 and 7 are compulsory. |
| Candidates are required to attempt three questions out of questions 2, 3, 4, 5 and 6 and two questions out of questions 8, 9 and 10 |
| Marks |
| 1. | Answer any four of the following: | ||||||
| (a) | M lends a sum of Rs. 5,000 to B, on the security of two shares of a Limited Company on 1st April 2007. On 15th June. 2007, the company issued two bonus shares. B returns the loan amount of Rs. 5,000 with interest but M returns only two shares which were pledged and refuses to give the two bonus shares. Advise B in the light of the provisions of the Indian Contract Act, 1872. | 5 | (0) | ||||
| (b) | Ram sells 200 bales of cloth to Shyam and sends 100 bales by lorry and 100 bales by Railway. Shyam receives delivery of 100 bales sent by lorry, but before he receives the delivery of the bales sent by railway, he becomes bankrupt. Ram being still unpaid, stops the goods in transit. The official receiver, on Shyam’s insolvency claims the goods . Decide the case with reference to the provisions of the Sale of Goods Act, 1930. | 5 | (0) | ||||
| (c) | Mahesh, Suresh and Dinesh are partners in a trading firm. Mahesh, without the knowledge or consent of Suresh and Dinesh borrows himself Rs. 50,000 from Ramesh, a customer of the firm, in the name of the firm. Mahesh, then buys some goods for his personal use with that borrowed money. Can Mr. Ramesh hold Mr. Suresh & Mr. Dinesh liable for the loan? Explain the relevant provisions of the Indian Partnership Act,1932. | 5 | (0) | ||||
| (d) | Discuss with reasons, whether the following persons can be called as a ‘holder’ under the Negotiable Instruments Act, 1881: | 5 | |||||
| (i) | X who obtains a cheque drawn by Y by way of gift. | (0) | |||||
| (ii) | A, the payee of the cheque, who is prohibited by a court order from receiving the amount of the cheque. | (0) | |||||
| (iii) | M, who finds a cheque payable to bearer, on the road and retains it. | (0) | |||||
| (iv) | B, the agent of C, is entrusted with an instrument without endorsement by C, who is the payee. | (0) | |||||
| (v) | B, who steals a blank cheque of A and forges A’s signature. | (0) | |||||
| (e) | Can the Payment of Bonus Act be made applicable to an establishment in the public sector? | 5 | (0) | ||||
| (f) | What kind of entities fall within the purview of the Employees’ Provident Fund and Miscellaneous Provision Act ,1952? | 5 | (0) | ||||
| 2. | (a) | B owes C a debt guaranteed by A. C does not sue B for a year after the debt has become payable. In the meantime, B becomes insolvent. Is A discharged? Decide with reference to the provisions of the Indian Contract Act, 1872. | 5 | (0) | |||
| (b) | What is the mode of disposal of Net profits by a Multi–state Co–operative society? | 5 | (0) | ||||
| 3. | (a) | "Good Girl" Soap Co. advertised that it would give a reward of Rs. 1,000 who developed skin disease after using, "Good Girl" soap of the company for a certain period according to the printed directions. Miss Rakhi purchased the advertised "Good Girl" and developed skin disease in spite of using this soap according to the printed instructions. She claimed reward of Rs. 1,000. The company refused the reward on the ground that offer was not made to her and that in any case she had not communicated her acceptance of the offer. Decide whether Miss Rakhi can claim the reward or not. Refer the relevant case law, if any. | 5 | (0) | |||
| (b) | X draws a bill on Y but signs it in the fictitious name of Z. The bill is payable to the order of Z. The bill is duly accepted by Y. M obtains the bill from X thus becoming its holder in due course. Can Y avoid payment of the bill? Decide in the light of the provisions of the Negotiable Instruments Act, 1881. | 5 | (0) | ||||
| 4. | (a) | B buys goods from A on payment but leaves the goods in the possession of A. A then pledges the goods to C who has no notice of the sale to B. State whether the pledge is valid and whether C can enforce it. Decide with reference to the provisions of the Sale of Goods Act, 1930. | 5 | (0) | |||
| (b) | Are there any restrictions on the powers of a society registered under the Multi–State Cooperative Societies Act, 2002, to make loans and to borrow? | 5 | (0) | ||||
| 5. | (a) | The management of Shakthi Mills Ltd. entered into an agreement with their employees to pay them bonus based on production in lieu of Bonus based on profits, from the accounting year 2007. The employees further agreed to forego their right to receive minimum bonus and instead accept 25% of their salary/wage as bonus based on productivity. Is such an agreement valid? Examine in the light of the provisions of the Payment of Bonus Act, 1965. | 5 | (0) | |||
| (b) | Who is to constitute the Central Board of Trustees? How many persons shall be there in the Central Board? Answer the questions with reference to the Employees Provident Fund and Miscellaneous Provisions Act, 1952. | 5 | (0) | ||||
| 6. | (a) | Anil and Sunil purchased a lorry to ply it in partnership. They plied the lorry for about two years when Anil, without the consent of Sunil, disposed of the lorry. Sunil brought an action to recover his share in the sale proceeds. Anil resisted Sunil’s claim on the plea that the firm was not registered. Will Sunil succeed in his claim? Decide with reference to the provisions of the Indian Partnership Act, 1932. | 5 | (0) | |||
| (b) | State the privileges of a society registered under the Co – operative Societies Act, 1912. | 5 | (0) | ||||
| 7. | Answer any four of the following. | ||||||
| (a) | A company was started with the object of building ‘A mall with shops’. The building was destroyed by fire and the company wanted to alter the objects clause in the memorandum by substituting the words ‘A mall with shops’ with the words "Shops, Residential buildings and Warehouses for letting purposes.’ Will this alteration of the memorandum for the purpose be permissible? Decide referring to the provisions of the companies Act, 1956. | 5 | (0) | ||||
| (b) | The Memorandum of Association of a company was presented to the Registrar of Companies for registration and the Registrar issued the certificate of incorporation. After complying with all the legal formalities a company started a business according to the object clause, which was clearly an illegal business. The company contends that the nature of the business cannot be gone into as the certificate of incorporation is conclusive. Answer the question whether company‘s contention is correct or not. | 5 | (0) | ||||
| (c) | M applies for share on the basis of a prospectus which contains mis–statement. The shares are allotted to him, who afterwards transfers them to N. Can N bring an action for a rescission on the ground of mis–statement? Decide under the provisions of the Companies Act, 1956. | 5 | (0) | ||||
| (d) | What is meant by a floating charge? State the characteristics of a floating charge. When does a floating charge crystallise? | 5 | (0) | ||||
| (e) | Discuss the concept of shelf prospectus, the provisions for issue and filing of such prospectus under the Companies (Amendment) Act, 2000. | 5 | (0) | ||||
| 8. | (a) | A public limited company has only seven shareholders, all the shares being fully paid–up. All the shares of one such shareholder are sold by the court in an auction and purchased by another shareholder. The company continues to carry on business thereafter. Discuss the liabilities of the shareholders of the company under the Companies Act, 1956. | 5 | (0) | |||
| (b) | What are the conditions for the company for the buy–back of its own shares? Whether there is any time limit for the completion of buy–back of its shares? | 5 | (0) | ||||
| 9. | (a) | Apex Metals Limited wants to provide financial assistance to its employees, to enable them to subscribe for certain number of fully paid shares. Considering the provision of the Companies Act, 1956, What advice would you give to the company in this regard? | 5 | (0) | |||
| (b) | State whether the following statements are correct or incorrect. Give reasons: | 5 | |||||
| (i) | Right shares means shares which are issued by a newly formed company. | (0) | |||||
| (ii) | A company should file its annual return within six month of the close of the financial year. | (0) | |||||
| (iii) | A bearer of a share warrant of a company is not member of the company. | (0) | |||||
| (iv) | The shareholder of the company is general meeting can increase the rate of dividend recommended by the Board of Directors. | (0) | |||||
| (v) | Debenture with voting rights can be issued only if permitted by the Articles of Association. | (0) | |||||
| 10. | (a) | State the legal position in the following. circumstances with reference to the provisions in the Companies Act, 1956. At an adjourned extraordinary general meeting of a Public Ltd. Company adjourned for want of quorum, only 3 members are personally present. | 5 | (0) | |||
| (b) | What do you mean by Transmission of shares? Differentiate between Transfer of shares and Transmission of shares. | 5 | (0) | ||||
