| Roll No………………… | |
| Total No. of Questions— 10] | [Total No. of Printed Pages—4 |
| Time Allowed : 3 Hours | Maximum Marks : 100 |
| XP | |
| 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 six of the following: | ||
| (a) | Father promised to pay his son a sum of Rs. one lakh if the son passed C.A. examination in the first attempt. The son passed the examination in the first attempt, but father failed to pay the amount as promised. Son files a suit for recovery of the amount. State along with reasons whether son can recover the amount under the Indian Contract Act, 1872. | 4 | |
| (b) | A hires a carriage of B an agrees to pay Rs. 500 as hire charges. The carriage is unsafe, though B is unaware of it. A is injured and claims compensation for injuries suffered by him. B refuses to pay. Discuss the liability of B. | 4 | |
| (c) | Define an "Establishment in public sector". What are the circumstances when the Payment of Bonus act, 1965 becomes applicable to such an establishment? | 4 | |
| (d) | Describe the procedure of registration of firm under the Indian Partnership Act. What is the rule of evidence with regard to entries in the register of firms? | 4 | |
| (e) | A cheque payable to bearer is crossed generally and marked "not negotiable". The cheque is lost or stolen and comes into possession of B who takes it in good faith and gives value for it. B deposits the cheque into his | 4 | |
| XP | P.T.O. |
( 2 )
| XP | Marks |
own bank and his banker presents it and obtains payment for his customer from the bank upon which it is drawn. The true owner of the cheque claims refund of the amount of the cheque from B. | 4 | ||
Discuss the liability of the banker collecting the cheque and the banker paying the cheque and B to the true owner of the cheque refering to the provisions of the Negotiable Instruments Act, 1881. | 4 | ||
| (f) | State the emoluments paid to employees which do not come within the purview of "basic wages" under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. | 4 | |
| (g) | State the provisions relating to the conduct of audit applicable to a society registered under the Cooperative Societies Act, 1912. | 4 | |
| (h) | State the restrictions on borrowings on a multi-state cooperative society under the Multi-state Cooperative Societies Act. | 4 | |
| 2. | (a) | M Ltd. contracts with Shanti Traders to make and deliver certain machinery to them by 30.6.2004 for Rs. 11.50 lakhs. Due to labour strike, M Ltd. could not manufacture and deliver the machinery to Shanti Traders. Later, Shanti Traders procured the machinery from another manufacturer for Rs. 12.75 lakhs. Shanti Traders was also prevented from performing a contract which it had made with Zenith Traders at the time of their contract with M Ltd. and were compelled to pay compensation for breach of contract. Advise Shanti Traders the amount of compensation which it can claim from M Ltd., referring to the legal provisions of the Indian Contract Act. | 6 |
| (b) | When can an unpaid seller of goods exercise his right of lien over the goods under the Sale of Goods Act. Can he exercise his right of lien even if the property in goods has passed to the buyer? When such a right is terminated? Can he exercise his right even after he has obtained a decree for the price of goods from the court? | 6 | |
| 3. | (a) | State the circumstances when an agent is personally liable for the contracts entered into by him on behalf of his principal. | 6 |
| (b) | Ram & Co. a firm consists of three partners A, B and c having one-third share each in the firm. According to A and B, the activities of C are not in the interest of the partnership and thus want to expel C from the firm. Advise A and B whether they can do so quoting the relevant provisions of the Indian Partnership Act. | 6 |
| XP | P.T.O. |
( 3 )
| XP | Marks |
| 4. | (a) | "..... there is no implied warranty or condition as to quality or fitness for any particular purpose of goods supplied under a contract of sale...." Discuss the significance and state exceptions, if any. | 6 | ||
| (b) | State the powers of the Central Government to authorise certain employers to maintain provident fund accounts under the Employees Provident Funds and Miscellaneous Provisions act, 1952/ | 6 | |||
| 5. | (a) | `A' draws a cheque for Rs. 50,000. When the cheque ought to be presented to the drawee bank, the drawer has sufficient funds to make payment of the cheque. The bank fails before the cheque is presented. The payee demands payment from the drawer. What is the liability of the drawer? | 6 | ||
| (b) | Explain the rules of set on and se off of allocable surplus under the Payment of Bonus Act. | 6 | |||
| 6. | (a) | State the cases in which a banker is justified or bound to dishonour cheques. | 6 | ||
| (b) | PQR Cooperative Society Ltd., a Multi-state Cooperative Society desires to change its bye-laws in respect of the following matters: | 6 | |||
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| 7. | Answer any four of the following | ||||
| (a) | The management of Ambitious Properties Ltd. has decided to take up the business of food processing activity becasue of the downward trend in real estate business. There is no provision in the object clauses of the Memorandum of Association to enable the company to carry on such business. State with reasons whether its object clause can be amended. State briefly the procedure to be adopted for change in the object clause. | 5 | |||
| (b) | Several small depositors of Over trading Company Ltd. have made complaints about non-refund of the deposits after due date. Explain briefly (1) the meaning of small depositor and (2) the duty of the company after the default has taken place in the matter of repayment of the deposits. | 5 | |||
| XP | P.T.O. |
( 4 )
| XP | Marks |
| (c) | Explain briefly the meaning of sweat equity shares and the steps that a company has to take for issue of such shares. | 5 | |||
| (d) | A company is required to pay dividend to its shareholders within 30 days of its declaration. State the circumstances when a company will not be deemed to have committed any offence even if it does not pay within 30 days. | 5 | |||
| (e) | The Articles of Association of a private limited company contain provisions restricting the right to transfer shares and limiting the number of members to fifty. What restrictions are generally incorporated in the articles in restricting the right to transfer shares? | 5 | |||
| 8. | (a) | State briefly the provisions relating to minimum subscription and consequence of non-receipt of minimum subscription as per the Companies Act, 1956 and the provisions as per SEBI guidelines. | 5 | ||
| (b) | Write a note on the powers of the Central Government in regard to conversion of debentures and loans into shares of the company under the following heads: | 5 | |||
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| 9. | (a) | State the procedure for passing a resolution by Postal Ballot. | 5 | ||
| (b) | State what is meant by "Quorum" and when does quorum be considered immaterial under the provisions of the Companies Act, 1956. | 5 | |||
| 10. | (a) | State the provisions of the Companies Act regarding calling and holding an extraordinary general meeting with respect to : | 5 | ||
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| (b) | The minutes of the meeting must contain fair and correct summary of the proceedings thereat. Can the Chairman direct exclusion of any matter from the minutes? Some of the shareholders insist on inclusion of certain matters which are regarded as defamatory of a Director of the company. The Chairman declines to do so. State how the matter can be resolved. | 5 |
| XP |