| 1. | Answer any four of the following: | | |
| | (a) | 'X' agreed to become an assistant for 5 years to 'Y' who was a Doctor practicing at Ludhiana. It was also agreed that during the term of agreement 'X' will not practice on his own account in Ludhiana. At the end of one year, 'X' left the assistantship of 'Y' and began to practice on his own account. Referring to the provisions of the Indian Contract Act, 1872, decide whether 'X' could be restrained from doing so? | 5 | (0) |
| | (b) | Aman contracted to eract machinery on Sapan's premises on the condition that the price shall be paid on completion of work. During the progress of work the premises and machinery were destroyed by an accidental fire. Referring to the provisions of the Sale of Goods Act, 1930, decide whether the parties are bound to perform their promises and can Aman recover the price of the work actually done? | 5 | (0) |
| | (c) | Abhinav buys certain goods worth Rs. 50,000 from an unregistered firm Ram & Sons. Ram & Sons has to pay Rs. 60,000 to Abhinav for the goods purchased by the firm in the past. Referring to the provisions of the Indian Partnership Act, 1932 decide whether Ram & Sons can compel Abhinav to accept Rs. 10,000 i.e. the difference between Rs. 60,000 and 50,000 as the final settlement? | 5 | (0) |
| | (d) | What are the essential elements of a "Promissory note" under the Negotiable Instruments Act, 1881? Whether the following notes may be considered as valid Promissory notes: | (i) | "I promise to pay Rs. 5,000 or 7,000 to Mr. Ram." | | (ii) | I promise to pay to Mohan Rs. 500, if he secures 60% marks in the examination. | | (iii) | I promise to pay Rs. 3,000 to Ravi after 15 days of the death of A. |
| 5 | (0) |
| | (e) | Decide with reasons in the light of the Payment of Bonus Act, 1965 whether the following persons are entitled for bonus: | 5 | |
| | | (i) | A University teacher, | | (0) |
| | | (ii) | An employee of the 'NABARD', | | (0) |
| | | (iii) | A reinstated employee without wages for the period of dismissal, | | (0) |
| | | (iv) | A retrenched employee who worked for 45 days in a year on a salary of Rs. 4,000 per month. | | (0) |
| | | (v) | An apprentice. | | (0) |
| | (f) | Is the payment of provident fund contribution a preferential payment in case of the employer being insolvent under the Employees Provident Funds and Miscellaneous Provisions Act, 1952? | 5 | (0) |
| 2. | (a) | X transferred his house to his daughter M by way of gift. The gift deed, executed by X, contained a direction that M shall pay a sum of Rs. 5,000 per month to N (the sister of the executant). Consequently M executed an instrument in favour of N agreeing to pay the said sum. Afterwards, M refused to pay the sum to N saying that she is not liable to N because no consideration had moved from her. Decide with reasons under the provisions of the Indian Contract Act, 1872 whether M is liable to pay the said sum to N. | 5 | (0) |
| | (b) | Decide, under the Cooperative Societies Act, 1912, whether a society can transfer the share or interest of a member on his death. If yes, to what extent? Whether the estate of a deceased member can be appropriated to pay–off the debts of the society? | 5 | (0) |
| 3. | (a) | X, Y and Z jointly borrowed Rs. 50,000 from A. The whole amount was paid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether: | (i) | Y can recover the contribution from X and Z. | | (ii) | Legal representatives of X are liable in case of death of X. | | (iii) | Y can recover the contribution from the assets, in case Z becomes insolvent. |
| 5 | (0) |
| | (b) | "Implied authority of a partner can be extended or restricted." Discuss the above statement in the light of the provisions of the Indian Partnership Act, 1932. How far, are third parties affected by restrictions placed on such implied authority? | 5 | (0) |
| 4. | (a) | Under which circumstances can an unpaid seller exercise his right of lien? Distinguish between right of lien and right of stoppage of goods in transit, under the Sale of Goods Act, 1930. | 5 | (0) |
| | (b) | Who appoints the liquidator for winding up of a Multi–state Cooperative Society? Referring the provisions of the Multi–state Cooperative Societies Act, 1984, point out any six powers of the liquidator. | 5 | (0) |
|
| 5. | (a) | What do you understand by "Material alteration" under the Negotiable Instruments Act, 1881? State whether the following alterations are material alterations under the Negotiable Instruments Act, 1881: | (i) | The holder of the bill inserts the word "or order" in the bill, | | (ii) | The holder of the bearer cheque converts it into account payee cheque, | | (iii) | A bill payable to 'X' is converted into a bill payable to X and Y. |
| 5 | (0) |
| | (b) | Explain the salient features of the 'Employee's Deposits Linked Insurance Scheme' as provided under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. | 5 | (0) |
| 6. | (a) | A is an employee of a company. The amount of the bonus payable to A during the year 2006–07 is Rs. 10,000, but the company paid him Rs. 7,000 only and a sum of Rs. 3,000 was deducted from bonus against the loss suffered by the company due to misconduct of A during the same accounting year. A files a suit against the company for recovery of the deducted amount. Decide whether A would be given any relief by the court under the provisions of the Payment of Bonus Act, 1956? What will be your answer, if the losses are related to the accounting year 2005–06? | 5 | (0) |
| | (b) | An existing Multi–state Cooperative Society desires to change its registered office from Mumbai to Bhopal. Advice as to what steps are required to be taken for the said change under the Multi–state Cooperative Societies Act, 2002? | 5 | (0) |
| 7. | Answer any four of the following | | |
| | (a) | A limited company is formed with its Articles stating that one Mr. X shall be the solicitor for the company, and that he shall not be removed except on the ground of misconduct. Can the company remove Mr. X from the position of solicitor even though he is not guilty of misconduct? | 5 | (0) |
| | (b) | For s special resolution in a Company's general meeting, 10 voted in favour, 2 against and 4 abstained. The chairman declared the resolution as passed. It is a valid resolution as per the provisions of the Companies Act, 1956? | 5 | (0) |
| | (c) | While sanctioning working capital limit of a company, the rate of interest has been fixed at a specified percentage above the bank rate as notified by the Reserve Bank of India. There was a change in the interest rate due to RBI notification issued later. The bank insisted on filing a return of modification of charges. Is the stand of the bank correct? Discuss this in the light of the provisions of the Companies Act, 1956. | 5 | (0) |
| | (d) | Under what circumstances a company can reduce its share capital? | 5 | (0) |
| | (e) | What is the concept of proxy in relation to the meetings of a Company? Decide the appointment and rights of a proxy, under the Companies Act, 1956, in the following cases: | (i) | When a body corporate is a member in the company. |
| (ii) | When a foreign company is a member in the company. |
| 5 | (0) |
| 8. | (a) | X, a chemical manufacturing company distributed 20 lac (Rs. Twenty Lac) to scientific institutions for furtherance of scientific education and research. Referring to the provisions of the Companies Act, 1956 decide whether the said distribution of money was "Ultra vires" the company? | 5 | (0) |
| | (b) | How nomination facility shall operate in case of transmission of shares under the provisions of the Companies Act, 1956? | 5 | (0) |
| 9. | (a) | Sunrise Limited submitted the documents for incorporation on 5th October, 2006. It was incorporated and certificate of incorporation of the company was issued by the Registrar on 20th October, 2006. The company on 14th October, 2006 entered into a contract which created its contractual liabilities. The company denies 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) | P the secretary of a XYZ Limited issues a Share certificate in favour of A purporting to be signed by the directors and the secretary and the seal of the company affixed to it. In fact the secretary forged the signature of the directors and has affixed the seal without authority. Can A hold the company liable for the shares covered by the Share certificate, under the provisions of the Companies Act, 1956? | 5 | (0) |
| 10. | (a) | Examine the validity of the following with reference to the relevant provisions of the Companies Act, 1956: | (i) | The Board of Directors of a company refuse to convene the extraordinary general meeting of the members on the ground that the requisitionists have not given reasons for the resolution proposed to be passed at the meeting. | | (ii) | The Board of Directors refuse to convene the extraordinary general meeting on the ground that the requisitions have not been signed by the joint holder of the shares. | | (iii) | Adjournment of extraordinary general meeting called upon the requisition of members on the ground that the quorum was not present at the meeting. |
| 5 | (0) |
| | (b) | What are the differences between "Share certificate" and "Share warrant"? | 5 | (0) |
