CMA Inter Laws Important Question | Dec 25
Table of Content
Commercial Laws
Industrial Laws
Corporate Laws
Ethics
Indian Contract Act, 1872
1. “Contracts are legally enforceable but every agreement may not be enforceable under law” – Discuss with reason.
2. As per the general rule, "Stranger to a contract cannot file a suit in case of breach of contract". Comment and explain the exceptions to this rule as per the provisions of the Indian Contract Act, 1872.
3. What are different ingredients of the E-contracts?
4. “Two or more persons are said to be consent when they agree upon the same thing in the same sense” – Discuss with reason the consequences of the absent of consent and free consent.
5. Mr. Sonumal a wealthy individual provided a loan of ₹ 80,000 to Mr. Datumal on 26.02.20X1. The borrower Mr. Datumal asked for a further loan of ₹ 1,50,000. Mr. Sonumal agreed, but provided the loan in parts at different dates. He provided ₹ 1,00,000 on 28.02.20X1 and remaining ₹ 50,000 on 03.03.20X1.
On 10.03.20X1 Mr. Datumal while paying off part ₹ 75,000 to Mr. Sonumal insisted that the lender should adjust ₹ 50,000 towards the loan taken on· 03.03.20X1 and balance as against the loan on 26.02.20X1.
Mr. Sonumal objected to this arrangement and asked the borrower to adjust in the order of date of borrowal of funds.
Now you decide:
(i) Whether the contention of Mr. Datumal correct or otherwise as per the provisions of the Indian Contract Act, 1872?
(ii) What would be the answer in case the borrower does not insist on such order of adjustment of repayment?
(iii) What would the mode of adjustment/appropriation of such part payment in case neither Mr. Sonumal nor Mr. Datumal insist any order of adjustment on their part?
6. Discuss the different types of quasi contract.
7. An 'agent' is a person employed to do any act for another or to represent another in dealing with the
8.If a mercantile agent is authorized by the owner of the goods to sell on his behalf, then such sale shall be
9.Enumerate the duties of bailor and care to be taken by bailee in context of bailment.
10.Mr. X bails 100 bales of cotton marked with particular mark to Mr. Y. After receiving the cotton Mr. Y, without Mr. X’s consent, mixes the 100 bales with other bales of his own, bearing a different mark.
Two days later, Mr. X requests to Mr. Y to return at least 50 bales of cotton marked with particular mark, on urgent basis. But, Mr. Y refuses to do so and informed Mr. X that he has mixed all cotton bales with other bales kept in the warehouse. So, Mr. Y will have to separate the cotton bales received from Mr. X by deploying additional labourers and then only it will be possible to send back the 50 bales of cotton for which Mr. X will have to pay the labour charges for the purpose.
Mr. X is not willing to pay the labour charges and asks Mr. Y to return at least 50 bales of cotton.
Decide the case and present your expert opinion.
Sale of Goods Act, 1930
11.How condition is different fromn warranty under Sales of Goods Act, 1930? Under what circumstances condition can be treated as warranty?
12.In case of a sale by auction, if the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of
13.An unlawful act by which an intending purchaser is prevented from bidding or raising the price at an auction sale is known as
14.Describe in brief the rights of the buyer against the seller in case of breach of contract of Sale.
Negotiable Instruments Act, 1881
15.Mr. X drew a cheque payable to Mr. Y on order. Mr. Y lost the cheque and was not aware of the loss of the cheque. The person who found the cheque forged the signature of Mr. Y and endorsed it to Mr. Z as the consideration for goods bought by him from Mr. Z. Mr. Z encashed the cheque, on the very same day from the drawee bank. Mr. Y intimated the drawee bank about the theft of the cheque after three days. Review the liability of the drawee bank.
16.Explain assignment of negotiation instruments. How would you differentiate between negotiation and assignment?
17.The Negotiable Instruments Act makes specific mention of three instruments namely Cheque, Bill of Exchange and
Indian Partnership Act, 1932
18.What are the rights of partners with respect to conduct of the business of a firm as prescribed under the Indian Partnership Act, 1932?
19.P, Q and R are partners in a partnership firm. R retires from the firm without giving public notice. P approached S, an electronic appliances trader, for purchase of 25 fans for his firm. P introduced E, an employee of the firm, as his partner to S. S believing E and R as partners supplied 25 fans to the firm on credit. S did not receive the payment for the fans even after the expiry of the credit period. Advise S, from whom he can recover the payment as per the provisions of the Indian Partnership Act, 1932.
20.Demonstrate the procedure of forming a partnership under the Indian Partnership Act, 1932.
21.Examine the grounds on which the Court may direct a dissolution of a firm in a suit.
22.Discuss the right and Liability of partners after dissolution as per Indian Partnership Act, 1932,
Limited Liability Partnership Act, 2008
23.Every foreign LLP shall file with the Registrar the Statement of Account and Solvency in
24.An individual shall give his consent to become a designated partner in__________
25.Explain the incorporation by registration of a Limited Liability Partnership and its essential elements under the LLP Act, 2008.
26.A dispute among the partners of Limited Liability Partnership (the LLP) jeopardized the stability of the busines. Out of two partners, one due to a quarrel, left the LLP. The other partner alone continued the business of the LLP. You are being expert in law is requested to explain the provisions governing the LLP being operated by a single partner and its winding up by the Tribunal as per the provisions of the Limited Liability Partnership Act, 2008.
Factories Act, 1948
27.Chapter V of the Factories Act, 1948 provides the for the workmen employed in the factory. to be taken in factory
28. According to Section shall 67 be of required the Factories or allowed Act, to 1948, a child who has completed his________shall be required or allowed to work in any factory.
29.Certificate of fitness to be young worker is to be granted by-
30. Discuss the procedures to be adopted on the safety of working place in a factory under Chapter IV of the factories act 1948.
Payment of Gratuity Act, 1972
31.Describe the regulations relating to the payment of gratuity and explain how the gratuity amount is calculated.
32.Discuss in detail about Application and Belated Application for payment of gratuity.
33.Analyze the different points to be noted for filing nomination for receiving the gratuity under the Payment of Gratuity Act, 1972
The Code on Wages, 2019
34.Elaborate the provisions relating to the fines under Section 19 of The Code on Wages, 2019 Act.
35. Discuss the time limit for payment of wages under the Code on Wages, 2019?
36. Does the Code provide for appointment of Inspector-cum-Facilitators and what are their powers?
Preliminary
37.ABC Limited issued equity shares worth ₹1,00,000 (10,000 shares of 10 each) on 1st April, 2023 which has been fully subscribed, whereby XYZ Limited holds 3,500 equity shares and PQR Limited holds 2,500 equity shares. Prior to the issue of equity shares, ABC Limited already hold 20% of the equity shares of MNP Limited. Further, XYZ Limited holds 10% of MNP Limited’s equity shares as a trustee. MNP Limited controls the composition of the Board of Directors of XYZ Limited and PQR Limited on 01.07.2023, Examine with reference to the relevant provisions of the Companies Act, 2013 —
(i) Whether ABC Limited is a subsidiary of MNP Limited ?
(i) Whether ABC Limited and XYZ Limited have the right to vote on the Annual General Meeting of MNP Limited held on 30th September, 2023 ?
38.Fortune Traders Ltd. Was registered as a private limited company. There are 264 members in the company as noted below
| (i) Directors and their relatives | 134 |
| (ii) Employees | 100 |
| (iii) Ex-employees (shares were allotted when they were employees) | 15 |
| (iv) 5 couples holding shares jointly in the names of husband and wife (5 x 2) | 10 |
| (v) Others | 5 |
| Total number of members | 264 |
The Board of Directors of the company proposes to convert it into a Public company. Only because of the fact that its member has exceeds minimum prescribed criteria. Advise the Board of directors?
Incorporation of Company and Matters Incidental Thereto
39.Manglu and friends got registered a company in the name of Taxmann advisory private limited. Taxmann is a registered trade mark. After 5 years when the owner of trade mark came to know about the same, it filed an application with relevant authority.
(i) Can the company be compelled to change its name by the owner of trade mark?
(ii) Can the owner of registered trade mark request the company and then company changes its name at its discretion?
40. One of the matters contained in the articles of Dhimaan Foundation, incorporated as a limited company under section 8 of the Companies Act, 2013, was altered by passing a special resolution in its general meeting and thereafter, intimation for the same was given to Registrar of Companies.
However, such alteration in the articles was opposed by Dhwaj & Co., a partnership firm which is its member, that there such alteration was not valid.
Advise, as per the provisions of the Companies Act, 2013, whether the contention of Dhwaj & Co. was valid and whether it can be a member in such company?
41. Yadav dairy products Private limited has registered its articles along with memorandum at the time of registration of company in December, 20X1. Now directors of the company are of the view that provisions of the articles regarding forfeiture of shares should not be changed except by a resolution of 90% majority. While as per section 14 of the Companies Act, 2013 articles may be changed by passing a special resolution only. One of the directors said that they cannot make a provision against the Companies Act. You are required to advise the company on this matter.
Prospectus and Allotment of Securities
42.Unique Builders Limited decides to pay 2.5 % of the value of debentures as underwriting commission to the underwriters, but the Articles of the company authorize only 2 % underwriting commission on debentures. The company further decides to pay the underwriting commission in the form of flats. Examine the validity of the above arrangements under the provisions of the Companies Act, 2013.
43.When is an allotment of shares treated as an irregular allotment? Briefly state the effects of an irregular allotment.
44. Trident Limited is in process of making private placement of securities. It received application money on 2nd March 2023. It shall allot its securities by _________, if failed then repay application money to the subscribers by ________, else liable to repay that money with interest at the rate of _____________.
Share Capital and Debentures
45.Shankar Portland Cement Limited is engaged in the manufacture of different types of cements and has got a good brand value. Over the years, it has built a good reputation and its Balance Sheet as at March 31, 2020, showed the following position:
| 1. | Authorized Share Capital (25,00,000 equity shares of ₹ 10/- each) | ₹ 2,50,00,000 |
| 2. | Issued, subscribed and paid-up Share Capital (10,00,000 equity shares of ₹ 10/- each, fully paid-up) | ₹ 1,00,00,000 |
| 3. | Free Reserves | ₹ 3,00,00,000 |
The Board of Directors are proposing to declare a bonus issue of 1 share for every 2 shares held by the existing shareholders. The Board wants to know the conditions and the manner of issuing bonus shares under the provisions of the Companies Act, 2013.
46.State the reasons for the issue of shares at premium or discount. Also write in brief the purposes for which the securities premium account can be utilized?
Acceptance of Deposits by Companies
47.Normally no deposits are repayable earlier than ______ from the date of such deposits or renewal thereof.
48.Suneet Spices Limited decides to raise deposits of Rs. 20.00 lacs from its members. However, it is of the opinion to secure such deposits partially by offering security worth Rs. 15.00 lacs. Which of the following options best describe such deposits:
49. Define the term ‘deposit’ under the provisions of the Companies Act, 2013 and comment with relevant provisions that the following amount received by a company will be considered as deposit or not;
(i) ₹ 5,00,000 raised by Rishi Ltd. through issue of non-convertible debenture not constituting a charge on the assets of the company and listed on a recognised stock exchange as per applicable regulations made by Securities and Exchange Board of India.
(ii) ₹ 2,00,000 received from Mr. T, an employee of the company who is drawing annual salary of ₹1,50,000 under a contract of employment with the company in the nature of non-interest bearing security deposit.
(iii) Amount of ₹ 3,00,000 received by a private company from a relative of a Director, declared by the depositor as out of gift received from his mother.
Management & Administration
50.Tulip Ltd. maintains its Register of Members at its registered office in Mumbai. A group of members residing in Kolkata want to keep the register of members at Kolkata.
(i) Explain with provisions of Companies Act, 2013, whether the company can keep the Registers and Returns at Kolkata.
(ii) Does Mr. Rich, holding 400 shares of total worth ₹ 4000 only, has the right to inspect the Register of Members?
51. If any inspection is refused or if any copy required is not furnished within the specified time, the company shall be liable to a penalty of ₹ ____
52. Discuss briefly the methods of voting in a meeting.
Directors
53.Analyze different duties and liabilities imposed on the directors of companies by the Companies Act, 2013.
54.Enumerate the provisions of the Companies Act, 2013 regarding disqualifications for appointment of director.
55. What is the paid up share capital fixed for the appointment of a woman director?
Audit and Auditors
56.Demonstrate the different points to be stated in the auditor's report by the auditor as per the Companies Act, 2013.
57. Where auditor is dissatisfied with the information provided and finds that he cannot express a proper opinion on the statements, he will issue
Business Ethics and Emotional Intelligence
59.Discuss four attributes commonly used in defining emotional intelligence and briefly statc its importance.
60.Summarize the different types of ethics and importance of ethics.
61. Moral management requires ethical
62. Explain the nature of Business Ethics.
Ruchika Saboo
An All India Ranker (AIR 7 - CA Finals, AIR 43 - CA Inter), she is one of those teachers who just loved studying as a student. Aims to bring the same drive in her students.
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Yashvardhan Saboo
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