Economic Laws - ICSI (Final) Old SyllabusCORPORATE LAWS & PRACTICE – III June - 2005 Part A Answer Question No. 1 which is compulsory and any two of the rest from this part. Q 1 (a) Sure Shot Ltd., a company registered in Mumbai, is interested in participating in a bid to acquire control of a company incorporated outside India. Mention briefly the procedure required to be followed by Sure Shot Ltd. to obtain the foreign exchange for the purpose (b) A State Government introduced an irrigation programme for lands. An agro based company filed a complaint alleging restrictive trade practice on the part of the State on the ground that the programme would adversely affect its agricultural crop. Is the contention of the complainant valid? Give reasons (c) Gopal Ltd. is a company incorporated under the Companies Act, 1956. It wants to act as an export promotion council. State with reasons whether it can be allowed to do so. (d) To promote the sale of ‘Heart Care” cooking oil, advertisements were released by the manufacturers claiming that the use of the said oil would reduce cholesterol in the blood. A medical practitioner filed a complaint alleging that such advertisements are misleading to the consumers and prayed for issue of an injunction. Examine the complaint and decide (5 x 4 = 20 marks). Q 2 (a) Good Luck Co. Ltd. wants to start a small scale industry. As a Company Secretary, prepare a note for the Board of directors explaining the procedure for registration of a small scale industry (b) Rajan & Co. was registered as a medium scale industry with DGTD in 1983 which received cash subsidy from the State Government. Thereafter, in the year 1985, there were some changes in the definition of small-scale industry. Consequently, the appellant had become an SSI unit since the investment in plant and machinery was less than Rs. 35 lakh. The State Government demanded back the subsidy granted to the appellant on the ground that it was no more a medium scale industry. Rajan & Co. filed a case against the recovery of subsidy by the State Government. Examine the case and give your decision (c) Mention the various purposes for which an industrial licence is required to be obtained under the Industries (Development and Regulation) Act, 1951 (5+5+5 = 15 marks). Q 3 (a) State any six transactions covered under ‘permissible capital account transactions’ of the persons resident in India under the Foreign Exchange Management Act, 1999 (b) Goods Asia Ltd., a resident outside India, wants to establish in India a branch or liaison office. Explain the procedure for establishing such a branch or liaison office. (c) Discuss the circumstances under which permission for direct investment outside India is available under the Foreign Exchange Management Act, 1999 (4+4+7 = 15 marks). Q 4 (a) What is the remedy, if any, available to an exporter who has lost the original bank certificate for making a claim under the Duty Entitlement Pass Book (DEPB) Scheme or the Duty Free Replenishment Certificate (DFRC)? (b) Explain the provisions of the export and import policy relating to the import of replacement goods, i.e. goods imported and found defective or otherwise unfit for use. (c) Name the categories of importers and exporters who are exempted from obtaining importer-exporter code number (5+5+5 = 15 marks). Part – BAnswer Question No. 8 which is compulsory and any two of the rest from this part. Q 5 (a) What is the ‘term of patent’ as provided under section 53 of the Patents Act, 1970 for which patent is granted? When shall the patent cease to have effect? (b) Explain the significance of the following forms under the Patents Act, 1970 : (i) Form No. 1 (ii) Form No. 14 (iii) Form No. 15 (c) From 1982 onwards, the plaintiff had been running a colour laboratory and studio named ‘Muktajeetvan Colour Lab & Studio’. He claimed to have earned reputation and goodwill associated with the trade name. With the growth of business, the plaintiff opened two branches at two different localities in the same city – one in his wife’s name and the other in partnership with his wife and brother-in-law. The defendant who till then was functioning as Gokul Studio through his wife, started another photo studio in the name of ‘Muktajivan Studio’ in another locality of the city. The stand taken by him was that there was nothing wrong in starting or continuing his business in the name and style of ‘Muktajivan Studio’. The reasons adduced by him were (i) name was not identical with the plaintiff’s business; and (ii) his place of business was far away from the area the plaintiff had his business. Examine the contention of the defendant in the light of provisions of the Trade Marks Act, 1999 (4+3+8 = 15 marks). Q 6 (a) Your company is a publisher of books. The company has decided to translate into Hindi a book written by a famous British author. Make a note to your Managing Director outlining the requirements and procedure to be followed to produce and publish a translation under the Copyright Act, 1957 (b) What are the obligations of a company under the Standards of Weights and Measures Act, 1976? (8+7 = 15 marks) Q 7 (a) Explain the objectives of the Environment (Protection) Act, 1986. (b) Your competitor has infringed the patent of your company. Advise the company. (c) Mention the ‘relative grounds’ for refusal to register a trade mark under the Trade Marks Act, 1999 (7+4+4 = 15 marks). Q 8 (a) The complainant who had a current account in the bank alleged that the bank had charged Rs. 50 for issuing a cheque book to her without prior intimation to her or obtaining her consent. She complained that the action of the bank was wrong. Examine her contention in the light of provisions of the Consumer Protection Act, 1986 (b) Discuss the procedure for hearing of appeals by the National Consumer Disputes Redressal Commission (c) Explain the term ‘duly stamped’ as applied to an instrument as defined under section 2(11) of the Indian Stamp Act, 1899 (d) State the effects of the non-registration of a document which is required to be registered (4+4+6+6 = 20 marks). OR Q 8. (i) Examine whether the following persons can be treated as ‘consumers’ under the Consumer Protection Act, 1986: (a) A person who avails medical facility at Government hospitals. (b) A person who uses facility of telephones provided by a telephone company. (c) A person who receives medical assistance provided by hospitals to the members of medical profession. (d) A person who buys goods for self-consumption in the economic activities in which he is engaged. (ii) State the limitation period for filling of complaints to various fora under the Consumer Protection Act, 1986. (iii) State the provisions of the Indian Stamp Act, 1899 relating to impounding of instruments not duly stamped (iv) What are the circumstances under which the Registrar can refuse to register a document under the Registration Act, 1908? Can an aggrieved party institute a suit in case of an order of refusal by the Registrar? (4+4+6+6 = 20 marks) CORPORATE LAWS & PRACTICE – III December - 2004 Part A Answer question No. 1 which is compulsory and any two of the rest from this part. Q 1(a) Dental Care products Ltd. announced a contest called ‘Dental Triguard Family Good Habits Contest’ containing certain conditions. One of the conditions was that the dental toothpaste must be used to brush the teeth with ‘dental brush’ manufactured by it. Vimarsh lodged a complaint with the MRTP Commission alleging that the contest was only for the purpose of promoting the sales of the toothbrush. The company denied the allegations as per the interpretation of section 36A(3)(V) of the Monopolies and Restrictive Trade Practices Act, 1969. Decide (b) The expression ‘goods’ was amended in 1991 by virtue of the Statement of Objects and Reasons of the MRTP (Amendment) Bill, 1991 stating that clause (ii) of section 2(e) seeks to enlarge the definition of goods by including issue of shares before allotment. In the light of the said amendment of clause (ii) of section 2(e), clarify and explain whether debentures could be considered as ‘goods’ within the meaning of clause (ii) of section 2(e) of the Monopolies and Restrictive Trade Practices Act, 1969 and also whether they could be termed as ‘good’ prior to their allotment. (c) Explain whether a tie-up arrangement per se is violative of the public interest (d) Sure Success School, Delhi was collecting a sum of Rs. 500 from each student as refundable security which shall not attract any interest payable by the school to the depositor student. Ruchika, in order to gain admission in the school, paid the requisite amount under protest. She felt that the school was indulging in unfair trade practice by not paying any interest on the amount of the deposit. She filed a complaint before the MRTP Commission and the appeal was upheld by it. The school authorities preferred an appeal before the Supreme Court of India for setting aside the orders of the MRTP Commission. Discuss whether the school authorities will succeed in their appeal to the Supreme Court (5 x 4 = 20 marks) Q 2 (a) Fast Movers Ltd. wants to change the location of its industrial undertaking. As the Company Secretary, advise the company about the procedure and the law governing the change of location. (b) State briefly the specified cap for the foreign direct investment involving RBI’s automatic route in the following industries: (i) Telecommunication (ii) Drugs and pharmaceuticals (iii) Hotel and tourism and (iv) Mining (7+8 = 15 marks). Q 3 (a) Explain the regulations issued by the Reserve Bank of India pursuant to section 47 of the Foreign Exchange Management Act, 1999 relating to the issue of shares after amalgamation by a transferee company in India to shareholders of the transferor company resident outside India (b) Shyam, a person resident outside India, wants to remit the sale proceeds of an Indian security held by him. State the provisions relating to remittance of sale proceeds of an Indian security held by a person resident outside India under the Foreign Exchange Management Regulations, 2000 (c) State the provisions relating to purchase and sale of shares/convertible debentures by a non-resident Indian or an overseas corporate body on non-repatriation basis under the Foreign Exchange Management Regulations, 2000 (4+4+7 = 15 marks) Q 4 (a) Richie Ltd., an importer, seeks exemption from some of the notified provisions of the Export and Import Policy for the period 2002-2007. Advise Richie Ltd. (b) What is the remedy, if any, available to an exporter who has lost the original bank certificate for making a claim under the Duty Entitlement Pass Book (DEPB) scheme or the Duty Free Replenishment Certificate (DFRC)? (c) Explain the provisions of the Export and Import Policy relating to the import of replacement goods, i.e., goods imported and found defective or otherwise unfit for use (4+4+7 = 15 marks). PART – B (Answer Question No. 8 which is compulsory and any two of the rest from this part.) Q 5 (a) Enumerate the classes of work in which (i) the copyright subsists; and (ii) the copyright does not subsist. (b) Explain the procedure to be followed by a partnership firm or a body corporate regarding signing and service of documents under the relevant rules in respect of the legislation governing trade marks (c) Who can make an application for a patent for an invention under the Patents Act, 1970? (6+5+4 = 15 marks) Q 6 (a) Discuss the importance of legal metrology in introducing standards for weights and measures. (b) State the circumstances under which the consent on new outlets and new discharge would be refused or withdrawn by the State Board under the Water (Prevention and Control of Pollution) Act, 1974 (c) Shine-well Ltd. had established a textile manufacturing facility in the district of Gurgaon in February, 1986 which become operational in December, 1987. The company applied for the consent under the Air (Prevention and Control of Pollution) Act, 1981, and was successful in obtaining the same in February, 1988. In January, 2004, the company wishes to establish another manufacturing facility for yarn at a place adjoining the existing unit, specially purchased for the purpose, and commenced civil engineering activities forthwith. The company is of the view that prior consent under the Air (Prevention and Control of Pollution) Act, 1981 is not required. The factory is expected to commence its commercial activities on 1st January, 2005. Advise whether the company is right in its thinking (5+6+4 = 15 marks). Q 7 (a) Explain the powers of an empowered officer regarding entry and inspection under the Environment (Protection) Act, 1986. (b) The industrial group for whom you are working has a project to start a tannery. There is a small river flowing near the project site. The management has asked you to prepare a note pertaining to the discharge of effluents from the factory into the river. Prepare a note with reference to the provisions of the Water (Prevention and Control of Pollution) Act, 1974 (7+8 = 15 marks) Q 8 (a) Enumerate the documents executed by or in favour of the government which are exempted under the Registration Act, 1908 (b) Rosy Trading Company wants to file an appeal against the orders passed by the National Consumer Disputes Redressal Commission to the Supreme Court. As the Company Secretary, advise the management about the procedure for filing such an appeal (c) What are the powers of the Collector to refund penalty paid under section 38 of the Indian Stamp Act, 1899? (8+6+6 = 20 marks) OR Q 8 (i) In his complaint filed before the National Consumer Disputes Redressal Commission, the appellant had alleged that a huge sum of Rs. 75.70 lakh had been wrongly debited to his account with the respondent bank by honouring cheques with forged signatures of the appellant or were found to have altered figures on several cheques and one of the two persons purportedly drawing cheques had already died and the other denied his signatures. The National Consumer Disputes Redressal Commission returned the complaint pointing out that this was a case involving an acute dispute in which numerous documents were required to be examined by calling handwriting experts, etc., and directed the complainant to file a civil suit. Discuss whether the complainant would succeed if he prefers an appeal to the Supreme Court (ii) Explain the effect of registration of a document under the Registration Act, 1908 (iii) What is ‘lease’ under the Indian Stamp Act, 1899? (8+6+6 = 20 marks). June - 2004 Part A Answer question No. 1 which is compulsory and any two of the rest from this part. Q 1 (a) In response to a global tender floated by the Steel Authority of India Ltd. (SAIL) for certain materials required by its steel plants, five Japanese concerns quoted identical prices and the Indian agents of these companies too had quoted identical prices. Even the revised prices quoted by the Japanese Corporation (Rollers Expert Association) after negotiations turned out to be the same. The Director General of SAIL was of the opinion that the respondents had adopted and indulged in restrictive trade practices within the meaning of section 2(o)(ii) of the Monopolies and Restrictive Trade Practices Act, 1969. But all the respondents had refuted the allegation of price cartelisation levelled against them on the ground that mere uniformity in prices did not establish a cartel. The respondents claimed gateways. One of the respondents in its application under section 37(2) of the said Act admitted restrictive trade practice supporting the charge of cartelisation against the respondents. Examine the facts of the case and give your decision in the matter. (b) Mansha Textiles Ltd., the insured, lodged a claim against Oriental Insurance Co. Ltd. in respect of stocks of yarn destroyed in an accidental fire in the company’s godown. The surveyor appointed by the insurance company finalized the assessment without waiting for the financial statements of the insured even though it was brought to his notice. The insured averred that the surveyor was prejudiced against it. The insurer thereupon appointed another surveyor to assess the loss. The surveyor quantified the loss at Rs. 5.43 lakh. The insurer neither settled the claim nor repudiated it for a long time. The insured lodged a complaint against the insurance company under section 36B(a) read with section 12B of the Monopolies and Restrictive Trade Practices Act, 1969. The insurer pleaded that no case of unfair trade practice had been made out against the insured because the policy and terms and conditions given therein were of statutory character. It was mandatory for the parties to comply with the same and therefore the question of jurisdiction under the Monopolies and Restrictive Trade Practice Act, 1969 would not arise. Examine the facts of the case as given above and give your decision in the matter. (c) During the course of an enquiry pertaining to restrictive trade practices, the complainant filed an application under section 12A of the Monopolies and Restrictive Trade Practice Act, 1969 praying for issuance of injunction against the respondent company not to indulge in the alleged restrictive trade practices till the final disposal of the enquiry. The MRTP Commission directed the respondent company not to indulge in restrictive trade practices in terms of the prayer contained in the application. The respondent company seeks your advice as to whether it can file any appeal against the order of the MRTP Commission and further steps to be taken in this regard. Advise. (7+7+6 = 20 marks) Q 2 (a) You are the Company Secretary of Hi-Tech Ltd. Your managing director has asked you to brief him on the procedure for shifting the bulk drug manufacturing unit of the company from Mumbai to a backward district of Orissa. Prepare a brief note for him. (b) Enumerate the list of industries reserved for public sector and the reasons for such reservation,. Explain briefly the highlights of the Industrial Policy, 1991 of the Government pertaining to public sector enterprises (8+7 = 15 marks) Q 3 (a) With reference to the provisions contained in the Foreign Exchange Management Act, 1999, state the steps required to be taken for withdrawal of a foreign exchange in the following cases : (i) Payment of royalty to the foreign collaborator (ii) Business travel including medical expenses incurred while visiting United States (b) Explain the procedure for issue of shares to a foreign collaborator under the Foreign Exchange Management Act, 1999 (8+7 = 15 marks). Q 4 (a) Write notes on the following: (i) Calculation of ‘net foreign exchange earning’ (NFE) under the special economic zone (SEZ) (ii) Importance of ‘importer-exporter code’ (IEC) number (b) Explain briefly the major functions of the export promotion councils (8+7 = 15 marks). Part – B Answer Q No. 8 which is compulsory and any two of the rest from this part. Q 5 (a) The appellant A and the respondent R were the dealers in plywood products. While A was established in 1996, R was established in 1993. Both were in the same business, each of them adding ‘UNI’ before the words ‘PLY’ and ‘BOARD’. Each claimed that he had the right of trademark in respect of these products but no clinching evidence to establish his right of trademark had been brought on record. Applications for both A and R for registration of trademark under the Trade Marks Act, 1999 were pending for investigation. Indicate the guidelines that should be taken into account to ascertain as to who should be the owner of the distinctive trademark (b) (i) Describe the general principles that are followed before the grant of any patent under the Patents Act, 1970 (ii) Hoshiar, an agricultural scientist, files an application for patent claiming that the cultivation process suggested by him will double the production of rice and wheat as compared to the process presently adopted by the agriculturists in India. Examine (7+6+2 = 15 marks). Q 6. (a) (i) Ghanshyam, a reputed author and owner of the copyright, wants to assign the copyright to Yagnik. Advise them on the provisions of law related to assignment of copyright. (ii) After the assignment, in case of any dispute between the two parties, state the right of the aggrieved party against revocation of the copyright. (b) India Dairy Ltd. intends to export its butter products in non-standard weight or measure to United Kingdom and other European countries. State the steps that should be taken in this regard and the right of the company to sell the said products in India (5+3+7 = 15 marks). Q 7 (a) What are the duties of a company secretary under the Water (Prevention and Control of Pollution) Act, 1974? (b) A complaint has been received that a chemical factory is polluting the environment in the locality as a result of which the residents have been suffering from respiratory diseases. The Central Government has appointed Tejeshwar as the empowered officer under the Environment (Protection) Act, 1986 to collect the air samples including solid or other substances from the factory for examination and analysis. Explain the steps that should be followed by Tejeshwar as the empowered officer (8+7 = 15 marks). Q 8 (a) It was the case of the complainant that Madhuri boarded an express train at a station in Kerala to go to Hyderabad on a professional work. She was carrying with her a suitcase in which there were some important documents, 35 bibliographic cards and a sum of Rs. 8,000 in a bag. She complained to the travel ticket examiner (TTE) that a passenger without reservation had entered the compartment and despite protests from her and other co-passengers, he continued to occupy a berth and the TTE did nothing to detrain him. When Madhuri woke up at 2.00 a.m., to her dismay, she found that her suitcase was ransacked, papers were found strewn on the floor of the compartment and important documents as well as cash were missing. She further alleged that neither the TTE nor the guard was willing to receive her complaint. Eventually, she had registered the first information report (FIR) with the police station at Secunderabad, which was her destination station and afterwards she filed a case before the District Forum. The District Forum held that the railway was deficient in service and awarded compensation of Rs. 20,000 and costs to the complainant. The State Commission agreeing with the view of the District Forum dismissed the appeal filed by the railways. The railways appealed to the National Commission stating that they were responsible only in respect of the luggage booked. Examine the facts and decide the case (b) Rupesh entered into an agreement with Vinod which was duly executed by both parties. Later on, it was noticed that the document is not properly stamped. Advise them on the relevant provisions of the law (c) Ashok is an illiterate affected customer. He is ignorant about law. Ramesh, a close friend of Ashok, wants justice for Ashok. Advise – Whether filing complaint by Ramesh on behalf of Ashok will be as per the provision of law? – Can an appeal be filed by any recognised consumer association of which Ashok is not a member? – Can an appeal be filed by some other person having the same problem as faced by Ashok? (8+6+6 = 20 marks) OR Q 8 (i) While examining the complaint of unfair trade practice, state the powers of the District Forum to pass orders against the opposite party under section 14(1) of the Consumer Protection Act, 1986, in case the allegations of the complainant are proved as correct (ii) Suresh wants to lease his immovable property at a prime location. Advise him on the registration requirements (iii) State the details of the documents of which registration is optional under the Registration Act, 1908 (8+6+6 = 20 marks). Economic Laws - ICSI (Final) Old SyllabusCORPORATE LAWS & PRACTICE – III December - 2003 Part A Answer question No. 1 which is compulsory and any two of the rest from this part. Q 1. (a) Maheshwari Textiles, the insured, lodged a claim against Oriental Insurance Co. Ltd. in respect of stocks of yarn destroyed in an accidental fire in the company’s godown. The surveyor appointed by the insurance company finalized the assessment without waiting for the financial statements of the insured even though the same was brought to his notice. The insured averred that the surveyor was prejudiced against it. The insurer thereupon appointed another surveyor to assess the loss. The surveyor quantified the loss at Rs. 5.43 lakh. The insurer neither settled nor repudiated the claim for long. The insured lodged a complaint against the insurance company under section 36B(a) read with section 12B of the Monopolies and Restrictive Trade Practices Act, 1969. The insurer pleaded that no case of unfair trade practice had been made out against the insurer because the policy and terms and conditions given therein were of statutory character. It was mandatory for the parties to comply with the same and therefore the question of jurisdiction under the Monopolies and Restrictive Trade Practice Act, 1969 would not arise. Examine the facts of the case as given above and give your decision regarding the issue of jurisdiction (b) Fairdeal Ltd., a reputed manufacturer of consumer goods, advertised a scheme called ‘hidden treasure prize offer’ whereby prize coupons were placed inside some of the bottles of the product, by which purchasers of the bottles wherein coupons are placed would get prizes. Examine whether the manufacturer has indulged in any unfair trade practice under the Monopolies and Restrictive Trade Practices Act, 1969. (c) Jadoo Ltd. was advised by the legal consultants that the agreement entered into by the company with Kali and Co. would come within the ambit of ‘restrictive trade practice’ and requires registration under the Monopolies and Restrictive Trade Practices Act, 1969. Explain briefly the procedure to be followed for registration. [7+6+7 = 20 marks] Q 2. (a) You are the company secretary of Unique Industries Ltd. Your managing director wants to be briefed on the procedure under the Industries (Development and Regulation) Act, 1951 for registration of the existing industrial undertakings. Explain. (b) Roy and Co. wants to start a small scale unit. It has made capital expenditure under various heads. It seeks your advice as to what would be the implications of the following in calculating the overall limit of investment in fixed assets for the purpose of small scale industries: (i) Cost of generating sets installed: Rs. 10 lakh. (ii) Cost of R&D equipment and pollution control equipment: Rs. 3 lakh. (iii) Cost of tools, jigs, dies, moulds and spare-parts for the maintenance: Rs. 7 lakh. (iv) Improved machinery which includes – import duty : Rs. 10 lakh; - transportation of the machinery from port to the site of factory : Rs. 5 lakh; - demurrage : Rs. 1.5 lakh; and shipping charges, custom clearance charges and sales tax : Rs. 12 lakh [8+7 = 15 marks]. Q 3. (a) Raja is holding a non-resident (external) rupee account. He wants to approach the bank maintaining his account, for permission to grant of loans in India. Advise him about provisions regarding grant of loans to such account holders in India. (b) John and Smith, both non-resident individuals, want to open a joint-account in an Indian bank. Advise on the following: (i) whether a joint-account can be opened, if John is an Indian national whereas Smith is not; (ii) whether it would make any difference, if both John and Smith are Indian nationals; and (iii) what would be the effect, if Smith becomes a resident of India. (c) Kuber, a non-resident Indian staying in U.S.A., wants to invest one million US dollars by way of capital contribution to a proprietary concern in India. Explain briefly the steps he should take in the light of the provisions of the regulations under the Foreign Exchange Management Act, 1999 [3+6+6 = 15 marks]. Q 4. (a) Write notes on the following: (i) Private bonded warehouses for exports (ii) Duty-free replenishment certificate (b) Gullible, a victim of unfair trade practice, approaches you for advice. According to him, he had purchased machinery parts from a manufacturing company., which later on turned out to be defective and non-usable. Gullible desires that action should be taken against the manufacturing company in such a manner that it will not be able to deceive other consumers by selling defective goods. Advise the steps Gullible has to take under the provisions of the Monopolies and Restrictive Trade Practices Act, 1969 to get an interim injunction order against the manufacturing company [8+7 = 15 marks]. Part – B Answer Q No 8 which is compulsory and any two of the rest from this part. Q 5. (a) Copycat is interested to translate into Hindi language a book on computer applications written in English and published outside India. Copycat could not get the permission from the author of the book for translation and publication of the book in Hindi in India. Advise Copycat about the procedure he should follow under the Copyright Act, 1957 to publish the translated book in India. (b) Hopeful has filed an application with the Controller of Patents for grant of patent in respect of an invention relating to atomic energy. Explain briefly the general principles that are followed by the controller before grant of patents and whether patent can be sealed in this case [8+7 = 15 marks]. Q 6. (a) Zeal Ltd. has filed an application for registration of trade mark with the Registrar under the Trade Marks Act, 1996. Explain briefly the steps required to be taken by the Registrar before registration of the trade mark. (b) A complaint has been received by the Central Board for Prevention and Control of Water Pollution stating that a chemical plant located in the State of Madhya Pradesh is discharging poisonous substances into a stream and thus polluting the water resources in the area. In response to an enquiry, the company owning the chemical plant has denied the charge made by the complainant. The Board is not convinced with the explanation furnished by the company. Explain what legal steps the Board can take in this regard [8+7 = 15 marks]. Q 7. (a) Rakshit, an officer of the Central Government, has to collect samples of hazardous substances discharged by a polluting industry under section 11 of the Environment (Protection) Act, 1986. State briefly the procedure to be followed by Rakshit in the collection and disposal of samples. Can Rakshit collect the sample when no responsible person is present in the factory premises? (b) Explain briefly the provisions relating to ‘principal display panel’ under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 [7+8 = 15 marks]. Q 8. (a) Rashmi, who got admission in a college, paid Rs. 7,000 towards tuition fees, hostel fee and other charges. Subsequently, she got admission in a Government Engineering College and, therefore, demanded the refund of her fees from the college. The college partly refunded the hostel fee and tuition fee and retained the major portion of the tuition fee. Rashmi wants to file a complaint against the college for the total refund of the fee. Will she succeed? (b) (i) Anand leased two of his properties – Property-A and Property – B, at a prime location. Advise him on the requirement for registration in the following cases: - Property A is leased for 21 months and the rent is Rs. 1500 per month. Property B is leased for 11 months and the rent is Rs. 50,000 per month. (ii) What is non-testamentary document? Name any two non-testamentary documents. (c) Ramesh and Prem wanted to execute a document. Keeping that in mind, the documents were duly stamped. Now, that a dispute has arisen and they do not want to go ahead with the documents. Accordingly, documents remained unexecuted. Explain the time limit for application for relief and refund under section 49 of the Indian Stamp Act, 1899. Also, explain the time limit for the application for relief and refund, if the documents are executed by any of the parties. (d) Rim-Jhim Co., a small scale industry enjoying cash credit facility from XYZ Bank Ltd., wanted urgent additional financial facilities. The company approached its bank for assistance which was refused by the bank on the ground that the company is not in a position to arrange for the margin money. Subsequently, Rim-Jhim Co. becomes a sick unit. It wants to file a case against the bank under the Consumer Protection Act, 1986 on the ground of deficiency in providing service and as a result of which Rim-Jhim Co. became a sick unit. Advise Rim-Jhim Co. [5+5+5+5 = 20 marks] OR Q 8. (i) The respondent purchased a power tiller from the appellant through its dealer in West Bengal, but the machine gave trouble within the warranty period, and despite his repeated requests for repair and replacement of certain parts, the seller did not respond. The consumer then filed a complaint in the district forum. The district forum allowed the claim. Appeal against the order of the district forum was dismissed by the State Commission. Though the appellant raised the question of limitation, the State Commission, without examining the point in detail, came to the conclusion that it could not be said that it was barred by limitation. In revision, the National Commission observed that the manufacturers did not specifically deny their liability to repair and replace the machine, but rejected the plea of limitation at ‘this stage’ and there was no question of interference with the order passed by the State Commission. Discuss whether the respondent can successfully raise the issue of limitation in the appeal filed in the Supreme Court. (ii) What is the effect of non-registration of a document which is required to be registered? (iii) Vinay booked for a vehicle through one of the dealers. He was informed later that there is a change in the procedure and that he need to pay additional payment before delivery. On being aggrieved, Vinay filed a complaint with the State Commission under the Consumer Protection Act, 1986. Will he succeed? (iv) Name five instruments which are chargeable with stamp duty [5 x 4 = 20 marks] Economic Laws - ICSI (Final) Old SyllabusCORPORATE LAWS & PRACTICE – III June - 2003 Part A Answer question No. 1 which is compulsory and any two of the rest from this part. Q 1. (a) I & I Company advertised for an year and a half “Eyeglasses for Rs. 100 including lenses, frames and cases to persons who undertake eye examinations at I & I Company.” The MRTP Commission received a complaint against I & I Company that they had indulged in unfair trade practices of switch and bait selling. The MRTP Commission found that only 10 out of 2000 pairs of eyeglasses sold each year by I & I Company for Rs. 100. Discuss whether I & I Company has indulged in any unfair trade practice under the Monopolies and Restrictive Trade Practices Act, 1969. (b) Prepare a management note to the chief executive officer of your company on the procedural aspects and the compliances under the import and export policy and the procedures that your company has to observe to avail the benefits of export promotion capital goods scheme. (c) HTV Ltd., an internet service provider and telecom company, offers internet connection through cable to its customers. The customers are required to take along with the internet connection a telephone connection also. HTV Ltd. waives the initial installation expenses and deposits for the telephone connection. Examine the matter and give your views on the applicability of the provisions of the Monopolies and Restrictive Trade Practices Act, 1969. [6+8+6 = 20 marks] Q 2. (a) Give a list of industries for which industrial licensing is compulsory. Examine whether licensing procedure will apply if a small scale unit takes up the manufacture of an item not reserved for small scale sector. (b) Royal Telecom, a United Kingdom based company, proposes to invest in a telecommunication project along with an Indian company. State briefly the procedure required to be followed for implementing the project. [8+7 = 15 marks] Q 3 (a) Sajjan, an Indian national, has been charged with an offence relating to alleged non-realisation and non-repatriation of foreign exchange under section 8 of the Foreign Exchange Management Act, 1999. He desires to know from you the relevant legal provisions regarding penalties and whether his properties can be attached by the authorities. State briefly the legal remedies available to him in this regard (b) A to Z Technologies Ltd., a company registered in India, is planning to invite deposits from Persons of Indian origin settled in USA. Explain the steps the company should take to achieve its objective. [8+7 = 15 marks] Q 4 (a) Write short notes on the following: (i) Special Economic Zone (SEZ) (ii) Duty entitlement passbook scheme (DEPB) (b) BML, a manufacturer of a particular Pharmaceutical Grade Acid (PGA), refused to supply the acid in bulk quantities to few of its repacker consumers. PGA is under price control orders of the government and controlled price is about 50% of the cost of production of BML. The repacker customers complained to the MRTP Commission that BML is refusing to deal with them though they are continuing to supply PGA to bulk drug manufacturers and to hospitals and government agencies. In the light of decided case laws, examine whether BML can defend its action and whether the repacker consumers can succeed in their action against the company. [8+7 = 15 marks] PART – B Answer Q No. 8 which is compulsory and any two of the rest from this part. Q 5. (a) You are the secretary of a pharmaceutical company with considerable focus on research. The company is engaged in invention and developing new vaccines for treatment of the Hepatitis – B. Advise the management on the legal provisions under the Patents Act, 1970 for licensing the company’s patents for commercial purposes and for large scale manufacturing and distribution of drugs for treatment of the Hepatitis-B. (b) You come to know that a trade mark deceptively similar to one of your company’s trade mark had been granted by the trade marks registry to one of your competitors. Your company’s revenue and sale of its main product line would be affected, if the status quo continues unchallenged. What action could you take under the Trade and Merchandise Marks Act, 1958 to safeguard your company’s interest? Elaborate the procedural aspects relating to the rectification and correction of the register of trade marks. [8+7 = 15 marks] Q 6. (a) (i) What are the maximum permissible error tolerances on net quantities declared by length, area or number in a retail package under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (ii) Describe the prescribed manner of declaration of unit sale price in a package for retail sale under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. (b) Explain the meaning of ‘copyright’ in the case of sound recording of a musical work. State whether registration of copyright is necessary for lodging a criminal complaint in respect of an infringement of copyright. [8+7 = 15 marks] Q 7. (a) Clean Plastics & Chemicals Ltd. has received a notice from the authorities dealing with water pollution stating that the company is discharging effluents from the factory thereby polluting the water supplied to the residents. State briefly the duties of an occupier and the steps that are required to be taken under the Water (Prevention and Control of Pollution) Act, 1974. (b) A sells to B a piece of land for commercial use along with the requisite title deed. B, however, fails to get the property registered in his own name as required under the Registration Act, 1908. Examine the effect of non-registration of the document required to be registered. [8+7 = 15 marks] Q 8. (a) Who are the persons liable to pay the stamp duty under the Indian Stamp Act, 1988? (b) What are the instruments that attract stamp duty under the Indian Stamp Act, 1899? (c) What are the powers of the consumer redressal agencies under Consumer Protection Act, 1986? (d) Briefly distinguish between the jurisdiction of the various consumer redressal forums/commissions. [5 marks each] OR Q 8. (i) Explain with reference to the Environment (Protection) Act, 1986, the function of the authority who has been entrusted with the responsibility of protecting and improving the quality of environment and prevention of environmental pollution. State the measures such an authority can take to achieve the above said objective. (ii) KK Industries Ltd. filed a case before the National Commission for deficiency in service under section 2(1)(g) of the Consumer Protection Act, 1986 against the insurance company. The insurance company opposed the case stating that the claim made by the complainant was settled and the cheques given was also encashed by the complainant and that the complaint was filed belatedly six months after accepting the claim amount settled by the insurance company. The case of the complainant on the other hand is that the amount settled by the insurance was far less. Discuss the merits of the complaint in the light of a decided case by the National Commission. (iii) Name any five industries notified by the Government of India as highly polluting. [8+6+6 = 20 marks]. Economic Laws - ICSI (Final)CORPORATE LAWS & PRACTICE – III December - 2002 Part A Answer question No. 1 which is compulsory and any two of the rest from this part. Q. 1 (a) Several allottees of plots developed by the City Development Authority (CDA), a government agency (Appellant) for construction and development of houses/plots, filed complaints before the appropriate forums seeking refund of the amount deposited with the authority with interest on the deposits as there was inordinate delay in development and handing over of plots/houses. In all cases, these forums had found that the CDA was guilty of unreasonable delay and failure to perform the promise held out to the allottees and directed the CDA to refund the deposits with interest. The CDA filed an appeal in the High Court and drew the attention of the High Court to a term in the brochure that in the event of the applicant withdrawing his offer or surrendering the same, no interest whatsoever would be payable to the claimant. The High Court held that the said term was unconscionable, arbitrary and violative of Article 14 of the Constitution of India. In all cases, the claimants succeeded. A question arose as to whether compensation could be given to the claimants for the mental agony allegedly suffered by them and whether interest could also be directed to be paid to the claimants on deposits made by them. Examine the matter and decide the case. (b) Sell Well Ltd. is an export company situated in Madras Export Processing Zone (MEPZ). The FOB value of exports made during the preceding licensing year 2000-01 is Rs. 1,200 crore and the average FOB value of exports made during the preceding three licensing years is Rs. 1,150 crore. The FOB value of exports made during the preceding licensing year by Make Good Ltd., a subsidiary company of Sell Well Ltd., is Rs. 650 crore. Discuss the scope of obtaining a super star trading house certificate by the Sell Well Ltd. (c) Explain the procedure for filing an appeal against the ‘cease and desist’ order passed by the Commission under the Monopolies and Restrictive Trade Practice Act, 1969. [7+7+6 = 20 marks] Q. 2 (a) Avon Industries Ltd., set up in a notified backward area, proposes to set up a factory for manufacturing cement. The Union of India has notified the cement industry as highly polluting industry. Lay down the various steps to be taken and the related pollution control approvals/clearances to be obtained for the commissioning of production by the Avon Industries Ltd. (b) Define the term ‘small scale industry’ and ‘ancillary industry’ for the purpose of the Industries (Development and Regulation) Act, 1951. List out various incentives and support schemes available for the small scale industries (SSIs). [8+7 = 15 marks] Q. 3 (a) Distinguish between the ‘rules’ and ‘regulations’ under the Foreign Exchange Management Act, 1999. Discuss any three important regulations. (b) Speed King Ltd. wants to set up an auto-ancillary unit with a total project cost of Rs. 10 crore. An amount of Rs. 5 crore is sought to be raised from a foreign source. Explain the procedure required to be followed by Speed King Ltd. if it wants to raise the finance in the form of loan. [8+7 = 15 marks] Q. 4 (a) Write short notes on the following: (i) Software technology park (ii) Deemed exports. (b) Harsh Productions Ltd. (HPL) is a member of the Association of Film Producers Ltd. (AFPL). The AFPL plays a major role in the determination of wages for the workers of the film industry. There arose a dispute between AFPL and the Federation of Cine Workers (FCW) regarding revision of wages. As a result of unilateral hike in wages by the FCW without its consent, AFPL issued a circular to all the members to suspend production operations. HPL during that time was involved in a major project and it had the dates of some foreign actors who worked in its film. HPL approached the FCW and AFPL for continuation of its film production. While the FCW granted approval, the AFPL declined to accommodate the request and issued a circular to all those associated with the industry to suspend the membership of HPL. The AFPL also wrote to all those connected with HPL like distributors, actors, workers etc. to severe their ties with HPL. Discuss whether the circular and other letters of AFPL regarding severance of ties with HPL amounts to restrictive trade practice under the Monopolies and Restrictive Trade Practices Act, 1969. [8+7 = 15 marks]. PART – B Answer Q No. 8 which is compulsory and any two of the rest from this part. Q. 5 (a) Distinguish between ‘group package’, ‘combination package’ and ‘multi-piece package’. Give an illustrative example for each. What specific declarations are required to be made in respect of each such packages ? (b) Manish assigned the copyright of his book to his niece Sujata in 1999. Now in 2002, due to some misunderstanding between them, Manish wants to revoke the assignment. Sujata contends that she has not made any fault and that she had helped him a lot and there is no ground for revocation of assignment. Who is the proper authority to settle disputes relating to assignment? Can Manish succeed? [9+6 = 15 marks]. Q. 6 (a) State whether registration is compulsory or not for the following agreements: (i) Lease agreement for tenancy of a residential flat for one year only. (ii) Lease agreement for one year containing an option to the tenant to renew it for a further period of one year or any other term. (iii) Lease agreement exceeding one year. (iv) Lease agreement from year to year. (v) Lease agreement for one year with an annual reserved rent. (vi) Lease agreement for nine months (vii) Lease agreement reserving a yearly rent. (b) Ajit, an appellant, and Ranjit, the respondent, were dealers in plywood and plywood products. While Ajit had established his business in 1996, Ranjit established his business in 1993. Both did the same business and each of them used ‘UNI’ before the worked ‘ply’ and ‘Board’. Each claimed that he had the right of trade mark in respect of these products but no clinching evidence to establish his right of trade mark had been brought on record. Application of both Ajit and Ranjit for registration of trade mark under the Trade and Merchandise Marks Act, 1958 were pending investigation. Examine the case and ascertain who is the owner of the distinctive trade mark. [7+8 = 15 marks] Q. 7 (a) Pratik in his petition under section 482 of the Code of Criminal Procedure, 1973 prayed that the complaint under section 47 of the Water (Prevention and Control of Pollution) Act, 1974 be quashed on the ground that it did not contain any allegation that he was in-charge of and responsible for the conduct of the company’s business. Merely the fact that he was designated as managing director of the company, did not indicate that he was responsible for the conduct of company’s business or that he had control over the entire affairs of the company. On the other hand, the contention of the respondent was that the very designation of managing director without anything more implied both ‘control and command of the managing director over the company’s affairs’. Advise whether Pratik was responsible for conduct of the company’s business and whether summons could be issued to him. (b) Explain the procedure for obtaining ‘exclusive marketing rights’ (EMR) under the Patents Act, 1970 by a foreign applicant in India. State the conditions/pre-requisites for making an application for obtaining EMR. [7+8=15 marks] Q. 8 (a) State, citing the relevant provisions of the Consumer Protection Act, 1986, whether the following appeals are maintainable: (i) Appeal against an appellate order passed by the State Commission. (ii) Appeal against revisional orders passed by the National Commission. (iii) Appeal against an order of the District Forum filed after a period of 60 days, the delay was due to loss of relevant papers at the advocate’s office. (iv) Appeal against an order of the District Forum filed after a period of 45 days from the date of the order, the delay being inevitable as the appellant was sick for over one month. (b) Examine whether the following persons can be treated as ‘consumers’ under the Consumer Protection Act, 1986: (i) A passenger on a train that was held up due to technical snag, reaches destination four hours late and wants to file a complaint against railways. (ii) Parents of a minor receiving medical care in a private hospital. (iii) A Member of Parliament traveling on free passes. (iv) Dayal files a complaint against the Postal department for delayed delivery of call letter for an interview, as a result of which he missed the interview for the job. (v) Kamla purchased a photocopier for setting up of a small outlet to earn her livelihood. (c) On what amount is the stamp duty payable under the following circumstances: (i) Ekta owes Farhan Rs. 1,00,000. Ekta sells a property to Farhan, the consideration being Rs. 50,000 and the release of the earlier debt of Rs. 1,00,000. (ii) Ram sells a property to Shyam for Rs. 5 lakh, which is subject to a mortgage to Ghanshyam for Rs. 10 lakh and unpaid interest of Rs. 2 lakh. (iii) Madhav mortgages a house of the value of Rs. 14 lakh to Naveen for Rs. 9 lakh. Naveen later buys the house from Madhav. [4+10+6 = 20 marks] OR Q. 8 (i) What is the procedure for taking samples under section 11 of the Environment (Protection) Act, 1986? (ii) Having failed to get full reimbursement of his claim for medical expenses from the director of the Employees’ State Insurance Corporation (ESIC), Arun, a petitioner, filed a complaint before the District Forum. The District Forum directed the respondent to pay the balance but in appeal the State Commission dismissed the complaint on the ground that the Employees’ State Insurance Act, 1948 being a special Act, disputes regarding benefits under the Act and appeals therefrom could be filed only before the Court constituted under the Employees’ State Insurance Act, 1948. In coming to this conclusion, the commission relied upon the decision of the Supreme Court. In revision, it was urged before the National Commission that the consumer had every right to seek remedy under the Consumer Protection Act, 1986. By virtue of section 3 of the Act and also as there was no provision in the Employees’ State Insurance Act, 1948 which prohibited an aggrieved party from seeking a remedy under the Consumer Protection Act, 1986, the complaint could be entertained by the consumer forums. Examine the case and give your decision in the matter. (iii) Baljeet, the complainant, had deposited a sum of Rs. 6,600 with Growrich Forests Development (India) Ltd., the appellant, under a savings scheme. The appellant paid Rs. 4,000. In respect of the balance, the District Forum directed the appellant to refund the amount with interest and costs. The appellant’s contention before the State Commission was that it had submitted proposals to the Securities and Exchange Board of India (SEBI) in accordance with guidelines issued by it for making repayments and was awaiting SEBI’s nod. Examine the case and give your decision in the matter. [7+7+6 = 20 marks] Economic Laws - ICSI (Final)CORPORATE LAWS & PRACTICE – III June - 2002 Part A Answer question No. 1 which is compulsory and any two of the rest from this part. Question 1. (a) A and B, manufacturers of loom for textile industry, are members of the same manufacturer’s association. The rules of the manufacturer’s association contain a clause offering the facility of arbitration to resolve members’ inter se disputes. A lodged a complaint with the Director General (Investigation and Registration) of the MRTP Commission against B, alleging that B is making false claims about its products and about foreign technicians’ direct association in the manufacture and quality control. B, upon receipt of the notice from the Director General (Investigation and Registration) replied that in view of the existing rules of the manufacturers’ association, the Director General (Investigation and Registration) has no jurisdiction to entertain the complaint and that the matter has necessarily to be resolved by arbitration under section 8 of the Arbitration and Conciliation Act, 1996. Comment whether the contention of B will survive having regard to the rules of the manufacturers’ association. (b) Everready Bank, the respondent, advanced a loan to the complainant for purchase of a car, to be repaid in 60 equal monthly installments for which the bank had taken 60 post dated cheques. After repaying a substantial amount, two officials of the Everready Bank visited the complainant alleging non-payment of six monthly installments. Despite complainant’s claim that only 3 monthly installments are due, he was asked to accompany them to the Everready Bank for further discussion. It was the allegation of the complainant that on reaching the Everready bank, the complainant’s driver was asked to hand over the keys of the car at a ‘gun-point’ after handling over the statement to the complainant that three installments were still due from him. Will the complaint of the complainant before the MRTP Commission alleging unfair trade practice succeed? (c) Transparent Glass Works Ltd. entered into an agreement with Modern Cotton (Proprietors of New Glass Products) to prevent Modern Cotton from making or selling certain glass products in consideration of payment of agreed compensation by the Transparent Glass Works Ltd. The agreement also provided that Modern Cotton would sell its glass products only to the Transparent Glass Works Ltd. and would not associate with any other person for making and selling the specified products. It was further provided in the agreement that Modern Cotton will have to keep plant idle if the output exceeded. A complaint was lodged before the MRTP Commission alleging that it was a restrictive trade practice. Will the complaint succeed and what order the MRTP Commission may pass? [7+7+6 = 20 marks] Question 2. (a) Alchem Ltd. proposes to engage in the manufacture of products reserved for ‘small scale industries’ (SSIs). It wishes to avail the various concessions available to SSI units. Briefly outline the procedure to be followed for the registration of Alchem Ltd. Can concessions be availed if the unit is not registered as an SSI unit? (b) Global India Ltd. is a manufacturer exporter with an export performance of Rs. 2 crore in the year 2000-01. The company wishes to obtain advance license for its annual export requirement. Enumerate the steps to be taken by the company to obtain advance license for annual export requirement. What conditions will it have to comply with? Will the company be eligible for the advance license if the export performance for the previous year is only Rs.99 lakh ? [7+8 = 15 marks] Question 3. (a) What are the laws and procedures in the Foreign Exchange Management Act, 1999 for making overseas investments by Indians? (b) Sunder, an authorized person, is served an order of the adjudicating authority imposing penalty for contravention of the provisions of the Foreign Exchange Management Act, 1999. On an appeal, the order was confirmed by the Special Director (Appeals). Aggrieved by this, Sunder wishes to appeal further to the appellate tribunal. Advise the procedure to be followed by Sunder for filing the appeal. [8+7 = 15 marks] Question 4. (a) Smart, who was born in India, but currently a US citizen, has been appointed as managing director of the Quickfix Ltd. which is registered as an Indian company. On his assuming charge in India, Smart requires you, as a company secretary of the company, to advise him on the procedure for his importing a car from USA for his personal use. Prepare a suitable advice note for the purpose with reference to the export-import policy. (b) Growthwell Ltd. is in the mining business and due to its established business, the Harrison Inc., USA are interested to enter into collaboration. Initially, Albert, a citizen of USA and an employee of the Harrison Inc., USA, is interested to set up an office in India which will liaise with Growthwell Ltd. and Harrison Inc., USA. The chairman of the Growthwell Ltd. desire you, as a company secretary of the company, to advise and assist Albert quickly. Provide a comprehensive advice note to Albert referring the provisions of the relevant Act. [8+7=15 marks] PART – B Answer question No. 8 which is compulsory and any two of the rest from this part. Question 5. (a) You are working as a company secretary of the High Quality Distilleries Ltd. The duly registered trade mark ‘High Scot’ is being used by the company for whisky manufactured by it. The registration was done in July, 1975. The Scotch Whisky Association, London on an application filed in October, 1990 obtained relief from the Registrar of Trade Marks by expunging the trade mark registered in the name of High Quality Distilleries Ltd. Being aggrieved, the chairman of the company desires you to challenge the order, among others, on the grounds of ‘acquiescence’ by the Scotch Whisky Association. Advise. (b) Jugad Masala Company proposes to engage in the manufacture of masala powders and market its products in packets of 100gms, 200 gms and 500 gms. As a consultant of the company, explain in detail the procedure you would follow to get the company registered as a manufacturer and packer. (c) What are the provisions to be complied with for sale of export packages inside India? [8+4+3=15 marks] Question 6. (a) You have recently been appointed as a company secretary of the Ever Innovative Ltd. Your company receives a notice from the controller general of patents that the application filed by your company for the grant of a patent of a new machine was deemed to have been abandoned. How do you propose to deal with the matter? (b) As a company secretary of the Hi-Fi Sound Recordings Ltd., what precautions would you advise to the production department intending to make records, so that provisions of the Copyright Act, 1957 are not infringed? [9+6 = 15 marks] Question 7. (a) State the conditions to be complied with for operating in an ‘air-pollution control area’. Identify the areas in respect of which violations generally take place. (b) Tom has donated a piece of immovable property to his major son Wise. Before the instrument could be registered, Tom died. By virtue of the will in favour of Mrs. Tom, she desires to revoke the gift to Wise, as the instrument is still not registered under the Registration Act, 1908? Will Wise succeed in retaining the gift received from Tom? [9+6 = 15 marks] Question 8. (a) Strong Constructions, the builder, had constructed residential flats and sold to different persons during the period from 14th December, 1992 to 12th April, 1993. The Metropolitan Development Authority served a notice on the builder on 6th July, 1995 for demolition of flats, as the same were not constructed as per the approved plans. The same notice of demolition was served on the buyers of flats on 6th September 1995. The buyers of flats contacted the builder on 11th September, 1995 for rectification of deviations. The correspondence continued till 23rd June, 1998. However the builder disclaimed its responsibility for the deviations. On 22nd February, 1999, the buyers lodged a complaint against the builder for deficiency in service. Discuss whether the complaint of the buyers against the builder is tenable under the Consumer Protection Act, 1986. (b) Sajag, an employee of ABC Ltd., made an application for payment of the provident fund standing to his credit. But that was not settled for some time. He, therefore, filed a complaint under the Consumer Protection Act, 1986. State quoting the relevant case law – (i) whether the provisions of the Act could be invoked against the ABC Ltd. by Sajag, who was a beneficiary under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the scheme there under? (ii) Whether the duty performed by Regional Provident Commissioner was a service ? (iii) Whether the delay in the payment of the provident fund amounted to deficiency in service? (c) Ronew executed a document in favour of his friend Wellwisher on a stamp paper of Rs. 100 conveying to him certain immovable property absolutely for a consideration of Rs. 10,000. On the same deed of sale, the nephew of the executant, belonging to the undivided family, endorsed his consent to the sale. No separate stamp was affixed to such a consent. Is this valid ? [7+7+6 = 13 marks] OR Question 8. (i) Solomon issued a cheque covering the insurance premium for his car. Two days later, while he was traveling in the car, it met with an accident, killing Solomon on the spot. The cheque issued by him towards premium was dishonoured by the bank for want of funds. Mrs. Solomon filed a claim before the insurance company and assured that if the cheques is represented, it will certainly be honoured. The insurance company rejected the claim. Mrs. Solomon moved the appropriate consumer forum. On being unsuccessful at the National Commission, she carried the appeal before the Hon’ble Supreme Court. What are the chances of the insurance company’s success? (ii) ‘De-noting duty’ is a concept primarily to help the government in the collection of stamp duty. State briefly whether it is true. (iii) Noble presented a document for registration to the sub-registrar having appropriate jurisdiction. The sub-registrar has, however, refused to register the same and no intimation thereof has been given. Has Noble any remedy? [8+6+6 = 20 marks]. Economic Laws - ICSI (Final)CORPORATE LAWS & PRACTICE – III December - 2001 Part A Answer question No. 1 which is compulsory and any two of the rest from this part. Question 1 (a) XYZ Ltd. was regularly broadcasting television commercials that the salt manufactured and sold by them contained iodine in the right proportion and it helps in the mental development of growing children. The sale price of salt was Rs. 6 per pack of 1 kg. as against Rs. 2 per pack of 1 kg. produced by small manufacturers. These small manufacturers brought an action against the XYZ Ltd. before the MRTP Commission alleging that the claim of XYZ Ltd. was false and misleading as consumption of iodized salt had no correlation with the mental development. The complainants further alleged that these misleading statements are prejudicial to public interest, and therefore, the XYZ Ltd. should be prevented from resorting to such an unfair trade practice. Examine the complaint in the light of a decided case on this subject. (b) Health Concerns Ltd. indulged in advertisements representing that the tablet Margarine manufactured by them had permitted colours and flavours under the Prevention of Food Adulteration Rules, 1955 and that the said tablet helped in controlling cholesterol levels. The MRTP Commission instituted a suo motu inquiry to ascertain whether Health Concerns Ltd. had indulged in an unfair trade practice under section 36A of the Monopolies and Restrictive Trade Practice Act, 1969. Health Concerns Ltd. challenged the inquiry before the MRTP Commission that it is not resorting to any misrepresentation. As a company secretary of the Health Concerns Ltd., what grounds and evidences would you present to defend the case? (c) Ms. Gune, an investor, had given 100 shares to Shah, investment consultant, to sell. Accordingly, he sold the shares for Rs. 1 lakh. Shah promised to remit Rs. 1 lakh towards sale proceeds but actually paid Rs. 25,000 after four months and several reminders. He promised to pay the balance later. He issued two cheques for Rs. 10,000 each but these two cheques were also dishonoured. Ms. Gune alleged that by making false and incorrect representations, Shah had indulged in restrictive and unfair trade practices causing wrongful loss to her. In the light of a decided case, examine whether the act of Shah constitutes any violation of the provisions of the Monopolies and Restrictive Trade Practice Act, 1969. [7+7+6 = 20 marks]. Question 2 (a) Bharat Paper and Newsprint Ltd. proposes to set up a newspaper mill plant in a backward district of Assam. Explain briefly the important factors that are taken into account by the government while examining the industrial license application including the incentives available to the promoters for setting up the industry in a backward district. (b) Explain the meaning of ‘substantial expansion’ under the Industries (Development and Regulation) Act, 1951. When does the approval of central government required in this regard? [10+5 = 15 marks] Question 3 (a) A complaint has been received by the government that XYZ Ltd. operating as authorized dealer, was functioning in a manner contrary to the provisions of the Foreign Exchange Management Act, 1999. Explain briefly the action that can be taken against the authorized dealer under the Act. (b) Explain briefly the steps to be taken by a person resident in India to open and maintain a foreign currency account under the Foreign Exchange Management Act, 1999. [10+5= 15 marks] Question 4 (a) Commitment Ltd. could not fulfill its export obligation for apparently bona fide reasons. As a company secretary of the company, how do you analyse the implication for regularization by the licensing authority? (b) What are the types of standard policies designed by the Export Credit and Guarantee Corporation (ECGC) on short-term credit? Discuss with reference to the risks covered thereunder. [8+7=15 marks] PART – B Answer question No. 8 which is compulsory and any two of the rest from this part. Question 5 (a) As a company secretary, what grounds would you seek to put up in defence in an action for infringement of a trade mark against your company? (b) Greenbelt Ltd. is engaged in agricultural services and has recently diversified into the field of horticulture, including a new process for the medicinal treatment of plants to render them free of disease. They have also diversified into production of tractors and are claiming invention of new tractor which will revolutionise agricultural operations. You have recently joined them as a company secretary. The managing director desires you to make a comprehensive presentation for obtaining patents for their inventions. Discuss and present an approach paper. 7+8 = 15 marks] Question 6 (a) ABC & Co., dealing in fruits business, has decided to import apples in pre-packaged cartons from Australia. State briefly the nature of declarations to be made by ABC & Co. under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (b) Discuss the legal provisions relating to restoration of lapsed patents and surrender of patents. [8+7=15 marks] Question 7 (a) List out it least five projects, the setting up of which requires environmental clearance from the central government. Explain briefly the requirements and procedures to be followed for seeking environmental clearance. (b) Gopal has filed a document regarding purchase of a piece of land for registration in this name. The sub-Registrar has refused to register the document without stating any reason for such refusal. Explain the powers of the Registrar to refuse registration and the steps that Gopal has to take in the circumstances. [9+6 = 15 marks] Question 8 (a) A police constable, employed in a State Government had taken an insurance policy on his life. His employer agreed to deduct the premium payable from his monthly salary and remit the same from time to time to LIC. The employer defaulted, as a result of which the policy lapsed. The police constable unfortunately died while on duty. Having failed to obtain settlement of the insured amount from the LIC, a complaint was made by the father of the deceased police constable, who was the nominee under the said policy, before the District Forum. The District Forum gave an award in favour of the complainant, directing the LIC and the State Government concerned, jointly to pay a compensation of Rs. 1,50,000 with 12% interest. The LIC and the State Government went in an appeal before the State Commission. Will they succeed? (b) (i) How is ad valorem duty calculated in respect of marketable security under the Indian Stamp Act, 1899? (ii) A document executed on 2nd January, 2000 was presented for registration under the Registration Act, 1908 on 31st August, 2000. The registering authorities refused to accept the document for registration on the ground that it was time-barred. Decide. (c) “Where an unstamped instrument is lost, the party relying on it is helpless.” Do you agree? Discuss with reference to inadmissibility in evidence of instruments not duly stamped. [8+4+2+6 = 20 marks] OR Question 8 (i) In the three complaints filed against the telephone department, it was alleged by the complaints that disregarding their seniority in the list for new telephone connection, the telephone department had given new telephone connections to persons who were far below their number in the list. They alleged that failure of the telephone department to give telephone connections overlooking their seniority amounted to deficiency in service. It was the view of the telephone department that the complainants were not consumers and the mere fact that they had registered for telephone connections would not make them consumers within the meaning of that expression in the Act. The justification for overlooking their seniority was that one of them was situated at a place which required heavy stores and equipment and by lack of such large quantity of stores, the telephone connection could not be given; in another case the premises where the connection has to be installed being in an agricultural farm it involved a heavy outlay of over Rs. 84,000 and the third case was also of a similar nature and that for these reasons seniority of the complainants had been overlooked. In the light of decided cases, state whether the complainants are consumers and whether the act of not giving telephone connections constitute deficiency in service under the Consumer Protection Act, 1986. (ii) What is ‘non-testamentary document’? Name any two non-testamentary documents. Are all non-testamentary documents required to be registered? (iii) Explain the basis for payment of stamp duty under the Indian Stamp Act, 1899 in respect of the following cases : (a) Where the contract is for the sale of a property as a whole to two or more purchasers jointly or by any person for himself and others. (b) Where a person after contracting to purchase a property from another and before the property has been duly conveyed to him, entered into a contract to sell the property to a third person and the contract is given effect to only by one conveyance from the owner of the property to the sub-purchaser directly. (c) Where a person contracts for the sale of property and before obtaining a conveyance in his favour, enters into a contract to sell the property in parts to other persons. [8+6+6 = 20 marks]. Economic Laws - ICSI (Final)CORPORATE LAWS & PRACTICE – III June - 2001 Part A Answer question No. 1 which is compulsory and any two of the rest from this part. Question 1 (a) XYZ Ltd. entrusted work relating to marketing and publicity for the issue of bonds to the complainant. XYZ Ltd. agreed to pay certain commission for doing this work but made short payments of over Rs. 32 lakh. The complainant then filed the complaint for the recovery of that amount together with interest thereon @ 18% per annum. XYZ Ltd. contended that the compensation application was not maintainable because it was not covered by the definition clause of ‘unfair trade practice’ contained in section 36A of the Monopolies and Restrictive Trade Practices Act, 1969 inasmuch as the XYZ Ltd. had neither sold any goods nor provided any service to the complainant. Critically examine the definitions of the expressions ‘goods’, ‘trade’ and ‘trade practice’ and evaluate the merits of complainant’s contention. Support your answer with relevant case law. (b) Bank-X was demanding caution money deposits from those who want to hire safe deposit lockers. It was alleged that it was not maintaining waiting list of applicants, and lockers were not being given on first come first served basis. The rental charges also varied from Rs. 150 to Rs. 350 per annum from bank to bank. The bank denied the allegations and stated that it was observing the guidelines issued by the Reserve Bank of India, and that the Monopolies and Restrictive Trade Practices Act, 1969 would not apply to it. Is the Bank-X’s view maintainable? State with reference to decided case law on the point. (c) How does the MRTP Commission Regulations deal with complaints filed by persons having common interest? [10+5+5 = 20 marks] Question 2 (a) What is ‘carry-on business licence’? State the circumstances in which a small scale industrial unit required to obtain such a licence and the procedure for obtaining the same. (b) As a company secretary of the ABC Ltd., prepare a note for consideration of the managing director on the procedure for shifting the bulk drug manufacturing unit of the company from its present location to a backward area. [7+8 = 15 marks] Question 3 (a) Discuss the provisions for export of goods and services under the Foreign Exchange Management Act, 1999. (b) Who is an ‘authorised person’ under the Foreign Exchange Management Act, 1999? What is the role of an authorized dealer in foreign exchange and his obligations under the Foreign Exchange Management Act, 1999? [6+9 = 15 marks] Question 4 (a) Write short notes on the following: (i) Special economic zone (ii) Golden status certificate (iii) Duty-free replenishment certificate. (b) If the duty entitlement pass book is lost by your company, what action is to be taken under the relevant policies? [9+6 = 15 marks] PART – B Answer Question No 8 which is compulsory and any two of the rest from this part. Question 5 (a) What is the purpose and relevant section of the following forms set out in the second schedule to the Trade Marks Rules, 1959: (i) Form T.M. 5 (ii) Form T.M. 9 (iii) Form T.M.18 (iv) Form T.M. 25 (v) Form T.M. 37 (b) Smart is a citizen of India who was born on 15th August, 1970. He is a law graduate and was once accused to be guilty of a professional misconduct, but was exonerated. He now wants to practice as a registered trade marks agent. Advise him about his eligibility or otherwise to get into this profession indicating the relevant provision(s) of the Trade and Merchandise Marks Act, 1958. [10+5 = 15 marks] Question 6 (a) Explain the procedure to be followed for disposal of goods seized under the Standards of Weights and Measures Act, 1976. (b) What is an ‘invention’ under the Patents Act, 1970? Give four instances of invention which are not recognized as inventions under the said Act. [7+8 = 15 marks] Question 7 (a) There are two registered documents executed by same persons in respect of the same property to two different persons at two different times. One document was executed on 1st October, 1999, whereas the other document was executed on 20th October, 1999. However, the document executed on 1st October, 1999 was registered subsequent to the registration of the other document. State which document gets priority over the other under the provisions of the Registration Act, 1908. (b) Can the registering officer accept a document executed out on India? (c) Who are liable to pay the stamp duty under the Indian Stamp Act, 1899 in the following instances; (i) Mortgage deed (ii) policy of insurance other than fire insurance. (iii) Transfer of shares in a company. (iv) Conveyancing and reconveyancing of a mortgaged property. [4+3+8 = 15 marks] Question 8 (a) Alok, while selling his goods on a footpath, died by the fall of a lamp-post over him. On a complaint filed by the widow of the deceased, the District Forum awarded compensation to be paid to the widow by the municipal corporation. An appeal was filed by the municipal corporation with the State Commission against the order of the District Forum. State, with reasons, whether the compensation awarded by the District Forum will be upheld or not by the State Commission. Quote the relevant case law. (b) The complainant was a manufacturer of certain engineering goods called drill bits which were used for drilling purposes by oil research organizations. It also marketed these drill bits. The policy of insurance obtained by the appellant was an open policy and no occasion seemed to have ever arisen earlier for the complainant for eight years to lay a claim on the insurer. The consignment in dispute in the present case was insured under the marine policy. The carrier who carried the consignment was an approved carrier of the ONGC. Finding that the consignment in question was damaged, the complainant lodged a claim with the insurance company which repudiated the claim on 27th July, 1994 while the complaint was filed on 28th June, 1994 [? The year does not seem to be correct]. Before the State Commission, the insurer pleaded limitation and territorial jurisdiction. Yet, another objection was that the goods were purchased for a commercial purpose and, therefore, the present complaint could not be entertained. The complainant on the other hand urged that the goods, far from being purchased for commercial purpose, were for priority area of the ONGC for oil exploration which clearly could not be said to be a commercial purpose. He further stated that the policy had been taken from Delhi office of the insurance company. Examine the contention of both the parties and state whether the complainant would succeed in his claim. Quote the relevant case law in this regard. (c) What are the shortcomings of an instrument not duly stamped? (d) Subsequent to the sale of a house, the seller executed a declaration that the sale was subject to an equitable mortgage created by him. What is the stamp duty payable on the instrument of declaration? [6+7+3+4 = 20 marks] OR Question 8 (i) On the day on which an insurance policy in respect of truck was issued, the truck met with an accident and some passerby died as a result of the accident. The cheques representing the premium given to the insurer was dishonoured. The legal heirs of the deceased filed a claim before the Motor Accident Claims Tribunal for compensation. Is the claim tenable in law. (ii) Can the following persons seek remedy under the Consumer Protection Act, 1986: (a) An association of person; and (b) Parents of a minor patient/student? (iii) Under the Consumer Protection Act, 1986, state the concept of ‘deficiency in service’ with special reference to the following: (a) Denial of board for a passenger holding a confirmed air ticket: (b) Non-servicing during the warranty period of a water cooler purchased for commercial purposes: and (c) Undue delay in restoring a faulty telephone line. [7+4+9 = 20 marks] |