NATIONAL LAW SCHOOL OF INDIA UNIVERSITYBANGALORE

M.B.L PARTI ANNUALEXAMINATION(JUNE) 2011CONTRACT LAW

Marks: 100Time: 3 hours

Instructions :

1. No clarifications can be sought on the question paper.2. Mobile Phones are strictly prohibited inside the Examination Hall.3. Bare Acts are not allowed. Close Book Examination.

PART- A

Answer all questions. Each question caries 20 marks each

1. Adarsh and Banta Singh were friends for over 20 years. Every time either ofthem went abroad, they used to keep their valuables in each other's house.Since, both of them had a lot of trust and faith in each other, they had madeclear that there is no duty of care which they expected from the other person.On one occasion, Banta Singhwent to London, and left all his family's goldornaments in Adarsh's house. Adarsh carelessly left the jewels in his housewhich resulted in them-being stolen. Onhis return, Banta Singhwanted to sellhis jewels immediately as the gold prices had suddenly reached an all timehigh. However, he realised to his dismay that the jewels had been stolen.Adarsh lodges a complaint with the Police and he was able to recover thejewels. Adarsh is informed by the Police that the jewels had been stolen byhis servant Neelesh. However, no damage of any kind had occurred to thejewels. But, Banta Singh sued Adarsh for twenty thousand rupees on theground that market value of gold has come crashing down and if he had soldthe jewels on his return he would have made a profit of twenty thousandrupees. Meanwhile, Adarsh had brought an action in tort (civil wrong) andafter a settlement with Neelesh recovered five thousand from him as

compensation. Banta Singh now demands that Adarsh in addition to otherdamages must also pay him the entire sum of five thousand rupees sorecovered by Adarsh from Neelesh.DECIDE,

a) Whether or not there is a contract between Adarsh and Banta Singh?b) Whether Adarsh owes any legal liability towards Banta Singh?c) Whether Adarsh is liable to pay Banta Singh Rs. 5,000/ - that which he

recovered from Neelesh?

2. Parrato India Ltd., applied for tender notification called by the Department ofAgriculture, Government of India. The notice inviting bids was for the supplyof pesticide in a series of transaction for one year starting 2007. The tenderfloated by the Government stated that every bidder must deposit an earnestmoney of Rs. 25,000 and the selected bidder must furnish a Bank Guaranteeto the tune of Rs.75lakh. Amongstthe bidders, Parrato India was selected forthe supply of pesticide for the year 2007-08. Parrato approached the BankofJaipur for a Bank Guarantee and the same was approved for Rs. 75 lakh.Parrato India fulfilled all its obligations of supply during 2007-08 and thecontract was completed. As the payment was due, Parrato applied for theprice of the supply but were informed by the Government that theperformance by Parrato was not to the satisfaction and not in accordance withterms and conditions of the contract and hence the Government would encashthe BankGuarantee of Rs.74 lakh. Parrato issued notice to Bank of Jaipur tostop payment and not to encash the BankGuarantee in favour of Governmentof India. In the meantime, Parrato applied for an injunction in a Court againstDepartment of Agriculture in the High court of Jaipur.Discuss,

a) The law in relation to tender contract;b) The law in relation to BankGuarantee;c) The rights of Parrato India to stop the payment of the said Bank

Guarantee;d) Whether injunction could be granted in the present case?

3. Andrews Oil Corporation considered selling their petrol station. JamesFranklin, an expert, with some40 years experience of the trade in oil markets,calculated that the potential of trade sales on the petrol station and statedthat the likely sales in that petrol station should reach 200,000 gallons/year.On the basisof that estimate and representation in a newspaper, Mr. Patrickbought the petrol station from Andrews Oil Corporation. During the time theSale Agreement could be executed the Local Planning Authority of the Cityrefused permission for the petrol station to front on to the main street. Dueto this, the petrol statio had to change its entrance to the backward side.Patrick was duly informed about this change that had taken place during thetime of the agreement. The sale of the station takes place for Rs. 50 lakh.After nearly one year, despite best efforts of Patrick, he could not makebusinessof more than 78,000 gallons. Disappointed, he suesfor recession ofthe contract for the sale of the petrol station with Andrews Oil Corporation.Decide,

a) Whether a suit for recessionof contract is possible in the present case?b) Whether Andrews Oil Corporation can be held liable for the

representation of 200,000 gallons/year?c) Whether Patrick can rescind the contract?d) What, if any, would be the damages that Patrick can claim?

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PART - B

Answer ANY FOURquestions. Eachquestion carries 10 marks.

1. A building society was alsoengagedin a banking businesswhich wasoutside itslegal powers. It had accepted large sums of money from depositors oncontracts of borrowing which were ultra vires and void. Explain capacity ofparty to contract vis-a-vis a Juristic personality.

2. Mr. Rajinath, a famous film star was involved in a scandal which threatenedto blowout of proportion. Rajinath decides to enter into a secretunderstanding with newspaper so that they do not publicize the matter. Anewspaper 'New Reporter' agreesto an offer of Rs.15 lakh from Mr. Rajinathfor not reporting this personal incident of the film star. The terms of theagreement was not to report the matter in the newspaper for 14 months.Rajinath, the film star later on retracts from his propose. Advise thenewspaper on its right to enforce contractual obligations.

3. Evans,owner of an estate offered to sell his land to Dollars for Rs.1.8 lakh. InReply, Dollars wired' send lowest cash price, will give 1.6 lakh. Wire'. Thedefendants replied' cannot reduce price', the plaintiff then wrote acceptingthe offer. Wasthere a valid offer and acceptance? Explain with the help ofcase laws.

4. 'Agreements with the intention to create legal relationship are enforceableat law'. Comment.

5. With the help of illustrations, explain the rule of 'quasi contract'.

6. Explain the rule of law as laid down in Dunlop Pneumatic Tyre co. Ltd., v.Selfridge Co. Ltd. (1915) AC847.

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NATIONAL LAW SCHOOL OF INDIA UNIVERSITYBAN GALORE

M.B.L. PART - I ANNUAL EXAMINATION (JUNE) 2011BANKING LAW 8: PRACTICE

Marks - 100Time - 3 Hours

Instructionsi. No clarifications can be sought on the question paper;ii. Bare Acts are not permitted;Hi. Mobile phones are strictly prohibited into the Examination Hall;iv. Answer ANY FIVE QUESTIONS. All questions carry equal marks.

1. "The Central Bank is an institution charged with the responsibility ofmanaging the expansion and contraction of the volume of money inthe interest of the general public welfare ..." [R. P. Kent, Money andBanking, p. 351] - Examine the statement in the context of RBI byreferring to the legal environment created for the same.

2. "The business of banking is fraught with dangers, arising principallyfrom the instability in the world economy and from human error ormisjudgment. Like any other enterprise, a bank may be overtaken byevents or may be governed unwisely. Bank failures are, therefore, nonovelty" [Sir John Clapham, The Bank of England - A History,Cambridge, 1944] - Discuss.

3. Write short notes on the following:a. Collecting & Paying Banker;b. Finality of entries in the passbook.

4. Write short notes on the following:

a. General and special crossing;b. Holder and Holder in due course.

5. Write short notes on the following:

a. Legal Significance of introductory letter (while opening of abank account);

b. Banker's books evidence law in India.

6. Write short notes on the following:

a. The concept of 'securitization' & the legal framework;b. Hypothecation.

7. Write short notes on the following:a. Principles of good lending;b. Consortium lending.

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NATIONAL LAW SCHOOLOF INDIA UNIVERSITYBANGALORE

M.B.L PART I ANNUAL EXAMINATION (JUNE) 2011CORPORATE LAW

Marks: 100Time: 3 hours

Instructions:

,. No clarifications can be sought on the question paper.2. Mobile Phones are strictly prohibited inside the Examination Hall.3. Bare Acts are not allowed. Close Book Examination.

Answer ANY FIVE questions:

1. a) Distinguish between the following companies with reference to theliability of the members:

1) Guarantee company having a share capital;ii) Unlimited company having a share capital;iit) Companies limited by shares

b) What are the essential matters to be incorporated in the articles of aPrivate Company Ltd., by shares? What will be the legal consequencesif a private company limited by shares has violated any of thoseconditions?

c) Akshaya Private Ltd., was started with a membership of 25 persons.Later, another company, namely AB Ltd., which has a membership of 40­persons was admitted as a member of Akshaya Pvt. Ltd. Immediatelythereafter, all the employees of the company were allotted 100 shareseach. The strength of the employees at the time of allotment of sharesto them was 70. The articles of the company provided that all thedirectors of the company shall be nominated by Mr. Akshaya Chandra, itscontrolling shareholder. Examine the legal consequences of the aboveactions on the company and its constitution. (Marks = 5 + 5 + 10 = 20)

2. a) C ft: J Associates was a partnership firm consisting of two partners,namely Mr. Chacko and Mr. Jacob who had equal shares in the firm.Later they converted the business into a private company. There wereno other members in the new venture. Two weeks before the

conversion of the business into a private company, the partnership firmtook an insurance policy over its assets, covering the risk of loss by fire,burglary, etc. About one month after the incorporation of the company,the goods stored in the warehouse were lost by fire. At the time of loss,the insurance policy was in the name of the partnership firm. Thecompany and its members jointly claim the loss against the insurancecompany. Identify the legal issues and decide.

b) XY Ltd., is a wholly owned subsidiary of AB Ltd. L & M Ltd., is anothercompany in which AB Ltd., holds 40%equity. The remaining shares areheld by XY Ltd. The issued capital of L & M Ltd., is Rs. 50 lakhs. 90%ofthe issued capital of AB Ltd., is held by Mr. Aravind Bansal and his familymembers. The directors of all the three companies are appointed withthe active consent of Mr. Aravind Bansal. The reckless and speculativetrading activities of L & M Ltd., led to its winding up. In the winding upproceedings, the liquidator pleads that Aravind Bansal shall be directedto pay such amount as may be necessary for L & M Ltd., to pay its tradedebts. Decide, with reference to the main issues involved in this case.

(10 + 10 = 20 marks)

3. a)

b)

c)

d)

Discuss the scope and ambit of the remedies available to the companyand the other contracting party who entered into a transaction which isbeyond the contractual capacity of the company.

In B;nch v. Cropper (1886 to 1890) All ER628, it was observed that primafacie there is a presumption of equality among the different classes ofshares. How far this statement true under the Indian law in respect ofthe preference shares of public companies.

When can the rights conferred on the different classes of shares bevaried? Illustrate. Explain the legal procedure for the variation of suchrights.

Compare the legal position of preference shareholders and debentureholders. (4 x 5 = 20 marks)

4. a) i)

i i)

b) i)

Discuss the circumstances in which a prospectus is to be issued by acompany.

What are the remedies available to an investor who was induced to applyfor the shares of a company which published a false and misleadingprospectus?

What is meant by a blank transfer? What is the maximum period of itsvalidity?

ii) Explain the procedure for effecting the transfer of the shares of anunlisted public company. (10 + 10 = 20 marks)

l ''',

5. a) i)

11)

Distinguish between Annual General Meeting and Extraordinary GeneralMeeting.

Who can convene an Extraordinary meeting? When?

b) Write a critical note on 'no conflict rule' as applied to company directors.(10 + 10 = 20 marks)

6. a) Discussthe scope and ambit of the' proper plaintiff' rule. State theexceptions to the rule.

b) Discuss the rules applicable to the distribution of the assets of acompany in its winding up. (10 + 10 = 20 marks)

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NATIONAL LAW SCHOOL OF INDIA UNIVERSITYBANGALORE

M.B.L PART I ANNUAL EXAMINATION (JUNE) 2011INDUSTRIALRELATIONSLAW

Marks: 100Time : 3 hours

Instructions :

1. No clarifications can be sought on the question paper.2. Mobile Phones are strictly prohibited inside the Examination Hall.3. Bare Acts are not allowed. Close Book Examination.

Answer ANY FIVE questions: (5 x 20 = 100 marks)

1. Explain an Industrial dispute and also when an individual dispute becomesindustrial dispute.

2. Critically examine the limitations on Managerial Prerogatives under theIndustrial DisputesAct, 1947.

3. Critically examine the appropriate Government's power of reference throughcase law. Is there any need to continue with such power in the era ofliberalisation and globalisation?

4. Define 'Industry'. Explain in brief with the help of decided cases.

5. Examine the scope and the extent of immunities of registered trade unionswith the help of decided cases.

6. Explain the pre-requisites for effective collective bargaining. Alsoexamine asto what extent they are present in the Indian scenario

7. Explain the procedure for forming Trade Unions and also the procedure forregistration of Trade unions.

8. "Dispute resolution machinery in the Industrial DisputesAct is supposeto bespeedy and effective, but there are many hurdles imposed by the Statuteitself". Critically examine this statement.

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NATIONAL LAW SCHOOLOF INDIA UNIVERSITYBANGALORE

M.B.L PART I ANNUAL EXAMINATION (JUNE) 2011ENVIRONMENTAL LAW

Marks: 100Time: 3 hours

Instructions :

1. Noclarifications can be sought on the question paper.2. Mobile Phones are strictly prohibited inside the Examination Hall.3. Bare Acts are not permitted.

PART - A

Answer ANY FOUR of the following: (4 x 12 = 48)

1. Discuss the Constitutional concerns for the protection and Management of theEnvironment.

2. Discuss the principles of (a) Precaution and (b) Public Trust, and theirapplication.

3. Analyse the Bio-diversity Act, 2002.

4. Examine the Pollution Control Regime in India.

5. Analyse the Wildlife Protection Act, 1972 and the amendments of 2002.

6. Is the Environment Protection Act, 1986, an overarching and overriding Act?Discuss.

PART - B

7. Write Explanatory Notes on: (2x 10 = 20)

a) Individual's right to initiate legal proceedings against polluters underthe Pollution Control Regime.

b) Stockholm Conference on Human Environment, 1972.

8. Write short notes on the following: (4 x 8 = 32)

a) Convention on International Trade in Endangered Species, 1973;b) Trail Smelter Arbitration;c) Forest Rights Act, 2006;d) Coastal Regulation Zone Notifications.

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