thu cs eco n labr

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Economic and Labour Laws

Dec 2008

This Paper has 57 answerable questions with 0 answered.

Roll No

Time allowed : 3 hours MaximTotal number of questions : 8 Total number of p

PART A

(Answer Question No. 1 which is COMPULSORY

andany three of the rest from this part)

1. With reference to the relevant legal enactments, write short notes on any five of the following :

(i) Delayedpaymentsto micro and macro enterprises

(ii) Star Export Houses

(iii) Salient features of the SpecialEconomicZones Act, 2005

(iv) Legal metrology

(v) Wellknowntrademark.

(vi) Competition policy.

(vii) COB licence.

(3 marks each)

2. State, giving reasons in brief, whether the following statements are true or false. Attempt any five :

(i) The Competition Act, 2002 prohibits dominance as well as the abuse of dominant position.

(ii) In all legal proceedings relating to trade marks, registered under the Trade Marks Act, 1999, theoriginal registration and all subsequent assignments and transmissions thereof shall be conclusiveproof of its validity.

(iii) Money laundering is a national phenomenon and stern measures are of critical importance at thenational level.

(iv) ThePublic Liability InsuranceAct, 1991 was enacted for the purpose of providing immediate relief tothe workers affected by accidents occurring while handling the hazardous substances.

(v) Duty Free Replenishment Certificate (DFRC) is issued to a merchantexporteror manufacturerexporter for theimportsused in the manufacture of goods without payment of any basic customs duty

whatsoever.(vi) The erroneous description of manufacturing company in an advertisement amounts to misleading

representation and hence an unfair trade practice.

(3 marks each)

3. (a) Distinguish between any two of the following :

(i) Relevant geographic market and relevant product market.
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(ii) Small scale industrial undertaking and ancillary industrial undertaking.

(iii) Current account transactions and capital account transactions.

(5 marks each)

(b) Rewrite the following sentences after fillingup the blank spaces with appropriate word(s)/figure(s):

(i) Release of foreign exchange facilities for emigration exceeding US$________or amountprescribed by the country of emigration requires prior approval of RBI.

(ii) No permission from the Central Government is required to receive foreign contribution from arelative not exceeding value of Rs._______ per year subject to its intimation to the CentralGovernment.

(iii) An Indian citizen resident outside India may acquire any immovable property in India otherthan__________.

(iv) Remittance of foreign exchange exceeding US$ _________ per project for any consultancyservices procured from abroad requires prior approval of RBI.

(v) The minimum time for applying for technological upgradation of the existing capital goodsimported under the Export Promotion Capital Goods (EPCG) Scheme is______ from the date ofissuance of the authorisation.

(1 mark each)

4. (a) With reference to the relevant provisions of the Foreign Exchange Management Act, 1999 and therules and regulations made thereunder, advise on the following :

(i) Indotech Ltd. desires to make payments of commission on exports made towards equityinvestment in its joint venture company abroad.

(ii) Rupa intends to take an insurance policy in her name from an insurance company abroadinvolving payment of premium amounting to US$20,000.

(iii) A nonresident shareholder has applied for the issue of additional shares over and above hisentitlement of rights shares in an Indian company.

(iv) Girish intends to transfer his shareholding in rupee equivalent to US$20,000 as gift to his sonwho is a resident outside India.

(v) Microtech Ltd., a software exporter company, desires to receive 25% of the value of its exportsin the form of shares in an overseas software company without entering into joint ventureagreement.

(1 mark each)

(b) Mention the provisions of the Foreign Contribution (Regulation) Act, 1976 in respect of exemptionsfrom accepting foreign contributions.

(5 marks)

(c) Explain the provisions of the Trade Marks Act, 1999 regarding infringement of registered trademarks.

(5 marks)

5. (a) Mention any five inventions which are not patentable under the Patents Act, 1970.


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(5 marks)

(b) State the provisions of the Environment (Protection) Act, 1986 relating to the offences by companies.

(5 marks)

(c) Sangeetha filed a complaint against a bank where her ornaments kept in the banks locker were found

missing and sought compensation through the Consumers Disputes Redressal Forum against thedeficiency in service by the bank. The bank submitted a certificate recorded by the custodian of thebank on the day Sangeetha had operated the locker which stated that all lockers operated during theday had been checked and found properly locked. Will Sangeetha succeed in her claim?

(5 marks)

PART B

(Answer ANY TWO questions from this part.)

6. Write notes on any four of the following :

(i) Employment injury under the Employees State Insurance Act, 1948.

(ii) Prohibition of employment of contract labour under the Contract Labour (Regulation and Abolition)Act, 1970.

(iii) Philosophy behind the enactment of the Minimum Wages Act, 1948.

(iv) Manufacturing process under the Factories Act, 1948.

(v) Matters within the jurisdiction of industrial tribunals constituted under the Industrial Disputes Act,1947.

(vi) Tests for determination of industry under the Industrial Disputes Act, 1947.

(5 marks each)


(i) Principal employer and immediate employer under the Employees State Insurance Act, 1948.

(ii) Individual dispute and industrial dispute under the Industrial Disputes Act, 1947.

(iii) Partial disablement and total disablement under the Workmens Compensation Act, 1923.

(5 marks each)

(b) Rewrite the following sentences after fillingup the blank spaces with appropriate word(s)/figures:

(i) Minimum wages are to be fixed on the basis of standard normal working hours namely___________ hours a week.

(ii) Every employee shall be entitled to be paid by his employer in an accounting year, bonus,provided he has worked in the establishment for not less than _________ working days in thatyear.

(iii) _________ means the temporary closing of a place of employment or suspension of work or therefusal by an employer to continue to employ any number of persons employed by him.

(iv) _________ means the termination by the employer of the services of a workman for any reasonwhatsoever otherwise than as a punishment inflicted by way of disciplinary action.


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(v) The Trade Unions Act, 1926 provides for the _________ of an unfair labour practice either by

the employer or the trade unions or workmen.

(1 mark each)

(c) Choose the most appropriate answer from the given options in respect of the following :

(i) To make an employer liable under the Workmens Compensations Act, 1923, it is necessary thatthe injury is caused by an accident which must arise

(a)(b)(c)(d)

Out of employmentIn the course of employmentOut of employment and in the course of employmentBy any other reason.

(ii) An insured person under the Employees State Insurance Act, 1948 is entitled to receive certainbenefits. But the insured person is

(a) Not entitled to receive more than one benefit for the same period

(b) Entitled to receive more than one benefit for the same period on compassionate grounds

(c) Entitled to receive one benefit partly in cash and receive the other benefit in kind for the sameperiod

(d) Entitled to receive more than one benefit on proof of authorities concerned.

(iii) Under the Payment of Gratuity Act, 1972 where the services of an employee have beenterminated for any act which constitutes an offence involving moral turpitude provided that suchoffence is committed by him in the course of his employment, the gratuity payable to theemployee may be

(a)(b)(c)(d)

Wholly or partially forfeitedOnly partially forfeitedWholly forfeitedForfeited in installments.

(iv) Under the Contract Labour (Regulation and Abolition) Act, 1970, the principal employer of anestablishment can employ contract labour if

(a)(b)(c)(d)

The principal employer has not obtained the certificate of registrationThe work is of urgent natureThe work is not of perennial natureThe work provides instant employment to a considerable number of unemployed persons.

(v) A premises including precincts thereof is a factory within the meaning of the Factories Act,1948 wherein a manufacturing process is being carried on with the aid of power and where thenumber of workers working is

(a)

(b)(c)(d)

10 or more workers

20 or more workers15 or more workers50 or more workers.

(1 mark each)

8. Attempt any five of the following stating relevant legal provisions and case law, if any:

(i) A contractor made short payment of wages to a worker employed by him as contract labour. The


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worker sought the amount due from the principal employer. Will he succeed ?

(ii) The services of workmen engaged on casual basis for doing a particular urgent work were terminatedafter the completion of the said work. Workmen sought compensation as the termination amounted toretrenchment. Will they succeed ?

(iii) Workmen of an electricity generation station claimed that their unit is covered under the definition offactory considering the process of transforming and transmission of electricity generated at thepower station as a manufacturing process. Will their claim succeed?

(iv) An employee contended that subsistence allowance given during the period of his suspension shouldbe included in his total wages for the purpose of calculation of bonus entitlement. Will he succeed?

(v) The company declined topay gratuity to a deceased employees wife stating that the employee hadworked for two years only whereas eligibility for receiving gratuity accrues only if he served for aperiod of five completed years of continuous service. Will she succeed?

(vi) An establishment discontinued deduction towards contribution to provident fund from its employeessalary and stopped remitting contribution of its share of provident fund when the number of its

employees on rolls fell to fifteen. Do the provisions ofthe Employees Provident Funds andMiscellaneous Provisions Act, 1952 cease to be applicable to the establishment under suchcircumstances ?

(vii) A workman, who was a carpenter, had to get his left arm amputated from elbow in an injury caused inthe course of employment. The company paid compensation towards partial permanent disablement.The workman demanded compensation claiming it to be total disablement. Will the workman succeed?

(4 marks each)


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Economic and Labour Laws

June 2009


Roll No

Time allowed : 3 hours MaximTotal number of questions : 8 Total number of p

PART A




(i) Deficiency in service

(ii) Exempted categories under the importerexporter code (IEC) number

(iii) Know your customer (KYC) guidelines(iv) Anticompetitiveagreements

(v) Minimum resale price maintenance

(vi) Contents of complete specification

(vii) Principal display panel.

(3 marks each)

2. State, giving reasons in brief, whether the following statements are true or false. Attempt any five :

(i) In case an EOU fails to achieve its export obligations, it shall be liable to pay penalty at the time of

exit.(ii) A person resident outside India can sell the shares and convertible debentures of an Indian company

to whomsoever he wants.

(iii) Goods means every kind of movable property other than actionable claims and includes stock andshares even before allotment.

(iv) Tea is a food stuff and hence constitutes an essential commodity under the Essential CommoditiesAct, 1955.

(v) An association pursuing a definite cultural, economic, educational, religious or social programme canreceive foreign contribution without any limits.

(vi) The provisions contained in the Special Economic Zones Act, 2005 shall have effect not withstandinganything inconsistent therewith contained in any other law for the time being in force.

(3 marks each)


(i) Seizure and confiscation&rsqo; under the Essential Commodities Act, 1955.

(ii) COB licence and industrial licence.
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(iii) Invention and patentable invention under the Patents Act, 1970.

(5 marks each)

(b) Choose the most appropriate answer from the given options in respect of the following:

(i) Under the Consumer Protection Act, 1986, the limitation period for filing a complaint from the

date of cause of action is(a) 60 days

(b) 6 months

(c) 1 year

(d) 2 years.

(ii) The amount representing the full export value of goods is required to be realisedandrepatriatedin India within

(a) 6 months

(b) 3 months

(c) 1 year

(d) 2 years.

(iii) The issue of Foreign Currency Convertible Bonds (FCCBs) in any financial year is subject to aceiling of

(a) Rs.50 crore

(b) US $500 million

(c) Rs.100 crore

(d) US $1 million.

(iv) A registered trade mark requires to be renewed on expiry of the period of

(a) 7 years

(b) 10 years(c) 14 years

(d) 5 years.

(v) Foreign direct investment (FDI) is prohibited in

(a) Infrastructure sector

(b) Hospitals

(c) Retail trade

(d) IT sector.

(1 mark each)

4. (a) What are the circumstances under which a registered trade mark is deemed to be infringed under theTrade Marks Act, 1999.

(5 marks)

(b) Write a note on global initiatives in the prevention of money laundering.

(5 marks)

(c) The insured (since deceased) had taken out four life policies with double accident benefits, premiumpayable halfyearly. When the third premium fell due, an agent of the insurer met the insured and
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took a bearer cheque towards the premium payable by him in respect of the policies. Although, thecheque was encashed immediately, it was not deposited with the insurer for 3 months. In themeantime, the insured met with a fatal accident and died. The widow filed a claim for payment of thesum assured. The insurer pleaded that the insurance agent had no implied authority to collect thepremium. Will the widow succeed in her claim ?

(5 marks)

5. (a) What are the restrictions on the acceptance of foreign contribution by organisations of political natureunder the Foreign Contributions (Regulation) Act, 1976 ?

(5 marks)

(b) Write a note on regulatory framework for environmental protection in India.

(5 marks)

(c) With reference to the relevant provisions of the Foreign Exchange Management Act, 1999 and therules and regulations made thereunder, advise on the following:

(i) ABC Ltd., a company listed on the National Stock Exchange Ltd., is interested in investing in acompany in the USA.

(ii) Ram, an NRI resident in Nepal, is interested to invest in shares and convertible debentures of anIndian company.

(iii) A foreign investor wants to invest in an Indian company which is a small scale industrial unit.

(iv) Brown, a UK citizen, is interested to make investment in the form of foreign direct investment(FDI) in retail trading business.

(v) XYZ Ltd., a company listed on the Bombay Stock Exchange Ltd., wants to issue shares underthe Employees Stock Option Scheme (ESOP) to the employees of its joint venture abroad.

(1 mark each)

PART B



(i) Dependent under the Employees State Insurance Act, 1948.

(ii) Methods of fixing and revising minimum rates of wages under the Minimum Wages Act, 1948.

(iii) Object and scope of the Payment of Bonus Act, 1965.

(iv) Obligations of the principal employer under theContract Labour(Regulation and Abolition) Act,

1970.(v) Principles laid down by the Supreme Court with regard to retrenchment under the Industrial Disputes

Act, 1947.

(vi) Occupier under the Factories Act, 1948.

(5 marks each)



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(i) Layoff and lockout under the Industrial Disputes Act, 1947.

(ii) Arbitration and adjudication of disputes under the Industrial Disputes Act, 1947.

(iii) Young person and adult under the Factories Act, 1948.

(5 marks each)

(b) Rewrite the following sentences after fillingup the blank spaces with appropriate word(s)/figures:

(i) Minimum__________years of contributory service is required for entitlement of pension underthe Employees Provident Funds and Miscellaneous Provisions Act, 1952.

(ii) It is mandatory to register an establishment under the Contract Labour (Regulation andAbolition) Act, 1970 in case it employs _______labour through a contractor.

(iii) A factory is required to appoint a welfare officer where________workers are ordinarilyemployed.

(iv) The employer of an industrial establishment having 100 or more employees is required to submitdraft standing orders within__________months from the date on which

theIndustrial Employment(Standing Orders) Act, 1946 becomes applicable.

(v) Contracting out of compensation by a workman under an agreement shall be__________.

(1 mark each)

(c) Choose the most appropriate answer from the given options in respect of the following.

(i) The appropriate government shall revise the minimum rates of wages under the Minimum WagesAct, 1948 at least once in every

(a) 2 years

(b) 3 years

(c) 4 years

(d) 5 years.(ii) The disputes relating to benefits under the Employees State Insurance Act, 1948 are required to

be filed in

(a) Civil Court

(b) Employees Insurance Court

(c) Labour Court

(d) Industrial Tribunal.

(iii) An employee is entitled to receive bonus provided he has worked in an accounting year in theestablishment for not less than

(a) 30 working days

(b) 1 year

(c) 8 months

(d) 4 months.

(iv) An employer is not liable to pay compensation under the Workmens Compensation Act, 1923, ifthe injury does not result in disablement for a period exceeding

(a) 1 week


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(b) 3 days

(c) 1 month

(d) 6 months.

(v) The Employees Provident Funds and Miscellaneous Provisions Act, 1952 is applicable to

commercial establishments employing(a) 10 or more employees

(b) 20 or more employees

(c) 50 or more employees

(d) 100 or more employees.

(1 mark each)


(i) Muskan Theatre is maintaining a canteen and a cycle stand through private contractors. RegionalDirector, ESI Corporation sent notices to the management of the theatre for contribution of theemployees engaged in the canteen and cycle stand. The management contends that they are not

employees but are the workmen of the contractor. Hence, the management is not liable. Will themanagement succeed in its contention ?

(ii) Rajat, a workman in a factory, had no vision in his left eye but the defect was not visible. Later,during welding operations, accidentally, a spark hit his blind eye. He lost his eyeball and theblindness became visible. Though, there was no physicaldisability, he lost his employment becausethe defect became visible. Has the accident caused any disablement ? Is the employer liable to payany compensation ?

(iii) The workman of Bharat Chemicals went on goslow strike to compel the management to concede totheir demands. The management contended that goslow is a serious misconduct andinitiateddisciplinary action againstthe erring workmen. Is the action of the management justified ?

(iv) An employer failed to pay his contribution under the Employees State Insurance Act, 1948. After 6years, the ESI Corporation issued a demand notice for payment of arrears of contribution. Theemployer contended that the arrears of contribution beyond 5 years are not recoverable. Will theemployer succeed ?

(v) Anil, a workman raised an industrial dispute contending that he was employed with effect from 1stApril, 1986 on regular basis and his services were illegally terminated on 12th February, 1994. Theemployer took the stand that the workman was engaged on casual basis on daily wages for a specificperiod and for the specific work and that his services were not terminated on 12th February, 1994 buthe had abandoned his job. The employer did not produce attendance record before the Labour Courtand also failed to prove that the workman had worked for less than 240 days. The workman alleged

violation of the provisions of the Industrial Disputes Act, 1947 relating to retrenchment. Will hesucceed ?

(vi) Ghee brought from various customers is sampled chemically, analysed and packed in tins fortransportation to the head office of the company for sale in the market. Does it amount tomanufacturing process under the Factories Act, 1948 ?

(vii) (4 marks each)
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Economic and Labour Laws December 2009


Roll NoTime allowed : 3 hours MaximTotal number of questions : 8 Total number of p

PART A




(i) Export Promotion Council

(ii) Combinations

(iii) Advance authorisation scheme

(iv) Calibration

(v) Environmental audit

(vi) Trade effluent

(vii) Commercial purpose.

(3 marks each)

2. State, with reasons in brief, whether the following statements are true or false. Attempt any five:

(i) A person can export or import without an importer-exporter code (IEC) number.

(ii) The manufacture of a non-standard weight or measure is prohibited under the Standards of Weightsand Measures Act, 1976.

(iii) A reasonable opportunity of being heard must be afforded to a person before ordering confiscation ofan essential commodity under the Essential Commodities Act, 1955.

(iv) Trade practice includes a single or isolated action of any person in relation to any trade.

(v) The Competition Act, 2002 does not prohibit dominance, but the abuse of dominant position.

(vi) A trade mark may not distinguish the goods of one manufacturer or trader from similar goods of othermanufacturers or traders.

(3 marks each)

3. (a) Distinguish between any two of the following:

(i) Certification trade marks and collective trade marks&rsqo;

(ii) Duty free replenishment certificate and duty entitlement passbook scheme.

(iii) Provisional specification and complete specification under the Patents Act,1970.

(5 marks each)

(b) Rewrite the following sentences after fillingin the blank spaces with appropriate word(s)/figure(s) :

(i) The Consumer Disputes Redressal Forum shall not admit a complaint unless it is filed within
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_____________ years from the date on which the cause of action has arisen.

(ii) Indian parties are prohibited from making investment in a foreign entity engaged in_____________.

(iii) The company which has exported goods is required to realise the full value of goods within

_____________ days.(iv) For settingup an EOU, three copies of the application in the prescribed form may be submitted

to the _____________.

(v) The State Commission under the Consumer Protection Act, 1986 can entertain complaints wherethe value of the goods or services and the compensation, if any, claimed exceedsRs.__________, but does not exceed Rs. _________.

(1 mark each)

4. (a) With reference to the relevant provisions of the Foreign Exchange Management Act, 1999 and therules and regulations made thereunder, advise on the following:

(i) Naresh, an Indian citizen, is interested in sending Rs.10,000 to his sister residing in USA asbirthday gift.

(ii) A person resident outside India desires to contribute Rs.10 lakh as capital in a firm engaged insoftware business in India.

(iii) An Indian company intends to open a foreign currency account in India as well as outside India.

(iv) A company incorporated in USA desires to establish its manufacturing unit in special economiczone in India.

(v) Dinesh, an Indian citizen, wants to use his international debit card for withdrawal of cash duringhis visit abroad.

(1 mark each)(b) Enumerate the heads under which compensation for damagees may be claimed from the National

Environment Tribunal constituted under the National Environment Tribunal Act, 1995.

(5 marks)

(c) Do the following acts constitute infringement of copyright under the Copyright Act, 1957 :

(i) Making or publishing of a painting, drawing, engraving or photograph of a work of architecture.

(ii) Reproduction of a literary, dramatic, musical or artistic work in the form of a cinematographfilm.

(iii) Reconstruction of a building or structure in accordance with the architectural drawings or plans

by reference to which the building or structure was originally constructed.(iv) Making of any sound recording or visual recording for the private use of the person making such

recording, or solely for the purposes of bona fide teaching or research.

(v) Making translation of a literary work.

(1 mark each)

5. (a) Raman purchased a car by taking a loan from a bank and gave post-dated cheques to the bank not


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only in respect of repayment of loan installments but also towards premium of insurance policy forsucceeding 3 years. On the expiry of the policy in the first year, the bank failed to get the policyrenewed for the second year. In the meantime, the car met with an accident. Raman brought an actionagainst the bank for deficiency in service under the Consumer Protection Act, 1986. Will he

succeed ?

(5 marks)

(b) What is the objective of know your customer (KYC) guidelines ? When do the KYC guidelinesapply ?

(5 marks)

(c) Mention the provisions of the Essential Commodities Act, 1955 regarding confiscation of essentialcommodities seized in contravention of section 3 of the Act.

(5 marks)

PART B



(i) Concept of continuous service for the payment of gratuity under the Payment of Gratuity Act, 1972.

(ii) Manner of fixation andrevision of minimum wages under the Minimum Wages Act, 1948.

(iii) Authorities for the investigation and settlement of industrial disputes under the Industrial DisputesAct, 1947.

(iv) Hazardous process under the Factories Act, 1948.

(v) Benefits to which insured persons are entitled under the Employees State Insurance Act, 1948.

(vi) Payment of subsistence allowance under the Industrial Employment (Standing Orders) Act, 1946. (5 marks each)


(i) Partial forfeiture of gratuity and total forfeiture of gratuity under the Payment of Gratuity Act,1972.

(ii) Model standing orders and certified standing orders under the Industrial Employment(Standing Orders) Act, 1946.

(iii) Arising out of employment and arising in the course of employment under the WorkmensCompensation Act, 1923.

(5 marks each)

(b) Rewrite the following sentences after fillingin the blank spaces with appropriate word(s)/figure(s) :

(i) Bonus must be paid to employees within a period of ___________ months from the close of theaccounting year.

(ii) ___________ means termination of the services of a workman by the employer for any reasonwhatsoever, otherwise than as a punishment inflicted by way of disciplinary action.


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(iii) A minimum of ___________ contributory service is required for entitlement to pension under the

Employees Provident Funds and Miscellaneous Provisions Act, 1952.

(iv) The employer is not liable for compensation when injury to the workman does not result indisablement for a period exceeding ___________ days.

(v) The employer is required to send a report to the Commissioner for workmens compensationwithin ___________ days of the death or serious injury of the workman.

(1 mark each)


(i) The occupier of a factory is required to appoint a Welfare Officer where

(a) 250 workers are employed

(b) 100 workers are employed

(c) 200 workers are employed

(d) 500 or more workers are employed.

(ii) Out of the following which is not a manufacturing process(a) Finished goods and packing thereof

(b) The making of bidis

(c) Stitching old gunny bags and making them fit for use

(d) Pumping of water from a tubewell.

(iii) From the date on which the Industrial Employment (Standing Orders) Act, 1946 becomesapplicable to an industrial establishment, an employer is required to submit to the CertifyingOfficer the draft standing orders

(a) Within 3 months

(b) Within 6 months

(c) Within a month(d) Immediately on receipt.

(iv) The Contract Labour (Regulation and Abolition) Act, 1970 applies to every establishmentwherein workmen employed on any day of the preceding 12 months are

(a) 100 or more

(b) 50 or more

(c) 20 or more

(d) 200 or more.

(v) The maximum amount of gratuity payable under the Payment of Gratuity Act, 1972 is

(a) Rs.5,00,000

(b) Rs.3,50,000(c) Rs.2,50,000

(d) Rs.2,00,000.

(1 mark each)


(i) Mohan was in occupation of a residential quarters allotted to him by his employer. On his retirement


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on superannuation, he failed to vacate the quarters. His employer withheld the gratuity payable to himinsisting that he should vacate the quarters first. Mohan approached the controlling authority claiminggratuity. Will he succeed ?

(ii) Raju has been employed by Fancy Bazar as a part-time sweeper to clean the floors twice during theday. The provident fund inspector visited the establishment and raised objections for non-inclusion of

his name in the muster roll and not paying provident fund contributions. Is the view held by theinspector valid ?

(iii) Designers Ltd. is engaged in fabrication work of window grills with the aid of power and hasemployed 19 workers. Recently, it appointed 2 gardeners for gardening in its factory premises. Is thecompany liable to extend the benefits to the gardeners as applicable to other factory workers ?

(iv) The workmen went on sympathetic strike by absenting themselves from work in support of theworkmen belonging to some other employer. The management intends to take disciplinary actionagainst those workmen. Is the intention of the management justified and legal ?

(v) Efficiency Ltd. is in the process of reorganising its business. It is likely to result in some labour beingrendered surplus. It has proposed retrenchment of economic dead weight. Can the company do so?

(vi) Jugal, a railways employee was ordered to travel to certain station and repair a pipeline there. Afterfinishing the work, Jugal was hurrying across the platform when he slipped and fell and died as aresult of the fall. Is the employer liable to pay compensation under the Workmens CompensationAct, 1923 ?

(vii) An employee was dismissed from service for an act of misconduct. The company did not pay anybonus to the dismissed employee for the accounting year in which the dismissal took place. Is theaction of the company justified?

(4 marks each)


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Economic and Labour Laws June 2010


Roll NoTime allowed : 3 hours MaximTotal number of questions : 8 Total number of p

PART A




(i) Privileges to a star exporthouse

(ii) Competition advocacy

(iii) Term of patents

(iv) The concept of sustainable development

(v) Mens rea under the EssentialCommoditiesAct, 1955

(vi) International copyright.

(3 marks each)

2. State, with reasons in brief, whether the following statements are correct or incorrect. Attempt any five :

(i) The Consumer Protection Act, 1986 only reinforces the doctrine of caveat emptor.

(ii) In all legal proceedings relating totrademark registered under the Trade Marks Act, 1999, the originalregistration and all subsequent assignments and transmissions thereof shall be prima facie evidence ofits validity.

(iii) Cartel includes an association of producers, sellers or distributors who, by agreement amongthemselves, limit, control or attempt to control the production, distribution, sale or price of or trade ingoods or provision of services.

(iv) Trade practice includes a single or isolated action of any person in relation to any trade.

(v) While calculating the value of plant and machinery for the purposes of small scale/ancillary industrialundertaking, the following shall be included

(a) thecostof installation of plant and machinery;

(b) the cost of research and development equipment and pollution control equipments;

(c) the cost of fire fighting equipments; and

(d) the charges paid for technical know-how for erection of plant and machinery.

(vi) SpecialEconomicZone (SEZ) is deemed to be a foreign territory for the purposes of trade operations,duties and tariffs.

(3 marks each)

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(i) Intellectual property and industrial property.

(ii) Contract of service and contract for service.

(iii) Patent and patent of addition.

(5 marks each)

(b) Re-write the following sentences after filling-in the blank spaces with appropriate word(s)/figure(s) :

(i) Foreign contribution means donation, delivery or transfer made by any foreign source of anyarticle, if themarket valuein India, of such article, on the date of such gift, delivery or transfer,exceeds Rs._____________.

(ii) Environmental clearance is not required from the Central Government, if investment is less than_____________ for any item reserved for the small scale sector.

(iii) The amount representing the full export value of goods or software exported is required to berealised and repatriated to India within _____________ month(s) from the date of export.

(iv) The term of every patent granted after the commencement of the Patents (Amendment) Act, 2002

shall be _____________ year(s) from the date of filing of application for the patent.

(v) Literary, dramatic, musical or artistic works enjoy copyright protection for the life time of theauthor plus _____________ year(s) beyond the death of the author.

(1 mark each)

4. (a) With reference to the relevant provisions of the Foreign Exchange Management Act, 1999 and therules and regulations made thereunder, advise on the following:

(i) An Indian company engaged in financial sector is interested in making investment in bankingbusiness abroad.

(ii) An Indian resident wants to purchase foreign securities by making remittances from his resident

foreign currency (RFC) account.(iii) A Bangladeshi millionaire is interested to invest in India subject to FDI policy of the

Government of India.

(iv) An Indian public limited company wants to issue bonus shares to an existing non-residentshareholder.

(v) An Indian citizen resident outside India is interested in acquiring a house in Chennai and a farmhouse on the outskirts of Delhi.

(1 mark each)

(b) Critically examine the application of the rule of strict liability while fixing the liability for

environmental pollution.

(5 marks)

(c) Jolly Ltd. maintained a guest house for the use of its managing director and other executives. Itentered into an agreement with a firm for the installation of central air-conditioning system. Thesystem installed did not function, developed snags and there was leakage of water from ductingsystem. The company filed a complaint claiming compensation for deficiency in service under theConsumer Protection Act, 1986. Will it succeed ? Give reasons with reference to case law, if any.
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(5 marks)

5. (a) Mention five important grounds for opposition to the grant of patents.

(5 marks)

(b) Critically examine how environmental pollution violates human rights.

(5 marks)

(c) Evaluate the efficacy of the Essential Commodities Act, 1955 in controlling the production, supplyand distribution of essential commodities in the country.

(5 marks)

PART B



(i) Principles governing domestic enquiry.

(ii) Purposes for which ESI fund may be expended under the Employees State Insurance Act, 1948.

(iii) Procedure to be followed for the certification of standing orders under the Industrial Employment(Standing Orders) Act, 1946.

(iv) Excluded employee under the Employees Provident Fund Scheme, 1952.

(v) Prohibition of employment of contract labour under the Contract Labour (Regulation and Abolition)Act, 1970.

(vi) Theory ofnotional extension of employment under the Workmens Compensation Act, 1923.

(5 marks each)


(i) Legal strike and justified strike.

(ii) Principal employer and immediate employer under the Employees State Insurance Act, 1948.

(iii) Premises and precincts under the Factories Act, 1948.

(5 marks each)

(b) Re-write the following sentences after filling-in the blank spaces with appropriate word(s)/figure(s) :

(i) The membership of provident fund scheme is compulsory for employees drawing a pay notexceeding Rs.__________ per month.

(ii) __________ means termination of the service of an employee otherwise than on superannuation.(iii) Wages are to be paid within __________ working days from the date of termination of the

employee whatever be the reason of termination.

(iv) Superannuation in relation to an employee, who is a member of the pension scheme, means theattainment of the age of __________ years.

(v) Under the Workmens Compensation Act, 1923, the employer shall not be liable when the injurydoes not result in disablement for a period exceeding _______ days.


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(1 mark each)


(i) An application for the recovery of bonus from an employer shall be made within

(a) Six months from the date on which the money became due

(b) One year from the date on which the money became due

(c) 60 Days from the date on which the money became due

(d) 90 Days from the date on which the money became due.

(ii) The occupier of a factory is required to send a written notice to the Chief Inspector of Factoriesat least

(a) 7 Days before he begins to occupy or use the premises as a factory

(b) 15 Days before he begins to occupy or use the premises as a factory

(c) 21 Days before he begins to occupy or use the premises as a factory

(d) 10 Days before he begins to occupy or use the premises as a factory.

(iii) The State Government may make rules regarding the provisions and maintenance of a canteenfor the use of workers wherein more than

(a) 250 Workers are ordinarily employed

(b) 500 Workers are ordinarily employed

(c) 300 Workers are ordinarily employed

(d) 100 Workers are ordinarily employed.

(iv) The minimum amount of compensation in case of permanent total disablement is(a) Rs.1,00,000

(b) Rs.90,000

(c) Rs.80,000

(d) Rs.70,000.

(v) The Contract Labour (Regulation and Abolition) Act, 1970 applies to every establishment orcontractor wherein workmen employed on any day of the preceding 12 months shall be

(a) 100 Workmen or more

(b) 20 Workmen or more

(c) 50 Workmen or more

(d) 10 Workmen or more.

(1 mark each)

8. Attempt any five of the following stating relevant legal provisions and decided case law, if any :


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(i) A driver of bus belonging to the employer was involved in an accident which resulted in theimpairment of free movement of his left hand disabling him from driving vehicles. He was, however,capable of performing other work. He claimed compensation contending that the said accident hadresulted in permanent disablement of driving vehicles. Will he succeed ?

(ii) The workers were engaged by beedi manufacturer for rolling beedies at home subject to the rejection

of defective beediesby manufacturer. The workers claimed that they should be treated as workersunder the provisions of the Factories Act, 1948. Will they succeed ?

(iii) An out-worker prepared goods at his residence and later on supplied these goods to the employer.Will he be treated as an employee under the Minimum Wages Act, 1948 ?

(iv) Mauji Ram was absent from duty without leave. The employer took the plea that it had resulted in thebreach of continuous service for the purposes of gratuity under the Payment of Gratuity Act, 1972. Isthe plea of the employer legal and enforceable ?

(v) A company was running into losses and was unable to pay the minimum rates of wages to itsworkers. The workers pleaded that the employer must pay them the minimum rates of wages. Theemployer (company) intends to go to the court challenging the constitutional validity of the MinimumWages Act, 1948. Will the company succeed ?

(vi) An employee was on his way to the factory. He met with an accident one kilometre away from theplace of his employment. He pleaded that the injury was caused by accident arising out of and in the

course of employment and claimed employment injury benefits under the Employees State

Insurance Act, 1948. Will the employee succeed ?

(vii) Some contract labour was engaged by an organisation. There was subsequently prohibition ofemployment of contract labour in that category as a consequence of the notification issued by theCentral Government. The employer did not absorb the contract labour and employ them on regularbasis. The workmen challenged the action of the organisation. Will they succeed ?

(4 marks each)

thu cs eco n labr

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