NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE

MBL I YEAR SUPPLEMENTARY EXAM (4th JANUARY) 2020

PAPER I - CONTRACT LAW

Marks: 100
Instructions:
1. No clarifications can be sought on the Question Paper.
2. Bare Acts, notes, articles, books or any other material are not
permitted while writing the examination.
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PART A: ANSWER ALL QUESTIONS (4 X 15 = 60 Marks)

1. Cinnamon, the pet cat of Mrs. Kuthrapalli, the wife of an Astrophysicist,

went missing at her husband’s star-gazing event. Her personal attendant,
Raj, was immediately sent in search of Cinnamon. Raj, went in search of the
pet to areas in and around the Grounds, as he felt Cinnamon would have
run away from overcrowded areas. Meanwhile, Mrs. Kuthrapalli, announced
in the Event that whoever returns Cinnamon, will be paid a sum of Rs. One
Lakh as Reward. Raj, in his sincerity found Rocky about a Mile away from
the place of Event. Raj after returning Cinnamon to Mrs. Kuthrapalli, learns
that there was a reward and claims the same.
a. Advice Raj on whether he can file a suit for claiming the reward.
b. Elucidate the Rules of a Valid Offer?
c. Describe the conditions of a valid Acceptance.

2. Grazers Pvt. Limited is a private limited company incorporated under the

Companies Act, 1956, that carries on the business of “sheep farming”. Mr. A
was approached by Grazers to purchase a piece of Land situated in Tumkur,
Karnataka. During negotiations, it was opined by Mr. A, that “if the land is
worked properly, it can hold upto 2000 Sheep.” The Contract for purchase of
the Land was executed with the jurisdiction clause provided at Bengaluru,
India. Subsequently, it was found that the land could hold only upto 1,200
Sheep.
a. Distinguish between Fraud and Misrepresentation under Indian
Contract Act, 1872.
b. Grazers Pvt. Limited decides to sue Mr. A for Fraud. Advise.
c. Given the fact that the Contract provides for Jurisdiction in
Bengaluru. Is the same enforceable?

3. Tony Shipping &Co. a Shipping Company enters into a contract with Stark
Ores & Co. for carrying Shipment of 1000 Tonnes of Iron and 250 Tonnes of
Plastic from Dubai to Mumbai. The contract provided for Price as “agreed at
INR 15000 per ton of the Iron and INR 2500 per ton of plastic.” Tony
Shipping delivered only 1000 Tonnes of Iron, and Shipment for Delivery of
Plastic could not be done due to unforeseen circumstances.
a. What are the Rules of Performance of Contract?

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 b. Tony & Co. communicated the unforeseen circumstances for delivery
of Plastic and sought for payment of Freight for transport of Iron. Can
Tony shipping & Co. seek payment for the delivery of Iron?

4. On January 2019, Bruce and Wayne, two good friends decide to carry on the
business of Fisheries in the form a Partnership Firm. As they are good
friends, they decide to not register the Firm. The agreed terms were that
each Partner would be entitled to a Salary of Rs. 15,000/- per month, in
addition to a Share in Profit. Bruce puts in a capital of Rs. 60,000, and
Wayne contributes Rs. 40,000/-. On December 2020, Bruce and Wayne
agree to give Amphi and Bian, a share in the profit for their services to the
Firm.
a. Bruce and Wayne, decide to sue Mr. D, a customer who owes a sum
of Rs. 8,50,000/- for sale of fishes. Advise.
b. Advise Bruce and Wayne on the sharing of profits by an Unregistered
Firm.
c. From December 2020, comment with reasons on who are the Partners
in the Firm. Can Amphi and Bian sue the Firm for the share in Profit?

PART-B: ANSWER ANY 4 QUESTIONS (4 x 10 = 40 Marks)

5. Write Short Notes:

a. Distinguish between Contract of Guarantee and Contract of Indemnity
b. Doctrine of Force Majeure

6. What are implied conditions and warranties in a contract of Sale under the
Sale of Goods Act, 1930?

7. Barry desires to appoint Allan as his agent. What are the rights of Allan
under the Indian Contact Act, 1872?

8. Write Short Notes

a. Void Agreements
b. Distinguish between Contract of Pledge and Bailment

9. Contracts with a minor can enforceable under exceptional circumstances.

Justify.

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE

MBL I YEAR SUPPLEMENTARY EXAMINATION (JANUARY) 2021

PAPER II – BANKING LAW

Marks: 100

Instructions

1. No clarifications can be sought on the Question Paper;

2. Electronic gadgets of any kind are not permitted inside the
Examination Hall.
3. Answer any FIVE questions – all questions carry equal
marks

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1. Write brief note on the following:
a. Regulation of foreign banks (in addition to domestic
banks);
b. Capital adequacy of commercial banks in Inida.

2. Explain the following

a. Paying and collecting banker; including the protection
envisaged under Negotiable Instruments Act;
b. ‘Holder’ and ‘holder-in-due course’.

3. Write short notes on the following

a. Banking Ombudsman Scheme;
b. Banker’s Book Evidence law.

4. Write short notes on the following

a. Legal status of the passbook entries;
b. Banker’s duty to maintain secrecy (of customer’s
account).

5. Write short notes on the following

a. Banker’s lien;
b. Consortium lending.

6. Write short notes on the following

a. Debt recovery tribunals;
b. Bank guarantee and legal framework.

7. Solve the following problems

a. ‘A’ is the Chief Accountant at NAL Ltd., a software
company, which banks with Axis Bank. ‘A’ is generally
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 responsible for almost all banking transactions of NAL
Ltd. During the date of his retirement, he withdraws
Rs.50,000 by forging the signature of his CEO. The NAL
Ltd., wants to hold the bank responsible for this loss –
Decide.
b. ‘A’ makes a promissory note in a stamp paper sufficient
for Rs.1,00,000 – but without stipulating the amount and
the date of making the note. However, ‘A’ actually owes
only Rs.75,000 under the instrument. The holder of the
said note fill the promissory note for Rs.1,00,000 and
endorsed the same to another person Mr. ‘X’. Does Mr. ‘A’
obligated to pay Rs.1,00,000 to Mr. ‘X’.

*****

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE
MBL PART I SUPPLEMENTARY EXAM (JANUARY) 2021
CORPORATE LAW
PART- A
Answer the following Questions: (2x 15 = 30 marks)

1. Abpro Pvt. Ltd. is a company that is into the manufacture and sale of sporting
goods. The board of the company has just realised that one of the directors, Mr.
Kumar Raj is embezzling funds. The director holds 23% shares in the company and
is able to control the vote of shareholders holding 78% of shares in value. Another
director approaches the NCLT and files a claim against Mr. Kumar Raj on behalf
of the company. The NCLT, as a preliminary issue, must examine the admissibility
of the case. Examine this aspect.

2. Mister Trip is the largest online travel and hotel platform with over 30% of the
market share for online travel bookings. Grabbo and its partner hotels are a chain
of hotels that can be book through online platforms like Mister trip. In order to be
listed on mister trip, two conditions are imposed by mister trip, 1) they cannot list
with its competitors at a price better than they offer on mister trip and 2) Class1
properties cannot be listed with its competitors for a duration longer than 30 days
before stay dates. Since Grabbo refused, its listings were removed causing a huge
loss to them. Grabbo has approached the CCI in this regard. Examine.

PART B
Answer ANY TWO of the following: (2 x 20 = 40 marks)

3. What is a prospectus? What are the various kinds of Prospectus and what must be
disclosed in a prospectus?

4. “The objects of the company far outweigh any stipulations that may be made in
the Articles” examine this statement in the light of the doctrine of Ultra Vires.

5. What is meant by the rule of Constructive Notice and the rule of Indoor
Management? Are there any exceptions to these rules?

6.

a) Who is a Financial Creditor? How and when may a financial creditor initiate
insolvency under the Insolvency and Bankruptcy Code?

b) Sahara India Real Estate Corporation Limited vs. SEBI

 PART C

7. Write an analytical note on ANY TWO of the following: (2x10= 20 marks)

a. First directors of a company

b. Pre-incorporation Contracts
c. Amalgamation as an anti-competitive action
d. Transactions at Arm’s length

8. State if the following statements are correct or incorrect: (5 x 2 =10 marks)

a) Every Company needs to have an independent director on the board.

b) When the court lifts the corporate veil, it can see the shareholders of the
company.
c) A private placement can be legally made to 100 persons for each placement and
no more than 500 persons in a year (excluding institutional buyers).
d) For an act to constitute abuse of dominant position, the abuser must hold 100%
of market share.
e) A special resolution requires three times the number of votes in favour as the
votes against, to pass.

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE

MBL I YEAR SUPPLEMENTARY EXAMINATION (JANUARY) 2021

PAPER IV - INDUSTRIAL RELATIONS LAW
Marks: 100
Instructions
1. No clarifications can be sought on the Question Paper;
2. Electronic gadgets of any kind are not permitted inside the
Examination Hall.
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Answer ANY SIX questions out of the following eight questions:
15 x 6 = 90 Marks

1. What is the meaning of the term Industry used in the Trade Union
Act, 1926?

2. What is a Trade Union? Mention the Provisions to be contained in the

rules of a Trade Union to be submitted along with application for
registration of the Trade Union.

3. What is Picketing and how do Courts address the application made by

the employer to prohibit Picketing?

4. What is the problem arising out of a Multiplicity of Trade Unions and

the Procedure for recognition of a Trade Union by the employer in
such a context?

5. What is the definition of workmen in the Industrial Disputes Act

1947? How has the Supreme Court of India interpreted this term?

6. What is the concept Lay-off and the procedure to be followed in case of

Lay-off?

7. What is the definition of Strike under the Industrial Disputes Act,

1947? Does an employer need to pay wages during the period of
strike?

8. What is the procedure to be followed in a Domestic Enquiry?

Compulsory Question:
9. Write short notes on ANY TWO of the following: 5 x 2 = 10
a) Go slow.
b) Certified Standing Orders.
c) Regulation of Retrenchment.
d) General funds of a registered Trade Union.

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE
MBL I YEAR SUPPLEMENTARY EXAM (8th JANUARY) 2020
PAPER V - ENVIRONMENTAL LAW
Marks: 100
Instructions:
1. No clarifications can be sought on the Question Paper.
2. Bare Acts, notes, articles, books or any other material are not
permitted while writing the examination.
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PART-A: Answer any four of the following: (4 x 12 = 48 Marks)

1. How have the following Principles been conceptualized and applied in

relevant statutes and cases?
(a) Polluter Pays
(b) Sustainable Development
(c) Liability

2. ”Environment Protection Act is an Overarching, over-riding and enabling

Law”- Is this statement accurate?

3. What are the safeguards are required to be put in place for siting of
industries, Industrial Accidents and Hazardous operations, to protect life,
property and environment?

4. What are the principal features of the Paris Agreement, 2015? How have
they evolved from the earlier International law on Climate Change?

5. What are the key powers and Functions of the Pollution Control Boards?
Are they adequate?

6. Analyse: (a) Citizen’s suit provision under the Pollution Control Regime
(b) The major contributions of the Earth Summit on
Environment and Development, 1992

PART – B

7. Evaluate the laws concerning (10 x 2 = 20)

(a) Coastal Regulation Zone
(b)Hazardous Wastes Management
8. Write Critical and Evaluatory Notes on: (6x 4 = 24 Marks)
a. Standards under Environment Protection Act
b. Environment Performance Index
c. Environment Impact Assessment Law
d. ISO 14000 Series

9. Highlighting the salient features of the National Agriculture Policy, State

its relevance to the environment. (8 Marks)