Ans 1. Firstly, we need to understand what is “Capital” in Companies.

Capital of a business is the

money or the assets which is available to pay for its day-to -day operations and to fund its future
growth. There are four different types of instruments under a companies Act, 2013 by which a
company can introduce or induct capital/funds to the company. (A) Working Capital, (B) Debt, (C)
Equity, and (D) Trading Capital. Trading Capital is used0020by brokerages and other financial
institution.
Different types of Instruments to raise capital:

Working Capital: A company's working capital is its liquid capital assets available for fulfilling daily
obligations. It is calculated through the following two assessments:
Current Assets – Current Liabilities
Accounts Receivable + Inventory – Accounts Payable
Working capital measures, a company's short-term liquidity. More specifically, it represents its ability
to cover its debts, accounts payable, and other obligations that are due within one year. Note that
working capital is defined as current assets minus its current liabilities. A company that has more
liabilities than assets could soon run short of working capital.

Equity-Based Instrument: This is the way of Fundraiser via Equity shares. this is the process under
which Business rely on the Shareholders to fund the company’s operation. This is the Instrument act
as a way to fund operations and provide proof of Ownership. This type of documentation does not
require a dividend return as it is based on the specific terms of the business and subsequent profits.
The investor or equity share holder are entitled to the earnings for such percentage and will get the
proper part in choice/decision making process of the company.
There are few types of Equity stocks cited below:
Common Stock. This represents the owners’ or shareholder’s investment in the business as a capital
contribution. This account represents the shares that entitle the shareowners to vote and their
residual claim on the company’s assets. The value of common stock is equal to the par value of the
shares times the number of shares outstanding.
Preferred Stock. This is quite similar to common stock. The preferred stock is a type of share that
often has no voting rights, but is guaranteed a cumulative dividend. If the dividend is not paid in one
year, then it will accumulate until paid off.
Contributed Surplus. This represents any amount paid over the par value paid by investors for stocks
purchases that have a par value.
Additional Paid-in Capital. is another term for contributed surplus.
Retained Earnings. is the portion of net income that is not paid out as dividends to shareholders. It is
instead retained for reinvesting in the business or to pay off future obligations.
Other Comphernsive Income. Other comprehensive income is excluded from net income on the
income statement because it consists of income that has not been realized yet. For example,
unrealized gains or losses on securities that have not yet been sold are reflected in other
comprehensive income. Once the securities are sold, then the realized gain/loss is moved into net
income on the income statement.
Treasury Stock (Contra-Equity Account). Treasury stock a contra-equity account. It represents the
amount of common stock that the company has purchased back from investors. This is reflected in
the books as a deduction from total equity.
Debt-based Instruments: A debt instrument is a tool an entity can utilize to raise capital. It is a
documented, binding obligation that provides funds to an entity in return for a promise from the
entity to repay a lender or investor in accordance with terms of a contract. Debt instrument contracts
include detailed provisions on the deal such as collateral involved, the rate of interest, the schedule
for interest payments, and the timeframe to maturity if applicable. the company can keep its
shareholding so long as it can fulfil the debt or interest necessities of the investor. So, its miles
pretty contingent upon a non-profit-making situation.
Debentures: A debenture is a marketable security (a type of investment) issued by a business or
other organization to raise money for long-term activities and growth. It is a form of debt capital so it
is accounted for as debt on the balance sheet of the issuing company. There is the following type of
debenture.
Redeemable debentures: A redeemable debenture is a written agreement about a loan that must be
repaid by a set time. Redeemable debenture documents generally include lower rates of interest and
lengthier time frames for repayment.
Convertible debentures: A convertible debenture is a type of long-term debt issued by a company
that can be converted into shares of equity stock after a specified period. Convertible debentures are
usually unsecured bonds or loans, often with no underlying collateral backing up the debt.
Compulsory convertible debentures: A compulsory convertible debenture is a bond that must be
converted into stock at its maturity date. For companies, it allows for repayment of debt without
spending cash. For investors, it offers a return in interest and, later, ownership of shares in the
company.

Ans 2. After getting the freedom India has developed too many laws to ensure the protection of
welfare of employees. In past we have seen too much of exploitation of labour/employee so we have
created a loot of advance laws to help employee/labour to fight with their exploiters. By these Laws
Indian Judiciary has given many diverse judgments. While ensuring the safety of the employee. the
Factories Act was first enacted in 1883 due to pressure brought on the British parliament from
Manchester and Lancashire’s textile magnates. Thus, India received the first stipulation of eight
hours of work, the abolition of child labour, and women’s restriction in night work, and the
introduction of overtime wages for work beyond eight hours.
There are few real-life examples to ensure the protection of the employee welfare.
(A) Workmen of M/S Firestone Tyre and Rubber Co. Of India v. Management, AIR 1973, SC 1227 AIR
1227, 1973 SCR In this case, the workmen of the Firestone Tyre and Rubber Company had a dispute
with its employer as the employer had terminated its workmen on the basis of a Domestic Inquiry
Finding. During the pendency of the case, the Industrial Tribunal Act was amended in 1971
and Section 11A was inserted conferring the power over the Appellate Authority to the Industrial
Tribunal over the domestic enquiry into the arising disputes.
The Tribunal decided in the favour of the employer, denying to have the retrospective effect of
Section 11A. Aggrieved from the decision of the tribunal, the workmen moved to the apex court
against the employer. The issue before the Supreme Court was on the interpretation of Section 11A
of the Industrial Disputes Act, 1947. Since, the section was inserted through amendment amidst the
pending suit, the question in issue was whether the said section shall be applicable on the case
which is instituted prior to the insertion of the said section.

The Supreme Court stated that the Industrial Disputes Act, 1947 was a beneficial piece of legislation,
enacted by the legislature for the betterment of the employees. The Court found the legislation to be
a welfare one so it decided to apply the beneficial rule of legislation. It was further held that in case of
arising disputes among the two parties, leniency will be applied over the view which will be in the
best interest of employees. However, the suit was instituted prior to the amendment so the said
section shall not be applicable in this case. It shall be only applicable to the cases which are
instituted after the amendment in the Industrial Dispute Act, 1947.

(B) Hindustan Aeronautics Limited v. Workmen AIR 1975, 1975 AIR 1737, 1976 SCR (1) 231
In this case, the appellant Hindustan Aeronautics Limited is a company registered under Section
617 of the Company Act, 1956. The Central Government purely owns the share of the company. This
case is regarding 1000 workers who were working in the company’s repairing unit situated at
Barrackpore, West Bengal. The major issues were with regard to the allowance of the education of
employees, revision of lunch allowances and for the permanency of their job.

In this case the West Bengal Govt. referred to the dispute under Section 10(1) of the Industrial
Dispute Act, 1947
The Industrial Tribunal partly granted relief to the workmen. The appellants approached the apex
court with the issue that whether the West Bengal government was the appropriate government to
refer the dispute or not. The Supreme Court held that the appropriate government was the West
Bengal government as the branch or industrial unit of the company was carrying out a “separate”
kind of work in West Bengal.

The workers were being paid at the company and they were totally regulated by the officials of the
company’s branch at Barrackpore in West Bengal. In such a case, if any kind of disputes or
disturbances arises, the onus lies on the West Bengal government for the settlement of those
disputes and maintaining industrial peace.

Indian Courts has given many decisions on time by time to ensure the protection of the employee.
The employee has less power and they’re in disadvantage or in weak position compared to higher
authorities. They are those who have suffered the exploitation by these employers.

Ans 3 (A). First we have to understand what is Partnership. A partnership is a formal arrangement by
two or more parties to manage and operate a business and share its profits. There are several types
of partnership arrangements. In particular, in a partnership business, all partners share liabilities and
profits equally, while in others, partners may have limited liability.

Most of the Differences arises due to if any partner fails to perform his duty in the partnership.
Underperformance of a Partner: Every partner is assigned with a specific role while forming a
partnership. If a partner is unable to carry out his/her duties well, then a dissent may arise among the
other partners.
Secret profits: All the profits incurred in the partnership must be clearly declared before all the
partners. Any secret profit taken by any partner without the knowledge of other partners may raise a
conflict in the partnership.
Conflicting interests: It is imperative that all partners within a partnership have common interests in
businesses. If two partners have a different vision and the rest of the partners do not agree to the
same, a conflict may arise.
Management/personality conflicts: In this situation the most sensible course of action may be to
dissolve the partnership altogether. In some cases, you may need to involve the Courts to ensure
that all loose ends are tied up so that the company’s assets are divided fairly.
These are the ways to resolve the case outside the court.
Institutional Arbitration: It involves an arbitrator either appointed by the parties. The decisions made
by the arbitrator are legally binding on the parties. It is considered to be cost effective, simpler and a
faster way of resolving disputes than the Courts.
Mediation: It is the process where an independent mediator is appointed to resolve the dispute. The
mediator does not decide the dispute, but attempts to make a fair discussion. It is a very cost-
effective way of resolving a dispute, while giving an option to the parties to provide inputs for
resolution of matters. The mediator does not impose a decision. In mediation, the outcome is entirely
within the control of the parties, and not on a third person such as a judge.
Negotiation: Negotiation is considered to be one of the easiest forms of dispute resolution process. It
is often seen that the parties to the dispute negotiate a resolution that is agreed to both without the
need for formal mediation.

Out of all the three dispute settlement processes ADR (Alternative Dispute Resolution) is the best
method to settle the disputes in partnership disputes. The most frequent option to resolve
partnership disputes is ADR.
Ans 3(B). The Arbitration and Conciliation Act, 1996 elaborates on the various ways to settle disputes
outside the Court as well as in the court. There are following advantage of resolving their differences
outside the cases
(1) System. There are flexibility in the system by which we can get the resolution as both the
parties want.
(2) Many decision. As there is no professional judge is involved so their cane be wide variety of
decision in comparison to conventional court.
(3) Different Board for decision. As there is no Conventional court involved so both the parties
have rights to choose any forums or Facilities to resolve the dispute.
(4) Party autonomy. Both the parties have the complete autonomy to decide the regulation to be
applied on their case as well as on the discussion board too, the individual or the arbitrator to
conduct the arbitration intending, it is known as party autonomy.
(5) Cost. This process is less costly as compare to the other conventional method’s.
(6) Time. As there is no Conventional court present in this court so the process of resolving the
case is fast in comparison to other conventional methods.