ARJUN CHHABRA TUTORIAL

Of Arjun Chhabra
(CS LLB LLM)
Law Maven
CMA INTER LAW JUNE 23 REVISION SCHEDULE
Applicable for both old and new syllabus students
Date Time Topic Platform Back Up
10/06/2023 02:30 Pm Industrial Laws Arjun Chhabra Tutorial NO (only live)
onwards YouTube Channel
11/06/2023 11:00 Am Ethics (Emotional Arjun Chhabra Tutorial NO (only live)
onwards Intelligence) YouTube Channel

&

Sources of Law
Only for new
syllabus
Live stream is already scheduled for above topics, please visit the channel and set the reminder.

Already covered topics

Topics Links
1. The Indian Contract Act, 1872 https://www.youtube.com/live/M6y7yDWB814?
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2. Directors (Corporate Law) https://www.youtube.com/live/7uPRhBBW_uU?
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2A. Corporate Law (Section 1 – 122) https://www.youtube.com/live/tYfTp_8OJs8?f
eature=share
3. Sale of Goods Act https://www.youtube.com/live/RV9iVYiUc6g?fe
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4. Partnership Act https://www.youtube.com/live/zOXFaZvMQrI?
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5. Negotiable https://www.youtube.com/live/f7_ky6d8Lus?fe
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6. LLP https://www.youtube.com/live/_2XflbFTjqY?fe
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7. Ethics https://www.youtube.com/live/IiWdl5OA5S8?f
eature=share

https://www.youtube.com/live/XUWYyUM-
CNw?feature=share
 ARJUN CHHABRA TUTORIAL
Of Arjun Chhabra
(CS LLB LLM)
Law Maven
CMA INTER INDUSTRIAL LAW REVISION NOTES
Most Important Topics/Questions
Question 1:
Discuss the welfare measures to be taken in a factory for the workmen employed therein as per
the Factories Act, 1948. [8 Marks – Dec 19]
Question 2:
Write short notes on Annual Leave under the Factories Act, 1948 [5 Marks – June 19]
Question 3:
Write short notes on Manufacturing process under the Factories Act, 1948 [5 Marks – June 18]
Question 4:
Who is Occupier under the Factories Act, 1948? [9 Marks – Dec 17] Discuss the general duties of
an „occupier‟ under the Factories Act, 1948 [RTP Dec 18] Responsibility of the occupier [RTP Dec
18] [MTP June 20 – 5 Marks]
Question 5:
Critically examine the duties of certified surgeon. [5 Marks – MTP June 20]
Question6:
ABC Ltd. carrying manufacturing activities with aid of power and with eight workers for last two
years ending on 31.03.2014. Three more workers were appointed on 01.04.2014, two workmen left
the company on 30.04.2014. Thereafter no workman was employed nor any workmen left. Mr. Basant,
one of the workman demanded that Factories Act, 1948 shall be applicable to this company but the
management denied. Give your opinion. [RTP Dec 18]

Answer:
According to Sec 2 (m) of the Factories Act, 1948, factory ‘means any premises including the
precincts thereof –

(i) Wherein 10 or more workers are working or were working on any day of the preceding 12 months,
and in any part of which a manufacturing process is being carried on with the aid of power, or is
ordinarily so carried on, or

(ii) Wherein 20 or more workers are working or were working on any day of the preceding 12 months,
and in any part of which a manufacturing process is being carried on without the aid of power, or is
ordinarily so carried on.

In the given case, during the period 01.04.2014 to 30.04.2014, there were 11 workers carrying
manufacturing activities with aid of power. So, the Factories Act, 1948 is applicable on ABC Ltd.
Mr. Basant is correct.
Question 6:
Discuss the different powers that can be exercised by an inspector under the Factories Act. [7
Marks – Dec 21] [9 Marks – Dec 22]
Question 7:
Overtime [Dec 18 – 5 Marks]
 ARJUN CHHABRA TUTORIAL
Of Arjun Chhabra
(CS LLB LLM)
Law Maven
Question 8:
Cleanliness of factory [Dec 17 – 5 Marks] [MTP June 23 – 5 Marks]

Question 9:
Mention any seven purposes for which the ESI fund may be expended. [7 Marks – Dec 19] [MTP
June 23 – 5 Marks]
Question10:
Discuss the procedure for recovery of bonus in case the employer has not paid under a settlement.
[6 Marks – Dec 19]
Question11:
Write short notes on Dependent [5 Marks – Dec 19]
Question 12:
Describe the procedures for an employee to claim the short payment of wages or non-payment of
wages under Minimum Wages Act, 1948. [7 Marks – June 19]
Question13:
What are the basic features of the national pension system as contained in the Pension Fund
Regulatory and Development Authority Act, 2013? [8 Marks – June 19] Features of National Pension
System [RTP Dec 18]
Question14:
Discuss the different provisions relating to pension fund as per section 23 of the PFRDA Act, 2013
[Dec 22 – 6 Marks]
Question15:
Deepak is employed in Assam Coffee Estate Ltd., a seasonal establishment. The factory was in
operation for four months only during the financial year 2018-19. Deepak was not in continuous
service during this period. However, he has worked only 60 days. Referring to the provisions of
The Payment of Gratuity Act, 1972, decide whether Deepak is entitled to gratuity payable under
the Act. Would your answer be the same in case Deepak works for 100 days? [5 Marks – June 19]

Answer:
For entitlement of gratuity one must work for at least 75% of the days on which the establishment
was open and in operation. The factory was in operation for 120 days.

One must work for 75% of 120 i.e. 90 days to claim gratuity. Deepak is not entitled to gratuity,
since he has actually worked for less than 75% of the number of days on which the establishment
was in operation during such period.

If Deepak had worked for 100 days, then he would have been entitled to gratuity since the number
of days on which he would have worked, in that case, would have been 75% or more of the number
of days on which the establishment was in operation.
Question16:
Explain the procedure for fixing and revising minimum wages under Minimum Wages Act, 1948. [9
Marks – Dec 18] [RTP Dec 18]
 ARJUN CHHABRA TUTORIAL
Of Arjun Chhabra
(CS LLB LLM)
Law Maven
Question17:
Mention the benefits that are entitled to the insured persons under the Employees' State
Insurance Act, 1948. [6 Marks – Dec 18]

Answer:
Section 46 of the Employees State Insurance Act, 1948 provides that the insured persons, their

dependents shall be entitled to the following benefits

1. Periodical payments to any insured person in case of his sickness ;

2. Periodical payments to an insured woman in case of confinement or mis-carriage or sickness

arising out of the pregnancy, confinement, premature birth of child or miscarriage;

3. Periodical payments to an insured person suffering from a disablement as a result of an

employment injury sustained as an employee;

4. Periodical payments to such dependents of an insured person who dies as a result of an

employment injury sustained as an employee ;

5. Medical treatment for and attendance on insured persons ;

6. Payment to the eldest surviving member of the family of an insured person, who has died, towards

the expenditure on the funeral of the deceased insured person; if the injured person at the time

of his death does not have a family, the funeral payment will be paid to the person who actually

incurs the expenditure.

The amount of such payment shall not exceed such amount as may be prescribed by the Central

Government. The claim for such payments shall be made within 3 months of the death of the insured

person or within such extended period as the Corporation allow in this behalf.

Question18:
Mr. Gill, an employee of M/s Sonabheel Tea Ltd., continued to occupy the quarter of the company
for eight months after superannuation, company decided to forfeit the amount of gratuity of Mr.
Gill. Examine the decision taken by the company to forfeit the amount ofgratuity in the light of the
Payment of Gratuity Act, 1972. [5 Marks – Dec 18]

Answer:
The gratuity of an employee, whose services have been terminated for any act, willful omission or

negligence causing any damage or loss to, or destruction of, property belonging to the employer, can

be forfeited to the extent of the damage or loss so caused.

The gratuity payable to an employee may be wholly or partially forfeited:

 ARJUN CHHABRA TUTORIAL
Of Arjun Chhabra
(CS LLB LLM)
Law Maven
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or

any other act of violence on his part or

(ii) if the services of such employee have been terminated for any act which constitutes an offence

involving moral turpitude, provided that such offence is committed by him in the course of his

employment.

It is not a valid ground forfeiture of entire gratuity. In such a case, the company is entitled to

charge the quarter rent as per rules and after adjustment of such charges, Mr. Gill is entitled to

receive the balance gratuity.

Question 19:
Enumerate the Central Record Keeping Agency under Pension Fund Regulatory and Development Act
2013? [7 Marks – June 18]

Answer:
Section 21 of Pension Fund Regulatory and Development Act, 2013 deals with Central Record keeping
Agency
(1) The Authority shall, by granting a certificate of registration under sub-section (3) of Section
27, appoint a central record keeping agency:
Provided that the Authority may, in public interest, appoint more than one central record keeping
agency.

(2) The central record keeping agency shall be responsible for receiving instructions from
subscribers through the points of presence, transmitting such instructions to pension funds,
effecting switching instructions received from subscribers and discharging such other duties and
functions, as may be assigned to it under the certificate of registration or as may be determined
by regulations.

(3) All the assets and properties owned, leased or developed by the central record keeping agency,
shall constitute regulated assets and upon expiry of certificate of registration or earlier revocation
thereof, the Authority shall be entitled to appropriate and take over the regulated assets, either
by itself or through an administrator or a person nominated by it in this behalf:

Provided that the central record keeping agency shall be entitled to be compensated the fair value,
to be ascertained by the Authority, of such regulated assets as may be determined by regulations:

Provided further that where the earlier revocation of the certificate of registration is based on
violation of the conditions in the certificate of registration or the provisions of this Act or
regulations, unless otherwise determined by the Authority, the central record keeping agency shall
not be entitled to claim any compensation in respect of such regulated assets.
 ARJUN CHHABRA TUTORIAL
Of Arjun Chhabra
(CS LLB LLM)
Law Maven
Question 20
Kelson Limited has two separate units at Delhi and Mumbai in India. Every unit of the said company
prepares and maintains separate Balance Sheet and Profit and Loss Account. Delhi unit is incurring
continuous losses and hence bonus is not paid to the employees of this unit.
Decide, under the Payment of Bonus Act, 1965 whether the employees of the said unit can claim
bonus on the ground that the unit incurring loss is a part of one single establishment? [5 Marks –
June 18]

Answer:
All the two units shall be treated as two separate establishments since all the two units maintain
separate B/S and P&L Account.

Employees of the unit which is incurring losses:

• are not entitled to claim bonus on the ground that the unit incurring loss is a part of one
single establishment;
• are entitled to minimum bonus as per the provisions of Sec. 10,12,13 and 14 of the Payment of
Bonus Act,1965, since minimum bonus is payable whether or not there is any allocable surplus
(and whether the establishment has made a profit or incurred a loss).

However, for the purpose of computation of bonus, the amount of allocable surplus shall be taken
for that particular unit only, and not of all the two units taken together.
Question 21:
An employee was drawing salary of Rs.9,500 per month. He joined his service on January 23rd, 2017
and remained absent from 11th February, 2017 to April 10th, 2017 due to temporary disablement
caused by an accident arising out in due course of employment. Examine with reference to the
Payment of Bonus Act, 1965, whether he is eligible for bonus for the year 2016-17? [5 Marks – Dec
17]

Answer:
In accordance with the provisions of Payment of' Bonus Act. 1065, as contained in Section 2 (13 ),
read with section 8 and section 14, every employee of an establishment covered under the Act is
entitled to bonus from his employer in an accounting year provided he has worked in that
establishment for not less than 30 working days in the year on salary less than ` 21,000/- per
month.

Under Section 14 of the Act, the days when an employee has been absent due to temporary
disablement caused by an accident arising out of and in the course of his employment will be
included in calculating the total working days for the purpose of payment of bonus. In the instant
case, the salary is falling within the limit as prescribed under the Act. His accident-leave -period
shall also be treated as working days for the purpose.

Therefore, in the given Case since the salary is failing the limit (i.e. not exceeding `21,000/-per
month), the employee is eligible for bonus for the year 2016-17. The leave period will be treated as
 ARJUN CHHABRA TUTORIAL
Of Arjun Chhabra
(CS LLB LLM)
Law Maven
working days (i. e. more than 30 working day)
Question 22:
A is employed in XYZ Ltd., which is a seasonal establishment. The factory was in operation for five
months during the financial year of 2016-17. A was not in continuous service during this period.
However, he was worked for sixty days only. Referring to the provisions of the Payment of Gratuity
Act, 1972 decide whether A is entitled to gratuity payable under the Act. Would your answer be
the same in case Aworks for 100 days? [4 Marks – Dec 17]

Answer:
As per the provision given under the section 2A of the Payment of Gratuity Act, 1972, where an
employee is employed in an seasonal establishment and is not in continuous service for any period
of one year or six months, there such an employee shall deemed to be in continuous service under
the employer for such period if he has actually worked not less than seventy-five percent of
the number of days on which the establishment was in operation during such period.

In the given problem, as per the above provisions of the Act, A has worked has worked only for
60 days which is less than 75% of the number of days on which the establishment was in operation
during such period, i.e. 150 days. Therefore A shall not be eligible for getting any gratuity in the
first case.

In the second case also A would not eligible for gratuity for the same reasons, though he had worked
for 100 days
Question 23:
What is the procedure of determining the amount of gratuity as per the Payment of Gratuity Act,
1972? [Dec 22 – 5 Marks] [MQP June 23]
Question 24:
What is the procedure in imposition of fine on the employee under this Act? [8 Marks – MTP June
20]
Question 25:
Describe contributions payable under the ESI Act,1948. Discuss the methods of recovery of
contribution. [7 Marks – MTP June 20]
Question 26:
Mr. Green, an employee of Yellow Ltd. becomes disabled due to a disease and is unable to do the
same work. He was then re-employed on the reduced wage. How the gratuity of Mr. Green shall be,
computed under the provisions of the Payment of Gratuity Act, 1972? [RTP Dec 18]
Question 27:
Notun Textiles Limited has three separate units at three separate places in the country. Every unit
of the said company prepares and maintains separate Balance Sheet and Profit and Loss Account.
One of these units is incurring continuous losses and hence bonus is not paid to the employees of
this unit. Decide, under the Payment of Bonus Act, 1965 whether the employees of the said unit can
claim bonus on the ground that the unit incurring loss is a part of one single establishment? [RTP
Dec 18]
 ARJUN CHHABRA TUTORIAL
Of Arjun Chhabra
(CS LLB LLM)
Law Maven
Answer:
All the 3 units shall be treated as 3 separate establishments since all the 3 units maintain separate
B/S and P&L Account.

Employees of the unit which is incurring losses:

• are not entitled to claim bonus on the ground that the unit incurring loss is a part of one single

establishment;

• are entitled to minimum bonus as per the provisions of Sec. 10, 12, 13 and 14 of the Act, since

minimum bonus is payable whether or not there is any allocable surplus (and whether the

establishment has made a profit or incurred a loss).

• However, for the purpose of computation of bonus, the amount of allocable surplus shall be taken

for that particular unit only, and not of all the 3 units taken together.

Question 28:
Explain the composition of Medical benefit council, under Employees State Insurance Act, 1948.
[RTP Dec 18]
Question 29:
M/s TNT Pvt. Ltd. incorporated on 2nd Mach,2009 carrying on business from the date of
incorporation employing 70 persons. It’s one of the renowned companies in the country.

There had been certain turn of events recently and the company has started to face challenges
since mid of the year of 2020 due to COVID-19 pandemic. Like most parts of the world this company
was also badly hit by this pandemic. A larger number of companies in India were affected directly
or indirectly by this pandemic and complete lockdown. Due to this pandemic and losses, the number
of employees reduced to 7 w.e.f. 15-07-2020 by M/s. TNT Pvt. Ltd. Mr. Jain who retired on 30-12-
2020 was refused gratuity on the ground that the total number of employees is below 10. Another
senior employee of the company Mr.T.K.Singhania who retired on 31-12-2020. Mr. Singhania,
continued to occupy the quarter of the company for eight months after superannuation and as a
result the company decided to forfeit the amount of gratuity of Mr. Singhania. Mr. Arun Bharat an
employee of the company who was frustrated with his work and willfully causing damage of a
machine. M/s TNT Pvt Ltd. had to spend `95000 to get the machine in working condition and due to
this damages M/s TNT Pvt. Ltd. withhold the gratuity of Mr. Arun Bharat. On the other hand one
employee Mr. Jain retired on 30-11-20 was refused gratuity on the ground that the total number
of employees is below ten. M/s TNT Pvt. Ltd. has a separate factory which is a seasonal
establishment.

MrBarun Bharat brother of Mr. Arun Bharat is employed in this factory. The factory was in
operation for four months only during the financial year: 2020-21due to Covid-19 pandemic. Mr.
Barun Bharat was not in continuous service during this period and he has worked only 60 days.
 ARJUN CHHABRA TUTORIAL
Of Arjun Chhabra
(CS LLB LLM)
Law Maven
(i) Examine the validity of decision taken by M/s TNT Pvt. Ltd. to forfeit the amount of gratuity of
Mr. Singhania in the light of the Payment of Gratuity Act,1972. (4Marks)

(ii) Examine the validity of decision taken by M/s TNT Pvt. Ltd. to withhold the amount of gratuity
of Mr. Arun Bharat in the light of the Payment of Gratuity Act,1972. (2 Marks)

(iii) From the above decide whether Mr. Barun Bharat is entitled to claim gratuity under the
provisions of the Payment of Gratuity Act,1972. (4 Marks)

(iv) Examine the validity of decision taken by M/s TNT Pvt. Ltd. for Mr. Jain to refuse to pay the
gratuity since the number of employees reduced to seven w.e.f. 15-07-20
under the provisions of the Payment of Gratuity Act,1972. (2 Marks) [Dec 21]

Answer:
(i)The gratuity of an employee, whose services have been terminated for any act, willful omission or
negligence causing any damage or loss to, or destruction of, property belonging to the employer, can
be forfeited to the extent of the damage or loss so caused. The gratuity payable to an employee
may be wholly or partially forfeited:

(i) if the services of such employee have been terminated for his riotous or disorderly conduct or
any other act of violence on his part or

(ii) if the services of such employee have been terminated for any act which constitutes an offence
involving moral turpitude, provided that such offence is committed by him in the course of his
employment.

It is not a valid ground for forfeiture of entire gratuity. In such case, the company is entitled to
charge the quarter rent as per rules and after adjustment of such charges, Mr. Singhania is entitled
to receive the balance amount of gratuity.

The Employer cannot withheld or forfeit gratuity of Mr. Arun Bharat since his services was not
terminated for the damages caused by the worker as per Payment of Gratuity Act, 1972.

For entitlement of gratuity one must work for at least 75% of the days on which the establishment
was open and in operation. The factory was in operation for 120 days. One must work for 75% of
120 i.e. 90 days to claim gratuity. Mr. Barun Bharat is not entitled to gratuity, since he has actually
worked for less than 75% of the number of days on which the establishment was in operation during
such period.

Payment of Gratuity Act provides that a shop or establishment to which this Act has become
applicable shall continue to be governed by this Act in spite of persons employed therein at any time
it has become so applicable falls below ten. Hence TNT Pvt. Ltd. cannot refuse payment of gratuity
to Mr.Jain.
 ARJUN CHHABRA TUTORIAL
Of Arjun Chhabra
(CS LLB LLM)
Law Maven
Question 30:
Describe the procedure for mode of payment of gratuity. [MTP June 20 – 5 Marks]