SCHOOL OF LAW

Internship Program

Submitted as per the requirement of the course curriculum of

“Internship” in School of Law for internship at
R Karthikeyan & R Bharanidharan Advocates
from 12 th June- 12 th July 2023

Submitted by: Submitted to:

Aadhitya Narayanan Internship and Placement Committee
L19BALB111 Prof. Daksha Sharma
Assistant Professor and Convenor
BA LLB (2019-2024 batch) SEC B
 TABLE OF CONTENTS

Title Page no

Acknowledgement 2

Declaration of Originality 3

Details of Recruiter 4

Abstract 5

Objectives of Internship 6

Nature of Work 7

Tasks Assigned 8

Tasks Accomplished 9

Overall Learning outcome 11

Conclusion 13

Annexure 14

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 ACKNOWLEDGEMENT

I would like to sincerely express my gratitude to Prof. (Dr.) Pradeep Kulshreshtha, Dean, School
of Law, Bennett University, Prof. Mrs. Daksha Sharma, Assistant Professor and Convenor of the
Internship and Placement Cell, Bennett University and Mr Bharanidharan from R Karthikeyan &
R Bharanidharan Advocates, for contributing to making this internship experience possible for
me in my 4th year at Bennett University. I would like to specially thank all members R
Karthikeyan & R Bharanidharan Advocates, for accommodating me in the organisation for these
4-weeks that I interned from 12th June – 12th July 2023. I sincerely appreciate all the efforts made
by the them to create an internship program for me that was filled with opportunities to attain
knowledge and exposure in the field of Corporate and Criminal Law.

Aadhitya Narayanan

L19BALB111

BA LLB (2019-2024 batch) SEC B

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 Declaration of Originality

I, Aadhitya Narayanan with Enrolment No: - L19BALB111, Student of BA. LLB (Hons.) – B,
2019-2024 at School of Law, Bennett University, do hereby declare that the material presented in
the internship report represents original work conducted by me during my internship at R
Karthikeyan & R Bharanidharan Advocates, from 12th June-12th July 2023
With my signature I certify that: -

 I have not manipulated any of the data or results.

 I have not committed any plagiarism of intellectual property.
 I have clearly indicated and referenced the contributions of others.
 I have explicitly acknowledged all collaborative research and discussions.
 I have understood that any false claim will result in severe disciplinary action.
 I have understood that the work may be screened for any form of academic misconduct.

Date: 15/8/2023 Student Signature

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 Details of Recruiter

Name of Recruiter R Karthikeyan & R Bharanidharan

(Firm/Company/Chamber/Others) Advocates

Address of the Recruiter New 20 Old No, 39, Puram Prakasham

Road, Balaji Nagar, Royapettah, Chennai,
India 600014

Designation of Concerned Supervisor Advocate

Contact Details of Concerned Supervisor Phone number: - +91 98400 21369, Mail-
(Email & Contact Number) rbharanidharanadv@gmail.com

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 Abstract

This internship report focuses on the major tasks assigned and accomplished during me
internship at R Karthikeyan & R Bharanidharan Advocates over a four-week period. The
report also discusses in my overall learning outcome from this internship program in a
comprehensive manner. I completed my internship under the Guidance of Mr. Bharanidharan.
During my internship, I was able to learn about

The format and guidelines for the tasks were explained through briefing sessions. A large part of
my internship revolved around developing my knowledge of company law, Income Tax law,
Drafting of notices & deeds, economic and business laws

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 Objectives of Internship
 Researching and Understanding concepts of business and companies enshrined in
corporate, economic and tax law

 Drafting of deeds, notices, and agreements

 Making presentations with completed research papers and topics

 Integrating myself into the work-life culture of a firm by strictly abiding by the
organization rules and regulations such as prescribed structural formats, meeting
deadlines and code of conduct.

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 Nature of Work

 Researching authentic online sources ranging from websites to scholarly articles.

 Reading judgments of various relevant cases

 Reding relevant books of related concepts of corporate law

 Making presentations on completed research papers

 Attending briefing sessions

 Drafting of deeds, notices, and agreements

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 Tasks Assigned

Week 1

Topic: -1 Misrepresentation and Malpractices – Civil and Criminal Trial Procedure

Topic: - 2 (Corporate Disputes)

Oppression & Mismanagement – Law & Practice; Refusal of registration of transfer of

securities & appeal against refusal; Wrongful withholding of property of company; corporate
criminal liability

Week 2

Topic: -3 (Class Action Suits)

Topic: -4 (Fraud under Companies Act and IPC)

Week 3

Topic: -5 Adjudication, prosecutions, and penalties under the Companies Act, Securities
Laws, FEMA, COFEPOSA, Money Laundering, Competition Act, Labour Laws & Tax
Laws

Week 4

Topic: -6 Regulatory Action

Enquiries; Inspection; Investigation; Search and Seizure; Arrest; Bail (ROC, RD, SFIO,
Stock Exchange, SEBI, RBI, CCI, Labour Law Authorities, Income Tax Authorities, ED, CBI,
Economic Offences
Wing)

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 Tasks Accomplished

Week 1

Topic: -1

The NCLT consolidates the corporate jurisdiction of i. Company Law Board, ii. Board of
Industrial and Financial Reconstruction, iii. Appellate Authority for Industrial and Financial
Reconstruction and iv. jurisdiction and powers relating to winding up, restructuring, and other
provisions as vested with the High Courts resulting in the Reduction of the burden on courts and
will help companies facing issues related to winding up, mismanagement, and insolvency of
businesses and eliminate the overlap the conflicting rulings and minimize the delays in the
resolution of disputes. The proceedings before the NCLT or NCLAT are deemed to be judicial
proceedings within the meaning of sections 193 and 228, and for the purposes of section 196 of
the Indian Penal Code, and the Tribunal and the Appellate Tribunal shall be deemed to be a civil
court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure,
1973.

Topic: -2

Chapter XVI of the Companies Act, 2013 provides various provisions relating to the Prevention
of the Oppression and Mismanagement in the company and aim to maintain a balance between
the rights of majority and minority shareholders by admitting in the rule of the majority but
limiting it at the same time by a number of well defined minority rights, and thus protecting the
minority shareholders

Week 2

Topic: -3

Class action suits is covered in section 245 of CA 2013 as well as National Company Law
Tribunal Rules, 2016 (“NCLT Rules”). Section 245 permits members and depositors to file a
petition against the company, its directors, auditors or advisors with the National Company Law
Tribunal (NCLT) in case they commit any act which is prejudicial to the interest of the company.
However, the Banking companies are excluded from its purview

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Topic: -4

Fraud as a crime is nowhere defined in the Indian Penal Code but we all use this term in general
in our day-to-day life which is seen as synonymous with cheating. Fraud is an act of deliberate
deception with the design of securing something by taking unfair advantage of another. It is a
deception in order to gain by another’s loss. Whenever the term fraud or defraud appears in the
context of criminal law, two things are automatically to be assumed. First is deceit or deceiving
someone and second is, injury to someone because of such deceit. Explanation to section 447
under the Companies Act, 2013 has provided that fraud” in relation to affairs of a company or
anybody corporate, includes any act, omission, concealment of any fact or abuse of position
committed by any person or any other person with the connivance in any manner, with intent to
deceive, to gain undue advantage from, or to injure the interests of, the company or its
shareholders or its creditors or any other person, whether or not there is any wrongful gain or
wrongful loss.

Week 3

Topic: -5

One of the important changes brought in by the Companies Act, 2013 compared to the erstwhile
Companies Act, 1956 is the manner of dealing with non-compliances. The constitution of
Special Courts as judicial authorities, National Company Law Tribunal (NCLT) as
administrative cum quasi-judicial authority and delegation of power of adjudication of penalties
to Registrar of Companies (ROC) are the key changes brought in by the Act in the Indian
corporate regime. Further, with the intent to promote the ease of doing business in India and
ensure better corporate compliance, the Companies Act, 2013 was again amended by the
enactment of Companies (Amendment) Act, 2019 to reclassify and decriminalize certain
procedural or technical non compliances.

Week 4

Topic: -6

Shareholders have been vested with various rights including the right to elect directors.
However, shareholders are often ill-equipped to exercise effective control over the affairs of
companies, and, particularly in companies whose shareholders are widely scattered, the

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shareholders are, by and large, sleeping and passive partners, and the affairs of such companies
are managed to all intents and purposes, by its Board of directors to the exclusion of a
predominant majority of shareholders. Such a situation leads to abuse of power by persons in
control of the affairs of company. It became, therefore, imperative for the Central Government to
assume certain powers to investigate the affairs of the company in appropriate cases particularly
where there was reason to believe that the business of the company was being conducted with the
intent to defraud its creditors or members or for a fraudulent or unlawful purpose, or in any
manner oppressive of any of its members. Chapter XIV contains Sections 206 to 229 of the
Companies Act, 2013, deals with the provisions relating to Inspection, Inquiry and Investigation
of the affairs of company.

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 Overall Learning Outcome

 Chapter XVI of the Companies Act, 2013 (Section 241 to Section 246) deals with the
provisions relating to prevention of oppression and mismanagement of a company.
Oppression and mismanagement of a company mean that the affairs of the company are
being conducted in a manner that is oppressive and biased against the minority
shareholders or any member or members of the company. The words “oppression” and
“mismanagement” are not defined in the Act. The meaning of these words for the
purpose of Company Law should be used in a broad generic sense and not in any strict
literal sense. Section 241 (1) (a) deals with the affairs of the company either in the past or
present and such oppression is prejudicial to Public interest or to the Members of the
company or to the Company itself. Section 241 (1) (b) deals with a situation where a
material changes takes place in the company either in the Board or in the Shareholding
pattern and such change is not in the interest of creditors or members of th company and
such change is likely to be prejudicial to the Company or its Members. Public interest is
not covered under Section 241(1) (b). Under Section 241(2) central government may also
apply to the tribunal if it is of the opinion that the affairs of the company are being (does
not cover the past acts) conducted in a manner prejudicial to public interest. Section
242(1) provides that on any application made under section 241, the Tribunal may, with a
view to bringing to an end the matters complained of, make such order as it thinks fit.
Section 242(3) provides that a certified copy of the order of the Tribunal under Section
242(1) shall be filed by the company with the Registrar within thirty days of the order of
the Tribunal. According to Section 242(4), the Tribunal may, on the application of any
party to the proceeding, make any interim order which it thinks fit for regulating the
conduct of the company’s affairs upon such terms and conditions as appear to it to be just
and equitable. Section 242(4A) states that at the conclusion of hearing of the case in
respect of section 241(3), the Tribunal shall record its decisions stating therein
specifically as to whether or not the respondent is a fit and proper person to hold the
office of director or any other office connected with the conduct and management of the
company
 In a class action suit, a large group of people, having same or similar injuries caused by
the same person, collectively bring a claim to court, represented by one or more persons.
In general, following are the types of Class Action Suits. (a) Employment Class Actions:
Class action suits by employees against labour law violations (b) Consumer Class
Actions: Class action by group of consumers (c) Securities Class Actions: Class action
suit by shareholders/depositors/members etc. National Company Law Tribunal (Second
Amendment) Rules, 2019 specified thresholds under Rule 84(3) of the NCLT Rules,
2016. Rule 85 National Company Law Tribunal Rules, 2016 provides for conducting
Class Action Suit. Rule 86 National Company Law Tribunal Rules, 2016 provides for the
Rules of Opt-Out. Rule 87 provides for Publication of Notice.There are following set of
classes recognized under the Act to file class action suits - (i) members (ii) depositors and
(iii any class of them. In the exercise of the powers conferred on the Hon’ble President by

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 the first proviso of Sub-Section 3 of Section 419 of the Companies Act, 2013, the matters
related to Section 245 - Class Action Suits are hereby assigned to the Principal Bench of
New Delhi. A class action suit is a new mechanism to claim the loss caused to the
specified stakeholders (as discussed herein before) of the company not only from the
company but also from other entities. When the facts are similar in suits filed in different
dominions by the members of the same class, standing against the same or similar
defendants, it makes sense to combine them all and adjudicate it under one roof.
Clubbing of similar claims/suits would also result in efficiency of judiciary, as the same
would save precious time of judiciary from adjudicating similar dispute numerous times.
Therefore specific provisions are incorporated under the Act to enable NCLT to club all
similar applications in any jurisdiction, into one.
 The term Fraud in not defined under the Indian Penal Code, 1860, however, it defines
‘Cheating’. Section 415 provides that whoever, by deceiving any person, fraudulently or
dishonestly induces the person so deceived to deliver any property to any person, or to
consent that any person shall retain any property, or intentionally induces the person so
deceived to do or omit to do anything which he would not do or omit if he were not so
deceived, and which act or omission causes or is likely to cause damage or harm to that
person in body, mind, reputation or property, is said to “cheat”.
 An investigation refers to an exploration into the affairs of a company. The main aim of
such investigations is to obtain any evidence or facts regarding any malpractice in the
course of business. Investigations may also be undertaken to identify the profits and
losses of a business, the assets and liabilities and so on. Under the Companies Act, 2013,
inspection may be ordered by registrar under sub- section (3) of section 206, by Regional
Director under power delegated to it by Central Government under sub – section (5) of
Section 206, and by Central Government by a general or special order. The Companies
Act, 2013 provides for carrying out the following kinds of investigation: Investigation of
the affairs of the company if it is necessary to investigate into the affairs of the company
in public interest (Section 210); Investigation of the affairs of related companies (Section
219); Investigation about the ownership of a Company (Section 216) Investigation of
foreign companies (Section 228) Investigation by Serious Fraud Investigation Office
directed by Central government under (Section 212)Investigation on the order of
Tribunal. (Section 213). The words “liable to penalties” denote civil nature of non-
compliances whereas the words “punishable with fine and/or imprisonment and/or both”
denote criminal nature of non-compliances. Offence punishable with imprisonment only
or with imprisonment and also with fine is a non- compoundable offence under
Companies Act, 2013. However, all other offences, i.e., offences punishable with (a) fine
only, or (b) fine or imprisonment and (c) fine or imprisonment or both are compoundable
offences under the Companies Act, 2013.
 The adjudication order is appealable with the higher authorities as per the express
provision provided in of section 441(5), with the procedure being provided by the Rules.
However, a compounding order is generally not appealable unless the victim is aggrieved
by the compounding order Tribunal and the Appellate Tribunal are not bound by the
procedure laid down in the Code of Civil Procedure, 1908, the Tribunal and the Appellate

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Tribunal have power to regulate their own procedure. All proceedings before the Tribunal
or the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning
of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code.
The Tribunal and the Appellate Tribunal shall be deemed to be civil Court for the
purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.
Code of Criminal Procedure, 1973 [CrPC] is a procedural law applies to every offence
punishable under the IPC or any other special or local law. A civil proceeding is
distinguished from a criminal proceeding by the fact that if the criminal proceeding is
taken to a logical conclusion and if the accused is found guilty, there may be imposition
of a sentence of fine or imprisonment or both including a capital punishment, if the
statute so provides. In civil proceeding there may be an award of compensation and
damages. A Special Court shall consist of a single Judge holding office as Session Judge
or Additional Session Judge, in case of offences punishable under this Act with
imprisonment of two years or more; and a Metropolitan Magistrate or a Judicial
Magistrate of the First Class, in the case of other offences. A “summon” is a process
issued from the office of a Court of justice requiring the persons to whom it is addressed
to attend the Court for the purpose therein stated. if the minimum punishment prescribed
by any substantive law for an offence is an imprisonment for a term exceeding two years,
the offence will be dealt with as a warrant case.

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 CONCLUSION

The internship experience at the firm allowed me to learn the requisites of a company to function
in an efficient manner and corporate law in general. This resulted in allowing me to equip myself
with knowledge of corporate law, tax law, economic law, business law, and Drafting skills. I still
have a lot to learn about corporate law and working on my research and writing skills, but
however I am happy with the result, and I possess some adequate practical and theoretical
understandings of corporate law. This internship has been a great step for me in becoming a
corporate lawyer in the future.

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