NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE

MBL I YEAR ANNUAL EXAMINATION 2021

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 (6 X 10 = 60 Marks)
1. A offered to purchase a house owned by B for Rs. 30 Lakhs. He sent a
WhatsApp message to B asking whether his offer of Rs. 30 Lakhs was
accepted and further saying that he was prepared to a higher price if
found reasonable. B replies: “Won’t accept less than Rs. 50 Lakhs”. A
accepted this price and replied “Ok. I will buy the house for Rs. 50
Lakhs”. B had seen his message but never replied. A brought a suit for
specific performance of the contract. B approaches you to give legal
advice on the matter. Advice B.

2. A gave a brand-new woolen suit costing Rs. 10,000 to a dry cleaner for
dry cleaning. The suit is lost by mistake of the dry cleaner. On A’s
claiming the full value, the dry cleaner contends that as per the terms of
the contract printed on the reverse of the ‘receipt’ which was also signed
by A, he is liable to pay only ten times the amount of the dry-cleaning
charges, the charges being only Rs. 150. Is the dry cleaner liable to pay
Rs. 10,000 or only Rs. 1500 as contended by him?

3. A Service contract carried a clause to the effect that the employee was
not to disclose confidential information to any person after cessation of
employment with the employer and was not to take up any employment
or involve himself with any other person or a body corporate in similar
field of activity which was of competitive nature. Are such clauses void?

4. A Healthcare product company issues the following advertisement in a

newspaper: “Any person who uses our latest invention – ‘Fatloss’, in
accordance with the prescribed directions shall lose weight up to 20 kg in
one month. The company shall pay an amount of Rs. 50,000 to anyone
who does not lose weight, as stated above, after using ‘Fatloss’ for one
month as required above”. The ‘fatloss’ is purchased and used by 10
persons, according to the prescribed conditions, and all of them find that
it is absolutely ineffective. They approach you for legal advice to claim the
promised reward from the company. Advice your clients.

5. Mr. Kirpal had a savings of around Rs.20 lakhs in his account in Kanpur,
unsure of his future Mr. Kirpal transfers the whole sum to his grandson

Page 1 of 2
 Mr.Kishan, on the promise that Mr.Kishan would bear the expenses of
medicines and regular check ups of his brother Mr. Sirpal. Mr. Kirpal
dies and Mr. Kishan fails to keep up with his promise.
a. Mr. Sirpal decides to file a suit claiming reimbursement of
expenses. Decide if Mr. Sirpal has the locus standi to file the suit
seeking specific performance.

6. Mrs. Pragati brought an action against her husband Mr. Praful, for
declaring an agreement void on the ground that its execution was
induced through the husband’s undue influence at a time when she was
suffering from a serious nervous breakdown and was not mentally
competent to appreciate the nature or quality of her acts. She stated that
her nervous breakdown was result of maltreatment by Praful having
adulterous relationship with Mrs. Shanti. During her confinement at the
hospital, Praful presented an agreement, prepared by solicitor,
relinquishing all rights to maintenance and transferring to Mr. Praful 50
acres of land, which was in joint names, for consideration for Rs. 50,000
only and she was made to put her signature under his influence. Discuss
whether Mrs. Pragati would succeed in her action.

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

7. Write Short Notes:
a. Whether the Government can be held as a Bailee when goods are
seized?
b. Promissory estoppel: Whether the MP Sugar Mills case facts justify
the applicable of this doctrine?

8. With special reference to contracts in Sports, how can agencies protect

their respective interest while entertaining into a contract with a minor?

9. Is Consideration the rule? ‘No Consideration-No Contract is the rule,

however the said doctrine has some exceptions’. Explain with special
reference to issue of time barred debt.

10. What are the similarities and difference between Misrepresentation and
Fraud. Examine with the help of case law the aspect of Fraud as a
ground to declare contracts as being voidable.

11.‘Public Policy and Morality test is important for Judges to examine

enforceability of contracts’. Evaluate the statement. Discuss whether
Public Policy means Public Interest.

******

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE
MBL I YEAR ANNUAL EXAMINATION 2021

BANKING LAW & PRACTICE IN INDIA

NOTE: all questions carry equal marks. Answer any five of the following
questions. Time— minimum 180 minutes.

1. Does new differentiated banks (payment bank and small finance banks) in
India have growth opportunities? In the light of that, do they suggest new
specialised and dedicated framework of law? Critically evaluate.

2. What are the norms of bank capital and restricted voting rights in India? Do
you suggest any reform in the same? Discuss.

3. Please solve the following:

1. Ramesh pays-off the indicated money under promissory note, but along
with the payment returns the (demand) promissory note as well to
Rajesh (payee). This gave Rajesh an opportunity to endorse the
promissory note to Shekhar, who receives the note for value. Please
indicate the chances of Shekhar receiving the money from Ramesh.

2. Chandra issues a crossed cheque amounting INR 50,000 to Shree, for

the materials he has bought from her. However, before the same is
collected asks his banker to 'stop payment' from under the instrument.
What liabilities Chandra would incur for non-payment? Elaborate your
answer by quoting the principles of law.

4. Answer the following questions briefly:

1. The uncrossed cheque is meant to be paid across the counter. What
plausible precautions the banker needs to take while making such
payment so that he avails legal protection?

2. Can the crossed cheque be negotiated? Justify your answer by taking

suitable examples and legal principles.

5. Answer the following questions:

1. How do you justify the reason for banker’s duty of confidentiality; and
identified exceptions?

2. What are the consequences of banker dishonouring the cheque

wrongfully?

6. How acceptance of pubic deposits is regulated in India? Is that sufficient,

especially noting the ponzy schemes getting reported often.

7. Write short notes on the following:

1. Concept of asset reconstruction;

2. Priority sector lending in India.

 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE
MBL I YEAR ANNUAL EXAMINATION 2021

MBL PART I ANNUAL EXAM (JULY) 2021

CORPORATE LAW

PART- A

Answer the following: (2x 15 = 30 marks)

1. Fallapart Inc. an American Garment retailer and manufacturer which has a

100% owned subsidiary in India, wishes to acquire 90% stake in Stichright Pvt.
Ltd., an Indian textile and garment major. The acquisition would result in the
Stichright capturing over 15% of the textile export market to USA. The
company seeks your advice on the approvals needed from a Companies Act and
Competition Act standpoint. Advise.

2. BrightLight Entertainment Ltd. is a company that has been incorporated with

the object of carrying out event management and entertainment event services.
In the light of the pandemic, the company is no longer able to sustain with these
objects and proposes to get into a new business, mainly commodity warehousing
and trading. The company has had an IPO in 2019 and raised Rs. 160 Crores. 80
Crores remain unspent. The company now proposes to amend its objects to get
into the new business. Advise.

PART B

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

1. How does the Companies Act, 2013 address Oppression and Mismanagement?
What is the rule laid down in Foss vs. Harbottle? What are the exceptions to that
rule?

2. What is the process to initiate corporate insolvency against a debtor under the
Insolvency and Bankruptcy Code, 2016? What role do the committee of
creditors play in the resolution process?

3. What is the legal status of the Articles of Association, Memorandum of

Association on the one side and the Shareholders, outsiders and the company on
the other?
4. a) What are vertical and horizontal agreements? When do these agreements take
on an anti-competitive character and what does the law do to address this
situation?

b) What is the relationship between a company and its directors?

PART C

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

a. Appointment and removal of Auditors

b. Class Action Suits

c. Optionally fully convertible debentures

d. Moratorium under the Insolvency and Bankruptcy Code, 2016

PART D

1. State if the following statements are true or false: (5 x 2 =10 marks)

a) An Operational Creditor may directly initiate insolvency upon the debtor

failing to repay the debt.
b) An Independent Director may also hold an office for profit with the company.
c) An Annual General Meeting must be held every year with a gap of no more
than 15 months between two meetings.
d) An Amalgamation is regulated under the Competition Act only if it involves a
value of 1000 crores or more.
e) The minimum number of shareholders for a private limited company are two.
 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE
MBL I YEAR ANNUAL EXAMINATION 2021

PAPER IV- INDUSTRIAL RELATIONS LAW

Time: ____ Marks:

100

Instructions

1. Please attempt any 6 questions out of Question No. 1 to Question No. 8.

2. Question No. 9 is compulsory.
3. No clarifications can be sought on the Question Paper.
4. In case of omission of any facts from the question so material that it prevents you from forming a
conclusive opinion, please state so with your reasons.
_______________________________________________________________________________________
____________

1. Section 2 (p) of Industrial Relations Code 2020 states:

"industry" means any systematic activity carried on by co-operation between an employer and worker
(whether such worker is employed by such employer directly or by or through any agency, including a
contractor) for the production, supply or distribution of goods or services with a view to satisfy human
wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or
not,— (i) any capital has been invested for the purpose of carrying on such activity; or (ii) such activity is
carried on with a motive to make any gain or profit, but does not include — (i) institutions owned or
managed by organisations wholly or substantially engaged in any charitable, social or philanthropic service;
or (ii) any activity of the appropriate Government relatable to the sovereign functions of the appropriate
Government including all the activities carried on by the departments of the Central Government dealing
with defence research, atomic energy and space; or (iii) any domestic service; or (iv) any other activity as
may be notified by the Central Government;

“While numerous subsequent judicial decisions have criticised the ratio of the Bangalore Water Supply
Sewerage Board, the core of the legal standard formulated in that case has been retained by the Parliament
in the Industrial Relations Code 2020” – Do you agree. Please substantiate your answer. [15 Marks]

2. Can it be said the provisions on definition of retrenchment and the procedure for retrenchment of
workmen under the Industrial Disputes Act 1947 provide considerable flexibility to employers who seek to
retrench workmen? Discuss with reference to specific provisions and case law. [15 Marks]

3. “Despite the observations in the SAIL v National Union of Water Front Water Workers (2001) against
automatic absorption of contract labour, the law of contract labour in India provides substantial legal
protection to contract labour.” Please comment. [15 Marks]
4. Amit Bhavanishankar was appointed as a Sweeper-cum-Peon, on daily wage basis in the office of
management of Bambani Telephones at Bilaspur, H.P. in the year 1999. His services were terminated on
31.05.2005 by a notice of 15 days. After waiting for compensation for 8 years, Amit Bhavanishankar raised
an industrial dispute. In his plea to the Labour Commissioner, he claimed that he was terminated from
employment without due notice and compensation as required under the applicable statutory law and
therefore, he was eligible for reinstatement.
A reference was made by the appropriate government to the Labour Court. In its reply to the Labour Court,
the management of Bambani Telephones responded by alluded to the delay in reference and further,
asserted that being a daily wage worker, Amit Bhavanishankar could not be considered a workmen.
Secondly, it claimed that his termination could not be considered a retrenchment and even if the
termination were to be considered illegal, he was not entitled to any remedy of reinstatement. As the
Presiding Officer of the Labour Court, please decide the case. [15 marks]

5. Sudhir Vinod, Satish D’Mello, Om Ahuja, Pankaj Tarneja, Omi Vaswani and Ashok Kaushik accepted jobs
of Technical Assistants, in the Design Section of Printing Press of Khabardar, India’s most widely read news-
daily based out of Mumbai on January 14 2019. Their employment contracts (all of them signed identical
contracts) stated that “you are being hired for the purpose of implementing the Newspaper Template
Redesigning Project” and “this contract shall be operational till such date as on which the Managing Editor
of Khabardar certifies that the project is complete.” The contracts listed their job responsibilities as
“researching and examining the current layout used by Khabardar, preparing draft templates,
conceptualising specific elements of the layout design, presenting the draft templates to the Editorial Board
of Khabardar and designing and implementing a training module on the method of printing new templates
for the Printing-Team of Khabardar.” According to these contracts, each one of these Technical Assistants
was to be provided with an attendant who would assist them in their work. In furtherance of these
contracts, Sudhir Vinod, Satish D’ Mello, Om Ahuja, Pankaj Tarneja, Omi Vaswani and Ashok Kaushik joined
the Mumbai office of Khabardar on January 18 2019. The total number of employees working in the
Mumbai Office of Khabardar was 1068.

On June 28 2019, all these Technical Assistants - Sudhir Vinod, Satish D’ Mello, Om Ahuja, Pankaj Tarneja,
Omi Vaswani and Ashok Kaushik assembled together to watch the first football game of the Spanish La Liga
2019-2020 season being played between Barcelona and Real Madrid. They decided to form a Trade Union
for promoting the conditions of work and solidarity among the Barcelona fans employed by Khabardar and
named it Khabardar Employees Barcelona Supporters Union. According to the Draft Rules of this Union,
membership would be open only to those employees of Khabardar who had watched at least 10 games of
Barcelona Football Club in the preceding twelve months and would sign a statement which contained inter
alia, the following sentences: ‘Barcelona is the greatest club in the world’

On July 3 2019, Sudhir Vinod submitted an application for registration of the Union with the Registrar of
Unions, Mumbai along with the Draft Rules and other necessary particulars as required under Section 5 of
the Trade Union Act, 1926. According to the application, Sudhir Vinod, Satish D’ Mello, Om Ahuja, Pankaj
Tarneja, Omi Vaswani and Ashok Kaushik were the only members of the Union at that point.

The Registrar of Unions, Mumbai refused registration to the Union through a letter dated July 18, 2019. She
communicated the following reasons as the basis of her refusal:
 i Khabardar, being a prominent newspaper, is the bulwark of Indian democracy. It plays a crucial
role in the formation of public opinion on social and political matters and is a neutral conduit of
information between the people and their elected leaders. As a result, it is incongruous to
conceive of Khabardar as an ‘industry’ under the Industrial Disputes Act and therefore,
Khabardar Employees Barcelona Supporters Union cannot be granted registration.

ii The membership of Khabardar Employees Barcelona Supporters Union is not open to all
workmen of Khabardar.

Sudhir Vinod filed an appeal before the High Court of Bombay under Section 11 of the Trade Union Act on
August 14 2019 against the Order refusing registration to the Khabardar Employees Barcelona Supporters
Union.
Discuss the arguments that Sudhir Vinod can put forth in his appeal against the order of the Registrar. Is
there any other ground on which the Registrar of Unions could have refused registration?
[10 +5 = 15Marks]

6. Malvo and Nygaard Associates (MNA), a partnership firm runs a plant that is involved in encryption and
packaging of videogames sold through CD-ROM. The MNA Plant is situated in 32, New Sapna Vihar, Khosla
Kunj, Mumbai. It had a total workforce of 213 employees who were all involved in technical work and had
worked for 6 years with MNA. On 5th July 2021, Sadanand Malvo, the Managing Director of MNA, received
a notice from the Chief Labour Commissioner, Mumbai North, directing MNA to explain why appropriate
action should not be initiated under the relevant statutes against MNA for not submitting Draft Standing
Orders for Certification. Sadanand Malvo has asked for your legal opinion on whether MNA has a statutory
obligation to submit draft standing orders for certification.

Please advise him, keeping in mind the relevant statutory norms and case law. For the purpose of this
question, assume that the Chief Labour Commissioner, Mumbai North has territorial jurisdiction over MNA.
[15 Marks]

7. Clint-Leone Morricone Ltd. (CLM) ran a film studio with 106 employees in Amar Colony, Lajpat Nagar IV,
New Delhi. CLM also engaged 15 security guards through a contractor, Colonel Mortimer and Sons. While it
was the largest studio in New Delhi, it had fairly simple operations. It used to take the raw films from clients
and then processed them into cinema films, complete and ready for use on the screen. Occasionally, staff-
members were sent out to record films on behalf of clients too. But the predominant work was that of
processing raw films and processing them into ready-to-use cinema screen films.

Ryklon, a critical chemical compound used for processing had to be imported from abroad. Due to the scare
on swine flu, the foreign supplier discontinued supplying Ryklon to CLM for the month of March 2020. As a
result, CLM faced a shortage of Ryklon. The Manager of CLM, therefore, decided to close the Studio for a
period of 15 days from April 1 to April 15, 2020.

Once the studio was reopened, Ahankaar Nodi, one of the employees of CLM, who had been hired in June
6, 2019 to work as an attendant/peon, raised a dispute claiming payment of his wages for the duration for
which the Studio was closed. He wrote to the Central Labour Commissioner in New Delhi who referred the
dispute to a Labour Court which directed payment of wages to Ahankaar Nodi

CLM filed a writ in response claiming that CLM had no obligation to pay wages to any of the workmen
during the period for which the studio was closed. It further claimed that the reference was not proper in
law and the dispute was not maintainable.

As a Judge of the High Court, please decide the case with appropriate reference to statutory norms and
case law. [15 Marks]

8. La Belle Refinery Co. is a Refinery with 288 permanent employees and 62 employees on temporary
contracts. On 8th November 2020, 38 employees of LBBR decided to form the La Belle Employees’ Welfare
Association [LBEWA] to work for improving the conditions of work for the refinery employees. They drafted
a Constitution, chose their office-bearers and applied for registration with the necessary documents. The
Registrar of Trade Union issued the Certificate of Registration on 15th December 2020.

Part A
On 16th December 2020 the management of LBBR organised a lockout in response to the formation and
registration of LBEWA. In response, LBEWA called upon all the employees of LBBR to go on an immediate
strike on 17th December 2020. Please determine the legality of the strike. [10 Marks]

Part B
Saral Sampath, the General Secretary of LBEWA, decided to join the new upcoming national party, Bharat
Photoshop Party (BPP), along with all the other office-bearers of the Union. After joining BPP, the union
passed a resolution making it compulsory for all union members to contribute 5% of their membership fees
for the political fund of BBP. Would such an order be legal? [5 marks].

9. Mohd. Azhaluddin was appointed on 24.06.2011 in the Telangana Seed Corporation, an autonomous
public sector entity set up by the state government, as an Assistant. In the year 2014, a case came to be
filed against him after an allegation of bribery. A vendor claimed that Azhaluddin had demanded a bribe of
Rs. 40000 to issue a No Objection Certificate. The alleged incident resulted in a departmental enquiry as
well as criminal proceedings under the relevant provisions of the Prevention of Corruption Act 1988 before
the District and Sessions Judge,

The Departmental Enquiry found him guilty of the allegations alleged and recommended a penalty of
compulsory retirement from the services, pursuant to the recommendation. Accepting the said
recommendation, the CMD of TSC by an order imposed a penalty of compulsory retirement from the
services of the Corporation on the petitioner.
Within three months of the aforesaid Order, the Sessions Court by its judgment acquitted Mohd.
Azhaluddin of the offences alleged to have been committed under the various provisions of the Prevention
of Corruption Act 1988 on the ground that the evidence did not prove his guilt beyond reasonable doubt.

Mohd Azhaluddin wrote a representation to the CMD of TSC seeking that the Order of penalty imposing
compulsory retirement from the service be set aside since he had been acquitted by the Sessions Court in
the criminal case based on the same set of facts and the evidence. However, the CMD rejected his plea on
the ground that an internal departmental enquiry is distinct from a criminal trial. Mohd. Azharuddin has
sought your advice on whether he has substantive legal grounds to challenge the penalty of compulsory
retirement? Please advise. [10 Marks]
 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE MBL II
YEAR ANNUAL EXAMINATION 2021

PAPER V - ENVIRONMENTAL LAW

Marks: 100

Part-A: Compulsory question 20 Marks

1 In a Board Resolution of Kas and Kas, moved by Mudson, the Chairman and Managing
Director, it was resolved to release the untreated effluents of the production process, into
the near by public stream. Mudson, assigns Kasappa, the Manager of the Company, the
task of putting the Resolution into effect. With in a couple of days of the accomplishment
of the said mission, Nirmal, a local resident, finding the stench emanating from the stream
causing respiratory problems to him and the members of his family (- as conveyed by the
Doctor treating the Family), writes complaining about the pollution and its impact, to the
State Pollution Control Board(SPCB), on 20th April, 2021 seeking remedial measures and
relief to the local residents. In the meantime, Kasappa dutifully carries out the
instructions of the Company, almost on a daily basis. Since there was no action, following
the complaint for well over 70 days and incidence and the impact of continuing pollution
not abating, Nirmal initiates legal action over SPCB in the District Court on 2nd July,
2021.SPCB on getting a notice from the Court in this regard, sends a team to investigate
the matter, on 5th July,2021. The team, after intimating the Company about its visit in the
forenoon , arrives on the spot, takes a sample of the discharges from the company into
the Water Stream, at around 6PM(- half an hour after the closure of the activities for the
day in the company).Against the insistence of the Occupier of the Premises, to get the
sample tested in the Government Recognised Laboratory, the authorities take the sample
to the SPCB recognised Laboratory , for the purpose. On the morning of 6th July,2021 the
Chairman of SPCB, visits the Company and orders complete stoppage of the production
work, till further orders of SPCB. On 7th July, 2021 , the Report of the testing and analysis
of the said Sample, obtained from the laboratory reveals no violation of Pollution norms!
The Board is preparing for its submissions, to the Court, due on the day after the
Conclusion of the M.B.L Examinations in the Law School.

Given these facts, examine the legal position, by making reference to relevant provisions
of the law and case law on the subject, as to the following:

(i) scope for Nirmal’s suit;

(ii) procedures for taking samples and its analysis;

(iii) powers of the Chairman of the SPCB and

(iv) nature and extent of liability of Mudson and other Members of the Board and that of
Kasappa, for actions against the Company

---2

PART-B: Answer any three of the following: (3 x 15 = 45 Marks)

2. ”Indian Biodiversity Law is a toothless wonder!”-In addition to reviewing the statement,

outline the main features of the law.

3. Giving the salient features of the law concerning Land Acquisition, Resettlement and
Rehabilitation, 2013, list out the points of difference with the 1894 Act.

4. Discuss the basic frame and strategies for Waste Management. Add a note on municipal
Solid Waste Management Rules.

5. (a) Critically examine the Public Liability Insurance Act

(b) Analyse the rules for the regulation of chemical accidents

PART -C

7. Evaluate the laws concerning the following: (2x10 = 20Marks)

(a) EIA, 2020

(b) CRZ, 2019

8. Write critical and evaluatory notes on the following: (5x3 = 15 Marks)

(a) Principle of Precaution

(b) Sustainable Development Summit, 2002

(c) Environment Performance Index