NATIONALLAWSCHOOLOFINDIAUNIVERSITY,BANGALORE

MasterofBusinessLaws(MBL)Iyear
Supplementary2011ExaminationKeyAnswer:CONTRACTLAW30.12.11

PARTA:
AnswerallQuestions.EachQuestioncarries20marks[3x20=60marks]
Q1. Sachin Navelkar is football Player. He has been playing for Mass Union [MU], the best football
clubinIndia,forthelast3years.Whilehewasafantasticattackingplayer,hisdedicationtothe
team was suspect, and very often he had failed to help out MUs defenders. This had led
several football critics, including Mickey Thomas, MUs manager to criticise Sachin, but to no
avail.

SouthWarriors[SW],istherichestfootballclub.ItwishedtobuySachin,andpromisedtopay
him double the wages that MU are currently paying. As a result, Sachin requests MU to
terminate his contract with them, and sell him to SW. There is a contract subsisting between
MUandSachin,underwhichheisboundtoplayforMUforthenext3years.Hence,MUrightly
refuses to sell him to SW. This upsets Sachin greatly, and he looks for some way out of the
situation.Heconsultshislegaladvisors,whoinformhimthatMUisperfectlyentitledtorefuse
to sell him. Sachin, desperate to find some way out of the situation, speaks to Mickey, the
Manager of MU, asking that MU should raise his salary to the level promised by SW, failing
which he would refuse to play for MU. In addition, Sachin also promised that he would play a
moreactivedefensiveroletoo,andwouldshowmorededicationtotheteam.MUhasafairly
strongteam,andSachinwasfarfromessentialfortheteamplans.However,thereweresome
crucial games coming up, and Mickey thought that it would be safer to have the option of
Sachin,evenifhewasnotessential.Asaresult,hereluctantlyagreedtodoubleSachinssalary.

The football season continued, and MU reached the finals of the Champions League, Indias
biggest club football competition. However, MU lost the finals, partly due to a very poor
performancebySachin.Mickeywasveryupsetwiththeteam,and,inparticularwithSachin.He
refusedtopayhimtheraisedsalary,insistingonpayingonlythesalarycontainedintheoriginal
contract.Sachinwasdeeplyoffended,anddecidestogotoCourt.

AdviseMUonthegrounds:
ThatMickeyagreedtoraisethesalaryofSachinwithouthisfreewillandconsent,hencethe
raiseisnotbindinguponMU;
That Sachin has committed material breach of the contract by not giving his 100%
commitmentinthegamesplayedbyMU;
WhetherSachinwiththehelpofSouthWarriorsattemptedtoinducebreachofcontract;
WhethersuchaconductwouldmakeSachinliabletopaydamagesforbreachofcontract;
WhetheranactionforspecificperformanceofcontractcouldbebroughtagainstSachin.

KeyAnswer: EssentialofOfferandAcceptance
Considerationforvariationincontract
Specificperformanceofcontractsandexceptiontothisremedy
Variationincontractualterms:Liability
DamagesforBreachofContract:TypesofDamages
Liabilityforinducingbreachofcontract:AresuchagreementagainstPublicpolicy
WayneRooneycase

Q2. Mr.Camfield was a partner in a motor business firm named Camfield Associates. The partners
requested the Bank of South India to provide their business with an overdraft facility of Rs 30
lakh. The Bank agreed, provided the partners executed a charge over their houses. Mr. and
Mrs.Camfieldjointlyownedtheirmatrimonialhome.MrsCamfield,dulyagreedtoexecutethe
charge butdidsoundertheimpression,astheresultofaninnocent misrepresentation bythe
husband, that the maximum liability under the charge would be Rs 15 lakh only. That
misapprehension was not corrected by the Bank Officials who were advising her, even though
the effect of the legal charge was to charge her beneficial interest in the house with an
unlimitedliabilityto meetthedebtsofthepartnership,inwhich shehadnofinancialinterest.
Later on, after the overdraft was sanctioned, due to recession in the automobile industry, the
business of Camfield failed and the Bank of India commenced proceedings against the
Camfields. Mrs.Camfields wants to avoid her liability as not being a partner in the partnership
firm;sheshouldnotbemadeliableforthedebtsofthefirm.Furthertheoverdraftgrantedby
the Bank was utilised for the business of the firm and not the matrimonial home hence Mrs.
Camfield cannot be made liable under the same contract. Further Ms. Camfield wants to set
aside her liability under the grounds of undue influence, misrepresentation and lack of legal
advise.AdviseMrandMrs.Camfield.

KeyAnswer: Sec.126ICA
Rightsofsurety
DoctrineofSubrogation
Dischargeofsurety:byvariance
Husbandandwife:JointlyliableorundercontractofGuarantee
WifeUndueInfluence:Liabilityofasurety
CIBCMortgagesvPitt
BarclayssBankcase

Q3. Mr. Clarke carried on business in photographic goods at his Home. He later on started a
partnership with Miles, also a photographer. The partnership was registered on 1/2/04. The
partnershipdeedstatedthatboththepartnershallshareprofitsandlossintheratioof50:50.
In 2006, the partners had disagreement and decided to dissolve the partnership. There was a
majordisagreementonthedivisionofpropertyofthefirm.Milesclaimedthattheplace[home
ofMr.Clarke]wasalsopartnershippropertyandhencethesamemustalsobedividedamongst
partners.Clarkeclaimedthatthepropertyhadnotbetransferredaspartnershippropertyand
hence the same cannot be a subject matter of dispute between the partners. In light of the
abovefactsdiscussthefollowingissuesunderthePartnershipAct,1932:
a. Whatconstituteapartnershipproperty?
b. Whataretherightsofpartnersondissolution?
c. Whatisthedifferencebetweendissolutionoffirmanddissolutionofpartnership?
d. CanMilesclaimdivisionofthepropertyinquestion?
KeyAnswer:PartnerspropertyandFirmsproperty
Profitandsharingofthesamebythepartners
MilesvClark
Dissolution of firma and dissolution of partnership: Without court/With the
permissionoftheCourt
Rightsafterdissolution

PartB.
Answeranyfourquestions.Eachquestioncarries10marks.[4x10=40marks]

Q1.Withthehelpofcaselaw,highlightthedifferentauthorityofanAgent
KeyAnswer:Sec.182,188,ICA,
CustomaryAuthority
Actualauthority:ExpressedorImplied
Apparentorostensibleauthority
Turquandrule
Authoritybyvirtueofapositionheld
AuthoritytoSubDelegate
Q2.EnforceabilityofEcontractinIndiaisnotsolelygovernedbytheIndianContractAct.Justifythe
statement

KeyAnswer:BasicprincipleofContractasapplicabletoEContract
Sec.1113oftheITAct2000
OriginatorandAddressee
Caselaw/clickwrapandshrinkwrap
Q3.ExaminethedifferencebetweenGratuitousbailmentandbailmentforreward
KeyAnswer:Sec.148,EssentialforBailment
CaselawonGratuitousbailment
DutytodisclosefaultyLiabilityasdifferentbetweenthetwo.
Q4.Examinethegeneralprinciplesapplicabletostandardformofcontract
KeyAnswer:Reasonablenotice
Differencebetweencontractandreceipt
Theoryoffundamentalbreach
Strictconstruction
Ruleofcontraproferentem
Q5.Evaluatethegroundofcoercionforsettingasidetheobligationsinacontract
KeyAnswer:Sec.16ICA
Chikkammaamirajucase
Ranganayakammacase
Duress/EconomicDuress
Remedies

Q6.ExaminethedoctrineoffrustrationasapplicableundertheIndianContractAct
KeyAnswer:Sec.56ICA
KrellvHenry
TaylorvCaldwell
Limitationtothedoctrine

********
1

M.B.L.PART - I SUPPLEMENTARY EXAMINATION (DEC.) 2011
BANKING LAW & PRACTICE
KEY ANSWER

1. "The Central Bank is an institution charged with the responsibility of managing
the expansion and contraction of the volume of money in the interest of the general
public welfare" [R.P. Kent, Money and Banking, p.351] - Explain the statement in
the context of RBI.

Brief explanation as to why credit control is essential in any economy vis--
vis Central Banking institution and some reference to the RBI
b. Quantitative Credit Control Methods
i. Bank Rate etc.,
c. Selective Credit Control Methods
i. Sec. 21, Banking Regulation Act, 1949
ii. Fixation of margin requirements of secured loans
iii. Credit rationing
iv. Direct action
v. Moral suasion
d. Other methods like rediscounting etc.,

2. Write short notes on the following:
a. Holder and holder in due course

i. Holder is one who is
1. Entitled in his own name to the possession of the instrument; and
2. Have the right to receive or recover the amount due thereon from the parties thereto.
ii. Otherwise a holder means
1. The payee; or
2. The bearer; or
3. The endorsee of an instrument
iii. Reference to Sec. 8 of the NI Act;
1. Holder must have taken the instrument for value [consideration]
2. Must have obtained the instrument before its maturity
3. Instrument must be complete and regular on its face; and
4. Must have taken the instrument in good faith and without notice of any defect either in
the instrument of the title of the person negotiating it to him
iv. Holder in due course
1. Holder in due course is a person who takes an instrument in good-faith and for
value
2. And he becomes the true owner of the instrument and is known technically as holder
in due course
v. Reference to sec. 9 of NI Act.



2

b. The legal nature of the demand draft

1. The demand draft is basically a bill of exchange
2. Wherein one banker (i.e., the banker who draws the bill) draws the draft upon
another instructing him to make a certain sum of money to the person named in
the draft.
3. However, by practice the demand draft is not being accepted by the paying
banker.

3. Write short notes on the following:
a. Marking of the cheques and its validity

Marking of cheques is a process where the cheque is handed over to the banker
(upon whom the same is intended to be drawn) and he would mark the same.
This is an indication that the same will be honored certainly, if presented for
payment
marking of cheque is very much popular in US and certain parts of Europe.
However, today in India is not in vogue.
Can marking of cheque be taken as acceptance for payment by the banker and
will that change the cheque into bill of exchange? is an interesting question
The answer is NO.
The practical aspects of the marking of cheque may also be explained.

b. Crossing of cheques.

Crossing is a feature which is unique to cheques and distinguishes cheques from
other negotiable instruments
Crossing is a usage born of commercial practice
The objective give direction to the banker that, he is not to pay the cheque
across the counter but to pay it only to another banker
Crossing of a cheque accords a protection or safeguards the interest of the drawer
If wrongful person seeks payment it can be traced back (as he has acted through
another banker)
Explaining general crossing and special crossing
Also little bit of explanation as to whether the crossed cheque can be endorsed?

4. Who is paying banker and what are his obligations and protection available
under the law?

The banker who is expected to make the payment on the instrument (i.e., cheque)
or simply the person on whom the cheque is drawn is known as paying banker
he is protection under the following section
o Ss. 10, 85 and 89
Simple terms he is protected as long as he makes payment in due course
Explaining the payment due course
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5. Write short notes on the following:
a. Banking ombudsman scheme in India;

i. The scheme prepared and implemented by the RBI
1. First with the active assistance of all banks
ii. Now (in a sense) entirely by itself
1. Legislative power to introduce and implement the scheme
2. Sec. 35A, Banking Regulation Act, 1949
iii. the present scheme came into force from J anuary 1, 2006
iv. First introduced in 1995
v. Revamped in the year 2002
vi. Enlargement of the process in 2006
1. being satisfied that, it is necessary in public interest and in the interest of banking
policy to enlarge the extent and scope of the authority and functions of Banking
Ombudsman for redressal of grievances against deficiency in banking services,
concerning loans and advances and other specified matters
vii. Amendment in the year 2007 (May)
viii. The Scheme (as updated from time to time) provides
1. a forum to bank customers to seek redressal of their most common
complaints against banks, including those relating to
2. credit cards,
3. services charges,
4. promises given by the sales agents of the banks, but not kept by the banks,
5. delays in delivery of bank services.
ix. 15 Banking Ombudsmen have been appointed
1. offices located mostly in the State Capitals
x. Coverage of the Banks
1. All Scheduled Commercial Banks,
2. Regional Rural Banks and
3. Scheduled Primary Cooperative Banks
xi. Appointment, qualifications of the ombudsman and general procedure of resolving the
complaint.

b. Banker's duty to maintain secrecy of customer's accounts.

i. banker is a privileged creditor in some special sense the customer is also privileged
in some sense
ii. The banker is obligated to maintain the secrecy of the customers accounts
iii. the duty to maintain secrecy is an added obligation or an exception to the general
rule that the relationship between a banker and the customer is that of a debtor and
creditor
iv. May be it has woven in to the banking tradition from time immemorial
v. All employees and officers of the bank have to sign and submit a declaration of fidelity
and secrecy at the time of their joining service
vi. The Exceptions
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1. Where the disclosure is under compulsion of law;
2. Where there is a duty to the public to disclose;
3. Where the interests of the bank require disclosure; and
4. Where the disclosure is made with the express or implied consent of the customer
vii. Some specific reference to the disclosure under the Banking Regulation Act.

6. Examine the nature and validity of the following documents with reasons:
a. 'Pay Rameshan amount of Rs.5000, sixty days after the arrival of the ship Victory
at Mumbai'
Not a valid instrument as there is condition attached.
b. 'I promise to pay on demand a sum of Rs.20,OOO at my convenience'
Not a valid instrument as there is no certainty with regard to the payment
c. 'I promise to pay the bearer a sum of Rs.5,OOOon demand'
Not a valid instrument again, as there is acceptance to make payment, but no
acknowledgment of debt
d. 'Rs.10000 balance due to you and I am indebted to pay on demand'
Not a valid instrument as the sum specified is not certain.
e. 'I promise to pay Anand Rs.10,OOOand all fines according to rules' .
Again a case where, there is no certainty of sum.

7. Write brief note on 'Debt Recovery Tribunals' in the background of Non-
Performing Assets.

General explanation regarding the non performing assets
Why NPAs are considered to be big challenge to entire banking sector.
How strategies are hatched to reduce the NPAs in India
Then focusing upon the DRTs

1

NATIONALLAWSCHOOLOFINDIAUNIVERSITY,BANGALORE
MasterofBusinessLaws(MBL)Iyear
2011SupplementaryExaminationKeyAnswer:CorporateLaw01.01.2012

I a) i) Companies limited by shares

Liability arises, when the Company is a going concern or in the event of Winding up. The
quantum limited by the nominal value of the shares and the premium, if any, agreed at the
time of allotment.

ii) Companies limited by Guarantee and having a share capital

The quantum limited by the Guarantee clause in the MOA,(Details see Section 13(3)).Not
liable only in respect of debts incurred by the company after the person concerned ceased
to be a member.

iii) Unlimited Companies having a share capital

The nature of the liability the same as that of a member of a Guarantee Company. But
there is limitation on the quantum of liability.

I. b) Private Company

See Section 3(1) (iii)-
Further the name clause of the private Co. shall have the last component of the
Companys name Private Ltd/Ltd wherever the Company is one limited by shares or
guarantee. Exception Section 25 Company violation of the requirements of Section 3 (1)
(iii) - The Company is treated as if it is a Public Co. (See Section 43).

I. c) See Section 4: Yardsticks employed:-
(1) H controlling the majority votes of S.
(2) H controlling he composition of the Board of directors of S.
(3) S is a subsidiary of H and also the holding Company of S1. S1 is also a
subsidiary of H (Sub subsidiary)
- For the meaning of controlling the Composition of S and also for the meaning of
controlling the voting powers in S see Section 4.

I. d) Refer section 16

MOA overrides the provisions of AOA in case of conflict between the two. But a
harmonious construction to be adopted. The task of the court shall be to validate the
provisions of these two documents. (If possible).

Table A articles can be read as part of the articles of the Company:-
(a) In respect of matters which are not dealt with by Table A articles.


2

(b) Also those provisions of Table A which are not inconsistent with the provisions of
Table A But the Articles of a Company may provide that Table A articles shall not apply
to the Company . In such a case Table A articles have no application to the articles of
the Company. See section 28.

II a) Refer Sections 12 to 15; 33 & 34.
Before preparation of MOA, Approval of ROC shall be obtained for the name of the
Company: Form I A application with the required fee to be made to ROC for approval of
the name of the Company.
The MOA and AOA have to be subscribed by a minimum of 2 persons who shall
undertake to take a minimum of 1 share each. This is to be stated in the Memorandum.

II b) i) The Partnership firm can institute a suit against the company asking the latter to
change its name. (Tort of Passing off) and also claim damages.

II b) ii) Yes, they have to comply with the requirements of sections 21 and 23.

II c) The Argument of AP Pvt Ltd. is not valid. Change of name does not affect the
personality of the company. Nor does it affect its rights and liabilities. An application can
be made to the court for change of name of the defendant.

II d) See section 3 (1) (iii) (d) read with section 43 and 45. The company is to be treated
as a public Company with less than 7 members. Hence the members may incur personal
liability for the debts of the company.

III a) i) See Section 36.

The AOA dealing with membership rights and liabilities are contractual terms between
the company and members and members interse. But they are not contractual terms
between the company and outsiders and also between the company and members in
respect of matters which are not dealing with membership rights.

III a) ii) Restrictions on alteration of AOA

See Sections 31, 38 and 106
Also no alteration of the AOA which are inconsistent with the provisions in the
memorandum.

III a) iii) No, All that he can do is to claim damages for breach of Contract if the
alteration affects his accrued rights.

III b)
(1) If the third party has not performed his obligations under the Contract he can plead
that the contract is a nullity and he is not bound to perform such a contractual obligation.

3

(2) If the contract is executed by him he cannot sue the company for the discharge of its
obligations under it. But he has certain equitable remedies available against the
Company.
(i) Recovery of Property based on title.
(ii) He can invoke the doctrines of tracing and following
(iii) In certain cases he can invoke the equitable rule of subrogation.
(iv) He may sue those agents of the Company who contracted with him for breach of
Implied warranty of authority provided the doctrine of constructive notice cannot be
invoked against him.

III c) This rule in most cases operate as an exception to Constructive notice. The latter
doctrine imparts knowledge of the contents of the public documents to persons who deal
with the company .If the public documents negatives or imposes conditions on the
authority of the agents of the company, the knowledge of the contents of those documents
will be implied to persons dealing with the company.
But in many cases the public document may not negative the authority. But it may confer
concerned authority to an agent or put limitations on his authority. The question in those
cases is whether the agent has complied with those conditions in the exercise of the
powers conferred on him. The doctrine of mis-management (Turquand rule) provides that
he can assume so and bind the company even though the transaction is unauthorized.

Exceptions to the rule

(1) The other party to the transaction has actual knowledge of the irregularity.
(2) Put on enquiry cases. The circumstances are such that the person dealing with the
agent of the company ought to have suspected that the transaction is without the authority
of the Company.
(3) Forgery

III d) Section 542

Fraudulent trading- Directors and others who are parties to the fraudulent trading may
be liable to the company liquidator such amount as may be directed by the court. The
liability arises only in the event of insolvent winding up of the company. The liability
under the section is not to the creditor who suffered the loss. The amount realised goes to
the general funds.

IV a) See Section 59(2) and 63
Criminal liability of expert-Refer Section 63

Experts liability confined only to those statements made by him in writing pertaining to
his opinion as an expert. Further he must have consented to the inclusion of his statement
to the prospectus. For the Available defense see section 63 (2).

IV b) Remedies available against the Company
(i) Rescission-provided the investor has not expressly or impliedly ratified the allotment.

4

(ii) Damages
(iii) Negligent Misstatement
Against the directors etc:
(1) Damages for Fraud
(2) Section 62

IV c)
i) No, they cannot do. The maximum period shall only be 20 years. See section 80 (5A)
ii) Issue valid- See section 120. Consent of general meeting not required unless AOA
provide. But Board resolution at board meeting necessary. See section 292.
iii) Yes, provided the requirement of Section 81(1) & (1A) are complied with. But special
resolution of general meeting required.
iv) Yes, the Authority from the shareholders through a special resolution required
(Section 293).

IV d) See Section 108

The Transferor T may pass on title to his title to his transferee T1 by delivery of the
instrument of Transfer deed (without his name being entered therein) along with the share
certificate. This may be repeated by T1 and subsequent transferees during the currency of
the blank transfer. For the currency of the blank transfer See section 108 (1A).The
instrument of transfer shall be attested by the authorized signatory before any entry is
made in it. See section 108(1A).

V a) See Section 175 and Table A articles
If the AOA of the company does not contain a contrary provision the members personally
present will elect the chairman of the meeting. But See Table A of schedule I Reg 50 &
51
-The function of the chairman is conduct the business of the company in an orderly and
impartial way giving an opportunity to get all view points aired at the meeting.
As regards the power of government, it is a discretionary power of the chairman. But it is
not an arbitrary power. AOA may specify the cases when the chairman may adjourn the
meeting but that does not mean that he cannot exercise his inherent power of adjournment
in other cases: But he has to act impartially and bonafide.

V b)
i) See Section 173(1) (a) & (b)
ii) The members and legal representatives of deceased or insolvent members, Auditors
Section 172 (2)
iii) See Section 166 (1) and Section 209(3) & (4)
iv) See sections 170 and 176

The statutory right of a member to appoint a proxy to attend and vote at a general
meeting can be modified by the AOA of private company which is not a subsidiary of a
public company.


5

V c)
Personal rights are those rights enjoyed by a member which are not amenable to majority
decision. E.g. Right to speak at a general meeting, right to vote at general meeting, right
to receive the dividend, right to move resolution.
Corporate membership rights are those rights enjoyed by a member, in respect of which
he is bound by the majority decision. This is the area where the majority rule prevails.

V d) Rule in Foss v. Harbottle
Applies essentially to corporate membership rights. In this area the decisions of the
majority properly arrived at will be binding on the company and all the members
including the dissenting members.
Exceptions
(1) Ultravires
(2) Fraud on the Minority
(3) Matters requiring qualified majority decided by special majority.

VI a) No Conflict rule is an area dealing with the fiduciary duty of directors and others.
The rule envisages that directors and others shall not place themselves in such a position
that there would be a actual or possible conflict of their personal interest and duty
towards the company. The question here is not whether they have abused their position
but whether there is a chance of abuse of their position. This may arise in the following
situations:-
(1) Contract with the Company
(2) Doing business in competition with the Company
(3) Use of corporate opportunity
Leading case: Regal Hastings v. Gulliver

VI b) i)
Statutory Auditor

(1) Government Co. - The controller and Auditor General of India See section 619.
(2) Private Co. - Members in general meeting at the AGM
- Statutory Auditors tenure-From the conclusion of one AGM to the conclusion of the
next AGM.

VI b) ii)
Yes, by the general meeting-See section 224 (7).Previous approval of C.G required for
this.

VI c)
-See section 274
- Additional ground of disqualification
See S. 274 (3) - Only private Cos which are not subsidiaries of public Cos can prescribe
additional grounds of disqualification.



6

VI d) i)

Declaration of solvency
See Section 488.

VI d) ii)
Contributories

Consists of present and past members of a company being wound up. Past members (B
List Contributories) liability arises only in case the amount due on the shares held by
them cannot be realised by the respective A list contributories (persons who are the
members of the company at the commencement of winding up). Further if a person was
not a member of the company within a period of 1 year before the commencement of
winding up he cannot be treated as a B list contributory.

VI d) iii)
Persons having the locus standi as a member to file a petition for winding up
See Section 439(4).






1

NATIONALLAWSCHOOLOFINDIAUNIVERSITY,BANGALORE
MasterofBusinessLaws(MBL)Iyear
2011SupplementaryExaminationKeyAnswer:INDUSTRIALRELATIONSLAW
02.01.2012
AnswerANYSIXoutoftheEIGHTquestions:(6x15=90marks)

1.ExplainhowregistrationofTradeUnionsisdifferentfromrecognitionofTradeUnion.

Key Answer: Registration of the Trade Unions is done at the initiative of Trade Unions.
Registrar of Trade Unions registers the Trade Unions and issues certification
of recognition. Procedures prescribed in Section 4, 5, and 6 of the Trade
Unions and have to be complied (details of Section 4,5, and 6 is to be
contained in the answer) Registration is for the purpose of mainly getting
immunities under the Act and other facilities provided by the Act.
RecognitionoftheTradeUnionsis donebytheemployerforthepurposeof
facilitating effective, collective bargaining. There is no law requiring
compulsoryrecognitionofTradeUnions.Generally,themanagementandthe
Trade Unions enter into an agreement with respect of recognition of Trade
Unions.TheyalsoagreeontheproceduresforrecognitionofTradeUnions.

2.ExplainthereasonsforweakeningofTradeUnionMovementinIndia.

ChallengesposedbyEconomicLiberalization
VoluntaryRetirementSchemes
Informalisationoflabourandsubcontracting
CollectivismtoIndividualism
Productivitylinkedwages
LegislationscoveringallmostallaspectsofEmployerEmployeeRelations
Openingofemploymentopportunitiesinnewareaswithliberalization
WeakeningofTradeUnions

3. Explain the prerequisites for effective collective bargaining. Also examine as to what
extenttheyarepresentintheIndianscenario.

KeyAnswerElaborationonthefollowingpoints:
- StrongTradeUnionsincludingfinances
- CompulsoryrecognitionofTradeUnions
- Nomultiplicity
- Goodfaithnegotiations
- GoodTradeUnionleadership
- Nounfairlabourpractices
- Willingnesstogiveandtake
- NopoliticizationofTradeUnion
MostoftheaboveareabsentintheIndianscenario.
2

4. Examine the immunities available to a registered Trade Union, with the help of case
law.

KeyAnswer:TheimmunitiesareavailableonlytoregisteredTradeUnions.Section17ofthe
Trade Union confers immunity from criminal conspiracy to registered Trade
Union. Section 18 confers immunity from civil liability in respect of acts done
in furtherance of a trade dispute. The immunities are confined to theobjects
of the Trade Union mentioned in Section 15 of the Trade Union Act. Under
Section17theveryactoftheworkersgoingonstrikeisabreachofcontractof
employment. According to the Section 43 of the Indian Penal Code anything
whichfurnishesagroundforacivilactionisillegal.Soworkersgoingonstrike
i.e. breachof contractof employment gives rise to civil action for damages is
illegalasperSection43.

Twoormoreworkerscommittingsuchanillegalactiscriminalconspiracy.The
TradeUnionActprovidesimmunityforsuchconspiracyaslongasnooffence
iscommitted.Section18istobeexplained:bythecandidate.

CaseLaw:1)FederationofWesternIndianCineEmployeesVs.FilmayaPvt.Ltd
2.ChrandranaBrosvs.K.VenkataRao

5.Analysethedefinitionof'workman'intheIndustrialDisputesAct,1947withthehelpof
caselaws.

Key Answer: The 'workman' definition consisting of meaning part, inclusive part and
exclusivepartwillhavetobeexplained.Thedefinitiondoesnotdifferentiate
betweenpermanent,temporaryetc.CaseLaws"H.R.Adyanthayavs.Sandoz
(India Ltd). Constitutional Bench decisions is to be explained. Also
Sundarambalvs.GovernmentofGoacasealsoistobeexplained.Theremay
be other decisions in addition to these two, distinction between workman
andcontractoralsotobeexplained.

6. Explain what an Industrial dispute is and also when an individual dispute becomes
industrialdispute.

Key Answer: Industrial dispute definition has to be explained. An Industrial dispute can be
raisedbypluralityofworkers.Whatisthenumberofworkersrequiredtoraise
an industrial dispute, it should be substantial numbers of workers or a Trade
Union in the organization. The explanation given to substantial number given
by the Supreme Court must be explained. The term any person used in the
definitionhastobeexplained,usingthecaselaw,WorkmenoftheDimakuchi
EstateVs.Dimakuchi.AlsotheyhavetorefertotheStandardVaccumRefining
Co.ofIndiaVs.Workmen.
Individual dispute deemed as Industrial dispute, 1965 amendment is to be
explained. In case of individual dispute not covered by deemed industrial
3

dispute, the individual dispute has to be exposed by substantial number of

fellowworkers.
7.ExplaininbriefdifferentmethodsofresolutionofIndustrialdisputesasprovidedunder
theIndustrialDisputesAct,1947.

Key Answer: Trace the method adopted to resolve the Industrial disputes show the
movement from voluntary settlement to compulsory adjudication of
Industrialdisputes.MakereferencetoauthoritiesprovidedundertheIDAct,
1947. viz, Works Committee, Conciliation (Conciliation Officer and Board of
Conciliation) Court of Inquiry, Grievance Settlement Authority, Arbitration
andCompulsoryAdjudication(LabourCourt,IndustrialTribunalandNational
Tribunal),criticalassessmentandanalysisofworkingofthesystem.

8. Explain the definition of 'Strike' under the Industrial Disputes Act. Also explain how
StrikesareregulatedundertheIndustrialDisputesAct.

KeyAnswer:Explainthedefinitionofstrikeascessationofwork.Itmaybepartialortotal.
Itisaconcertedactionoftheworkmen.Strikesmaybelegalorillegal.The
legalstrikesarefurtherclassifiedintojustifiedandunjustifiedstrikes.

Regulationofstrikesrefertosections22,23and24oftheIndustrialDisputes
Act,withbriefexplanation.

Writeshortnotesonthefollowing(4x2=10marks)

a)Fundsofaregisteredtradeunion:generalfund&politicalfundnatureofcontribution
towardsthesefundsobjectsforwhichthesefundsmaybespenteffectuponrightsofthe
membersnotcontributingtothepoliticalfunds.

b) Unfair labour practices: Refer to schedule V of the Industrial Disputes Act 1947;
punishmentforunfairlabourpractices;permissionbeforeprosecution.

c) Outsiders as office bearers of a registered Trade Union: Section 22 of the Industrial

Disputesoftheofficebearersinorganisedsector;50%oftheofficerbearersintheunorganised
sector; the purpose behind having outsiders; Historical reasons; How the rules of the trade union
mustprovideforthis.

d) Difference between layoff and lockout: Lay off is in respect to the circumstances
beyondthecontroloftheemployer,undercircumstancesmentionedinthedefinitionoflay
off. Laid of employees are entitled for layoff compensation. Lay off under the Industrial
DisputesActiscontemplatedintheIndustrialEstablishments.
Lockout in a weaken of collective bargaining, available to the employer. It can betotal or
partial. It is regulated under the Industrial Disputes Indian Act, Sections 22, 23, 24. Lock
outsandbelegalorillegal.Legallockoutscanbeclassifiedasjustifiedandunjustified.
NATIONALLAWSCHOOLOFINDIAUNIVERSITY,BANGALORE
MasterofBusinessLaws(MBL)Iyear
Supplementary2011ExaminationKeyAnswer:ENVIRONMENTALLAW03.01.12

PARTA
AnswerANYFOURofthefollowing: (4x12=48)

1. ExaminethePowersofthePollutionControlAuthorities.Addanoteonreformingthe
system.

Powers of the Pollution Control Authorities: Powers of granting consent; launching

prosecutions; issuing orders for closure; giving instructions to other authorities;
inspection, investigation, sampling, analysis and acting on reports and on individual
complaints.
Reforming the system: Depoliticisation; capacitybuilding; incentivising better
compliance; restructuring administration by making central authorities policy makers,
statefunctionariesastechnicaladvisorsandlocalauthoritiesasimplementersetc.

2. Analyse the law for management of Municipal Wastes and Hazardous Wastes in the
Indiansystem.

BackgroundBaselconvention;AlmitraHPatelcase.
Salient features: conceptualization; Nodal Agency; Process & procedures: segregation,
handling,packing,transport&disposal:problemsinrelationtoeachoneofthese.

3. Discusstheprinciplesof'polluterpays'and'precaution'.

Polluterpays&precaution:Highlightthefollowingforeach:
Describetheprinciple;itslegalstatusunderInternationalEnvironmentalLawandIndian
Law;itsapplicationthroughcaselaw.

4. DiscusstheIndianLawontheProtection&ManagementofCoastalAreas.

InternationalLegalDevelopment:LawoftheSea.
CRZ notifications and Amendments: Activities permitted, restricted, prohibited;
classification:CRZI,CRZII,CRZIII&CRZIV
Caselaw
AddanoteonCMZnotification.

5. ExaminethelawdealingwiththeEnvironmentalLiabilityofCorporateManagers

Discuss Sec.16 (offences by companies) and Sec.17 (offences by Govt.

Departments)ofE.P.A,1986Refertocaselaw.

6. Discuss the Constitutional concerns and the judicial pronouncements relating to

environmentalprotection.

Constitutional Concerns: Art.21; Art.48A; Art.51 A(8) Discuss (refer to Public Trust
Doctrine:M.C.MehtaCase).
Judicial Pronouncements: Discuss cases that have evolved: environmental principles;
providedbettertoolsforimplementation;involvedissuanceofadministrativedirections;
facilitatedaccommodationofexpertopinions;createdinstitutionsofgovernanceetc.

PARTB
7.WriteEvaluatoryNoteson: (2x10=20)

a) RiodeJanieroSummitonEnvironment&Development,1992;

Discussthefollowing:
BackgroundDevelopmentsfrom19721992;
Achievements: Riodeceleration; Nonbinding Forestry principles; Treaties on
Biodiversity & Climate change; Agenda 21; Commission on Sustainable
Development.

b) UnitedNationsEnvironmentProgramme.

Itsgenesis;itscontributions:treatymaking;capacitybuilding;conveningconferences
andworkingontheirfollowup;itscurrentstatusvisvisCSD,GEF,WTO,UNDPetc.

8.Writeshortnotesonthefollowing: (4x8=32)

a) EnvironmentImpactAssessmentLaw;

Application of the principles of precaution and sustainable Development; Discuss &

compare 1994 & 2006 notificationshighlighting the problems as to the process &
results.

b) Individual's Right to Initiate Legal Proceedings against polluters under the Pollution
ControlLaws;

DiscussSec.49ofWaterActandthelimitationsoftheRight.

c) TrailSmelterArbitration;

Application of the principles of good neighbourliness and liability for transboundary

harmdiscussthefactsofthecaseandtheArbitralAward.

d) PolluterPaysPrinciple.

Discusstheconcept,legalstatusoftheprincipleandcaselaw.

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