KBH – 2

Roll No. …………………………………… Total No. of Printed Pages: 6

Total No. Questions: 6 Maximum Marks: 100

Time Allowed: 3 Hours

IMPORTANT INSTRUCTIONS TO CANDIDATES

Question No. 1 is compulsory

Answer any four questions from the remaining five questions

Wherever necessary, suitable assumptions should be made and disclosed by way of note
forming part of the answer

Working Notes should form part of the answers.

1.
(a) Kapil went to a departmental store to purchase a steel pan. He asked the salesman

about the area in departmental store where steel pans are kept. The salesman

indicated him the area with instructions that with steel pans, other metal’s pans

were also kept. Kapil wrongfully picked an aluminium pan in place of steel pan. The

salesman watched but said nothing to Kapil. Kapil reached his house and found that

pan was not a steel pan but actually an aluminium pan. Kapil filed a suit against

departmental store for fraud. Discuss, whether Kapil was eligible to file suit for fraud

against departmental store under Indian Contract Act, 1872?

(7 Marks)

(b) Rohan incorporated a "One Person Company". The memorandum of OPC indicates the

name of his brother Vinod as the nominee of OPC. However, Vinod is starting his new

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business in abroad and needs to leave India permanently. Due to this fact, Vinod is

withdrawing his consent of nomination in the said One Person Company. Taking into

considerations the provisions of the Companies Act, 2013 answer the questions given

below:

i. If is it mandatory for Vinod to withdraw his nomination in the said OPC

ii. Can Rohan make his 17 year old son as a nominee in such a case.

iii. Write short notes on One Person Company.

(7 Marks)

(c) Write short notes on ‘Rights’ & ‘Liabilities’ of a Minor when he is admitted to the

benefits of a partnership firm,

(6 Marks)

2.
(a) Sohan is a trader in selling of wheat. Binod comes to his shop and ask Sohan to show

him some good quality wheat. Binod is satisfied with the quality of wheat. Sohan

agrees to sell 100 bags of wheat to Binod on 10th June 2021.

The delivery of wheat and the payment was to be made in next three months i.e. by

10th September 2021 by Binod. Before the goods are delivered to Binod, Sohan gets

another customer Vikram in his shop who is ready to pay higher price for the wheat.

Sohan sells the goods of Binod (which were already lying in his possession even after

sale) to Vikram. Vikram has no knowledge that Sohan is not the owner of goods. With

reference to Sale of Goods Act,1930, discuss if such a sale made by Sohan to Vikram

is a valid sale?

(7 Marks)

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(b) According to Section 2(72) of the Companies Act, 2013, what institutions are

considered as public financial institutions (PFI)? What are the conditions that must be

satisfied for an institution to be notified as a PFI?

(7 Marks)

(c) Explain the key requirements and steps involved in the incorporation of a Limited

Liability Partnership (LLP) under Section 11 of the LLP Act, 2008. Additionally,

discuss the role of the incorporation document, the necessary statements to be filed,

and the consequences for making false statements during the incorporation process.

(6 Marks)

3.
(a) A, B and C are partners in a firm called ABC Firm. A, with the intention of deceiving

D, a supplier of office stationery, buys certain stationery on behalf of the ABC Firm.

The stationery is of use in the ordinary course of the firm’s business. A does not give

the stationery to the firm, instead brings it to his own use. The supplier D, who is

unaware of the private use of stationery by A, claims the price from the firm. The firm

refuses to pay for the price, on the ground that the stationery was never received by it

(firm). Referring to the provisions of the Indian Partnership Act, 1932 decide:

i. Whether the Firm’s contention shall be tenable?

ii. What would be your answer if a part of the stationery so purchased by A was

delivered to the firm by him, and the rest of the stationery was used by him for

private use, about which neither the firm nor the supplier D was aware?

(7 Marks)

(b) XYZ Corporation Pvt. Ltd. is a company operating in India with a unique share

structure. While the Central Government holds a substantial portion of the company's

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shares, there are also shares with differential voting rights in circulation. These

differential voting rights give some shareholders more voting power than others.

Considering the definition of a "Government Company" under Indian corporate law,

can you determine whether XYZ Corporation Pvt. Ltd. qualifies as a Government

Company? Explain your answer, taking into account the concept that the "paid-up

share capital" is construed as "total voting power" when shares with differential voting

rights are issued.

(7 Marks)

(c) State the remedies for Actual Breach of Contract under The Indian Contract Act,

1872.

(6 Marks)

4.
(a) Explain the concept of 'misrepresentation' in contract law. Raj convinced Puneet to

purchase his used laptop by saying that it was in excellent working condition.

However, after buying the laptop, Puneet found several issues like overheating and

slow performance. Raj offered to get it serviced at 30% discount on repair charges.

After a few days, the laptop stopped working completely. Now Puneet wants to

rescind the contract. Can Puneet rescind the contract based on the grounds of

misrepresentation? Give reasons for your answer.

(7 Marks)

(b) When Presentment is not Necessary under The Negotiable Instruments Act, 1881?

(7 Marks)

(c) The Insolvency and Bankruptcy Code, 2016 provides for the establishment of the

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Insolvency and Bankruptcy Board of India (IBBI) as the regulator responsible for

overseeing insolvency proceedings and entities involved in the process. What are the

key functions and features of the IBBI?

(6 Marks)

5.
(a) Mr. Samuel agreed to purchase 100 bales of cotton from Mr. Varun, out of his large

stock and sent his men to take delivery of the goods. They could pack only 60 bales.

Later on, there was an accidental fire and the entire stock was destroyed including 60

bales that were already packed. Referring to the provisions of the Sale of Goods Act,

1930 explain as to who will bear the loss and to what extent?

(7 Marks)

(b) Write short notes on Partnership Deed & its content as per the Indian Partnership Act,

1932.

(7 Marks)

(c) Ramesh appointed Suresh as his agent to manage his business in Delhi. With Ramesh's

consent, Suresh appointed Mahesh to handle the daily operations and sales in the

Delhi office on behalf of Ramesh. In this situation, is Mahesh a sub-agent or a

substituted agent? Explain the key differences between the two with reference to their

relationship and liabilities towards Ramesh.

(6 Marks)

6.
(a) Girish issued a cheque in favor of Prakash. Subsequently, Girish instructed Prakash

not to deposit the cheque for payment and also lodged a stop payment request with

the bank regarding the cheque issued to Prakash. Determine, in accordance with the

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provisions of the Negotiable Instruments Act, 1881, whether Girish's actions amount

to an offense.

(7 Marks)

(b) Difference between Contract of Insurance and Wagering Agreement.

(7 Marks)

(c) Explain the provisions regarding Ascertainment of Price in a Contract of Sale.

(6 Marks)

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