NATIONAL LAW SCHOOL OF INDIA UNIVERSITY

BANGALORE

II YEAR MBL SUPPLEMENTARY EXAMINATION (FEB.) 2017

INVESTMENT LAWS

Marks: 100
Time: 3 hours
Instructions
1. No clarifications can be sought on the Question Paper;
2. Electronic gadgets of any kind are not permitted inside the
Examination Hall.
3. Bare Acts, notes, articles, books or any other material are not
permitted inside the Examination Hall.
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Answer ANY FIVE questions. Marks are indicated against each question.

Question No. 1: Write short note on following:

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a. Anchor Investor
b. Green Shoe Option
c. Underwriting
d. Sweat Equity
(4 x 5 = 20 Marks)
Question No. 2
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Securities market is depended upon the ‘nature of securities’ and its marketability.
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a. Distinguish how are ‘securities’ different from ‘traditional product’?

b. Explain the concept of marketability of securities from Company Law
perspective?
c. How is application Securities Contract (Regulation) Act is depended on
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definition of ‘securities’?
(5 + 5 + 10 = 20 Marks)
Question No. 3
a. What do you understand by Listing of Securities and what are its objectives?
b. How does SEBI regulate the listing of securities?
c. When does securities of the company are compulsorily required to be
delisted?
(5+5+10 = 20 Marks)

Question No. 4
a. What are the benefits and disadvantages for a company to raise funds from
public?
b. Explain the detailed process of an Initial Public offer (IPO)?
c. Distinguish between Fixed Price Method and Book Building Method in an
IPO?
(5+10+5 = 20 Marks)
Question No. 5

Explain the process and conditions for raising funds through Depository Receipts
in following two cases:

a. Foreign company wants to raise funds from India

b. Indian Company wants to raise funds from abroad
(10+10 = 20 Marks)

Question No. 6

Post liberalization, several measures were undertaken to increase attractiveness of

India as a foreign investment destination like allowing FDI in new sectors,
dispensing with the need for multiple approvals from government and/or regulatory
agencies that exist in certain sectors, and extending the automatic route to more
sectors. Keeping this in view answer the following:

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a. What form of instruments can be used for the purpose of FDI?
b. What are the various modes of inward FDI in India?
c. What is the status of FDI in Defence Sector as on the date?
(5+10 + 5 = 20 Marks)

Question No. 7
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Explain the following:
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a. Rights Issue and Bonus Issue

b. Private Placement by a Public Listed Company
c. Unpublished Price Sensitive Information
d. Combinations
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(4 x 5 = 20 Marks)

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY
BANGALORE

II YEAR MBL SUPPLEMENTARY EXAMINATION (FEB.) 2017

INSURANCE LAWS
Marks – 100
Time: 3 hours
Instructions:
1. No clarifications can be sought on the Question Paper:
2. Answer must be brief but covering all points on issue;
3. Additional weight-age will be given to bring-in relevant case law on
the point;
4. Please develop your answer by making visible paragraphs;
5. Electronic gadgets of any kind are not permitted inside the
Examination Hall.
6. Bare Acts, notes, articles, books or any other material are not
permitted inside the Examination Hall.
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Answer any five questions. All questions carry 20 marks.

1. What are essential elements and characteristics of the Insurance Contract?

Discuss each with decided cases?

2. Define Special Insurance Doctrines and discuss how these doctrines are
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applicable to Life , Marine & Fire Insurance Contracts.

3. Define Insurable interest and principles of good faith. At what time insurable
interest shall be present in fire, marine and life insurance? Can a non-
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relative have insurable interest?

4. Ramesh has taken a policy of fire insurance on building from Oriental

Insurance Company. A quantity of gunpowder belonging to gunpowder
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factory of a third person Suresh a half mile distance away from the insured
property ignited and exploded and consequently the windows and window
frames were shattered, and the structure was damaged generally by the
atmospheric pressure caused by the explosion. Decide with latest case laws.

5. Ram Prasad was insured with the Employees' State Insurance Corporation
("the Corporation") with Insurance No. 913644. Ram Prasad employee's
contribution towards the insurance scheme under the Employees' State
Insurance Act, 1948 ("the ESI Act") was being deducted regularly from his
salary and deposited by his employer with the Corporation. Under this
health insurance policy Insured's wife and children are also covered. In
2016, the Insured's wife was admitted in the ESI dispensary at Mysore
District for her treatment for diabetes. However, the condition of his wife'
continued to deteriorate. As alleged by the Insured, there were instances
when the doctors were not available even during emergencies. Later, the
Insured got his wife medically examined in a private hospital. The tests done
revealed that his wife had been diagnosed incorrectly in the ESI dispensary;
and that the deterioration in the condition of the Insured's wife was a direct
 result of the wrong diagnosis. The Insured wants to file a complaint for
compensation of Rs. 20 lakhs, under the Consumer Protection Act, 1986
("the CP Act") before the Karnataka State Consumer Reddressal Commission
seeking (i) compensation towards mental agony, harassment, physical
torture, pains, sufferings and monetary loss for the negligence of the
authorities; and (ii) direction for payment of interest on the amount of
reimbursement bills. The ESI Corporation rejected the claim by raising
certain objections, namely, (i) that the complaint filed is not maintainable
before Consumer Forum. (ii) the complaint is liable to be dismissed as the
wife of the complainant was treated in the ESI dispensary, Mysore District,
which is a government dispensary and the complainant cannot be treated as
a consumer; and (ii) that the complainant is not a consumer within the
definition of 'consumer' in the Consumer Protection Act and he is not
entitled to file a complaint against the ESI dispensary. It was also contended
that the facility of medical treatment in government hospital cannot be
regarded as a 'service' hired for consideration. Advice Ram Prasad with
cases.

6. Short Notes

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a) Compulsory Motor Vehicle Insurance V. Comprehensive Insurance
b) Explain Types of Marine Insurance

7. Krishna was a resident of Mandya District, Karnataka. He was a rich

landholder and possessed several acres of land. Sometime in December
2015, Krishna submitted a proposal through one Firoz Khan, an agent of the
respondent company at Mandya, for the insurance of his life with the LIC for
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a sum of Rs. 20 lakh only. Krishna's age at that time was about 45 as stated
by him in the proposal form.

The Narayan Nayak, who took an assignment on October 18, 2016 of a life
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insurance policy on the life of one Krishna for a sum of Rs. 20 lakh. Krishna
died on November 12, 2016. Thereafter, the Narayan Nayak made a demand
against the LIC for a sum of Rs. 20 lakh with interest on the basis of the life
insurance policy which had been assigned to him. This claim or demand of
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the Narayan Nayak was repudiated by the LIC by a letter dated January 1st,
2017 which in substance stated that the insured Krishna had been guilty of
deliberate mis-statements and fraudulent suppression of material
information in answers to questions in the proposal form and the personal
statement [ ie. actual age of insured was 48 years but he had mentioned 45
years in the proposal form] which formed the basis of the contract between
the insurer and the insured. On the repudiation of his claim the Narayan
Nayak sent a notice on January 21st 2017 but there was no reply from the
LIC.
Draft complaint.

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY
BANGALORE

II YEAR MBL SUPPLEMENTARY EXAMINATION (FEB.) 2017

LAW RELATING TO INTERNATIONAL COMMERCIAL TRANSACTIONS

Marks: 100
Time: 3 hours
Instructions
1. No clarifications can be sought on the Question Paper;
2. Electronic gadgets of any kind are not permitted inside the
Examination Hall.
3. Bare Acts, notes, articles, books or any other material are not
permitted inside the Examination Hall.
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Answer ANY FIVE of the following. All questions carry equal marks.

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1. What is meant by the expression “seaworthiness” in the maritime
transportation of Goods? Discuss this concept under the Carriage of
Goods by Sea Act (COGSA), 1925.

2. Critically evaluate the scope of ‘quarantine restriction’ as an exception

to the liability of the sea carrier under the Hague Rules, 1924.
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3. Distinguish the Warsaw Convention, 1929 and the amended Warsaw
Convention, 1955 from the Montreal Convention, 1999 with regard to
the liability of the air carrier.
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4. What are the advantages of ‘multimodal transportation of Goods’?

Discuss the liability of the ‘multimodal transport operator’ (MTO)
under the Indian Multimodal Transportation of Goods Act (MTGA),
1993.
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5. Compare the position of the Indian Sale of Goods Act, 1930, with the
Vienna Convention on Contracts for International Sale of Goods
(CISG), 1980 with regard to the doctrine of ‘frustration of contract’.

6. Critically comment on the doctrine of ‘public policy’ under the Indian

law and practice with respect to the enforcement of foreign arbitral
awards.

7. Write short notes on the following:

i) Clause paramount;
ii) Right of disposition in the carriage by air

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY
BANGALORE

II YEAR MBL SUPPLEMENTARY EXAMINATION (FEB.) 2017

INTELLECTUAL PROPERTY LAW

Marks: 100
Time: 3 hours
Instructions:

1. No clarifications can be sought on the Question Paper;

2. Electronic gadgets of any kind are not permitted inside the
Examination Hall.
3. Bare Acts, notes, articles, books or any other material are not
permitted inside the Examination Hall.
4. Answers should be supported by reference to statutory provisions
and decided cases.
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Answer ANY FIVE questions. All questions carry EQUAL MARKS

1. Examine the ‘Rights of copyright holder’ and the tests for determining
infringement of Copyright. Refer to decided cases.

2. Discuss the procedure for obtaining patent in India. Explain the

grounds for grant of compulsory license.
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3. Examine with the help of case laws the absolute and relative grounds
for refusal of Trademarks.
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4. Explain:
a. Rights of the performer under copyright law
b. Infringement of patent
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5. What is Geographical Indication? What are the essential requirements

for registration of a Geographical Indication?

6. Discuss:
a. Procedure for registration of Trademark in India
b. Procedure for registration of Plant Varieties in India

7. Write short notes on four of the following:

a. Idea-Expression Dichotomy under copyright law
b. Patent related provisions under TRIPs
c. WCT & WPPT
d. International Registration of Trademark
e. Protection of Traditional knowledge
f. Assignment of Trademark

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY
BANGALORE
II YEAR MBL SUPPLEMENTARY EXAMINATION (FEB.) 2017
TAXATION OF CORPORATIONS & COMMODITIES
Marks: 100
Time: 3 hours

Instructions:
1. NO Clarifications can be sought on the question paper and
advised to rely as it is.
2. Electronic gadgets of any kind are NOT permitted inside the
Examination Hall.
3. Bare Acts, notes, articles, books or any other material are NOT
permitted inside the Examination Hall.

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PART A
Answer ANY 4 Questions: 4 X 10 = 40 Marks

1. (a) Distinguish revenue receipt from a capital receipt?

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(b) The assessee carried on business as selling agents of various
manufacturers and entered into about dozen agency agreements for
that purpose. It was normal incident of the assessee’s business that
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the agency agreements might be modified, altered or discharged from

time to time. One of the agreements which was for a period of three
years was terminated at the end of the second year and a payment of
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Rs.1,00,000/- was given as compensation. The assessee contends that

this was a capital receipt. Decide.

2. Tax Avoidance and tax evasion erode the tax base. How and what is the
judicial attitude towards these issues? Briefly mention the difference
between Tax avoidance and Tax evasion.

3. What are the broad features of Service Tax law?

4. What is Tax Haven? Briefly mention the characteristics of a good Tax

Haven?

5. Discuss “manufacture” under Central Excise law?

6. What are the controversial issues arising from Tax Treaty Provisions?
 PART B
Answer ANY 4 Questions: 4 X 10 = 40 Marks

7. Main Advantages of Value Added Tax (VAT).

8. Mention the sources of tax laws.
9. Constitutional aspects of tax law.
10. Imported goods under Customs Act.
11. Best Judgment Assessment under Section 144 of Income Tax Act.
12. Transfer Pricing under Income Tax Act.

PART C
Answer BOTH Questions: 2 X 10 = 20 Marks
13. Purchase tax was paid by assesse on oil seeds or steel, scrap, steel
ingots or cotton, but they were used for the manufacture of oil and oil cake,

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rolled steel or yarn. Discuss whether the later manufactured items are
taxable under Section 15 of the Central Sales Tax law?

14. The assesse XYZ, a Private Ltd company claimed a sum of Rs.1,50,000/-
(paid it as damages to “A”) as a business loss in the assessment year 1971-
72. The assesse had contracted to sell silver to “A” at Rs.440 per k.g. As the
price of commodity rose to around Rs.2,000 per kg, the assesse could not
perform the contractual obligations. As a result claim was incurred but
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disallowed by tax authority. Discuss whether the Income Tax Officer can
allow the claim or if this is speculative transaction under Income Tax Act
law.
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