SOLUTION BANK
CONSTITUTION OF INDIA, LAW & ENGINEERING
UNIT 1-Introduction and Basic Information about Indian
Constitution
S.No. Question Marks
Q-1 What is Constitution ? 2
Soln- The word constitution has two main meanings:
1. It means a document having a special legal status which
sets out the framework and principal functions
of the organs of government within the state and declares the
principles or rules by which those organs must operate.
2. In modern words, constitution refers to the whole system of
government of a country, the collection of rules which
establish and regulate or govern the government. This system
is founded partly on Acts of Parliament and Judicial
decisions, partly upon political practice and partly upon
detailed procedures established by the various organs of
government for carrying out their own tasks, e.g. the law and
custom of Parliament or the rules issued by the Prime
Minister to regulate the conduct of Ministers.
Q-2 What is Constitutionalism ? 2
Soln- Constitutionalism is the set of principles, manners and
institutional Arrangements that have traditionally
served to limit government.
The special virtue of constitutionalism lies not merely
in reducing power of the state, but in effecting that
reduction by the advance imposition of rules.
Q-3 What is Constitution law ? 2
Soln- Constitutional law is that part of national law which governs
the systems of public administration and the relationship
between the individual and the state.
Q-4 What is Constitutuent Assembly ? 2
Soln- The Constituent Assembly of India was elected to write the
Constitution of India. The members of the Constituent
Assembly were elected by the provincial assemblies by a
single, transferable-vote system of proportional
representation.
The total membership of the Constituent Assembly was 389
of which 292 were representatives of the provinces, 93
represented the princely states and four were from the chief
commissioner provinces of Delhi, Ajmer-Merwara, Coorg and
British Baluchistan.
Q-5 Why the Constitution of India is called the “Bag of 2
Borrowings” ?
Soln- Constitution of India: A 'Bag of Borrowings' The Indian
Constitution is often called a ‘bag of borrowings’. It is called
so because it has borrowed provisions from the constitutions
of various other countries. However, it is much more than a
mere copy of other constitutions.
Q-6 What is local-self government ? 2
Soln- The Constitution of India also recognized it and the Article 40
of the Directive Principles of State Policy lays down that -
“The State shall take steps to organize village panchayats and
endow them with such powers and authority as may be
necessary to enable them to function as units of self-
government”.
Types of Local-Self Government:
Mention the three type of local self governing
Panchayati raj or gram panchayat.
Block samiti.
Zila parishad.
Q-7 What is Federal System ? 2
Soln- In federal systems, political authority is divided between two
autonomous sets of governments, one national and the other
subnational, both of which operate directly upon the people.
Usually a constitutional division of power is established
between the national government, which exercises authority
over the whole national territory, and provincial governments
that exercise independent authority within their own
territories. Of the eight largest countries in the world by area,
seven— Russia, Canada, the United States, Brazil, Australia,
India, and Argentina—are organized on a federal basis.
Q-9 Write the emergency provisions in India. 2
Soln-
1. Article 352- National emergency
2. Article 356-Emergency in state (president’s rule)
3. Article 360- Financial emergency
Q-10 Write the key features of Goverment of India Act,1935 . 2
Soln- Abolition of provincial dyarchy and introduction of dyarchy
at centre.
Abolition of Indian Council and introduction of an advisory
body in its place.
Provision for an All India Federation with British India
territories and princely states.
Elaborate safeguards and protective instruments for
minorities.
Supremacy of British Parliament.
Increase in size of legislatures, extension of franchise,
division of subjects into three lists and
retention of communal electorate.
Separation of Burma from India
Q-11 What is Indian Independence Act of 1947 ? 2
Soln- The Indian Independence Act was passed in 1947. The act
created two new independent dominions; India and Pakistan.
Pakistan was split into Pakistan and East Pakistan which is
now Bangladesh.
The Bengal and Punjab provinces were partitioned between
the two new countries. These dominions separated the
Muslim, Hindu and Sikh population and caused the biggest
forced migration which has ever happened that was not the
result of war or famine.
The Act repealed the use of ‘Emperor of India' as a title for
the British Crown and ended all existing treaties with the
princely states. Lord Mountbatten continued as Governor-
General and Jawaharlal Nehru was appointed India's first
Prime Minister, Muhammad Ali Jinnah became Pakistan's
Governor-General and Liaquat Ali Khan its Prime Minster.
The 15th August 1947 has since become celebrated as India'
and Pakistan's Independence Day.
Q-12 Write the Directive Principles of State Policy. 2
Soln- 1. These are the guidelines or 15 principles given to
the federal institutes governing the State of India, to be
kept in citation while framing laws and policies.
2. Contained in Part IV (Article 36-51) of the Constitution
of India.
3. Principles are;-
i. Economic and socialistic,
ii. Political and administrative,
iii. Justice and legal,
iv. Environmental,
v. Protection of monuments,
vi. Peace and security
Q-13 Write the salient features of Constitution of India. 10
Soln- 1. Written and Detailed Constitution
2. Self-made and Enacted Constitution
3. Preamble of the Constitution
4. India is a Democratic Socialist State
5. India is a Secular State
6. India is a Democratic State
7. India is a Republic
8. India is a Union of States
9. Mixture of Federalism and Unitarianism
10. Mixture of Rigidity and Flexibility
11. Fundamental Rights
12. Independence of Judiciary
13. Judicial Review
14. Fundamental Duties of the Citizens
15. Directive Principles of State Policy
16. Bi-Cameral Union Parliament
17. Parliamentary System
18. Adult-Suffrage
19. Single integrated State with Single Citizenship
20. Single Integrated Judiciary
21. Judicial Activism
Q-14 Write the formation of the constitution. 10
Soln- - 6 December 1946: Formation of the Constitution
Assembly (in accordance with French practice).
9 December 1946: The first meeting was held in the
constitution hall (now the Central Hall of Parliament House).
The 1st person to address was J. B. Kripalani,
Sachchidananda Sinha became temporary president.
(Demanding a separate state, the Muslim League boycotted
the meeting.)
11 December 1946: The Assembly appointed Rajendra
Prasad as its president, H. C. Mukherjee as its vice-chairman
and B. N. Rau as constitutional legal adviser. (There were
initially 389 members in total, which declined to 299 after
partition. Out of the 389 members, 292 were from government
provinces, 4 from chief commissioner provinces and 93 from
princely states.)
13 December 1946: An 'Objective Resolution' was
presented by Jawaharlal Nehru, laying down the underlying
principles of the constitution. This later became the Preamble
of the Constitution.
22 January 1947: Objective resolution unanimously
adopted.
22 July 1947: National flag adopted.
15 August 1947: Achieved independence. India split into
the Dominion of India and the Dominion of Pakistan.
29 August 1947: Drafting Committee appointed with B. R.
Ambedkar as its Chairman. The other 6 members of
committee were Munshi, Muhammed Sadulla, Alladi
Krishnaswamy Iyer, N. Gopalaswami Ayyangar, Khaitan and
Mitter.
16 July 1948: Along with Harendra Coomar Mookerjee, V.
T. Krishnamachari was also elected as second vice-president
of Constituent Assembly.
26 November 1949: The Constitution of India was passed
and adopted by the assembly.
24 January 1950: Last meeting of Constituent Assembly.
The Constitution was signed and accepted (with 395 Articles,
8 Schedules, 22 Parts)
26 January 1950: The Constitution came into force. (The
process took 2 years, 11 months and 18 days - at a total
expenditure of ₹6.4 million to finish.)
Q-15 Explain Preamble of Indian Constitution. 10
Soln- A preamble is an introductory statement in a document that
explains the document’s philosophy and objectives.
In a Constitution, it presents the intention of its framers, the
history behind its creation, and
the core values and principles of the nation.
The preamble basically gives idea of the following
things/objects:
Source of the Constitution
Nature of Indian State
Statement of its objectives
Date of its adoption
Components of Preamble
It is indicated by the Preamble that the source of
authority of the Constitution lies with the people of
India.
Preamble declares India to be a sovereign, socialist,
secular and democratic republic.
The objectives stated by the Preamble are to secure
justice, liberty, equality to all citizens and promote
fraternity to maintain unity and integrity of the nation.
The date is mentioned in the preamble when it was
adopted i.e. November 26, 1949.
Key words in the Preamble
We, the people of India: It indicates the ultimate
sovereignty of the people of India. Sovereignty means
the independent authority of the State, not being
subject to the control of any other State or external
power.
Sovereign: The term means that India has its own
independent authority and it is not a dominion of any
other external power. In the country, the legislature has
the power to make laws which are subject to certain
limitations.
Socialist: The term means the achievement of socialist
ends through democratic means. It holds faith in a
mixed economy where both private and public sectors
co-exist side by side. It was added in the Preamble by
42nd Amendment, 1976.
Secular: The term means that all the religions in India
get equal respect, protection and support from the state.
It was incorporated in the Preamble by 42nd
Constitutional Amendment, 1976.
Democratic: The term implies that the Constitution of
India has an established form of Constitution which
gets its authority from the will of the people expressed
in an election.
Republic: The term indicates that the head of the state
is elected by the people. In India, the President of India
is the elected head of the state.
Objectives of the Indian Constitution
The Constitution is the supreme law and it helps to
maintain integrity in the society and
to promote unity among the citizens to build a great
nation.The main objective of the Indian Constitution is to
promote harmony throughout the nation.
The factors which help in achieving this objective are:
Justice: It is necessary to maintain order in society that
is promised through various
provisions of Fundamental Rights and Directive Principles of
State Policy provided by the
Constitution of India. It comprises three elements, which is
social, economic, and political.
Social Justice – Social justice means that the
Constitution wants to create a society
without discrimination on any grounds like caste, creed,
gender, religion, etc.
Economic Justice – Economic Justice means no
discrimination can be caused by people
on the basis of their wealth, income, and economic status.
Every person must be paid
equally for an equal position and all people must get
opportunities to earn for their living.
Political Justice – Political Justice means all the people
have an equal, free and fair right
without any discrimination to participate in political
opportunities.
Equality: The term ‘Equality’ means no section of
society has any special privileges and all
the people have given equal opportunities for everything
without any discriminations.Everyone is equal before the law.
Q-16 Write and explain Fundamental Rights of Indian Constitution. 10
The Six Fundamental Rights are:
Soln- (i) Right to Equality:
It provides for Equality before Law, End of Discrimination,
Equality of Opportunity, Abolition of untouchability and
Abolition of Titles.
(ii) Right to Freedom:
It incorporates six fundamental freedoms -freedoms of speech
and expression, freedom to form associations, freedom to
assemble peaceably without arms, freedom to move freely in
India, freedom of residence in any part, and freedom of
adopting any profession or trade or occupation. It ensures
personal freedom and protection in respect of conviction for
certain offences.
The Constitution lays down that the freedom of life and
liberty cannot be limited or denied except in accordance with
the procedure established by law. Now under Art 21A Right
to Education for the children between the ages of 6-14 years
has been granted. Art. 22 guarantees protection against
arbitrary arrest and detention.
(iii) Right against Exploitation:
This Fundamental Right prohibits sale and purchase of human
beings, forced labour (begaar) and employment of children in
hazardous jobs and factories.
(iv) Right to Freedom of Religion:
The grant of this right involves the freedom of conscience,
religion and worship. Any person can follow any religion. It
gives to all religions freedom to establish and maintain their
religious institutions. Moperson can be compelled to pay any
tax for the propagation of any religion. The state cannot levy a
tax for any religion and constitution prohibits the imparting of
religious instructions in schools and colleges.
(v) Cultural and Educational Rights:
Under this category the Constitution guarantees the rights of
the minorities to maintain and develop their languages and
cultures. It also confers upon them the right to establish,
maintain and administer their educational institutions.
(vi) Right to Constitutional Remedies (Art. 32):
This fundamental right is the soul of the entire Bill of Rights.
It provides for the enforcement and protection of Fundamental
Rights by the courts. It empowers the Supreme Court and
High Courts to issue writs for the enforcement of these rights.
Q-17 Write the fundamental duties of Indian Constitution. 10
Soln- Respect its ideals and institutions, the National Flag and
the National Anthem.
Cherish and follow the noble ideals that inspired the
national struggle for freedom.
Uphold and protect the sovereignty, unity and integrity.
Defend the country and render national service.
Promote harmony and the spirit of common
brotherhood amongst all the people of India.
Value and preserve the rich heritage of the country’s
composite culture.
Protect and improve the natural environment.
Develop scientific temper, humanism and the spirit of
inquiry and reform.
Safeguard public property and to abjure violence.
Strive towards excellence in all spheres of individual
and collective activity.
Provide opportunities for education, added by the 86th
Constitutional Amendment Act, 2002.
UNIT 2-UNION EXECUTIVE AND STATE EXECUTIVE
S.No. Question Marks
Q-1 What is Judicial Activism ? Write its methods also. 2
Soln- The judiciary plays an important role in upholding and
promoting the rights of citizens in a country. The active role
of the judiciary in upholding the rights of citizens and
preserving the constitutional and legal system of the country
is known as judicial activism.
Judicial Activism Methods-
1. Judicial review
2. PIL
3. Constitutional interpretation
4. Access of international statute for ensuring
constitutional rights
5. Supervisory power of the higher courts on the lower
courts
Q-2 What is Judicial Review ? 2
Soln- It has the power to declare any such law or order of the
legislature and executive void, if it finds them in conflict the
Constitution of India.
Judicial Review is the power of the Judiciary by which-
The court reviews the laws and rules of the legislature
and executive in cases that come before them.
The court determines the constitutional validity of the
laws and rules of the government.
The court rejects that law or any of its part which is
found to be unconstitutional or against the Constitution.
Q-3 What is the qualification required to become the President of 2
India ?
Soln- • The person should be the citizen of India
• The minimum age required is 35 years.
• He should qualify all the conditions to be elected as a
member of the lower house (Lok Sabha).
Q-4 Write powers & functions of Indian Parliament. 2
Soln- 1. Legislative powers
2. Executive powers
3. Financial powers
4. Constituent powers
5. Judicial powers
6. Electoral powers
7. Other powers
Q-5 Write the functions of Chief Minister with respect to the 2
Governor ?
Soln- CM has to communicate to the Governor all the
decisions of the council of ministers relating to the
administration of the states.
Whenever the Governor calls for any information
relating to the decisions taken or regarding the
administration, the CM has to provide him the same.
The Governor can ask for consideration of council of
ministers when a decision has been taken without the
consideration of the cabinet.
CM advises Governor regarding the appointment of
important officials like Attorney General, State Public
Service Commission (Chairman and Members), State
Election Commission etc.
Q-6 Explain Lokpal and Lokayukta Act, 2013. 2
Soln- Retired Supreme Court judge Pinaki Chandra Ghose
was appointed as appointed as the first Lokpal of India
by PM Narendra Modi.
Composition- Under the 2013 Act, the Lokpal should
consist of a chairperson and the such number of
members, not exceeding eight, of whom 50% should be
judicial members.
The Act states that not less than 50% of the members of
the Lokpal should be from among persons belonging to
the SCs, the STs, OBCs, minorities and women.
Selection Procedure- A search committee will prepare
a panel of candidates, a selection committee will
recommend names from among this panel and the
President will appoint these as members.
Salaries and allowances-Salaries, allowances and
service conditions of the Lokpal chairperson will be the
same as those for the Chief Justice of India; those for
other members will be the same as those for a judge of
the Supreme Court.
Q-7 Explain PIL. 2
Soln- It is the power given to the public by courts through judicial
activism. However, the person filing the petition must prove
to the satisfaction of the court that the petition is being filed
for a public interest and not just as a frivolous litigation by a
busy body.
Who Can File a PIL and Against Whom?
Under Art 32 of the Indian Constitution, in the Supreme
Court.
Under Art 226 of the Indian Constitution, in the High
Court.
Under sec. 133 of the Criminal Procedure Code, in the
Court of Magistrate.
A Public Interest Litigation can be filed against a
State/ Central Govt., Municipal Authorities, and not
any private party.
Conclusion- The greatest contribution of PIL has been to
enhance the accountability of the governments towards the
human rights of the poor.
Q-8 Write the functions of Lok Sabha. 2
1. Legislative Function
2. Financial Powers- The power of control over the
finances by the Lok Sabha is powerful. The money bill
has to be introduced in the Lok Sabha first, and when
passed by the Lok Sabha it is to be transmitted to Rajya
Sabha for the recommendation.
3. Executive Control- Constitution provides that ' Council
of Ministers are collectively responsible to the Lok
Sabha. It is only the Lok Sabha which can pass a no-
confidence vote against the Council of Ministers and
force them to resign.
4. Electoral Function
Q-9 Write in brief the powers and functions of Governor. 2
Soln- Powers and Functions of Governor:
• If a person is a member of either the House of the
Parliament or the Legislature of a State, or a member of
the Council of Ministers at the national or the state
level and is appointed as Governor, he/she resigns that
post.
• The Governor is appointed for a term of five years but
normally holds office during the pleasure of the
President.
• The pleasure of the President means that the Governor
may be removed by the President even before the
expiry of his/her term. He/She may also resign earlier.
However, in reality, while appointing or removing the
Governor, the President goes by the advice of the Prime
Minister.
Powers of Governor:
1. Executive powers,
2. Legislative powers,
3. Financial powers,
4. Judicial powers, and
5. Discretionary powers.
Q-10 Discuss the Structure of Lokapal. 10
Soln Lokpal is a multi-member body, that consists of one
chairperson and a maximum of 8 members.
Chairperson of the Lokpal should be either the former
Chief Justice of India or the former Judge of Supreme
Court or an eminent person with impeccable integrity
and outstanding ability, having special knowledge and
expertise of minimum 25 years in the matters relating to
anti- corruption policy, public administration, vigilance,
finance including insurance and banking, law and
management.
Out of the maximum eight members, half will be
judicial members and minimum 50% of the Members
will be from SC/ ST/ OBC/ Minorities and women.
The judicial member of the Lokpal either a former
Judge of the Supreme Court or a former Chief Justice
of a High Court.
The term of office for Lokpal Chairman and Members
is 5 years or till the age of 70 years.
The members are appointed by the president on the
recommendation of a Selection Committee which is
composed of PM who is the chairperson, Speaker of
Lok Sabha , Leader of opposition in Lok Sabha, Chief
Justice of India or a Judge nominated by him/her and
One eminent jurist.
For selecting the chairperson and the members, the
selection committee constitutes a search panel of at
least eight persons.
Q-11 Explain High Court Autonomy. 10
Soln- Appointment of Judges: The appointment of judges of
the High Courts lies within the judiciary itself and is
not connected to the legislature or the executive.
Tenure of the Judges: High Court judges enjoy the
security of tenure till the age of retirement, which is 62
years. A High Court cannot be removed except by an
address of the President.
Salaries and allowances: The High Court judges enjoy
good salaries, perks and allowances and these cannot be
changed to their disadvantage except in case of a
financial emergency.
Powers: The Parliament and the state legislature cannot
cut the powers and jurisdiction of the High Court as
guaranteed by the Constitution.
Conduct of judges: Unless a motion of impeachment
has been moved, the conduct of the High Court judges
cannot be discussed in the Parliament.
Q-12 Explain powers and functions of High Court in India. 10
Soln- Original Jurisdiction-
• The High Courts of Calcutta, Bombay and Madras have
original jurisdiction in criminal and civil cases arising
within these cities.
• An exclusive right enjoyed by these High Courts is that
they are entitled to hear civil cases which involve
property worth over Rs.20000.
• Regarding Fundamental Rights: They are
empowered to issue writs in order to enforce
fundamental rights.
• With respect to other cases: All High Courts have
original jurisdiction in cases that are related to will,
divorce, contempt of court and admiralty.
• Election petitions can be heard by the High Courts.
Appellate Jurisdiction-
• In civil cases: an appeal can be made to the High Court
against a district court’s decision.
• An appeal can also be made from the subordinate court
directly if the dispute involves a value higher than Rs.
5000/- or on a question of fact or law.
• In criminal cases: it extends to cases decided by
Sessions and Additional Sessions Judges.
-If the sessions judge has awarded imprisonment for 7 years
or more.
As a Court of Record-
• High Courts are also Courts of Record (like the
Supreme Court).
• The records of the judgements of the High Courts can
be used by subordinate courts for deciding cases.
• All High Courts have the power to punish all cases of
contempt by any person or institution.
Administrative Powers-
• It superintends and controls all the subordinate
courts.
• It can ask for details of proceedings from
subordinate courts.
• It issues rules regarding the working of the
subordinate courts.
• It can transfer any case from one court to another
and can also transfer the case to itself and decide
the same.
• It can enquire into the records or other connected
documents of any subordinate court.
• It can appoint its administration staff and
determine their salaries and allowances, and
conditions of service.
Power of Judicial Review-
• High Courts have the power of judicial review.
They have the power to declare any law or
ordinance unconstitutional if it is found to be
against the Indian Constitution.
Power of Certification-
• A High Court alone can certify the cases fit for
appeal before the Supreme Court.
Q-13 Describe the functions of Prime Minister. 10
Soln- 1. Recommends the names of members of his team to
appoint as a Minister. The President can only make
those people as ministers whose names are
recommended by the Prime Minister.
2. Determines which department will be given to which
minister and he can also change the allotted department
of any Minister.
3. He can ask any minister to resign or advise the
president to dismiss him in case of differences of
opinion.
4. He also controls and directs the activities of all
Ministers.
5. He can bring about the collapse of the Council of
Ministers by resigning from office.
6. If the Prime Minister resigns from his post or dies, then
other ministers can’t do any work, which means the
Council of Ministers dissolves itself with the
death/resignation of the Prime Minister.
7. The Prime Minister has the right to give advice to the
President in relation to the appointment of the
following officers-
The Comptroller and Auditor General of India
Attorney-General of India
Solicitor General of India
President of the Union Public Service Commission
and its members
Election Commissioners
Chairman and Members of the Finance
Commission
Other powers –
He plays an important role in shaping the foreign
policy of the nation.
He is the chief spokesman of the Central
Government.
He is the leader of the ruling party.
He is ex-officio Chairman of the Planning
Commission (now NITI Aayog), National
Development Council, National Integration
Council, Inter-State Council and National Water
Resources Council.
He is the crisis manager-in-chief at the political
level during emergencies.
He is the political head of the armies.
Q-14 Write Functions of Rajya Sabha. 10
Soln- Legislative:The Constitution has classified the subjects for
legislation into three Lists, namely
• The Union List,
• The State List and
• The Concurrent List.
Financial: Two categories – Money Bills and Financial
Bills.
• Bill which, if enacted and brought into operation would
involve expenditure from the Consolidated Fund of
India is also called a Financial Bill.
• With respect to Money Bills, Rajya Sabha is
empowered to make only recommendations.
Deliberative:
• It is to focus public attention on major problems
affecting policies of the Government and administration
and to provide a forum for ventilation of public
grievances.
• This responsibility is discharged through deliberations
on General Budget, Railway Budget, and Motion of
Thanks on the President’s Address, Five-Year Plans and
working of various Ministries/Departments and on
various policy statements made by the Government
Q-15 Explain Lokpal, Juridiction And Power. 10
Soln- Jurisdiction of Lokpal includes Prime Minister,
Ministers, members of Parliament, Groups A, B, C
and D officers and officials of Central Government.
Jurisdiction of the Lokpal included the Prime Minister
except on allegations of corruption relating to
international relations, security, the public order, atomic
energy and space.
The Lokpal does not have jurisdiction over Ministers
and (Members of Parliament)MPs in the matter of
anything said in Parliament or a vote given there
It has the powers to superintendence over, and to
give direction to CBI.
• If Lokpal has referred a case to CBI, the
investigating officer in such case cannot be
transferred without the approval of Lokpal.
Lokpal has powers of confiscation of assets, proceeds,
receipts and benefits arisen or procured by means of
corruption in special circumstances.
Lokpal has the power to recommend transfer or
suspension of public servant connected with
allegation of corruption.
Lokpal has the power to give directions to prevent
the destruction of records during the preliminary
inquiry.
The Lokpal Act mandates that all public officials
should furnish the assets and liabilities of themselves as
well as their respective dependents.
UNIT 3-Introduction and Basic Information about Legal Structure
S.No. Question Marks
Q-1 What is sources of law in India ? 2
Soln- The main source of law in India is the Constitution which
gives due recognition to statutes, case law and customary
law, consistent with their dispensations. The statutes are
enacted by the Parliament, State Legislatures and Union
Territory Legislatures.
Q-2 What is common law ? 2
Soln- It is a body of unwritten laws based on legal precedents
established by the courts. Common law influences the
decision-making process in unusual cases where the outcome
cannot be determined based on existing statutes or written
rules of law.
Q-3 What is Case law ? 2
Soln- Case law is law that is based on judicial decisions rather than
law based on constitutions, statutes, or regulations. Case law,
also used interchangeably with common law, refers to the
collection of precedents and authority set by previous judicial
decisions on a particular issue or topic
Q-5 What is Tribunal in India ? 2
Soln- • Tribunal is a quasi-judicial institution that is set up to
deal with problems such as resolving administrative or
tax-related disputes. It performs a number of functions
like adjudicating disputes, determining rights
between contesting parties, making an
administrative decision, reviewing an existing
administrative decision and so forth.
• The term ‘Tribunal’ is derived from the word
‘Tribunes’, which means ‘Magistrates of the Classical
Roman Republic’.
Q-6 Explain Arbitration. 2
Soln- Arbitration is a procedure in which a dispute is submitted, by
agreement of the parties, to one or more arbitrators who
make a binding decision on the dispute. In choosing
arbitration, the parties opt for a private dispute resolution
procedure instead of going to court.
Arbitration is a private process where disputing parties agree
that one or several individuals can make a decision about the
dispute after receiving evidence and hearing arguments. When
arbitration is binding, the decision is final, can be enforced
by a court, and can only be appealed on very narrow grounds.
Arbitration often is less costly than court litigation,
primarily due to the compressed schedule for the completion
of discovery and trial.
The judge is assigned by the court without input from the
parties. Thus, arbitration affords the parties the ability to
select the decider, whereas court litigation does not
Q-7 What is law at workplace? 2
Soln- These laws have many provisions to safe the interests of
workers of organised and unorganised sectors in India. Labour
comes under the concurrent list of the Indian Constitution.
Indian labour laws are made to define clear cut relations
between employees and employers. Indian labour laws are
made to safeguard the interests of the workers.
Q-8 What is Act of Parliament ? 2
Soln- A bill is the draft of a legislative proposal, which, when
passed by both houses of Parliament and assented to by the
President, becomes an act of Parliament.
Q-9 What is the difference between bill and act ? 2
Soln- A bill is the draft of a legislative proposal, which when passed
by both houses of Parliament and assented to by the President,
becomes an Act of Parliament.A public bill is one referring to
a matter applying to the public in general, whereas a private
bill relates to a particular person or corporation or institution.
A Bill undergoes three readings in each House, i.e., the Lok
Sabha and the Rajya Sabha, before it is submitted to the
President for assent.
• First Reading. ...
• Second Reading. ...
• Third Reading.
Q-10 What are the functions of court ? 2
Soln- The Due Process Function. a. Protect Individual
Rights.
The Crime Control Function. a. Punishment &
repression of criminal conduct.
The Rehabilitation Function. a. Provide treatment
offenders, when appropriate.
The Bureaucratic Function.
Q-11 Explain Tort law in brief. 2
Soln- Tort law in India is a relatively new common law
development supplemented by codifying statutes
including statutes governing damages.Tort is breach of
some duty independent of contract which has caused
damage to the plaintiff giving rise to civil cause of
action and for which remedy is available.
Law of tort is comparatively common law
development in India. It is supplemented by
systematising (codification) statutes including statutes
having authority to grant damages and compensation.
Where there is tort, there is remedy.
The law of torts in India is mainly the English law of
torts which itself is based on the principles of the
common law of England.
There are three main types:
Intentional torts,
Negligence, and
Strict liability.
Q-12 Draw the Court Structure of India. 10
Soln-
Q-13 Draw the Structure of Indian Judiciary. 10
Soln-
Q-14 Explain Contract law in detail. 10
A contract is an agreement that is enforceable by law.
A promise or a number of promises that are not
contradicting and are accepted by the parties involved
is an agreement. A contract is only legally enforceable.
It may or may not be enforceable by the law. A
contract has to create some legal obligation.
Contract law governs the legality of agreements made
between two or more parties when there is an exchange
of some sort intended to take place. In nearly all
business transactions, contracts are made.
Examples of such agreements in business include bills
of sale, purchase orders, and employment agreements.
The 5 Elements That Constitute a Binding Contract-
• Offer.
• Acceptance.
• Consideration.
• Mutuality of Obligation.
• Competency and Capacity.
Function of Contract law-
The primary purpose of contract law, he contends, is to
enforce the agreement of the parties. For there to be a
contract, substantial agreement must exist and the parties
must have freely intended to be legally bound.
Situations Where a Written Contract is Necessary-
• An agreement to accept the debt of another
person;
• Contracts for the sale of real estate, whether
related to improved or unimproved land;
• Leases for real estate that exceed one year;
• Agreements guaranteeing the results of a medical
or surgical procedure;
• Subscriptions for newspaper or periodical
service;
• Satisfaction of a debt for less than the total
amount due; and,
• Other contracts as designated by law.
Q-15 Write the difference between Crime and Tort. 10
Soln- Crime Tort
A Crime is wrongdoing A Tort is wrongdoing which
which hampers the social hampers the individual or his
order of the society we live property.
in.
Crime happens mostly It happens mostly due to
intentionally. It is a deliberate negligence. Tort is hardly
act which people do to get intentional. But it is still
some unlawful benefits. damaging to the individual.
Crime impacts the well-being Tort impacts the well-being
of society in general. The of the individual. The
legal bodies try to give aggrieved party seeks
proportional punishment to compensation for the
law offenders in order to damages.
maintain peace in society.
Crimes are presented in the Torts are presented in the
Criminal Court Civil Court.
Compensation for crimes is Compensation for torts is
already mentioned in the given on the basis of the
book of law. Whenever the damages to the aggrieved
court has to decide the party.
amount of compensation,
they simply refer to the law
book. In certain cases,
judges use their personal
judgments too.
Q-16 Explain some labour laws in India. 10
Soln- 1. The Trade Unions Act, 1926:- Trade unions are a very
strong medium to safe the rights of the employees.
These unions have the power to compel higher
management to accept their reasonable demands.
Article 19(1)(c) of the Indian Constitution gives
everyone the right "to form associations or unions". The
Trade Unions Act 1926, amended in 2001 and contains
rules on governance and general rights of trade unions.
2. The Payment of Wages Act 1936:- This act ensures that
workers must get wages/salaries on time and without
any unauthorized deductions. Section 6 of the Wages
Act 1936 says that workers must be paid in money
rather than in kind.
3. Industrial Disputes Act 1947:- This act has the
provisions regarding the fair dismissal of permanent
employees. As per this law, a worker who has been
employed for more than a year can only be dismissed if
permission is sought from and granted by the
appropriate government office/concerned authority.
UNIT 4- INTELLECTUAL PROPERTY LAWS AND REGULATION TO
INFORMATION
S.No. Question Marks
Q-1 What is Intellectual Property Law ? 2
Soln- Intellectual Property law is the legal protection of creative
property ownership. A lawyer working in the field of IP may
also encounter cases of duplication, or infringement (voilation
of rule), or agree the usage rights of an upcoming product or
service.
Q-2 Why Intellectual Property Law is important ? 2
Soln- 1. Without protection of ideas, businesses and individuals
would not reap the full benefits of their inventions and
would focus less on research and development.
Similarly, artists would not be fully compensated for
their creations and cultural vitality would suffer as a
result.
2. The purpose of intellectual property rights is to
encourage new creations, including technology,
artwork, and inventions, that might increase economic
growth. Intellectual property rights increase the
incentives for individuals to continue to produce things
that further create job opportunities and new
technologies, while enabling our world to improve and
evolve even faster.
3. Intellectual Property Drives Economic Growth and
Competitiveness
Q-3 What are the types of Intellectual Property Rights ? 2
Soln- Intellectual property can consist of many types of intangibles
(difficult to describe), and some of the most common are listed
below.
1. Patents
2. Trademarks
3. Copy right
4. Trade Secrets
Q-4 What is Trademark ? 2
Soln- Trademarks are another familiar type of intellectual property
rights protection. A trademark is a distinctive sign which
allows consumers to easily identify the particular goods or
services that a company provides.
Some examples include McDonald’s golden arch, the
Facebook logo.
A trademark can come in the form of text, a phrase, symbol,
sound, smell, and/or color scheme. Unlike patents, a
trademark can protect a set or class of products or services,
instead of just one product or process.
Q-5 What is Trade secret ? 2
Soln- Trade secrets are the secrets of a business. They are
proprietary systems, formulas, strategies, or other information
that is confidential and is not meant for unauthorized
commercial use by others. This is a critical form of protection
that can help businesses to gain a competitive advantage.
Q-6 Explain Patent in brief ? 2
Soln- A patent is used to prevent an invention from being created,
sold, or used by another party without permission. Patents are
the most common type of intellectual property rights that
come to people’s minds when they think of intellectual
property rights protection.
A Patent Owner has every right to commercialize his/her/its
patent, including buying and selling the patent or granting a
license to the invention to any third party under mutually
agreed terms.
There are three different categories that patents can fall under:
Utility: A utility patent protects the creation of a new or
improved product, process, composition of matter, or machine
that is useful.
An example of utility patent: Method for a driver assistance
system of a vehicle US9772626B2
Design: A design patent protects the ornamental design on a
useful item. An example of design patent: Electric bicycle
USD845178S1
Plant: A plant patent protects new kinds of plants produced
by cuttings or other nonsexual means.
An example of plant patent: Crape myrtle plant named ‘JM1’
USPP31585P2 .
Q-7 What are the Rights from Patent ? 2
Soln- A patent owner has the right to decide who may – or
may not – use the patented invention for the period in
which the invention is protected. In other words, patent
protection means that the invention cannot be
commercially made, used, distributed, imported, or sold
by others without the patent owner's consent.
A patent is considered as a transferrable property that
can be transferred from the original patentee to any
other person by assignment or by operation of law. A
patent can be licensed or assigned only by the owner of
the patent.
The Indian Patent Office is administered by the Office
of the Controller General of Patents, Designs & Trade
Marks (CGPDTM), a subordinate office of the
Government of India which reports to Department of
Industrial Policy and Promotion (DIPP) under the
Ministry of Commerce and Industry which administers
the Patent.
Q-8 What is Infringement of Patents ? 2
Soln- Patent infringement means the violation of the exclusive
rights of the patent holder.
In other words, if any person exercises the exclusive rights of
the patent holder without the patent owner's authorization
then that person is liable for patent infringement.
Civil courts have exclusive jurisdiction to hear and decide
issues concerning patent infringement.
Patent infringement is not a crime, so there are no criminal
penalties. It is a civil matter, and one of the reasons why
patent infringement is so common is because the civil
penalties are not severe.
Q-9 What are the civil remedies for Infringement ? 2
Soln- A civil remedy refers to the remedy that a party has to pay to
the victim of a wrong he commits. A civil remedy is generally
separate form a criminal remedy, although in certain
situations the civil and criminal remedy may be related.
There are three kinds of remedies against infringement of
copyright, namely:
Civil remedies- Injunction damages or account of
profit, delivery of infringing copy and damages for
conversion.
Criminal remedies- Imprisonment of the accused or
imposition of fine or both.
Administrative remedies- The minimum punishment
for infringement of copyright is imprisonment for six
months with the minimum fine of Rs. 50,000/-. In the
case of a second and subsequent conviction the
minimum punishment is imprisonment for one year
and fine of Rs. one lakh.
Q-10 What is Electronic Governance ? 2
Soln- E-governance or Electronic Governance is dealt with under
Sections 4 to 10A of the IT Act, 2000. It provides for legal
recognition of electronic records and Electronic signature and
also provides for legal recognition of contracts formed through
electronic means.
Filing of any form, application or other documents, creation,
retention or preservation of records, issue or grant of any
license or permit or receipt or payment in Government offices
and its agencies may be done through the means of an
electronic form.
Q-11 Discuss usage of Digital Signature. 2
Soln- Personal Use- It is at the liberty of the individual to use the
signature personally without creating the hassle to personally
be at the given place.
Business– Professions such as Architecture, Construction and
Engineering Companies require to sign the tenders, market
procurements or even biddings, Digital signature can prove to
be a great way to provide the assent.
Return filing for GST– GST filing and E-filing causes the
individuals to compulsory opt for Digital Signatures.
Filing for Income Tax– Some corporations require the
business to file the tax all over India, thus saving the light of
the day.
Q-12 Write features and benefits of Digital Signature ? 2
Soln- The authenticity of the sender
The person who receives the electronic message or document
is able to realize who is the sender of the message. The digital
signature makes it possible to verify the name of the person
signing the message digitally.
The integrity of the message
The receiver of the electronic message is able to determine
whether he/she has received the original document or whether
the document has been altered before the receipt or not.
Non- Repudiation
The sender of the message cannot refute the contents of the
electronic message and cannot deny that he/she had never sent
the message.
Benefits of Digital Signature-
• Authenticity.
• Non-Deviability.
• Message cannot be altered in between the
transmission.
Q-13 What is Secure electronic record and secure digital signatures 2
?
Soln- Secure electronic record-
Where any security procedure has been applied to an
electronic record at a specific point of time. then such record
shall be deemed to be a secure electronic record from such
point of time to the time of verification.
Secure digital signature-
If, by application of a security procedure agreed to by the
parties concerned, it can be verified that a digital signature, at
the time it was affixed, was-
unique to the subscriber affixing it.
capable of identifying such subscriber.
created in a manner or using a means under the
exclusive control of the subscriber and is linked to the
electronic record to which it relates in such a manner
that if the electronic record was altered the digital
signature would be invalidated then such digital
signature shall be deemed to be a secure digital
signature.
Q-14 Describe Digital Signature Certificate (DSC) in detail. 10
Soln- • A method to prove the authenticity of an electronic
document.
• It can be presented electronically to prove the identity,
to access information or sign certain documents
digitally.
• The Central Government has appointed a Controller of
Certifying Authorities who grants a license to the
Certifying Authorities to issue digital signature
certificates to the subscriber.
DSC used by?
• A vendor and a bidder.
• A Chartered Accountant.
• Banks.
• Director of a company.
• A Company Secretary.
• Other Authorized Signatories.
Elements of Digital Certificate-
1. Owner’s public key.
2. Owners name.
3. The expiration date of Public Key.
4. Name of the issuer.
5. Serial Number of the certificate.
6. A digital signature of the user.
Types of Certificate
1. Only Sign– It could only be used for signing a
document. It is widely used in signing PDF Files for the
purpose of filing Tax Returns for usage as an
attachment for Ministry of Corporate Affairs or other
government websites
2. Encrypt– It is used to encrypt a particular document. It
is popularly used in tender portals to help a company
encrypt a document before uploading it.
3. Sign along with Encryption– It is used for both
signing and encrypting a particular document.
Validity-The DSC is valid up to a maximum period of
three years.
Q-15 Write the provisions of IT Act, 2000. 10
Soln- The IT Act of 2000 passed in a budget session of
parliament and signed by President K.R. Narayanan in
2000. It underwent further finalization by India's Minister
of Information Technology, Pramod Mahajan.
The original act addressed electronic documents, e-
signatures, and authentication of those records. It also
enacted penalties for security breach offenses including
damaging computer systems or committing cyber
terrorism. Regulating authorities received power to
monitor these situations and draft rules as situations arose.
The IT Act underwent changes as Internet technology
grew. In 2008, additions expanded the definition of
"communication device" to include mobile devices and
placed owners of given IP addresses responsible for
distributed and accessed content.
Privacy was addressed in 2011 when stringent
requirements for collecting personal information came into
effect. The most controversial change in this act involves
section 66A. It makes "offensive messages" illegal and
holds the owners of servers responsible for the content.
That means if an IP address with pornographic images is
traced to your servers, you can be held liable for it even if
you did not authorize its access. Penalties arrange from
imprisonment of three years to life and fines. Offenses that
occur in a corporate setting can result in further
administrative penalties and bureaucratic monitoring that
can prove burdensome to doing business.
Q-16 Discuss the features of Right to Information Act, 2005. 10
Soln- Important Features of Right to Information Act, 2005
• All citizens possess the right to information
• The term Information includes any mode of information
in any form of record, document, e-mail, circular, press
release, contract sample or electronic data etc.
• Rights to information covers inspection of work,
document, record and its certified copy and information
in form of diskettes, floppies, tapes, video cassettes in
any electronic mode or stored information in computer
etc.
• Applicant can obtain Information within 30 days from
the date of request in a normal case
• Information can be obtained within 48 hours from time
of request. If it is a matter of life or liberty of a person.
• Every public authority is under obligation to provide
information on written request or request by electronic
means.
• Penalty for refusal to receive an application for
information or for not providing information is Rs.
250/- per day but the total amount of penalty should not
exceed Rs. 25,000/-.
• Central Information Commission and State Information
Commission are to be constituted by the Central
Government and the respective State Governments.
• No Court can entertain any suit, application or other
proceedings in respect of any order made under the Act.
Q-17 Write the objectives of “Regulation to Information”. 10
Soln- Good governance has four elements- transparency,
accountability, predictability and participation and RTI helps
in achieving the same.
Information would lead to openness, accountability and
integrity. A culture of individual action, political
consciousness and public spirit is the basis for the success of
democracy.
Objective of the Act is to establish the practical regime of
right to information for citizens to secure access to
information under the control of public authorities, in order to
promote transparency and accountability in the working of
every public authority, the constitution of a Central
Information Commission and State Information Commission.
Greater Accountability: One of the brilliant features of RTI
is that it makes public authorities answerable to the general
public, which strengthen the participatory democracy. Every
public authorities is required to provide reasons for its
administrative and quasi-judicial decisions to the affected
persons of the Act.
Greater Transparency: Rights which are provided in various
sections of the Act certainly facilitates the greater
transparency in work of public authorities.
Q-18 Explain Cyber Regulations Appellate Tribunal in detail. 10
Soln- • The Information Technology Act, 2000 also provides
for the establishment of the Cyber Appellate Tribunal.
• Establishment of Cyber Appellate Tribunal (Section 48)
• The Central Government notifies and establishes
appellate tribunals called Cyber Regulations Appellate
Tribunal.
• The Central Government also specifies in the
notification all the matters and places which fall under
the jurisdiction of the Tribunal.
• The composition of Cyber Appellant Tribunal (Section
49)
• The Central Government appoints only one person in a
Tribunal – the Presiding Officer of the Cyber Appellate
Tribunal.
The qualifications for appointment as Presiding Officer of
the Cyber Appellate Tribunal (Section 50)
• He has the qualification of the Judge of a High
Court
• He is or was the member of the Indian Legal
Service and holds or has held a post in Grade I of
that service for at least three years.
The Term of Office (Section 51)
The Term of Office of the Presiding Officer of a Cyber
Appellate Tribunal is five years from the date of entering the
office or until he attains the age of 65 years, whichever is
earlier.
Filling up of vacancies (Section 53)
If for any reason other than temporary absence, there is a
vacancy in the Tribunal, then the Central Government hires
another person in accordance with the Act to fill the vacancy.
Further, the proceedings continue before the Tribunal from the
stage at which the vacancy is filled.
Resignation and removal (Section 54)
1. The Presiding Officer can resign from his office after
submitting a notice in writing to the Central
Government, provided:
• he holds office until the expiry of three months
from the date the Central Government receives
such notice (unless the Government permits him
to relinquish his office sooner), OR
• he holds office till the appointment of a
successor, OR
• until the expiry of his office; whichever is earlier.
2. In case of proven misbehavior or incapacity, the Central
Government can pass an order to remove the Presiding
Officer of the Cyber Appellate Tribunal. However, this
is only after the Judge of the Supreme Court conducts
an inquiry where the Presiding Officer is aware of the
charges against him and has a reasonable opportunity to
defend himself.
UNIT 5-BUSINESS ORGANIZATION AND E-GOVERNANCE
S.No. Question Marks
Q-1 What is prospectus ? 2
Soln- A company's prospectus is a formal legal document designed
to provide information and full details about an investment
offering for sale to the public. Companies are required to file
the documents with the Securities and Exchange
Commission (SEC). The prospectus documents must be
made available to a prospective public investor prior to
purchase. Investors are encouraged to read and understand the
terms of the offering before making a purchase decision.
Q-2 What are shares ? 2
Soln- A share is a unit of ownership delivered by a capital
company. In most cases, it is a commercial company with a
limited liability. Holding one of several shares – in other
words, being a shareholder means that you own a part of the
company’s capital but you are not held personally liable for
the company’s debts.
Q-3 Write different types of shares ? 2
Soln- Different types of shares
Cumulative Preference Shares: ...
Non-cumulative Preference Shares: ...
Participating Preference Shares. ...
Non-participating Preference Shares: ...
Convertible Preference Shares. ...
Non-convertible Preference Shares: ...
Redeemable Preference Shares: ...
Irredeemable Preference Shares
Q-4 What are the Duties of Directors in Company Law? 2
Soln- 1. To exercise reasonable skill, care and diligence
2. To promote the company’s success
3. To act within their powers
4. To exercise independent judgement
5. Not to accept a benefit from third parties
6. To avoid conflicts of interest
7. To disclose any interest in a proposed transaction or
arrangement
Q-5 What are the rights of company auditor under Company Act, 2
Soln- 1956 ?
Rights of Company Auditor: The Companies Act, 1956
1. Rights to access the books and records.
2. Right to get explanations from company staff.
3. Right to receive notice of general meetings.
4. Right to visit branches.
5. Right to seek legal and technical advises.
6. Right to claim remuneration.
7. Right to refuse to commence the audit.
Q-6 What are the reasons for winding up of company ? 2
Soln- Company has ceased business activities.
Management deadlock.
Oppression - shareholders dispute under section 216
of the Companies Act
Corporate or financial restructuring of the group to
which the company belongs
Q-7 What are the challenges faced by E-Governance in India ? 2
Soln- 1. Low technology literacy
2. Language Problem
3. Contradiction regarding Government services
4. Lack of Internet facility in Villages
5. Population
Q-8 What is alienation ? 2
Soln- The term ‘alienation’ denotes a feeling of estrangement from
other people and of confusion about existing norms. Many
writers include in the concept of alienation, to explain notions
such as lack of power, meaninglessness, sense of isolation and
self- estrangement.
Q-9 What is secessionism ? 2
Soln- The act of withdrawing from membership in a group.
Secession occurs when persons in a country or state declare
their independence from the ruling government. When a
dissatisfied group secedes, it creates its own form of
government in place of the former ruling government.
Q-10 What is “Winding up of company” ? Write its mode also. 2
Soln- The winding up or liquidation of a company is the process by
which a company’s assets are collected and sold in order to
pay its debts. Any monies remaining after all debts, expenses
and costs have been paid off are distributed amongst the
shareholders of the company. When the winding up has been
completed, the company is formally dissolved and it ceases to
exist.
The three modes of winding up are-
(a) Winding Up by the National Company Law Tribunal
(the Tribunal)
(b) Voluntary Winding Up under section 59 of the Code;
(c) The 'Fast Track Exit Scheme' applicable to
defunct companies under section 248 of the Act.
Q-11 What are the powers of director of company ? 2
Soln- Make calls on shareholders.
Authorize the buyback of securities and shares.
Issue securities and shares.
Borrow monies.
Investing the funds.
Grant loans.
Approve the financial statement.
Q-12 Explain auditor and its types. 10
Soln- An auditor is a person authorized to review and verify the
accuracy of financial records and ensure that companies
comply with tax laws. They protect businesses from fraud,
point out discrepancies in accounting methods and, on
occasion, work on a consultancy basis, helping organizations
to spot ways to boost operational efficiency. Auditors work in
various capacities within different industries.
Types of Auditors:
Internal auditors are hired by organizations to
provide in-house, independent, and objective
evaluations of financial and operational business
activities, including corporate governance. They
report their findings, including tips on how to better
run the business, back to senior management.
External auditors usually work in conjunction with
government agencies. They are tasked with providing
an objective, public opinion concerning the
organization's financial statements and whether they
fairly and accurately represent the organization's
financial position.
Government auditors maintain and examine records
of government agencies and of private businesses or
individuals performing activities subject to
government regulations or taxation. Auditors
employed through the government ensure revenues
are received and spent according to laws and
regulations. They detect embezzlement and fraud,
analyse agency accounting controls, and evaluate risk
management.
Forensic auditors specialize in crime and are used
by law enforcement organizations.
Q-12 Explain the role of IT professionals in judiciary ? 10
Soln- Technological Developments in the field of information and
introduction of computers have made a turning point in the
history of human civilization. It has brought about a sea
change in all fields of human activity. It has resulted in
enhanced efficiency, productivity, and quality of output in
every walk of life.
Extensive use of Information Technology by diverse
organizations the world over has resulted in enhanced
efficiency, effectiveness and optimal use of resources.
Computers as well as electronic communication devices such
as facsimile machines, electronic mail, video conferencing,
provide the ability to process large volumes of data with
speed and accuracy, exchange of useful information between
different locations and support a higher quality of decision
making. These capabilities have contributed to more efficient
and responsive systems not only in business organizations but
also in legal, governmental and other public systems.
While the Information Revolution arrived in India some years
ago, automation has not transformed all facets of life in equal
measure. It has not permeated to the Subordinate judiciary, in
particular, resulting in old work methods based on manual
systems being continued even now. The enormous problems
being faced by the judiciary due to arrears, backlogs, and
delays can be partly resolved by the introduction of
automation in subordinate courts.
The problems faced by courts, judiciary, and public seeking
justice in terms of backlogs, delays and expense are well
known. While there are many dimensions to these problems,
improvements in operational efficiency, coordination,
accessibility and speed which IT could bring about can
contribute significantly towards improvement and alleviation
of difficulties.
Q-13 What are the duties of auditor? 10
Soln- The auditor shall make a report to the members of the
company on the accounts examined by him and on every
financial statements which are required by or under this Act to
be laid before the company in general meeting. The auditor’s
report shall also state.
whether he has sought and obtained all the information
and explanations which to the best of his knowledge
and belief were necessary for the purpose of his audit
and if not, the details thereof and the effect of such
information on the financial statements;
whether, in his opinion, proper books of account as
required by law have been kept by the company so far
as appears from his examination of those books and
proper returns adequate for the purposes of his audit
have been received from branches not visited by him;
whether the report on the accounts of any branch
office of the company audited by a person other than
the company’s auditor has been sent to him under the
proviso to that sub-section and the manner in which he
has dealt with it in preparing his report;
whether the company’s balance sheet and profit and
loss account dealt with in the report are in agreement
with the books of account and returns;
whether, in his opinion, the financial statements
comply with the accounting standards
the observations or comments of the auditors on
financial transactions or matters which have any
adverse effect on the functioning of the company;
whether any director is disqualified from being
appointed as a director
any qualification, reservation or adverse remark
relating to the maintenance of accounts and other
matters connected therewith.
whether the company has adequate internal financial
controls with reference to financial statements in place
and the operating effectiveness of such controls.
Q-14 Who are eligible to be appointed as auditor? 10
Soln- The following person/(s) or firm shall not be eligible for
appointment as an auditor of a company, namely:
A body corporate other than a limited liability
partnership registered under the Limited Liability
Partnership Act, 2008;
An officer or employee of the company;
A person who is a partner, or who is in the
employment, of an officer or employee of the
company;
A person who, or his relative or partner—
Is not holding any security of or interest in the
company or its subsidiary, or of its holding or
associate company or a subsidiary of such holding
company of face value not exceeding rupees one lakh
Is indebted to the company, or its subsidiary, or its
holding or associate company or a subsidiary of such
holding company, in excess of rupees five lakh
has given a guarantee or provided any security in
connection with the indebtedness of any third person
to the company, or its subsidiary, or its holding or
associate company or a subsidiary of such holding
company, of one lakh rupees
Person or a firm who, whether directly or indirectly,
has business relationship with the company, or its
subsidiary, or its holding or associate company or
subsidiary of such holding company or associate
company.
A person whose relative is a director or is in the
employment of the company as director or key
managerial personnel
A person who is in full time employment elsewhere or
a person or a partner of a firm holding appointment as
its auditor, if such persons or partner is at the date of
such appointment or reappointment holding
appointment as auditor of more than twenty
companies.
A person who has been convicted by a court of an
offence involving fraud and a period of ten years has
not elapsed from the date of such conviction;
Q-15 Discuss Annaul General Meetings in detail. 10
Soln- An Annual General Meeting (AGM) is held to have an
interaction between the management and the shareholders of
the company. The Companies Act, 2013 makes it
compulsory to hold an annual general meeting to discuss the
yearly results, auditor’s appointment and so on. A company
should follow the procedures under the Companies Act, 2013
to conduct the AGM
Procedure to Hold an AGM:
The company must give a clear 21 days’ notice to its
members for calling the AGM. The notice should mention the
place, the date and day of the meeting, the hour at which the
meeting is scheduled. The notice should also mention the
business to be conducted at the AGM.
A company should send the notice of the AGM to:
All members of the company including their legal
representative of a deceased member and assignee
of an insolvent member.
The statutory auditor(s) of the company.
All director(s) of the company.
The notice may be given in writing through speed post or
registered post or via electronic mode. The notice should be
sent to the address of the member as per the records of the
company. In the case of electronic communication, the notice
should be sent to the e-mail address of the member as per the
records of the company. The notice can be text typed in an
email or an attachment to an email.
Matters Discussed in an AGM or Agenda for an AGM:
The matters discussed or business transacted in an AGM
consists of:
Consideration and adoption of the audited financial
statements
Consideration of the Director’s report and auditor’s
report
Dividend declaration to shareholders
Appointment of directors to replace the retiring
directors
Appointment of auditors and deciding the auditor’s
remuneration
Apart from the above ordinary business, any other
business may be conducted as a special business of
the company.
Type of meeting-
The six most common types of business meetings are as:
Status Update Meetings.
Decision-Making Meetings.
Problem-Solving Meetings.
Team-Building Meetings.
Idea-Sharing Meetings.
Innovation Meetings.