Bonus Act_Practical Problems_27

We are a charitable institution engaged in social welfare activities and establishment without any object of making profit. Please advise us whether we are liable to pay bonus to our employee under The Payment of Bonus Act, 1965 since our employees are demanding the same.

It is understood that the institution is engaged in social welfare activities and is not established for making profit therefore it squarely falls within the exemptions specified by clause(c) of section 32 of the Bonus Act. Therefore no bonus is admissible under the Act. Please refer to the case of Swarajya Ashram Karmachari Sangh v. swarajya Ashram., 1995 I LLJ 486 (S.C.)

Secured Transaction

any loan or credit in which property is pledged as security in the event payment is not made

Scienter

Latin for "having knowledge." In criminal law, it refers to knowledge by a defendant that his/her acts were illegal or his/her statements were lies and thus fraudulent.

Practical Problems_Contract Act_79

Mr.Ramamurty invited Alisa to his house for dinner which she accepted. When Alisa went to Mr.Ramamurty’s house at the appointed time leaving all her work involving Rs.10 lakhs, she found Mr.Ramamurty’s house locked and none was there. Alisa claimed compensation from Mr.Ramamurty who on the other hand contended that there was no contract. Advise.

Practical Problems_Contract Act_78

F promised to pay his son S a sum of Rs. 1 lakh if S passed C.A. exams in the first attempt. S passed the exam in the first attempt, but F failed to pay the amount as promised. S files a suit for recovery of the amount. State whether S can recover the amount under the Indian Contract Act, 1872.

Practical Problems_Contract Act_77

One of the clauses in an agreement was- “This agreement shall not be legally enforceable, but binding in honour only”. Is agreement binding and enforceable ? Why ?

Companies Act_Practical Problems_11

The Board of Directors of M/s Greenfield Projects Limited, a company whose shares are listed on the Delhi Stock Exchange, propose to give loans to a sister company in excess of the limit prescribed under section 372A(1) of the Companies Act, 1956. The next annual general meeting of the company is due only after six months. Since the board is anxious to complete the formalities quickly without waiting for the date of next annual general meeting, advice the Board about the steps to be taken to comply with the legal requirements under the Companies Act, 1956.