Practical Problems_Contract Act_92

Ajay found a defective video camera lying in a park. He pledged it with Vijay for Rs.3,000. Mohan, the real owner, came to know about it. Mohan sued Vijay to recover his camera. Vijay had incurred Rs.500 on repair to make the camera
operational. Can Mohan recover his camera ?

NI Act_Practical Problems_57

On a bill of exchange for Rs.10,000 Sumit’s acceptance to the bill is forged. Amit takes the bill from his customer in good faith and for consideration before the bill becomes payable. State with reasons whether Amit can receive the amount of the bill from Sumit.

Practical Problems_Partnership Act_8

A, B, C, D and E are partners in a firm. They decided to dissolve the firm from 1st January, 2006 but failed to give a public notice of its dissolution and continued the business of the firm even after that date. D died on 5th January, 2006 and E was declared insolvent on 10th January, 2006. On 11th January, 2006, A borrowed in the firm’s name Rs.20,000 from R who was ignorant of the dissolution. Discuss the liability of partners.

Companies Act_Practical Problems_39

Mr. X was appointed as the Managing Director of ABC Ltd. for a period of 5 years w.e.f, 1st January, 2006. Since his work was found unsatisfactory. His services were terminated from 15th August, 2007 by paying compensation for the loss of office as provided in the agreement entered into by the company. Later, the company discovered that during his tenure of office Mr. X was guilty of many corrupt practices and that he should have been removed without payment of compensation. Advise the company whether the services of the Managing Director can be terminated without payment of compensation as provided in the agreement and whether the company can recover the amount already paid to Mr. X filing a suit.

Companies Act_Practical Problems_38

M/s ABC Ltd. had power under its memorandum to sell its undertaking to another company having similar objects. The Articles of the company contained a provision by which directors were empowered to sell or otherwise deal with the property of the company. The Shareholders passed an ordinary resolution for the sale of its assets on certain terms and required the directors to carry out the sale. The Directors refused to comply with the wishes of the shareholders where upon it was contended on behalf of the shareholders that they were the principal and directors being their agents were bound to give effect to their decision. Based on the above facts, decide the following issues, having regard to the provisions of the Companies Act, 1956 and case laws.
(i) Whether the contention of shareholders against the non-compliance of their wishes by the directors is tenable.
(ii) Can shareholders usurp the powers which by the articles are vested in the directors by passing a resolution in the general meeting?

Nice Quotes

There are two primary choices in life: to accept conditions as they exist, or accept the responsibility for changing them.


Most of us know how to say nothing, but few of us know when.

Doing your best is more important than being the best.

A bad habit is nothing more than a mistake repeated.

There is only one small letter between the words can and can't............... and that one letter will T-OTALLY change your destiny.

Difficulties are meant to rouse, not discourage. The human spirit is to grow strong by difficulties.

Every time you get rejected, say "Next !!".

The greatest risk in the life is to risk NOTHING. The person who risks nothing, does nothing, has nothing, is nothing and becomes nothing.

Enthusiasm is the match that lights the candle of Achievement.

You have within you right now, everything you need to deal with whatever the world can throw at you.

Happiness is a butterfly, which, when pursued, is always just beyond your grasp, but which, if you sit down quitely, may alight upon you.

People often say that motivation doesn't last. Well, neither does bathing. That's why we recommend it daily.

Companies Act_Practical Problems_37

M/s. Raman Limited having a paid up share capital of Rs. 5 crores owns an agency of Cement Corportion of India Ltd. and proposes to supply cement, on credit, to M/s. Raman Enterprises Private Limited. Mr. Raman is a common Director in both the companies.

State the requirements of the Companies Act, 1956, if any, to be complied with by the company on the facts of this case.

Will it make any difference, if -
(i) M/s. Raman Enterprises Private Limited were a public company;
(ii) M/s. Raman Limited were carrying on real estate business and it proposes to sell a flat to M/s. Raman Enterprises Private Ltd. for Rs. 50 lakhs?