SCMHRD

Year: 2019
Name of the Course: LEGAL ASPECT OF BUSINESS

Faculty Information

Name of the faculty Prof. Rakesh Yadav

Designation Assistant Professor
School SCMHRD
Location Third floor, SCMHRD
E-mail rakesh_yadav@scmhrd.edu, rakeshssyadav@gmail.com
Mobile 9076248556

Course Information

Course Title LEGAL ASPECT OF BUSINESS

Course Code Management T1140
Name of the Class MBA(Analytic)/MBA
Type of Course Mandatory
Trimester NA
No. of Batches NA

Learning Objectives:
1. The aim of this course is to provide the management students adequate knowledge of the
legal aspects of doing business in India. Knowledge of law gives managers confidence and
credibility.
2. Managers and business leaders need to be aware of the legal implications of their day-to-day
decisions in their organizations.

Expected Outcomes:
To be conversant will all the major commercial act for smooth running of organization

Course rules:
1. Attendance will be taken by me immediately after the start of the class and immediately after the mid-session
break. Students who enter after the attendance has been taken (for whatever reason) will be marked absent.

2. If a student has missed a class, he/she must submit a makeup assignment consisting of about 2000 words
summarizing whatever was covered in the class by email, prior to the start of the next class. Failure to submit
the makeup assignment on time will disqualify the student from attending the next class. Please note that taking
prior permission from the faculty or being absent due to medical reasons, institute’s work, or other reasons does
not exempt a student from submitting the makeup assignment.

3. If found guilty of plagiarism, you will lose all the marks for that component and the case will be referred to the
institute’s management for further action. Plagiarism includes (but is not limited to): (I ) copying verbatim from a
source without adequate referencing and (ii) copying an idea or a sentence construction from a source without
adequate referencing.

Turnitin

Students agree that by taking this course all required papers may be subject to submission for textual
similarity review to Turnitin.com for the detection of plagiarism. All submitted papers will be included
as source documents in the Turnitin.com reference database solely for the purpose of detecting
plagiarism of such papers. You may submit your papers in such a way that no identifying information
about you is included. Another option is that you may request, in writing, that your papers not be
submitted to Turnitin.com. However, if you choose this option you will be required to provide
documentation to substantiate that the papers are your original work and do not include any plagiarized
material.

Component Marks Allotted:

Class participation & preparedness personal journal you are expected to come to class having thoroughly read
the required reading materials & having completed the homework assignments given. Class participation &
preparedness will be tested individually through oral questions asked by me. In addition, you are required to
submit the homework assignment by email in MS-Word 2003, compatible format to,
rakesh_yadav@scmhrd.edu, rakeshssyadav@gmail.com before 9:00 p.m. on the day before the session
when it is due. Late assignments or assignments, which are not as per prescribed format, will not be evaluated
and you will lose marks for class participation. Students who are not prepared with the readings or the
homework assignment may be told to leave the class.

The assignments due for each session will be indicated after the session; however, additional assignments may
be given during the course. The timing and syllabus for each Quiz is subject to change.

Grading:

Components Marks allotted (in percentage)

Midterm exam (tentative date 2 or 3rd week of August, 2019)…………………………………………………. 30

University /external exam (tentatively October, 2019) ……………………………….40

Group Presentation…………………………10
Group Integrative essay ………………………………………………10

Group Experiential learning/personal Journal…………………………………………..10

Reference book/text for class participants:

1) N.D.Kapoor , latest edition, Mercantile Law, Sultan chand & sons.

2) Kuchaal, latest edition, Mercantile Law, Vikas Publishing house pvt. Ltd.

3) Akhileshwar Pathak , latest edition, Legal Aspects of Business, McGraw Hill, New Delhi

4) Saravanavel & Sumathi , latest edition, Legal Aspects of Business, Himalaya Publication

Additional reading

Bare Acts: Sale of Goods, Consumer Protection, Intellectual Property Rights, Information
Technology Act
Business Law by P.C. Tulsian
Company Law and Law Practice, by G. K. Kapoor and A. K. Majumdar, Taxman Publication
Merchantile Laws, N.D. Kapoor
Company Law , Avtar Singh
Information Technology Law and Practice, Vakul Sharma
Law of Contract and Tenders, Venkatesa Iyer
Law of Partnership by Avtar Singh
Law of Contract by Avtar Singh
Business Law for Management by K.R. Bulchandani

Intellectual Property Law by P. Ganguly

Personal journal:
Each student is required to maintain a personal journal. The personal journal will consist of the
Following:
1. Your responses to questions raised by the faculty in class for your reflection;
2. Your analysis of cases;
3. Your reflection and insights from the readings, class discussion, cases;
4. Your reflections and insights from other additional materials read by you.
Please note: The cases/essay/ experiential learning is not a summary of the readings or a report on the class
proceedings or the class notes. Do not reproduce materials from the articles or from class discussions. Instead
focus on your reflections and insights from the readings or from other sources.
Submit the journal is MS-Word 2003 format by email to rakesh_yadav@scmhrd.edu,
rakeshssyadav@gmail.com before midnight on the day before the class on which it is due, Students who
do not submit the journal in the required format on time will not be allowed to attend the class.

The cases/essay/ experiential learning will be graded on: (i) your analysis of cases; (ii) quality of
reflection/insight into the Materials covered; (iii) insights into any additional background material read; (iv)
format, syntax, readability and grammar; and (v) usefulness to you in the future.

Integrative essay

At the end of the course, you are required to write an integrative essay of about 5000 words on any topic
related to the course. Give an appropriate title to your essay.
For referencing of the essay follow APA style, for more information look at-
https://apastyle.apa.org/

Experiential learning

Please write briefly about the following in your diary:

1. Your observations and reflections on your industrial visit to any organization /court of law

2. Your observation and experience of your field visits /to the Field Work Organization/court.

3. General information about the organization/court.

Session Plan:

Session 01 to 02: The Indian Contract Act

Meaning and Formation of Contract, Essentials of contract agreement, Performance of Contract,

Discharge of Contract, Remedies for breach,

Materials:
a) Hand out by faculty
b) Relevant chapters from, N.D.Kapoor, latest edition , Mercantile Law, Sultan chand & sons.

Mini case

1. Carlill v. Carboic Smoke Ball (1891‐4) All Er Rep. 127

2. Bhagwandas Goverdhandas Kedia v. M/s Girdharilal Parshottamdas & Co., AIR 1966 SC 543
 3. Kanhaiya Lal Aggarwal; v. Union of India, AIR 2002 SC 2766

4. Abdul Aziz v. Masum Ali, AIR 1914 All. 22

5. Tersem Singh v. Sukhminder Singh (1988) 3 SCC 471

6. Bank of India v. O.P. Swarankar, AIR 2003 SC 858

7. M/s Alopi Parshad & Sons Ltd. V. Union of India, AIR 1960 SC 588

8. State of West Bengal v. S.K. Mondal & Sons, AIR 1962 SC 779

9. Oil & Natural Gas Corporation Ltd. V. Saw Pipes Ltd. (2003) 4 SCALE 92

10. Central Inland Water Transport Corpn. V. Brojo Nath Air 1986 Sc 1571

11. Balfour v. Balfour

Session 03 & 04: Sale of Goods Act

Definition of Contract of Sales, Essential conditions and warranties, Transfer of the Title, Rights of
buyers and unpaid sellers, Caveat Emptor

Laws of agency, Partnership including LLP

Agency
Contract of Agency

Partnership

Definition, nature kinds, 1.2 Rights, duties, liabilities and interrelations between the partners, 1.3
Registration of partnership, 1.4 Limited liability partnership, 1.5 Dissolution of partnership

Books Recommended

Avtar Singh – Law of contract 2000.

Cases:
1. GajananMoreshwar Vs. MoreshwarMadan, AIR 1942, Bombay, 302

2. KaliapernmalPillai Vs. Visalaxmi, AIR 1938 Madrash, 32

3. Union of India Vs. Anawar Singh

4. Delhi Electric Supply undertaking Vs. Basanti Devi and other, AIR 2005 SC 43
 5. Sarswati Devi Vs. Motilal, AIR 1928,Raj. 108

Session 05 to 07: Corporate Laws

Introduction to corporate laws, Types of companies, association not for profit, illegal association,
Formation of company-Promoters, their legal positions, pre-incorporation contract and provisional
contracts., Documents-Memorandum and Articles of Association, Appointment & responsibilities of
Directors, Lifting of the corporate veil, Majority Rule and Minority Protection, Winding up procedures

a) Hand out by faculty

b) Relevant chapters from, Indian Company Law - Avtar Singh
Mini case
1. Salman v. Salmon & Company Ltd. (1897)AC 22

2. Lee v. Lee’s Air Farming Ltd. (1961) AC 12

3. S.P. Jain v. Kalinga Tubes Ltd. AIR 1965 SC 1535

4. State Trading Corporation of India v. C.T.O

5. Dermatine Co. Ltd. v Ashworth
6. In re Crown Bank
7. Re South of England Natural Gas and Petroleum Co. Ltd
8. Sri Gopal Jalan & Co. v. Calcutta Stock Exchange Association Ltd
9. Introduction Ltd. v. National Provincial Bank Ltd
10. In re Opera Photographic Ltd
Books Recommended

N.D. Kapoor (latest addition) – company Law

Session 08: Negotiable Instruments Act, 1881

Types of Instruments, Endorsement of Instruments

 Consumer Protection Act

Historical Background of Consumer Protection in India, Definition of Consumer, Goods and Services, Defects and
Deficiency unfair trade practices, Right of a Consumer, Judicial Machinery.

Books Recommended

1. Bare act-Negotiable instrument act and consumer protection act

2. Bangia R.K., A Handbook of Consumer Protection Laws and Procedure, 2004, Allahabad Law Agency
3. Singh Avtar, Law of Consumer Protection; Principles and Practice, 2005, Eastern Book Company
 Session 09 to 11: Introduction to legal systems & Concepts

 Overview of Constitution, Constitutional Governance

Fundamental Rights-I (Article -12 to Article -19), Fundamental Rights-II (Article 20 to Article 24),
Fundamental Rights-III (Article 25 to Article 35), Directive Principles; Fundamental Duties; Social Justice
(Article 36 to Article 51 A)

 Justice
Meaning of Administration of Justice, Kinds of Justice - Civil and Criminal Justice. Punishment theories

 Source of Law

Legislation, President, Custom

 Legal Terms and Maxims from Law Dictionary

1 Aequitas sequitur legem (Equity follows the law)

2 Affirmanti, non neganti, incumbit probation (The proof is incumbent upon the one who affirms, not on the one
who denies)
3 Aequitasagit in personam (Equity acts in personam, not in rem)

4 Ex turpicausa non orituractio (No action arises out of a wrongful consideration)

5 Exturpicausa non orituraction(He who seeks equity must come with clean hands )
6 Ignorantiafactiexcusat, Ignorantiajuris non excusat (Ignorance of fact is an excuse but ignorance of the law is no
excuse)
7 Jus respicitaequitatem (The law pays regard to equity)
8 Lex estnorma recti (The law is a rule of right)
9 Nemopotestessesimul actor etjudex (No one can be at the same time both pursuer and judge)
10 Nemodebetbispuniri pro uno delicto (No one should be punished twice for the same
11 Non jus ex regulasedregula ex jure( The law does not arise from the rule or maxim, but the rule or maxim from the
law)
12 Qui prior est tempore, potiorest jure (Where there are equal equities, the first in time shall Prevail)
13 Saluspopuliestsupremalex (The welfare of the people is the paramount Law)
14 Ubi jus ibiremedium (No wrong to be without remedy)
15 Vigilantibuset non dormientibusjura sub-veniunt (The law assist those who are vigilant of their rights, not those
who are careless of them or Delay defeats equity)

Books Recommended

1) Relevant chapters from, D. D. Basu –Shorter Constitution of India. The Concept of Law –by H. L. A. Har,
Introduction of Jurisprudence –by Dr. Avatar Singh, The Language of the Law: Urban A. Laveery

Mini Case
  KeshbanandaBharati Vs. State of Kerala, AIR 1973 SC 1461
 S.P. Gupta and Others Vs. President of India and Others, AIR 1982 SC 149
 Janata Dal Vs. H.S. Choudhury (1992) 4 SCC 305
 SarbanandaSonowal Vs. Union of India, AIR 2005 SC 2926
 Maneka Gandhi Vs. Union of India, AIR 1978 SC 597
 BondhuaMuktiMorcha Vs. Union of India, AIR 1997 SC 2218
 HussainaraKeaton Vs. State of Bihar, AIR 1979 SC 1369
 KihotalHollohan Vs. Zachithu, AIR 1955 SC 781, AIR 1973 9 SaralaMutgal Vs. Union of India, (1995) 3
SCC 635

Session 12: MRTP/Competition Act

Monopolistic Trade Practices, Concentration of Economic Power, Unfair trade practices, Offences and
protection, Cartelization

Books/Material Recommended

 Sachar Committee – MRTP Act- Raghvan Committee- Competition Act, 2002

 Ramappa, Competition Law in India, Oxford University Press, 2006
 S.M. Dugar, Commentary on MRTP Law, Competition Law & Consumer Protection Law Wadhwa Nagpur
(4th ed. 2006) Part II-Chapter VII
 Abir Roy & Jayant Kumar, Competition Law in India, Eastern Law House, New Delhi, 2008. Chapter 6
 Vinod Dhall (ed.), Competition Law Today, Oxford University Press, 2007

Session 13 to 15: IT and IPR/ student presentation

Laws relating to Trademark, Copyrights, Designs, Trade Secrets & Patents, IPR Procedures &
documentation, Non-Disclosure/Confidentiality agreements, Trade Secrets Vs. Patents, IPR protection
& infringements and enforcements. Overview of IT Law, Jurisdiction, Penalties and Offences

Books/Material Recommended
Bare act-IPR
 Mini Case

• Bajaj Auto Limited Vs. TVS Motor Company Limited 2008(36) PTC 417 (Mad.)
• Bayer Corporation and ors. V. Union of India and ors. 162(2009) DLT 371
• The Coca-Cola Company Vs. Bisleri International Pvt. Ltd Manu/DE/2698/2009
• Novartis v. Union of India Civil Appeal No. 2706-2716 of 2013
• Snehlata C. Gupte vs Union of India & Ors. (W.P. (C) No 3516 and 3517 of 2007) Delhi High Court
• Eastern Book Company and others v. DB Modak and another [(2008) 1 SCC 1].

 G. Anand v. Delux Films and Ors. AIR 1978 SC 1613

• Yahoo!, Inc. vs Akash Arora & Anr. 78 (1999) DLT 285

 Kaviraj Pandit Durga Dutt Sharma v. Navaratna Pharmaceutical Laboratories AIR 1965 SC 980
 Indian Performing Rights Society V. Eastern Indian Motion Pictures Ltd AIR1977 SC1443