School of Management (PG)

MIT-WPU UNIVERSITY
Academic Year 2020-2021
Trimester I Course- Business Laws
Case Study No. 2

All questions are compulsory.

Instruction:
The submissions shall be only in PDF form with file names
as Name_Rollno_Div_Specialization.

Caselet No.1
Anand is an account holder in a Bank. Anand drew a cheque bearing

no. 110020, in favour of Ram dated 12.7.2020, for Rs. 1,00,000/-.

Anand had duly signed the cheque and filled up all the necessary

particulars on the cheque. Anand had handed over the said cheque to

Ram on the same day i.e. 12.7.2020. Then on 2.11.2020 Ram deposited

the said cheque, which was not honoured by the Bank. Based on these

facts answer the following questions in one word:

a) Whether the Bank is justified in dishonouring the cheque?

b) What is the reason for dishonouring the cheque?

c) What is the period of validity of a cheque?

 d) Whether a criminal complaint under section 138 of the

Negotiable Instruments Act, 1881, be filed by Ram against

Anand on the said above ground of dishonour of chequer?

e) Can Ram compel Anand to draw a fresh cheque in his

favour?

Caselet No.2
On 12.10.2020 a company imported machinery and stored it in an

open warehouse for a period of 6 months by paying the necessary

charges to the warehouse authorities on the same day. During the

period of storage, on 18.10.2020, the machinery was heavily damaged

due to fall of the warehouse shed. The warehouse authorities did not

inform the said fact to the company. Therefore, the company on

2.11.2020, filed a consumer complaint claiming a compensation of Rs.

1.5 Crore on the ground of deficiency in service on part of the

warehouse authorities. Based on these facts answer the following

questions in one word:

a) Whether the Company is a consumer?

b) Is there a deficiency in service on part of the warehouse

authorities?

c) Which forum shall have the jurisdiction to entertain this

complaint?

d) Can a company file a complaint in its own name?

 Caselet No.3
The total number of directors in a Public Limited Company is 20. The

Board of directors of the said Company decided to issue a Prospectus

to raise the funds for the Company, thereby inviting the public to invest

in the Company by subscribing to the Company’s shares. The directors

registered the Prospectus with the Registrar of Companies (ROC). The

directors have not disclosed the fact in the Prospectus that the

Company is running into losses for past 2 years. Based on these facts

answer the following questions in one word:

a) Can a Company have more than 15 directors?

b) Can a public company issue Prospectus?

c) Is there a mis-statement in the Prospectus?

d) Whether registration of the Prospectus with ROC is

mandatory?

e) Can the Company be sued for mis-statement in the

Prospectus?