NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BENGALURU

Professional and Continuing Education (PACE)

Annual Examination / Summative Assessment – June 2022

Post Graduate – Master of Business Laws – II Year

C – 1 : INVESTMENT LAW
Date: 23.06.2022 Marks: 100
Duration: 3 hours

Instructions:
1. No clarifications can be sought on the Question Paper.
2. Bare Acts, notes, articles, books or any other material are not permitted while writing the
examination.
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Category - A
Answer any 4 questions: 4 x 10 = 40marks

1. Explain the relevance of “Marketability of Securities” for exercising SEBI’s

jurisdiction over securities transactions.

2. What do you mean by Capital Account Convertibility? How does the Reserve Bank of
India regulate cross-border investment in capital accounts?

3. Who are intermediaries in the capital market? What do you understand by “fit and
proper person criteria” for intermediaries?

4. Who is a promoter of the issuer company? Who is included in the Promoter group
definition as per SEBI (ICDR) Regulations, 2017?

5. Explain various categories of a “person resident in India” as defined under Foreign

Exchange Management Act, 1999.

6. What are various capital-raising modes available for a private company? Is there any
difference between Private and Public companies with respect to available modes?

7. Explain the differences and similarities between “Private Placement” and

“Preferential Issue”? When can SEBI regulate private placements?

8. Explain how an open offer made under SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011, can be withdrawn?

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 Category - B
Answer any 4 questions: 4 x 15 = 60 marks

1. Bastar Developers Ltd. (BDL), a public listed company, has its shares listed on the
Bombay Stock Exchange. The Shareholding pattern of BDL is as follows:
Shareholders Number of Equity Shares % of Shareholding
GV Promoter Group 1,62,50,136 24.478%
GT Promoter Group 1,62,50,136 24.478%
Public 3,38,01,953 50.92%
TOTAL 6,63,87,590 100%
a. One Mr. Ramesh Chagnani, a member of GV Promoter Group, acquired 1.4 %
equity shares from Mr. Rakesh Thapar, a member of public shareholding, on June
1, 2022. The Acquisition was not notified to SEBI.
b. Mr. Ramesh Chagnani also acquired 0.6% from Mr. Sukesh Mehta, a GT Promoter
Group member, on June 2, 2022.
Is there any breach of SEBI (Substantial Acquisition of Share and Takeovers)
Regulations, 2011 in any of the above two transactions? Explain with legal
provisions.
2. Mahua Handicrafts Ltd. has a share capital of INR 14,73,63,780 comprising
1,47,36,378 equity shares with a face value of INR 10. The shareholders of the
company desire to gift up to 1,50,000 equity shares of the company, representing
1.017% of the paid-up share capital, to the artisans across India, without any
consideration or conditions. The shares shall be given to thousands of artisans
across India based on the experience of promoters and the company.
Whether the proposed transaction will be deemed to constitute a “public offer”?
Explain with reasons.
3. TPL Infotech Ltd., a company listed on the Bombay Stock Exchange, agrees to
provide IT solutions and maintenance services to GHL Ltd. GHL is a data handling
company which process, secures and lend anonymised data for marketing. Due to
some technical failure, the personal data from the servers of GHL was leaked, which
caused huge reputational loss and claims from the individual. GHL sued TPL for
negligence in the services and invoked arbitration vide notice dated 01.01.2022 for
claiming USD 15 Million in compensation. Arbitrators were appointed on
01.03.2022 by the Chief Justice of India.
Mr Ashok Chawla, Chief Financial Officer of TPL, traded in the securities on TPL over
the Bombay Stock Exchange as per the following:
Date Nature of Transaction Market Price Volume
12-07-2021 BUY INR 50 1000 Shares
16-09-2021 BUY INR 52 2000 Shares
28-12-2021 BUY INR 51 3000 Shares
02-01-2022 SELL INR 52 2500 Shares
28-01-2022 SELL INR 50 3000 Shares
3-03-2022 SELL INR 25 100 Shares

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 Will the above trade in securities by Mr. Ashok Chawla fall within the insider
trading definition of SEBI (Prohibition of Insider Trading) Regulations, 2015?

4. State with reasons whether the following transaction will be covered under SEBI’s
Jurisdiction:

a. An unlisted public company makes a rights issue to all the shareholders to raise
Rs. 8 Cr. Most shareholders exercised their right to renounce and transferred the
rights entitlement to a non-shareholder. The company received subscriptions
from 340 investors who were not shareholders.
b. A Listed company makes a private placement of compulsorily convertible
debentures to 30 specific investors.

c. A company making an initial public offer adopts a differential pricing wherein

the retail individual investors could subscribe to the securities at a 10% lower
price than that offered to non-institutional investors and qualified institutional
buyers.

5. What alternative will be adopted if the following contingencies arise in a public offer
made under the SEBI (ICDR) Regulations, 2018:
a. A company having identified promoters, however, their shareholding is lesser
than 20% to comply with the requirement of minimum promoter contribution in
an IPO.
b. A Company intending to make an IPO is afraid that the issue will fail if the
minimum subscription is not achieved.
c. In an IPO, the portion reserved for the Employees, is undersubscribed, but there
was an over-subscription in the Retail Individual Investors Category.

6. HPL Ltd. has an authorised share capital of INR 1500 Cr. comprising 150 Cr. equity
share of INR 10 as face value. The present paid-up share capital of the company is
INR 750 Cr. The company makes an IPO to raise Rs. 500 Cr through fresh issue of
shares at INR 25 (INR 10 as face value and INR 15 as premium). The issue was
successful, and HPL raised the required amount.

Pre-issue shareholding pattern of HPL Ltd. was as follows:

Shareholders Number of Shares % of holding

Mr. Ratikant (Promoter) 7.5 Cr. Shares 10%
Mr. Umakant (Promoter) 7.5 Cr. Shares 10 %
Ms. Rukmani (Promoter) 10 Cr. Shares 12.5%
Other Shareholders 50 Cr. Shares 87.5%

Post-IPO, what will be the minimum dilution requirements for achieving

minimum public shareholding?

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7. IDIDI Bank, a foreign bank registered and regulated by the laws of Denmark, has a
branch office in India. The bank intends to invest further in the banking sector of
India. For its investment, the IDIDI Bank wants to set up a subsidiary in India with
100% holding.

Explain the requirements with respect to sectoral limits and conditions for
investment in Banking (Private Sector) through which IDIDI can invest in India.

8. Single Life Capital Advisors Ltd. has raised INR. 36.85 Cr. through an IPO in the year
2019. The object of the issue, as disclosed in the Red Herring Prospectus, was to
utilise INR 11.5 Cr. for the Development of Portfolio Management Business; INR 8.9
Cr. for General Corporate Purposes; INR 7.7 Cr. for Brand building exercise; INR 7 Cr.
towards the purchase of corporate office and INR 1.6 Cr. towards issue expense. The
Issue opened on September 28, 2019, and closed on October 4, 2019. On September
30, 2019, the company, by way of board resolution, had taken short-term loans
amounting to INR 11.5 Cr. for meeting the payments due to two entities, FinPre and
FinPost. The short-term loan secured by the company was neither notified to the
public nor was part of the final prospectus.

Identify whether there is any violation of rules/regulations by Single Life Capital

Advisors Ltd. in the above facts? Explain the implication of the same on investor
protection.

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BENGALURU
Professional and Continuing Education (PACE)

Annual Examination / Summative Assessment – June 2022

Post Graduate – Master of Business Laws – II Year

C – 2 : INSURANCE LAW
Date: 24.06.2022
Marks: 100
Duration: 3 hours
Instructions:
1. No clarifications can be sought on the Question Paper.
2. Bare Acts, notes, articles, books or any other material are not permitted while writing the
examination.
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Category - A
Answer any 4 questions: 4 x 10 = 40marks

1. Life insurance is not a contract of indemnity – substantiate this statement.

2. With the help of decided cases, analyze the principle of proximate cause in marine
insurance.

3. Explain how courts have interpreted Section 64 VB of Insurance Act, 1938 in case of
third-party risks.

4. Write a critique on the role and functions of the Insurance Ombudsman.

5. What is Self-Spontaneous combustion? Does it come under exclusions?

6. Explain the concept of insurable interest in marine insurance.

7. What are the rights and duties of agents? When can an insurer be held liable for the
acts of the agent?

8. Explain the importance of the duty of disclosure in a life insurance contract and state
the effect of inaccurate and false statements on the policy.

Category - B
Answer any 4 questions: 4 x 15 = 60 marks

1. Ramesh enterprises is a company exporting garments from Bombay to Dubai. It took

a Comprehensive Risk Policy. As per this marine policy, the policyholder had to
declare and pay a premium for all the shipments made during the previous month

Page 1 of 3
 on or before the 15th day of the following month. This declaration was a condition
precedent to fasten liability on the insurance company. The policy was issued for
one year, from February 2018 to February 2019. Ramesh Enterprises exported
thrice in June and July. They made a declaration only on the 10th of September. There
was damage to the goods during transit. Can Ramesh enterprises recover losses
from the Insurance company?

2. Safe Sail Shipping Private Limited took a Marine Hull policy from an Insurance
company. The policy covered total loss, constructive total loss and partial loss. The
ship, while in transit, sunk due to a fortuitous incursion of seawater into the ship.
When a claim was raised, the insurance company repudiated the claim stating that
the ship had not drowned due to a sea peril. Instead, it was due to a manufacturing
defect in the ship. Surveyor appointed by the insurance company opined that the
ship sunk due to an incursion of seawater. Whether the insurance company is liable?

3. Mahinder took a life insurance policy and paid premiums regularly for five years.
After that, he became irregular in the payment of premiums. However, the insurance
company accepted whenever he paid the premium due. He died in 2017; at that
time, he had not paid six months premium. After his death, his wife Anita paid the
unpaid premium amount. The insurance company accepted this premium. Now
Anita has claimed benefits under the policy. Will she succeed?

4. Xavia Fertilizers Company took a fire insurance policy insuring a fertilizer stock
worth Rs. 80 lakh and stored it in a godown. The policy provided cover against the
risk of fire, riot, strike and ‘other specified peril’. Due to extensive floods, goods were
damaged. The policyholder’s claim was repudiated on the ground that the damage to
the stock was due to floods, which was not covered under the policy. Advice Xavia
Fertilizer company.

5. Vishal had stored cut bamboo from the forest in the open. The friction of bamboo led
to sparks, and then due to fire, the entire bamboo was destroyed. Vishal approached
the insurance company and asked them to indemnify the loss. The insurance
company repudiated the claim and stated that the cause of the fire was within the
control of Vishal, and he was negligent. Is the cause of the fire relevant while
determining the insurance company's liability? What advice would you give to
Vishal?

6. ‘X’ took a life insurance policy and made his wife the nominee. ‘X’ had taken a loan of
Rs. 30 lakhs from Bank and had failed to repay the same. He transferred his life
insurance policy in favour of the Bank. After a few months, X dies. His wife made a
claim against the insurance company. Will she succeed?

7. Amit took a life insurance policy for Rs. 50 lakhs from Zudo Life Insurance in 2010.
One of the questions asked in the policy document was:

a. Had he previously taken any life insurance policy? If yes, give details

Further, he had to declare that if the statements made in the policy document are
untrue or inaccurate, the company will cancel the contract, and all premium

Page 2 of 3
 amounts paid will be forfeited. He had taken a policy for Rs. 20 lakhs from
another insurance company in 2008 but did not mention it in this policy and
answered the question in negative. He had also signed the declaration. On his
death in 2015, his wife claimed the benefits under the policy. On investigation,
the Insurance company found out that Amit had answered the questions
incorrectly and therefore repudiated the claim. His wife says the agent filled out
the form, and Amit merely signed the proposal form. Would you agree with the
wife’s contention? State reasons for your answer

8. Vibrant Insurance Services is an insurance company whose business is to purchase

life insurance policies from the holders and assign them to third parties. The
insurance company refused to register one such assignment by Vibrant Insurance
Services. Can a Insurance company refuse to register the assignment? What are the
rights of Vibrant Insurance Services?

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BENGALURU
Professional and Continuing Education (PACE)

Annual Examination / Summative Assessment – June 2022

Post Graduate – Master of Business Laws – Second Year

C – 3 : LAW RELATING TO INTERNATIONAL COMMERCIAL TRANSACTIONS AND

FOREIGN TRADE
Date: 25.06.2022 Marks: 100
Duration: 3 hours
Instructions:
1. No clarifications can be sought on the Question Paper. In case of any ambiguity in the
question, state your assumption and answer accordingly.
2. Bare Acts, notes, articles, books or any other material are not permitted while writing the
examination.
3. Responses in Part-A should be short and pointed.
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Category - A
Answer any 4 questions: 4 x 10 = 40marks

1. What are the key non-discrimination provisions under the WTO? Which was the
non-discrimination principle applied by Brazil in Spanish Unroasted Coffee?

2. How is the term “like product” interpreted in trade treaties? Explain with the help of
case decisions.

3. What are the different categories of subsidy boxes under the Agreement on
Agriculture? In which category will India’s procurement of agricultural grains under
the minimum support price scheme (MSP) fall?

4. In US- Tuna II, the Dolphin safe labelling scheme was considered as a ‘technical
regulation’. Based on the particular facts of the case ( i.e. in regard to Dolphin safe
tuna labelling) why was it referred to as a technical regulation.

5. How is ‘public policy of India’ defined under Section 48 of the Arbitration and
Conciliation Act (for short, ‘Act’)? Is the meaning of public policy different under
section 48, when compared to Section 34 of the Act. Explain with the help of case
decisions.

6. Are below cost domestic sales completely disregarded (i.e. omitted) in anti-
dumping calculations. Explain with the help of WTO case law and the terms of the
Anti-dumping agreement.

7. On what basis can foreign arbitral awards be sought not be enforced in India?
Discuss with the help of the applicable Supreme Court decisions.
8. Which are the common incoterms? Explain the distinctive features of some of the
most commercially used incoterms.

9. What was the purpose behind the introduction of the Multimodal Transportation of
Goods Act, 1993. Does it deal with transportation of goods within India?

Category - B
Answer any 4 questions: 4 x 15 = 60 marks

1. Waikiki is an island nation located in the Pacific Ocean. It is rich in natural flora and
fauna, and is a habitat to some of the rarest species of corals. Due to unrestrained
industrial and other wastes being disposed into the sea, it was reported that large
scale damage has already occurred to its coral species, which is habitat to different
categories of marine species. To remedy the situation, Waikiki decided to impose a
“conservation tax” of 30 percent on all diesel – domestic and imported (HS 271019).
Waikiki does have some production crude oil, but is not self-sufficient in its
production. At the same time, Waikiki has a flourishing ethanol industry (HS 29 30
90).

On blended diesel (HS 27 17 20) Waikiki imposes 5 percent taxation. Blended diesel
is considered to have higher cetane rating and has some proven functional features
when compared to normal diesel. Waikiki’s actions have affected the sales of diesel
from Mitania, a middle-eastern oil rich nation, which has no apparent production of
ethanol. Examine in light of the relevant provisions of the GATT/WTO and comment
whether Waikiki’s measure is justified under the WTO.

The Trade Minister of Mitania seeks a legal advice from you on the WTO
compatibility of the measures. The memo should be short be short and concise and
no longer than 500 words.

2. Jerico and Cana are members of the WTO. Jerico produces vodka, but not cognac. On
the other hand, Cana is a major producer of cognac and used to export the product to
Jerico. There is a significant demand for alcoholic products in Jerico which was
mainly catered to by exporting countries such as Cana. Both vodka and cognac were
subject to a sales tax of 100 percent in Jerico. Based on the repeated requests of the
hoteliers in Jerico, recently the Government of Jerico lowered the duty on vodka to
50 percent, but not on cognac.

Assuming that you are working with the Attorney General’s office of Cana, prepare a
memo examining whether Jerico’s measure is WTO consistent.

The memo should be short be short and concise and no longer than 500 words.

3. Aloha Corporation is a major steel making Company in Lahaina. Aloha was

established as a 100 percent government owned entity in 1990 by the Lahanian
government. However, Lahania diluted its equity stake in Aloha over time. At
present, the government’s share is only 74 percent, which allows the government to
appoint the majority of board members. The chief executive officer of Aloha is a
 retired civil servant who worked as the Director of Industries during his time with
the government.

In the early 1990’s steel was considered as an important strategic sector for Aloha.
Overtime, tourism and medical services have gained importance. The Lahanian
government has recently delisted Aloha from the list of strategic industries. Private
sector participation in steel is encouraged. However, Aloha still procures iron ore
from the government owned mines under preferential rates based on a pre-existing
long-term contract (50 year contract) signed in 1995, but Aloha’s commercial
transactions are mostly on arms’ length basis.

Aloha supplies hot-rolled steel to another state-owned company Oahu, which

manufactures ball-bearings used in automobiles. The ball bearings are subject to a
CVD investigation in the neighboring country, New Guinea. Oahu contends that the
purchases of hot-rolled steel cannot be considered as a “subsidy” for a number of
reasons, including the fact that Aloha is not a “public body”.

Prepare a memo for the Secretary of the Foreign Trade Division of Oahu on why the
CVD action is untenable and unjustified. The memo should be short be short and
concise and no longer than 500 words.

4. Assume a situation where I consignor has placed his cargo with a logistics service
provider. The cargo is lost during transit. There is no indication that anything
similar to an ‘Act of God’ has occurred. Explain the applicable liability regimes under
each of the following: (1) Road; (2) Rail; (3) Sea; and (4) Air, based on the domestic
legislations in India.

5. Middle Kingdom is a communist country, but is a Member of the WTO and one of
the largest exporters of commodities. Most industrial activities in Middle Kingdom
are overseen and steered by the Communist Party leadership. Recently, some of its
products, especially pharma products, were subject to antidumping investigation in
Maitland, another WTO Member. The trade remedy authority in Maitland wanted to
use the “surrogate country” methodology in the dumping determination. The stated
reason for use of this methodology was Middle Kingdom’s pricing of some of active
pharmaceutical ingredients (APIs), which was 50% lower than the reported
international price. As an adviser to the case investigator in Maitland, you are
requested to prepare a short memo on the possible use of ‘surrogate methodology’
for the benefit of the case handler. In short, is this an accepted practice.

The memo should be short be short and concise and no longer than 500 words.

6. The arbitration clause in a contract reads as follows: “The arbitral proceedings shall
be held in English. The arbitrator may award costs and reasonable expenses to the
Party that substantially prevails on merit. The provisions of Indian Arbitration and
Conciliation Act, 1996 shall apply. The venue of the arbitration proceedings shall be
London.”

Based on the applicable law and case decisions comment whether the Indian courts
have supervisory jurisdiction over any matter in relation to such an agreement.
7. Meko Land is a WTO member and a developing country. The Commerce Minister of
Meko Land is exploring various trade policy measures to provide a competitive
environment for its fledgling semiconductor industry. The Minister has identified
the following schemes. How do you rate the WTO-consistency of the following
measures and in what order starting with the least restrictive to the most
restrictive. Provide the reasons for your ranking.

• Quotas
• Tariffs
• Import substitution subsidies
• Export Subsidies
• Employment linked incentives

Please give your reasons with reference to WTO provisions/ Agreements. The
memo should be short be short and concise and no longer than 500 words.

8. Assume that you have joined the Department of Logistics in the government. The
Director in your Division has sought a note seeking to understand the role of
International conventions in the carriage of goods. The note should be short and
concise and no longer than 500 words.

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BENGALURU
Professional and Continuing Education (PACE)

Annual Examination / Summative Assessment – June 2022

Post Graduate – Master of Business Laws – II Year

C – 4 : INTELLECTUAL PROPERTY
Date: 26.06.2022
Marks: 100
Duration: 3 hours
Instructions:
1. No clarifications can be sought on the Question Paper.
2. Bare Acts, notes, articles, books or any other material are not permitted while writing the
examination.
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Category - A
Answer any 4 questions: 4 x 10 = 40marks

1. Critically examine the relative grounds of refusal of Trademark under the

Trademarks Act 1999 with the help of decided cases.

2. How far does compulsory licensing under Law of Patents act as a limitation on the
rights of the Patentee? Comment.

3. ‘Copyright law protects expressions and not ideas, concepts, methods….’ Critically
comment.

4. Discuss the test for determining Non-obviousness of the claimed invention, with the
help of relevant cases.

5. Analyze the remedy available to the unregistered trademark proprietor under

common law in the form of an action for passing off.

6. Comment on the Patent related provisions of the Agreement on Trade Related

Aspects of Intellectual Property.

7. Discuss briefly:
a. Locke’s labour theory as justification of IPR
b. Hegel’s Personality theory as justification of IPR

8. Examine the procedure for registration of Geographical Indications in India.

Page 1 of 4
 Category - B
Answer any 4 questions: 4 x 15 = 60marks

1. Citrogenetics Pharma Co., desires to manufacture and sell the drug containing the
compound taxadrol as a medicine for curing Cancer. It realizes that the compound is
under patent protection; the patent being held by Hydra Pharma Ltd., The patent
period would expire in June 2026. Citrogenetics is conscious of the fact that the
BA/BE tests would take time and they cannot enter into the market till 2030. They
approach you for your advice on the Patent law in India and US, so that they can
conduct Bio-equivalence and Bioavailability tests during the patent period itself.
Examine the law of Patents in India and US that facilitates Citrogenetics to
conduct trials without the consent of Hydra Pharma Ltd., and Advice.

2. Gajanana productions have appointed script writers, composers, editors, singers to

contribute on a regular basis to their fim production. They are all paid regular salary
and health insurance and TDS system is in place.
Krishnakant, one of the lyricists employed by Gajanana productions has sought leave
for a month on health grounds. Meanwhile, Gajanana productions sign an
assignment deed obtaining copyright in the novel ‘Bindiya’ to produce film with
Keshavaraj Chumani, a popular novelist.
Krishnakant, while on leave, wrote the script for a movie based on ‘Bindiya’ novel,
while he was on leave. He resigned after three months from Gajanana productions
and the same was accepted.
Gajanana productions started the film productions based on script written by
Krishna kant. Krishna kant contends that he has copyright over the script because he
wrote the same.
Examine the parameters for determining the first ownership in copyright
based on ‘work done in the course of employment under a contract of service’
and decide.

3. An application has been filed in the Patent Office in India for the following invention:
“a process of manufacture of an ancient and well known medicinal commodity called
as ‘Banslochan’ by a process of baking / calcining by heating. This is done by using
combination of earthenware vessel placed one on top of other in a stove. The
method secures slower heat, enables material to be treated with sulphuricacid at red
heat, confines fumes within a closed crucible and produces colour of pure white
powder.”
The examiner has cited the following PRIOR ART document that refers to a similar
process. The process in the prior art refers to heating carried out in ‘iron pans’ that
produced rapid and intense heat operating directly on the material. The fumes of
suphuric acid were carried away when a chimney was connected to the retort. The
powder obtained was brownish tint containing iron matter.
The examiner states that the prior art anticipates the invention.

Page 2 of 4
 Examine the tests for determining Novelty and decide. Also examine if ‘secret
prior use’ will affect novelty of the claim.

4. Creative Assist Co has been manufacturing and selling furniture. They have in house
artists to draw highly creative and artistic designs. These are applied on the
furniture and registered as ‘designs’ with the Registry. One of its attraction is the
Design of a sofa designed by use of buri palm, abaca rope and steel. The sofa is
hollow at the bottom, between backrest and the outer edge as well as below the
hand rests.
Gunamala Creative Association was also into the business of making upholstery.
They manufactured and sold sofa with similar shape and configuration but made by
using plastic sheets, rope and brass fittings.
Creative artist sue Gunamala for infringement of their Design rights.

Examine the requirements for registration of design, validity of design of sofa

and decide whether Gunamala Creative asiciation is liable for infringement.

5. Greenply Ltd, an Indian company is manufacturer of smart phones having obtained

valid license on FRAND terms from the SEP holders for all patented components that
are incorporated into smart phone. They have registered a trademark “GRENADA”
that has acquired distinctiveness in view of the extensive promotion by Greenply
Ltd. The ‘Grenada’ phones are sold by retailers along with Samsung and Apple-I-
phones. Greenply promotes the product through various advertisements. One of
their advertisements shows the brand ambassador holding two phones—samsung
galaxy and I-phone—in one hand and Grenada phone in other hand and saying ‘desi
outsmarts pardesi’ and switches on all three phones. He is shown as deeply sad
while using I-phone and galaxy, unable to hear properly, struggling hard to get
signals. His face brightens up when he throws away the two phones into river and
uses Grenada smart phone. He finally says ‘grenada is the I-phone of India’.

Apple sues Greenply for infringement of Trademark by dilution and disparagement.

DECIDE.

6. ‘Carraneur’ is a popular brand of Carra Inc., in US & Australia, marketing range of

electronic applications. The trademark is registered in most of the countries, except
India and UK. The legal team was exploring filing of the Madrid application for
obtaining registration in India and UK. They have online presence with domain
names www.carraneur.au, www.carraneur.com www.carraneur.fr . Visitors from
other countries bring products of Carra Inc into UK and India. Hence it has become
well known in India and UK as well.

Ellora and Co, an Indian manufactures of electronic goods registered websites under
domain names, www.incarraneur.in www.incarraneur.com www.ukcarraneur.com .
They offered for sale in India and UK electronic goods under the name ‘InCarraneur’
and also applied for registration of the said trademark.

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 Carra Inc initiate action against Ellora and Co for “passing off’, file opposition to the
registration of Trademark before the Trademarks Registry and action for removal of
domain names under UDRP and INDRP. Ellora contends that Carra has not been
selling any of the goods in India and UK and the domain name that are used are
different.

Examine the law of passing off, grounds for refusal of registration of

trademarks and Decide

7. Niladri Ltd is a retailer in India selling products of all brands. They have retail
outlets in every district of Tamil Nadu. Niladri Ltd registered trademark “niladri” for
its products—tea, coffee, condiments and related products. In view of its location in
Nilagiri [ooty], it purchased large stretch of tea garden and started processing tea for
sale.

The processed tea was sold under the mark “Niladri-the Darjeeling-type tea”. The
product became popular. As a result Niladri Ltd opened a separate cell in each of its
outlet under the name “Darjeeling Counter” and sold its tea in that unit.

Tea Board that has registered “Darjeeling Tea” as a GI sues Niladri Ltd.

Examine and Decide.

8. Bridgetone Inc is a popular search engine service provider having S-life as its
subsidiary. S-life facilitates any user to register and upload any of his own audio or
video files on S-life site. Rupangad and his friends purchased CDs containing audio
as well as video albums. Each one of them uploaded the CDs individually purchased
by them on s-life. These audio and video are protected as copyrighted works.
Aadarsh audio owns the copyright in all of these.

Aadarsh audio Co registered complaint with s-life in accordance with their

takedown policy. As per their policy, the infringing materials will be removed within
48 hours. Despite Aadarsh audio providing documentary evidence to show
ownership, album’s were not removed from s-life website even after a week.
Hundreds of downloads of the infringing works have been done from this webiste by
other users.

Aadarsh audio desires to sue s-life.

What are the grounds on which they will be able to successfully sue S-life
/Bridgetone? Examine

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 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BENGALURU
Professional and Continuing Education (PACE)

Annual Examination / Summative Assessment – June 2022

Post Graduate – Master of Business Laws – Second Year

C – 5 : TAXATION OF CORPORATIONS AND COMMODITIES

Date: 27.06.2022 Marks: 100
Duration: 3 hours
Instructions:
1. No clarifications can be sought on the Question Paper. In case of any ambiguity in the
question, state your assumption and answer accordingly.
2. Bare Acts, notes, articles, books or any other material are not permitted while writing the
examination.
3. Mention the applicable statutory provisions and applicable case law as discussed in class.
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Category - A
Answer any 4 questions: 4 x 10 = 40marks

1. “Taxes, like death, are unavoidable. But we can design our taxes.” Explain four
objectives of a ‘good’ tax system along with reasons for each. (10 marks)

2. “Tax, fee, cess and surcharge are all the same - compulsory exactions of money by
public authorities.”
Comment on the above observation in light of course discussions on the topic.

3. “Income from any transaction involving letting out of property is taxable under the
head income from house property.”
Comment on the above statement in view of class discussions on the issue of
valuation.

4. Discuss allocation of tax burden through the different tax structures - progressive,
regressive and proportional.

5. “Transaction value is the basis for valuation for supply of goods and/or services under
the GST Regime.”
Discuss the above statement in view of class discussions on the issue of valuation.

6. “Taxation of capital gains is conditional”. Discuss this statement in view of

discussions in class on the Income Tax Act, 1961.

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7. Comment on “transfer” as a result of “extinguishment of any rights therein”, as
understood for the purposes of capital gains taxation under the Income Tax Act,
1961.

8. Comment on taxation of externalities. Illustrate your answer with atleast one

example.

Category - B
Answer any 4 questions: 4 x 15 = 60 marks

1. The Finance Minister of Government of India announces that deduction of capital

expenditure will now be allowed at 100% in the year when the commercial
operations begin in respect of specified businesses that include setting up and
operating warehousing facilities for storage of agriculture produce, and building and
operating a hospital with at least 100 beds. The necessary amendments in the
statute/ applicable notifications will be made shortly.
Explain why the above announced measure will work as a tax incentive for the
concerned businesses.

2. Sumeet is a salaried employee working in SM Ltd. and is paid a salary of Rs. 50,000
per month. It is due to be paid by SM Ltd. on the last day of every month but was
paid on 4th of the following month. Salary of April, 2020 and May, 2020 is received
in advance in March 2020. In November, 2019 Sumeet purchased a plot of land for
Rs. 10,00,000 and sold the same in March, 2020 for Rs. 12,10,000 (brokerage Rs.
10,000). What will be the total income on which income tax will be payable by
Sumeet for the assessment year 2020-21?
Explain with reasons and reference to relevant statutory provisions.

3. Eagle Air is a company engaged in the business of transportation of goods and

passengers by air. The goods transported by it are exclusively in the category of life
saving medicines that are required to be kept at specific temperatures. This specific
service is made exempt from levy of GST through a notification. Transportation of
passengers by air is liable to GST. Eagle Air flies to multiple destinations and is GST
registered as per law. Eagle Air incurred expenses under the following heads:

• Maintenance and repair of aircraft

• Fees paid to auditors of financial statements of the company
• Membership to a health club to which all their employees have access to during
their employment
Advise Eagle Air on the credit available of GST paid on aforesaid expenses.

4. A film actor has a brand promotion agreement with a company. During the term of
the agreement, the actor files a complaint of sexual harassment against the
managing director of the company. The brand promotion agreement is terminated
by the company and the company pays the actor Rs 60 lacs on account of the same.
The company also pays the actor Rs 50 lacs for withdrawal of the complaint. The tax

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 authorities seek to demand income tax on both the receipts under section 28 of the
Income Tax Act, 1961. Advise the actor on income tax implications for both the
amounts.

5. Discuss the basis of classification of supply as composite supply or mixed supply and
tax implications on such supplies under GST law. Reason whether the following are
composite or mixed supplies.
(i) Gift pack with chocolates and books.
(ii) Sale of mobile phone with charger.
(iii) Hotel ABC providing accommodation with complimentary breakfast.

6. Amit has received Rs 5 lacs from his employer on premature termination of his
contract of employment. Is the said receipt liable to GST? What would be the income
tax implications?

7. Excellence Co. is a human resources company, having its GST registered office in
Mumbai and the services provided by it include training employees of its clients in
professional ethics, workplace behaviour, public speaking skills etc. The following
payments are received by Excellence Co. for the training services provided by it to
its clients:
Description (in Rs.
exclusive of taxes)

Revenue from businesses registered in 10,00,000

Karnataka, where the trainings were
conducted in Bengaluru
Revenue from businesses registered in Delhi, 2,50,000
where the trainings were conducted in
Mumbai
Revenue from businesses not registered for 5,00,000
GST, where the trainings were conducted in
Mumbai

Advise Excellence Co. on CGST, SGST, IGST implications on the above.

8. Company A has incurred the following expenditure. Decide whether it classifies as

revenue expenditure or capital expenditure. Outline the differences between
revenue expenditure and capital expenditure, and the effect on computation of
income.
- Expenditure on obtaining fire insurance for the factory premises.

- Expenditure incurred on research and development to develop a new product.

- Expenditure on maintenance and repair of printing and photocopying equipment

used in its office by the tax consulting firm.

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- Compensation payable by Company A for breach of contract by it to purchase raw
materials from another company.

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