GUIDELINE ANSWERS

JUNE 2024 EXAMINATION

JURISPRUDENCE, INTERPRETATION AND GENERAL LAWS
MODULE 1 PAPER 1
EXECUTIVE PROGRAMME
(SYLLABUS 2017)

Question Paper https://www.icsi.edu/media/webmodules/examination/june2024/421.pdf

Web-link

Answer to question no. 1(a)

Bentham identified that every law may be considered in eight different respects. They are:

1. Source: The source of a law is the will of the sovereign, who may conceive laws which he
personally issues, or adopt laws previously issued by sovereigns or subordinate authorities, or he
may adopt laws to be issued in future by subordinate authorities. Sovereign according to Bentham
is any person or assemblage of person to who's will a whole political community is supposed to
be in a disposition to pay obedience, and then in preference to the will of any other person.

2. Subjects: These may be persons or things. Each of these may be active or passive subjects, i.e.,
the agent with which an act commences or terminates.

3. Objects: The goals of a given law are its objects.

4. Extent: Direct extent means that a law covers a portion of land on which acts have their
termination; indirect extent refers to the relation of an actor to a thing.

5. Aspects: Every law has 'directive' and a 'sanctional' part. The former concerns the aspects of the
sovereign will towards an act-situation and the latter concerns the force of a law. The four aspects
of the sovereign will are - command, prohibition, non-prohibition and non-command and the whole
range of laws are covered under it. These four aspects are related to each other by opposition and
concomitancy.

6. Force: The motivation to obey a law is generated by the force behind the law.

7. Remedial appendage: These are a set of subsidiary laws addressed to the judges through which
the judges cure the evil (compensation), stop the evil or prevent future evil.

8. Expression: A law, in the ultimate, is an expression of a sovereign's will. The connection with
will raises the problem of discovering the will from the expression.

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Answer to question no. 1(b)

Article 16(1) of the Constitution of India guarantees to all citizens equality of opportunity in
matters relating to employment or appointment of office under the State.

Article 16(2) prohibits discrimination against a citizen on the grounds of religion, race, caste, sex,
descent, place of birth or residence. However, there are certain exceptions provided in Article
16(3), 16(4), 16(4A), 16(4B), 16(5) and 16(6).These exceptions are as follows:

 Parliament can make a law that in regard to a class or classes of employment or

appointment to an office under the Government of a State or a Union Territory, under any
local or other authority within the State or Union Territory, residence within that State or
Union Territory prior to such employment or appointment shall be an essential
qualification. [Article 16(3)]

 A provision can be made for the reservation of appointments or posts in favour of any
backward class of citizens which in the opinion of the State is not adequately represented
in the services under the State. [Article 16(4)]

 Nothing in this article shall prevent the State from making any provision for reservation in
matters of promotion with consequential seniority, to any class or classes of posts in the
services under the State in favour of the Scheduled Castes and the Scheduled Tribes which,
in the opinion of the State, are not adequately represented in the services under the State.
[Article 16(4A)]

 Nothing in this article shall prevent the State from considering any unfilled vacancies of a
year which are reserved for being filled up in that year in accordance with any provision
for reservation made under clause (4) or clause (4A) as a separate class of vacancies to be
filled up in any succeeding year or years and such class of vacancies shall not be considered
together with the vacancies of the year in which they are being filled up for determining
the ceiling of fifty per cent. reservation on total number of vacancies of that year. [Article
16(4B)]

 A law shall not be invalid if it provides that the incumbent of an office in connection with
the affair of any religious or denominational institution or any member of the governing
body thereof shall be a person professing a particular religion or belonging to a particular
denomination. [Article 16(5)]

 Nothing in this article shall prevent the State from making any provision for the reservation
of appointments or posts in favour of any economically weaker sections of citizens other
than the classes mentioned in clause (4), in addition to the existing reservation and subject
to a maximum of ten per cent. of the posts in each category. [Article 16(6)].

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Answer to question no. 1(c)

Section 11 of the Civil Procedure Code, 1908(the Code) deals with the doctrine of Res Judicata.
According to the case, S.B. Temple v. V.V.B. Charyulu, (1971) 1 SCJ 215, the doctrine underlines
the general principle that 'no one shall be twice vexed for the same cause’.

According to this provision, no Court shall try any suit or issue in which the matter has been
directly and substantially in issue in a former suit (i.e., suit previously decided) either between the
same parties, or between parties under whom they or any of them claim, litigating under the same
title in a Court competent to try such subsequent suit or the suit in which such issue has been
subsequently raised and finally decided by such Court. It is a pragmatic principle accepted and
provided in law that there must be a limit or end to litigation on the same issues.

It prevents two different decrees on the same subject. Section 11 says that once a res is judicata, it
shall not be adjudged again. The principle applies to suits in Section 11 of the Code; but even
where Section 11 does not apply, the principle of res judicata has been applied by Courts for the
purpose of giving finality to litigation.

For the applicability of the principle of res judicata embodied in Section 11, the following
requirements are necessary:

(1) The matter directly and substantially in issue in former suit shall also be directly and
substantially in issue in later suit. The expression "directly and substantially in issue means an
issue alleged by one party and denied or admitted by the other either expressly or by necessary
implications (Lonakutty v. Thomman, AIR 1976 SC 1645). In the matter of taxation for levy of
municipal taxes, there is no question of res judicata as each year's assessment is final for that year
and does not govern latter years (Municipal Corporation v. Madan Mohan, AIR 1976 43).

A suit for eviction on reasonable requirement was compromised and the tenant was allowed to
continue as tenant for the subsequent suit for ejectment on the ground of reasonable requirement,
it was found that some reasonable requirement had been present during the earlier suit. The second
suit was not maintainable.

(2) The former suit has been decided - former suit means which is decided earlier.

(3) The said issue has been heard and finally decided.

The issue or the suit itself is heard and finally decided, then it operates as res judicata and not the
reasons leading to the decision (Mysore State E. Board v. Bangalore W.C. & S. Mills, AIR 1963
SC 1128). However, no res judicata operates when the points could not have been raised in earlier
suit. (Prafulla Chandra v. Surat Roit AIR 1998 Ori. 41). But when a suit has been decided on
merits, and the appeal is dismissed on a preliminary point, it amounts to the appeal being heard
and finally decided and the decision operates as res judicata (Mukunda Jana v. Kanta Mandal, AIR
1979 NOC 116).

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(4) Such former suit and the latter are between the same parties or litigation under the same title
or persons claiming under parties above (Isher Singh v. Sarwan Singh, AIR 1965 SC 948).

In short, this principle applies where an issue which has been raised in a subsequent suit was
directly and substantially in issue in a former suit between the same parties and was heard and
decided finally. Findings incidentally recorded do not operate as res judicata (Madhvi Amma
Bhawani Amma v. Kunjikutty P.M. Pillai, AIR 2000 SC 2301).

Answer to question no. 1(d)

Where the meaning of the statute is clear there is no need for presumptions. But if the intention of
the legislature is not clear, there are a number of presumptions. These are as follows:

(a) That the words in a statute are used precisely and not loosely.

(b) That vested rights, i.e., rights which a person possessed at the time the statute was passed, are
not taken away without express words, or necessary implication or without compensation.

(c) That mens rea, i.e., guilty mind is required for a criminal act. There is a very strong presumption
that a statute creating a criminal offence does not intend to attach liability without a guilty intent.
The general rule applicable to criminal cases is “actus non facit reum nisi mens sit rea” (The act
itself does not constitute guilt unless done with a guilty intent).

(d) That the state is not affected by a statute unless it is expressly mentioned as being so affected.

(e) That a statute is not intended to be inconsistent with the principles of International Law.
Although the judges cannot declare a statute void as being repugnant to International Law, yet if
two possible alternatives present themselves, the judges will choose that which is not at variance
with it.

(f) That the legislature knows the state of the law.

(g) That the legislature does not make any alteration in the existing law unless by express
enactment.

(h) That the legislature knows the practice of the executive and the judiciary.

(i) Legislature confers powers necessary to carry out duties imposed by it.

(j) That the legislature does not make mistake. The Court will not even alter an obvious one, unless
it be to correct faulty language where the intention is clear.

(jj) The law compels no man to do that which is futile or fruitless.

(k) Legal fictions may be said to be statements or suppositions which are known, to be untrue, but
which are not allowed to be denied in order that some difficulty may be overcome, and substantial

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justice secured. It is a well settled rule of interpretation that in construing the scope of a legal
fiction, it would be proper and even necessary to assume all those facts on which alone the fiction
can operate.

(l) Where powers and duties are inter-connected and it is not possible to separate one from the
other in such a way that powers may be delegated while duties are retained and vice versa, the
delegation of powers takes with it the duties.

(m) The doctrine of natural justice is really a doctrine for the interpretation of statutes, under which
the Court will presume that the legislature while granting a drastic power must intend that it should
be fairly exercised.

Attempt all parts of either Q. No. 2 or Q. No. 2A

Answer to question no. 2(a)

There are two types of remedies available to a person under the Law relating to Torts. These are
judicial and extra judicial remedies. The extra judicial remedies are explained as under:

Extra judicial remedies

(a) Self defence: It is lawful for any person to use reasonable forces to protect himself, or any
other person against any unlawful use of force.

(b) Prevention of trespass: An occupier of land or any person with his authority may use
reasonable force to prevent trespassers entering or to eject them but the force should be reasonable
for the purpose.

(c) Re-entry on land: A person wrongfully disposed of land may retake possession of land if he
can do so in a peaceful and reasonable manner.

(d) Re-caption of goods: It is neither a crime nor a tort for a person entitled to possession of a
chattel to take it either peacefully or by the use of a reasonable force from one who has wrongly
taken it or wrongfully detained it.

(e) Abatement of nuisance: The occupier of land may lawfully abate (i.e. terminate by his own
act), any nuisance injuriously affecting it. Thus, he may cut overhanging branches as spreading
roots from his neighbour's trees, but:
(i) upon giving notice;
(ii) by choosing the least mischievous method;
(iii) avoiding unnecessary damage.

(f) Distress damage feasant: An occupier may lawfully seize any cattle or any chattel which are
unlawfully on his land doing damage there and detain them until compensation is paid for the

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damage. The right is known as that of distress damage feasant - to distrain things which are doing
damage.

Answer to question no. 2(b)

Writ of Quo warranto

The writ of quo warranto enables enquiry into the legality of the claim which a person asserts, to
an office or franchise and to oust him from such position if he is a usurper. The holder of the office
has to show to the court under what authority he holds the office. It is issued when:

(i) the office is of public and of a substantive nature,

(ii) created by statute or by the Constitution itself, and
(iii) the respondent has asserted his claim to the office. It can be issued even though he has
not assumed the charge of the office.

The fundamental basis of the proceeding of quo warranto is that the public has an interest to see
that an unlawful claimant does not usurp a public office. It is a discretionary remedy which the
court may grant or refuse.

Answer to question no. 2(c)

“Decree” is defined in Section 2(2) of the Civil Procedure Code, 1908(Code) as:
(i) the formal expression of an adjudication which, so far as regards the Court expressing it;
(ii) conclusively;
(iii) determines the rights of the parties;
(iv) with regard to all or any of the matters in controversy;
(v) in the suit and may be either preliminary (i.e., when further proceedings have to be taken
before disposal of the suit) or final.

The decree shall be deemed to include the rejection of a plaint and the determination of any
question within Section 144 (application for restitution) of the Code. But decree does not include:
(a) any adjudication from which an appeal lies as an appeal from an Order, or
(b) any order of dismissal for default..

According to the explanation to the definition, a decree may be partly preliminary and partly final.
A decree comes into existence as soon as the judgement is pronounced and not on the date when
it is sealed and signed. (Order 20 Rule 7)

A decree is preliminary when further proceedings have to be taken before the suit can be
completely disposed of. The preliminary decree is not dependent on the final. On the other hand,
final decree is dependent and subordinate to the preliminary decree, and gives effect to it. The
preliminary decree ascertains what is to be done while the final decree states the result achieved
by means of the preliminary decree. If the preliminary decree is set aside the final decree is
automatically superseded.

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Answer to question no. 2(d)

The Indian Evidence Act, 1872(the Act) recognises some rules as to presumptions. Rules of
presumption are deduced from enlightened human knowledge and experience and are drawn from
the connection, relation and coincidence of facts and circumstances. A presumption is not in itself
an evidence but only makes a prima facie case for the party in whose favour it exists. A
presumption is a rule of law that courts or juries shall or may draw a particular inference from a
particular fact or from particular evidence unless and until the truth of such inference is disproved.

Three categories of Presumptions are as under:

(i) Presumptions of law- It is a rule of law that a particular inference shall be drawn by a
court from particular circumstances.

(ii) Presumptions of fact- It is a rule of law that a fact otherwise doubtful may be inferred
from a fact which is proved.

(iii) Mixed presumptions- They consider mainly certain inferences between the
presumptions of law and presumptions of fact.

The terms presumption of law and presumption of fact are not defined by the Act. Section 4 of the
Act only refers to the terms “conclusive proof”, “shall presume” and “may presume”. The term
“conclusive proof” specifies those presumptions which in English Law are called irrebuttable
presumptions of law. The term shall presume indicates rebuttable presumptions of law; and the
term "may presume" indicates presumptions of fact.

In the given situation, a man was stabbed at the back by a knife and was lying on the floor in a
pool of blood. Another person was running away from the scene with his hands full of blood. One
can easily say that there is a presumption of fact that the man was stabbed at the back by the person
running away.

OR (Alternate question to Q. No. 2)

Answer to question no. 2A(i)

According to Section 9 of the Limitation Ac, 1963, where once time has begun to run, no
subsequent disability or inability to institute a suit or make an application can stop it provided that
where letters of administration to the estate of a creditor have been granted to his debtor, the
running of the period of limitation for a suit to recover debt shall be suspended while the
administration continues. The rule of this Section is based on the English dictum. "Time when
once it has commenced to run in any case will not cease to be so by reason of any subsequent
event”. Thus, when any of the statutes of limitation is begun to run, no subsequent disability or
inability will stop this running.

The applicability of this Section is limited to suits and applications only and does not apply to
appeals unless the case fell within any of the exceptions provided in the Act itself.

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For the applicability of Section 9, it is essential that the cause of action or the right to move the
application must continue to exist and subsisting on the date on which a particular application is
made. If a right itself had been taken away by some subsequent event, no question of bar of
limitation will arise as the starting point of limitation for that particular application will be deemed
not to have been commenced.

Thus, time runs when the cause of action accrues. True test to determine when a cause of action
has accrued is to ascertain the time, when plaintiff could have maintained his action to a successful
result first if there is an infringement of a right at a particular time, the whole cause of action will
be said to have arisen then and there.

Answer to question no. 2A(ii)

The basic function of criminal law is to punish the offender and to deter the incidence of crime in
the society. A criminal act must contain the following elements:

Elements of Crime (a) Human Being (2) Mens rea (3) Actus reus

1. Human Being - The first requirement for commission of crime is that the act must be committed
by a human being. The human being must be under legal obligation to act in particular manner and
be physically and mentally fit for conviction in case he has not acted in accordance with the legal
obligation. Only a human being under legal obligation and capable of being punished can be the
proper subject of criminal law.

2. Mens rea: The basic principle of criminal liability is embodied in the legal maxim actus non
facit reum, nisi mens sit rea”. It means 'the act alone does not amount to guilt; the act must be
accompanied by a guilty mind. The intention and the act must both concur to constitute the crime.
Mens rea is defined as the mental element necessary to constitute criminal liability. It is the attitude
of mind which accompanies and directs the conduct which results in the 'actus reus'. The act is
judged not from the mind of the wrong-doer, but the mind of the wrong-doer is judged from the
act. ‘Mens rea’ is judged from the external conduct of the wrong-doer by applying objective
standards. Intention, Negligence and recklessness can be taken as important forms of mens rea.

3. Actus reus (act or omission): The third essential element of crime is actus reus. A human being
and an evil intent are not enough to constitute a crime for one cannot know the intentions of a man.
Actus reus means overt act or unlawful commission must be done in carrying out a plan with the
guilty intention. Actus reus is defined as a result of voluntary human conduct which law prohibits.
It is the doing of some act by the person to be held liable. An ‘act’ is a willed movement of body.

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Answer to question no. 2A(iii)

The essentials of presentation of petition or appeal before the National Company Law Tribunal
(NCLT) are that every petition, application, caveat, interlocutory application, documents and
appeal shall be presented in triplicate by the appellant or applicant or petitioner or respondent, as
the case may be, in person or by his duly authorised representative or by an advocate duly
appointed in this behalf in the prescribed form with stipulated fee at the filing counter and non-
compliance of this may constitute a valid ground to refuse to entertain the same.

Answer to question no. 2A(iv)

Administrative discretion means the freedom of an administrative authority to choose from

amongst various alternatives but with reference to rules of reason and justice and not according to
personal whims. The exercise of discretion should not be arbitrary, vague and fanciful, but legal
and regular. No law can clothe administrative action with a complete finality even if the law says
so, for the courts always examine the ambit and even the mode of its exercise to check its
conformity with fundamental rights. The conditions where the authority has not exercised its
discretion properly or is charged with abuse of discretion and judicial review may be exercised
which are as follows:

(a) Mala fides: If the discretionary power is exercised by the authority with bad faith or dishonest
intention, the action is quashed by the court. Malafide exercise of discretionary power is always
bad and taken as abuse of discretion. Malafide (bad faith) may be taken to mean dishonest intention
or corrupt motive. In relation to the exercise of statutory powers, it may be said to comprise
dishonesty (or fraud) and malice.
A power is exercised fraudulently if its repository intends to achieve an object other than that for
which he believes the power to have been conferred. The intention may be to promote another
public interest or private interest.

(b) Irrelevant considerations: If a statute confers power for one purpose, its use for a different
purpose is not regarded as a valid exercise of power and is likely to be quashed by the courts. If
the administrative authority takes into account factors, circumstances or events wholly irrelevant
or extraneous to the purpose mentioned in the statute, then the administrative action is vitiated.

(c) Leaving out relevant considerations: The administrative authority exercising the
discretionary power is required to take into account all the relevant facts. If it leaves out relevant
consideration, its action will be invalid.

(d) Arbitrary orders: The order made should be based on facts and cogent reasoning and not on
the whims and fancies of the adjudicatory authority.

(e) Improper purpose: The discretionary power is required to be used for the purpose for which
it has been given. If it is given for one purpose and used for another purpose, it will amount to
abuse of power.
(f) Colourable exercise of power: Where the discretionary power is exercised by the authority on
which it has been conferred ostensibly for the purpose for which it has been given but in reality
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for some other purpose, it is taken as colourable exercise of the discretionary power and it is
declared invalid.
(g) Non-compliance with procedural requirements and principles of natural justice: If the
procedural requirement laid down in the statute is mandatory and it is not complied, the exercise
of power will be bad. Whether the procedural requirement is mandatory or directory is decided by
the court. Principles of natural justice are also required to be observed.

(h) Exceeding jurisdiction: The authority is required to exercise the power within the limits of
the statute. Consequently, if the authority exceeds this limit, its action will be held to be ultra vires
and, therefore, void.

Answer to question no. 3(a)

According to Section 23 of the General Clauses Act, 1897 where, by any Central Act or
Regulation, a power to make rules or bye-laws is expressed to be given subject to the condition of
the rules or bye-laws being made after previous publication, then the following provisions shall
apply, namely:

(1) the authority having power to make the rules or bye-laws shall, before making them, publish a
draft of the proposed rules or bye-laws for the information of persons likely to be affected thereby;

(2) the publication shall be made in such manner as that authority deems to be sufficient, or, if the
condition with respect to previous publication so requires, in such manner as the government
concerned prescribes;

(3) there shall be published with the draft a notice specifying a date on or after which the draft will
be taken into consideration;

(4) the authority having power to make the rules or bye-laws, and, where the rules, or bye- laws
are to be made with the sanction, approval or concurrence of another authority, that authority also,
shall consider any objection or suggestion which may be received by the authority having power
to make the rules or bye-laws from any person with respect to the draft before the date so specified;

(5) the publication in the Official Gazette of a rule or bye-law purporting to have been made in
exercise of a power to make rules or bye-laws after previous publication shall be conclusive proof
that the rule or byelaw has been duly made.

Answer to question no. 3(b)

(i) Normally the tortfeasor is liable for his tort. But in some cases a person may be held liable for
the tort committed by another. One such exception is when there exist a relationship of Principal
and Agent [Specific authority], According to the Law of Torts the principle applicable in the cases
of specific authority between principal and agent is qui facit per alium facit per se which means
he who acts through another is acting himself, so that the act of the agent is the act of the principal.
When an agent commits a tort in the ordinary course of his duties as an agent, the principal is liable

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for the same. A master is vicariously liable for the tort of his servant, principal for the tort of his
agent and partners for the tort of a partner. This is known as vicarious liability in tort.

In the case of Lloyd v. Grace, Smith & Co. (1912) A.C. 716, the managing clerk of a firm of
solicitors, while acting in the ordinary course of business committed fraud, against a lady client by
fraudulently inducing her to sign documents transferring her property to him. He had done so
without the knowledge of his principal who was liable because the fraud was committed in the
course of employment.

In the given situation, where R was working as an accountant in a firm of solicitors, committed
fraud against B by fraudulently inducing her to sign documents transferring her property to him.
He did so while acting in the ordinary course of business without the knowledge of the principal
Q. Therefore, the principal Q would be held liable as the fraud was committed in the course of
employment.

(ii) The situation in the given situation is relating to Liability for the acts of Servants. Here, an
employer is liable whenever his servant commits a tort in the course of his employment. An act is
deemed to be done in the course of employment if it is either:

(a) a wrongful act authorized by the employer, or

(b) a wrongful and unauthorized mode of doing some act authorized by the employer.

As per the case of Century Insurance Co Vs Northern Ireland Road Transport Board, if a servant
acts negligently in the performance of his duties or displays reckless behaviour, thereby causing
loss to the plaintiff, the master would be liable for the same.

In the given situation, M while transferring petrol from lorry to an underground tank at a garage,
struck a match stick in order to light a cigarette and then threw it still alight on the floor causing
an explosion and a fire. Therefore, in this case employers are liable for the damage caused as M
did the act in the course of carrying out his task of delivering petrol.

Answer to question no. 3(c)

The Right to Information Act, 2005(Act/RTI Act), confers on all citizens the right to information.
The Act provides for setting out the practical regime of right to information for citizens to secure
access to information held by public authorities to promote transparency and accountability in the
working of every public authority.

In the case of Anjali Bhardwaj and Others vs. Union of India and Others in Writ Petition (Civil)
No. 436 of 2018 Judgement dated February 15, 2019, the Hon'ble Supreme Court of India in
Paragraph 18, 19 and 68 observed that there is a definite link between right to information and
good governance. In fact, the RTI Act itself lays emphasis on good governance and recognises that
it is one of the objectives which the said Act seeks to achieve.

The RTI Act would reveal that four major elements/objectives required to ensure good governance
are:

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(i) greater transparency in functioning of public authorities;;
(ii) informed citizenry for promotion of partnership between citizens and the Government in
decision making process;
(iii) improvement in accountability and performance of the Government; and
(iv) reduction in corruption in the Government departments.

The right to information, therefore, is not only a constitutional right of the citizens but there is now
a legislation in the form of RTI Act which provides a legal regime for people to exercise their
fundamental right to information and to access information from public authorities. The very
preamble of the Act captures the importance of this democratic right which reads as "democracy
requires an informed citizenry and transparency of information which are vital to its functioning
and also to contain corruption and to hold Governments and their instrumentalities accountable to
the governed.

This Act is enacted not only to sub-serve and ensure freedom of speech. On proper implementation,
it has the potential to bring about good governance which is an integral part of any vibrant
democracy. Attaining good governance is also one of the visions of the Constitution.

Answer to question no. 3(d)

Section 469 of the Criminal Procedure Code, 1973 fixes the day from which the period of
limitation should begin to run. However, section 470 provides provisions for exclusion of time in
certain cases. These are as under:

(a) the period during which another prosecution was diligently prosecuted (the prosecution should
relate to the same facts and is prosecuted in good faith);

(b) the period of the continuance of the stay order or injunction (from the date of grant to the date
of withdrawal) granted against the institution of prosecution;

(c) where notice of prosecution has been given, the period of notice;

(d) where previous sanction or consent for the institution of any prosecution is necessary, the
period required for obtaining such consent or sanction including the date of application for
obtaining the sanction and the date of the receipt of the order;

(e) the period during which the offender is absent from India or from territory outside India under
the Central Govt. administration; and

(f) period when the offender is absconding or concealing himself.

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Answer to question no. 4(a)

Conciliation is an informal process in which the conciliator (the third party) tries to bring the
disputants to agreement. He does this by lowering tensions, improving communications,
interpreting issues, providing technical assistance, exploring potential solutions and bringing about
a negotiated settlement.

Section 64(1) of the Arbitration and Conciliation Act, 1996 provides that subject to section 64(2):
a. in conciliation proceedings with one conciliator, the parties may agree on the name of a
sole conciliator;
b. in conciliation proceedings with two conciliators, each party may appoint one
conciliator;
c. in conciliation proceedings with three conciliators, each party may appoint one
conciliator and the parties may agree on the name of the third conciliator who shall act as
the presiding conciliator.

Further section 64(2) provides that parties may enlist the assistance of a suitable institution or
person in connection with the appointment of conciliators, and in particular,

a. a party may respect such an institution or person to recommend the names of suitable
individuals to act as conciliator, or
b. the parties may agree that the appointment of one or more conciliators be made directly
by such an institution or person.

However, in recommending or appointing individuals to act as conciliator, the institution or person

shall have regard to such considerations as are likely to secure the appointment of an independent
and impartial conciliator and, with respect to a sole or third conciliator, shall take into account the
advisability of appointing a conciliator of a nationality other than the nationalities of the parties.

Answer to question no. 4(b)

Forgery is defined under section 463 of the Indian Penal Code, 1860 and the punishment for it is
prescribed under section 465.

According to Section 463 of the Indian Penal Code, 1860, whoever makes any false document or
false electronic record or part of a document or electronic record, with intent to cause damage or
injury, to the public or to any person, or to support any claim or title, or to cause any person to part
with property, or to enter into any express or implied contract, or with intent to commit fraud or
that fraud may be committed, commits forgery.

As per Section 465 of Indian Penal Code, 1860, whoever commits forgery shall be punished with
imprisonment of either description for a term which may extend to two years, or with fine, or with
both.

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In the given situation, Mohan has a letter of credit upon Sohan for rupees 50,000, written by Sunil.
Mohan in order to defraud Sohan manipulated the letter of credit by adding one zero and made the
sum Rs. 5,00,000 intending that it may be believed by Sohan that Sunil so wrote the letter. Mohan
has committed forgery under Section 463 of the Indian Penal Code, 1860 and is liable to be
punished according to section 465 of the Indian Penal Code, 1860.

Answer to question no. 4(c)

E-Stamping under the Indian Stamp Act, 1899 is a computer-based application and a secured way
of paying non-judicial stamp duty to the Government. The prevailing system of physical stamp
paper/franking is being replaced by E-Stamping system.

Benefits of e-Stamping

1. E-Stamp Certificate can be generated within minutes;

2. E-Stamp Certificate generated is tamper proof;
3. E-Stamp Certificate generated has a Unique Identification Number;
4. Easy accessibility and faster processing;
5. Security;
6. Cost savings and User friendly.

Verification of e-stamping

Government of India, Ministry of Finance, Department of Economic Affairs appointed SHCIL to

act as Central Record Keeping Agency (CRA).

An e-stamp can be verified online by clicking on verify e-Stamp certificate and entering the
required details:

1. State
2. Certificate Number (UIN)
3. Stamp Duty Type (description of document)
4. Certificate Issue Date
5. 6-character alphanumeric string.

UIN is a Unique system generated number mentioned on the e-Stamp Certificate. Anybody, having
the Unique Identification Number, can check the authenticity of the Certificate through the website
www.shcilestamp.com.

Answer to question no. 4(d)

Section 17 of the Registration Act, 1908(the Act) has made registration of certain documents
compulsory. However, section 18 of Act specifies documents, registration of which is optional. It
provides that any of the following documents may be registered under this Act, namely:

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(a) Instruments (other than instruments of gift and wills) which purport or operate to create,
declare, assign, limit or extinguish, whether in present or in future, any right, title or interest,
whether vested or contingent, of value less than one hundred rupees, to or in immovable property;

(b) Instruments acknowledging the receipt or payment of any consideration on account of the
creation, declaration, assignment; limitation or extinction of any such right, title or interest;

(c) leases of immovable property for any term not exceeding one year and leases exempted under
Section 17;

(d) Instruments transferring or assigning any decree or order of a court or any award when such
decree or order or award purports or operates to create, declare, assign, limit or extinguish, whether
in present or in future, any right, title or interest, whether vested or contingent of a value less than
one hundred rupees, to or in immovable property;

(e) Instruments (other than wills) which purport or operate to create declare, assign, limit or
extinguish any right, title or interest to or in movable property;

(f) Wills; and

(g) all Other documents not required by Section 17 to be registered.

Answer to question no. 5(a)

Section 41 of the Criminal Procedure Code, 1973 enumerates different categories of cases in which
a police officer may arrest a person without an order from a Magistrate and without a warrant. Any
police officer may without an order from a Magistrate and without a warrant, arrest any person-

(a) who commits, in the presence of a police officer, a cognizable offence;

(b) against whom a reasonable complaint has been made, or credible information has been
received, or a reasonable suspicion exists that he has committed a cognizable offence
punishable with imprisonment for a term which may be less than seven years or which may
extend to seven years whether with or without fine, if the following conditions are satisfied,
namely:
(i) the police officer has reason to believe on the basis of such complaint, information, or
suspicion that such person has committed the said offence;
(ii) the police officer is satisfied that such arrest is necessary—
(a) to prevent such person from committing any further offence; or
(b) for proper investigation of the offence; or
(c) to prevent such person from causing the evidence of the offence to disappear or
tampering with such evidence in any manner; or
(d) to prevent such person from making any inducement, threat or promise to any person
acquainted with the facts of the case so as to dissuade him from disclosing such facts to
the Court or to the police officer; or

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 (e) as unless such person is arrested, his presence in the Court whenever required cannot
be ensured,
and the police officer shall record while making such arrest, his reasons in writing:

Further provided that a police officer shall, in all cases where the arrest of a person is not required
under the provisions of this sub-section, record the reasons in writing for not making the arrest.

(ba) against whom credible information has been received that he has committed a cognizable
offence punishable with imprisonment for a term which may extend to more than seven years
whether with or without fine or with death sentence and the police officer has reason to believe
on the basis of that information that such person has committed the said offence.

(c) who has been proclaimed as an offender either under the Code of Criminal Procedure, 1973
or by order of the State Government; or

(d) in whose possession anything is found which may reasonably be suspected to be stolen
property and who may reasonably be suspected of having committed an offence with reference
to such thing; or

(e) who obstructs a police officer while in the execution of his duty, or who has escaped, or
attempts to escape, from lawful custody; or

(f) who is reasonably suspected of being a deserter from any of the Armed Forces of the Union;
or

(g) who has been concerned in, or against whom a reasonable complaint has been made, or
credible information has been received, or a reasonable suspicion exists, of his having been
concerned in, any act committed at any place out of India which, if committed in India, would
have been punishable as an offence, and for which he is, under any law relating to extradition,
or otherwise, liable to be apprehended or detained in custody in India; or

(h) who, being a released convict, commits a breach of any rule made under sub-section (5) of
section 356; or

(i) for whose arrest any requisition, whether written or oral, has been received from another
police officer, provided that the requisition specifies the person to be arrested and the offence or
other cause for which the arrest is to be made and it appears therefrom that the person might
lawfully be arrested without a warrant by the officer who issued the requisition.

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Answer to question no. 5(b)

Constitution of Central Information Commission (Section 12 of Right to Information Act,

2005)

(1) The Central Government shall, by notification in the Official Gazette, constitute a body to be
known as the Central Information Commission to exercise the powers conferred on, and to perform
the functions assigned to, it under the Right to Information Act, 2005.

(2) The Central Information Commission shall consist of—

(a) the Chief Information Commissioner; and
(b) such number of Central Information Commissioners, not exceeding ten, as may be deemed
necessary.

(3) The Chief Information Commissioner and Information Commissioners shall be appointed by
the President on the recommendation of a committee consisting of—
(i) the Prime Minister, who shall be the Chairperson of the committee;
(ii) the Leader of Opposition in the Lok Sabha; and
(iii) a Union Cabinet Minister to be nominated by the Prime Minister.

(4) The general superintendence, direction and management of the affairs of the Central Information
Commission shall vest in the Chief Information Commissioner who shall be assisted by the
Information Commissioners and may exercise all such powers and do all such acts and things which
may be exercised or done by the Central Information Commission autonomously without being
subjected to directions by any other authority under this Act.

(5) The Chief Information Commissioner and Information Commissioners shall be persons of
eminence in public life with wide knowledge and experience in law, science and technology, social
service, management, journalism, mass media or administration and governance.

(6) The Chief Information Commissioner or an Information Commissioner shall not be a Member
of Parliament or Member of the Legislature of any State or Union territory, as the case may be, or
hold any other office of profit or connected with any political party or carrying on any business or
pursuing any profession.

(7) The headquarters of the Central Information Commission shall be at Delhi and the Central
Information Commission may, with the previous approval of the Central Government, establish
offices at other places in India.

Term of office and conditions of service (Section 13 of Right to Information Act, 2005)

(1)The Chief Information Commissioner shall hold office for such term as may be prescribed by the
Central Government and shall not be eligible for reappointment:

Provided that no Chief Information Commissioner shall hold office as such after he has attained the
age of sixty-five years.

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(2) Every Information Commissioner shall hold office for such term as may be prescribed by the
Central Government or till he attains the age of sixty-five years, whichever is earlier, and shall not
be eligible for reappointment as such Information Commissioner:

Provided that every Information Commissioner shall, on vacating his office under this sub-section
be eligible for appointment as the Chief Information Commissioner in the manner specified in sub-
section (3) of section 12:

Provided further that where the Information Commissioner is appointed as the Chief Information
Commissioner, his term of office shall not be more than five years in aggregate as the Information
Commissioner and the Chief Information Commissioner.

(3) The Chief Information Commissioner or an Information Commissioner shall before he enters
upon his office make and subscribe before the President or some other person appointed by him in
that behalf, an oath or affirmation according to the form set out for the purpose in the First Schedule.

(4) The Chief Information Commissioner or an Information Commissioner may, at any time, by
writing under his hand addressed to the President, resign from his office:

Provided that the Chief Information Commissioner or an Information Commissioner may be

removed in the manner specified under section 14.

(5) The salaries and allowances payable to and other terms and conditions of service of the Chief
Information Commissioner and the Information Commissioners shall be such as may be prescribed
by the Central Government:

(6) The Central Government shall provide the Chief Information Commissioner and the Information
Commissioners with such officers and employees as may be necessary for the efficient performance
of their functions under this Act, and the salaries and allowances payable to, and the terms and
conditions of service of the officers and other employees appointed for the purpose of this Act shall
be such as may be prescribed.

Attempt all parts of either Q. No. 6 or Q. No. 6A

Answer to question no. 6(a)

The provisions in Information Technology Act, 2000, does not apply to documents or transactions
specified in the First Schedule. The documents or transactions mentioned in the First Schedule are
as under:

(i) A negotiable instrument (other than a cheque) as defined in Section 13 of the Negotiable
Instruments Act, 1881.
(ii) A power-of-attorney as defined in Section 1A of the Powers-of-Attorney Act, 1882.
(iii) A trust as defined in Section 3 of the Indian Trust Act, 1882.

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 (iv) A will as defined in clause (h) of Section 2 of the Indian Succession Act, 1925, including
any other testamentary disposition by whatever name called.
(v) Any contract for the sale or conveyance of immovable property or any interest in such
property.

Alternate Answer to question no. 6(a)

The provisions in Information Technology Act, 2000, does not apply to documents or transactions
specified in the First Schedule. The documents or transactions mentioned in the First Schedule are
as under:

1. A negotiable instrument (other than a cheque, a Demand Promissory Note or a Bill of Exchange
issued in favour of or endorsed by an entity regulated by the Reserve Bank of India, National
Housing Bank, Securities and Exchange Board of India, Insurance Regulatory and Development
Authority of India and Pension Fund Regulatory and Development Authority) as defined in Section
13 of the Negotiable Instrument Act, 1881.

2. A power-of-attorney as defined in section 1A of the Powers-of-Attorney Act, 1882 but excluding

those power-of-attorney that empower an entity regulated by the Reserve Bank of India, National
Housing Bank, Securities and Exchange Board of India, Insurance Regulatory and Development
Authority of India and Pension Fund Regulatory and Development Authority to act for, on behalf
of, and in the name of the person executing them.

3. A trust as defined in section 3 of the Indian Trust Act, 1882.

4. A will as defined in clause (h) of section 2 of the Indian Succession Act, 1925, including any
other testamentary disposition by whatever name called.

Answer to question no. 6(b)

The maxim contemporanea expositio est optima et fortissima in lege means that a contemporaneous
exposition is the best and strongest in law. Where the words used in a statute have undergone
alteration in meaning in course of time, the words will be construed to bear the same meaning as
they had when the statute was passed on the principle expressed in the maxim. In simple words, old
statutes should be interpreted as they would have been at the date when they were passed and prior
usage and interpretation by those who have an interest or duty in enforcing the Act, and the legal
profession of the time, are presumptive evidence of their meaning when the meaning is doubtful.

But if the statute appears to be capable of only interpretation, the fact that a wrong meaning had
been attached to it for many years, will be immaterial and the correct meaning will be given by the
Courts except when title to property may be affected or when every day transactions have been
entered into on such wrong interpretation.

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Answer to question no. 6(c)

According to Section 63 of the Indian Evidence Act 1872(the Act) secondary evidence means and
includes:

(1) certified copies given under the provisions hereinafter contained as per the Act;
(2) copies made from the original by mechanical processes which in themselves insure the
accuracy of the copy, and copies compared with such copies;
(3) copies made from or compared with the original;
(4) counterparts of documents as against the parties who did not execute them;
(5) oral accounts of the contents of a document given by some person who has himself seen
it.

Answer to question no. 6(d)

Essentials of arbitral process are:

1. Seat of Arbitration - The parties are free to select any location as the arbitration's seat.
2. Venue of Arbitration - The Venue or location, for the sessions of the arbitral proceedings may
be decided by the parties.
3. Arbitral Institution - The parties may select the arbitral institution for conducting the
proceedings. The rules of such arbitration institution will apply to proceedings.
4. Law - The parties may by agreement choose any law.
5. Language - The parties may also agree on the language of the arbitration proceedings.
6. Number of arbitrators - The parties are free to determine the number of arbitrators, provided
that such number shall not be an even number. However, failing the determination, the arbitral
tribunal shall consist of a sole arbitrator.
7. Cost - The Court or arbitral tribunal have the discretion to determine the cost which includes the
decision as to:
(a) whether costs are payable by one party to another;
(b) the amount of such costs; and
(c) when such costs are to be paid.

OR (Alternate question to Q. No. 6)

Answer to question no. 6A(i)

The term 'statutory corporation' (or public corporation) refers to such organisations which are
incorporated under the special acts of the Parliament/state legislative assemblies. Its management
pattern, its powers and functions, the area of activity, rules and regulations for its employees and its
relationship with government departments, etc. are specified in the concerned Act. It may be noted
that more than one corporation can also be established under the same Act. State Electricity Boards
and State Financial Corporation fall in this category.

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The main features of statutory corporations are as follows:

(a) It is incorporated under a special act of Parliament or state legislative assembly.

(b) It has a separate legal existence.
(c) It is an autonomous body and is free from government control in respect of its internal
management. However, it is accountable to the Parliament or the state legislature.
(d) It is managed by board of directors, which is composed of individuals who are trained and
experienced in business management. The members of board of directors are nominated by the
Government.
(e) It is supposed to be self-sufficient in financial matters. However, in case of necessity it may take
loan and/or seek assistance from the government
(f)The employees of the enterprises are recruited as per their own requirements by following the
terms and conditions of recruitment decided by the Board.

Answer to question no. 6A(ii)

(a) Section 4 of the Indian Stamp Act, 1899 provides that, where in the case of any sale, mortgage
or settlement, several instruments are employed for completing the transaction only the principal
instrument shall be chargeable with the duty prescribed for the conveyance mortgage or settlement.
Each of the other instruments shall be chargeable with a duty of one rupee (instead of the duty, if
any prescribed for the other instruments).

B conveyed whole of his property to three persons who undertook to provide for him and to perform
his obsequies. By another document, the three donees agreed to provide for B which was mentioned
in the deed executed by A also. The two documents will be construed as part of the same act. The
first is liable to duty as a conveyance while the second is liable to a duty of Rupee 1 only (Dadoba
v. Krishna, ILR 7 Bom. 34).

The liability in the situations given will be in accordance with the above mentioned provision and
case laws.

(b) Under Section 5 of the Indian Stamp Act, 1899 (the Act) an instrument comprising or relating to
several distinct matters is chargeable with the aggregate amount of the duties with which each
separate instrument, relating to one of such matters, would be chargeable under the Act. This section
deals with multifarious instruments. The expression "distinct matter" means distinct transactions. It
applies even where the two (or more) matters are of the same description.

A document containing both an agreement for the dissolution of a partnership and a bond is
chargeable with the aggregate of the duties with which two such separate instruments would be
chargeable. The two are "distinct matters." (Chinmoyee Basu v. Sankare Prasad Singh, AIR 1955
Cal. 561)

The liability in the situations given will be in accordance with the above mentioned provision and
case laws.

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Answer to question no. 6A (iii)

Procedure to be followed on documents admitted to registration under Registration Act, 1908

Section 58 of the Registration Act, 1908 provides the provisions relating to particulars to be
endorsed on documents admitted to registration. It states that:

(1) On every document admitted to registration, other than a copy of a decree or order, or a copy
sent to a registering officer under Section 89, there shall be endorsed from time to time the following
particulars, namely:
(a) the signature and addition of every person admitting the execution of the document and,
if such execution has been admitted by the representative, assign or agent of any person, the
signature and addition of such representative, assign or agent;
(b) the signature and addition of every person examined in reference to such document under
any of the provisions of this Act; and
(c) any payment of money or delivery of goods made in the presence of the registering officer
in reference to the execution of the document and any admission of receipt of consideration,
whole or in part, made in his presence in reference to such execution.

(2) If any person admitting the execution of a document refuses to endorse the same, the registering
officer shall nevertheless register it, but shall at the same time endorse a note of such refusal.

Certificate of Registration
(a) After the provisions of Sections 34, 35, 58 and 59 as applicable to the document are complied
with, the registering officer shall endorse thereon a certificate containing the word “registered” along
with the number, and page of the book in which the document has been copied. The certificate shall
be signed, sealed and dated by the registering officer.

(b) The certificate of registration in respect of a document is prima facie an evidence that the
document has been legally registered and raises a presumption that the registering officer proceeded
in accordance with the law.

Answer to question no. 6A(iv)

According to Roscoe Pound social interests are claims or demands thought of in terms of social life
and generalized as claims of the social group. It is from the point of view of protecting the general
interest of all members of the society. Social interests include-

(i) Social interest in the general security: This includes general safety, peace and order, general
health, security of acquisition and transaction.
(ii) Social interest in the security of social institutions such as domestic, religious, political and
economic institutions.
(iii) Social interest in general morals like laws dealing with prostitution, gambling, bigamy,
drunkenness.

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(iv) Social interest in the conservation of social resources like the natural and human resource. This
social interest clashes to some extent with the individual interest in dealing with one's own property
as on pleases.
(v) Social interest in general progress. It has three aspects- economic, political and cultural.
(vi) Social interest in individual life. It involves self-assertion, opportunity and conditions of life.
Society is interested in individual life because individuals are its building blocks.

***

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