Q.

When can the central government cause investigation into the

scheduled industries under the IDRA Act? What directions may the
government issue after completion of the investigation?
A. Power to cause investigation to be made into scheduled
industries or industrial undertakings

Where the Central Government is of the opinion that(a) in respect of any scheduled industry or industrial undertaking or undertakings(i) there has been, or is likely to be, a substantial fall in the volume of production in
respect of any article or class of articles relatable to that industry or
manufactured or produced in the industrial undertaking or undertakings,
as the case may be, for which, having regard to the economic conditions
prevailing, there is no justification; or
(ii) there has been, or is likely to be, marked deterioration in the quality of any
article or class of articles relatable to that industry or manufactured or
produced in the industrial undertaking or undertakings, as the case may be,
which could have been or can be avoided; or
(iii) there has been or is likely to be a rise in the price of any article or class of
articles relatable to that industry or manufactured or produced in the
industrial undertaking or undertakings, as the case may be, for which there
is no justification; or
(iv) it is necessary to take any such action as is provided in this Chapter for the
purpose of conserving any resources of national importance which are
utilized in the industry or the industrial undertaking or undertakings, as
the case may be; or
(b) any industrial undertaking is being managed in a manner highly detrimental to
the scheduled industry concerned or to public interest;
the Central Government may make or cause to be made a full and complete
investigation into the circumstances of the case by such person or body of persons
as it may appoint for the purpose.
Powers of Central Government on completion of investigation under
section 15
(1) If after making or causing to be made any such investigation as is referred to in
section 15 the Central Government is satisfied that action under this section is
desirable, it may issue such directions to the industrial undertaking or undertakings
concerned as may be appropriate in the circumstances for all or any of the following
purposes, namely(a) regulating the production of any article or class of articles by the industrial
undertaking or undertakings and fixing the standards of production;
(b) requiring the industrial undertaking or undertakings to take such steps as the
Central Government may consider necessary to stimulate the development
of the industry of which the undertaking or undertakings relates or relate;

(c) prohibiting the industrial undertaking or undertakings from resorting to any act
or practice which might reduce its or their production, capacity or
economic value;
(d) controlling the prices, or regulating the distribution, of any article or class of
articles which have been the subject-matter of investigation.
(2) Where a case relating to any industry or industrial undertaking or undertakings
is under investigation, the Central Government may issue at any time any direction
of the nature referred to in sub-section (1) to the industrial undertaking or
undertakings concerned, and such direction shall have effect until it is varied or
revoked by the Central Government.

Q. Define consumer. What are the objectives of Consumer Protection Act

1986?
A. An individual who buys products or services for personal use and not for
manufacture or resale. A consumer is someone who can make the decision
whether or not to purchase an item at the store, and someone who can be
influenced by marketing and advertisements. Any time someone goes to a
store and purchases a toy, shirt, beverage, or anything else, they are
making that decision as a consumer.
The objectives of Consumer Protection Act 1986, are as follows:
1. the right to be protected against marketing of goods and services which are
hazardous to life and property
2. the right to be informed about the quality, quantity, potency, purity,
standard and price of goods, or services so as to protect the consumer against
unfair trade practices
3. the right to be assured, wherever possible, access to variety of goods and
services at competitive prices
4. the right to be heard and be assured that consumers' interests will receive
due consideration at appropriate forums
5. the right to seek redressal against unfair trade practices or restrictive trade
practices or unscrupulous exploitation of consumers
6. the right to consumer education

Q. Define copy right. Explain the rights conferred by the copy right.
A. A bundle of intangible rights granted by statute to the author or
originator of certain literary or artistic productions, whereby, for a
limited period, the exclusive privilege is given to that person (or to
any party to whom he or she transfers ownership) to make copies of
the same for publication and sale.
A copyright is a legal device that gives the creator of a literary,
artistic, musical, or other creative work the sole right to publish and
sell that work. Copyright owners have the right to control the
reproduction of their work, including the right to receive payment
for that reproduction. An author may grant or sell those rights to
others, including publishers or recording companies. Violation of a
copyright is called infringement.
Rights conferred by copy right are as follows:
therighttoreproducethecopyrightedwork
therighttopreparederivativeworksbaseduponthework
therighttodistributecopiesoftheworktothepublic
therighttoperformthecopyrightedworkpublicly
therighttodisplaythecopyrightedworkpublicly

REPRODUCTION:
The reproduction right is perhaps the most important right granted by
the Copyright Act. Under this right, no one other than the copyright
owner may make any reproductions or copies of the work. Examples of
unauthorised acts which are prohibited under this right include
photocopying a book, copying a computer software program, using a
cartoon character on a t-shirt, and incorporating a portion of another's
song into a new song.

DERIVATIVE WORKS

The right to make a derivative work overlaps somewhat with the

reproduction right. According to the Copyright Act, a derivative work is
a work based upon one or more preexisting works, such as a translation,
musical arrangement, dramatisation, fictionalisation, motion picture
version, sound recording, art reproduction, abridgement, condensation,

or any other form in which a work may be recast, transformed, or

adapted.
A derivative work usually involves a type of transformation, such as the
transformation of a novel into a motion picture. In the computer
industry, a second version of a software program is generally considered
a derivative work based upon the earlier version.

DISTRIBUTION

The distribution right grants to the copyright holder the exclusive right
to make a work available to the public by sale, rental, lease, or lending.
This right allows the copyright holder to prevent the distribution of
unauthorised copies of a work. In addition, the right allows the copyright
holder to control the first distribution of a particular authorised copy.
PUBLIC PERFORMANCE
The public performance right allows the copyright holder to control the
public performance of certain copyrighted works. The scope of the
performance right is limited to the following types of works:
literary works,
musical works,
dramatic works,
choreographic works,
pantomimes,
motion pictures, and
audio visual works.
Under the public performance right, a copyright holder is allowed to
control when the work is performed "publicly." A performance is
considered "public" when the work is performed in a "place open to the
public or at a place where a substantial number of persons outside of a
normal circle of a family and its social acquaintances are gathered." A
performance is also considered to be public if it is transmitted to
multiple locations, such as through television and radio. Thus, it would
be a violation of the public performance right in a motion picture to rent
a video and to show it in a public park or theatre without obtaining a
license from the copyright holder. In contrast, the performance of the
video on a home TV where friends and family are gathered would not be
considered a "public" performance and would not be prohibited under
the Copyright Act.
The public performance right is generally held to cover computer
software, since software is considered a literary work under the
Copyright Act. In addition, many software programs fall under the

definition of an audio visual work. The application of the public

performance right to software has not be fully developed, except that it is
clear that a publicly available video game is controlled by this right.

PUBLIC DISPLAY

The public display right is similar to the public performance right, except
that this right controls the public "display" of a work. This right is
limited to the following types of works:
literary works;
musical works;
dramatic works;
choreographic works;
pantomimes;
pictorial works;
graphical works;
sculptural works; and
stills (individual images) from motion pictures and other audio
visual works.
Q. Explain Articles of Association with contents.
A.

Articles means the articles of association of a company as

originally framed or as altered from time to time in pursuance
of any previous companies law of this act. The articles of
association are the rules and regulations of a company framed
for the purpose of internal management of its affairs. It deals
with the rights of the member of the company inter-se. The
articles are framed for carrying out the aims and object of the
Memorandum of association. The articles of association of a
company are sub -ordinate to and are controlled by the
memorandum of association.

It is not obligatory to register articles in the case of a public company

limited by shares. In such a case model articles contained in Table A of
schedule I will apply. However, a private company, a company limited by
guaranteed and an unlimited company must register their articles along
with the memorandum. (section26)
In the case of an unlimited company, the articles shall state the number
of the members, with which the company is to be registered, and if it has

a share capital, the amount of share capital with which it is to be

registered. [section 27(1)]
In the case of a company limited by guarantee, the articles shall state the
number of members with which the company is to be registered.
In the case of a private company, articles must contain provisions which
(a) Restrict the right to transfer its shares;
(b) Limit the number of its member to fifty excluding past and the
present employees of the company;
(c) Prohibit any invitation to the public to subscribe for any share in or
debenture of the company.
The articles must be printed and divided into paragraph, numbered
consecutively. The articles must be signed by each subscriber of the
memorandum in the presence of at least one witness who will attest the
signature and likewise add his address, description and occupation, if
any.
Contents of articles:
The articles usually contain the following matter:
1. Exclusion wholly or in part of Table A.
2. Adoption of preliminary contracts.
3. Number and value of shares.
4. Allotment of shares.
5. Calls on shares.
6. Lien on shares.
7. Transfer and Transmission of shares.
8. Forfeiture of share.
9. Alteration of capital.
10. Share certificates.
11. Conversion of share into stock.
12. Voting rights and proxies.
13. Meeting.
14. Directors their appointment etc.
15. Borrowing powers.
16. Dividends and reserves.
17. Accounts and audit.
18. Winding up.
Q. Explain the principles of registration of Trade Marks. What are the
ground for refusal of registration ?

A.
B. Grounds for Refusal of Registration of a Trademark the Indian
Law
DR.K.S.Ravichandran Partner, KSR&Co.,Company
Secretaries,India
A trademark may be either inherently distinctive or capable of
distinguishing its goods by acquiring distinctiveness if used for
some period of time. The Trademarks Act, 1999 (the Act) is the law
in India containing absolute and relative grounds for refusal of
registration of a trademark.
Absolute Grounds (Section 9 of the Act)
The First Rule [sub-section (1)]
A. The mark lacks distinctiveness;
B. The mark is descriptive of the characteristics of the goods or
services;
C. The mark consists exclusively of marks or indications which have
become customary or in the bonafide and established practices of
the trade.
Exception to the above Rule the Proviso to subsection
(1)
Before the date of application for registration, if the mark has
acquired a distinctive character as a result of the use made of it or if
the mark is a wellknown mark, the mark shall not be refused
registration.
In ELGI Ultra Industries Limited v The Assistant Registrar of Trade
Marks, the Intellectual Property Appellate Board [IPAB],
MANU/IC/0062/2008, the IPAB held that the words ultra and
perfect are highly descriptive and laudatory.

In Imperial Tobacco Company of India Ltd v. Registrar of

Trademarks, AIR 1968 Cal 582, the Calcutta High Court held that
the trade mark Simla with the label is composite in character. It is
a well known hill station of India. Its geographical signification is,
therefore, plain and unequivocal.
Second Rule [sub section (2)]
A. The mark is of such nature as to deceive the public or cause
confusion;
B. The mark is likely to hurt religious sentiments;
C. The mark comprises scandalous or obscene matter;
D. The use of the mark is prohibited under the Emblems and Names
(Prevention of Improper Use) Act, 1950;
The Third Rule [sub-section (3)]
If the mark consists exclusively the shape of the goods (i) resulting
from nature of the goods; or (ii) which is necessary to obtain a
technical result; or (iii) which gives substantial value to the goods.
Relative Grounds (Section 11 of the Act)
The First Rule [sub section (1)]
The mark is identical or similar to an earlier trademark and the
goods are identical or similar to the goods of the earlier trademark.
The Second Rule [sub section (2)]
The mark is identical or similar to an earlier trademark and use of
such a mark would allow the applicant to gain unfair advantage of

or damage the reputation of the earlier trademark though goods

may not be similar.
Note: For the First and Second Rule, Earlier Trademark means a
registered mark or a well known mark.
The Third Rule [sub section (3)]
The use of the mark in India should be prevented by virtue of any
law in particular the law of passing off protecting an unregistered
trademark or by virtue of the law of copyright.
The Supreme Court in Parle Products (P) Ltd. v. J.P. & Co. Mysore
AIR1972SC1359 held that in order to ascertain whether one mark is
deceptively similar to another, the broad and essential features of
the two marks have to be considered. It would be enough if the
impugned mark bears an overall similarity to the registered mark as
would be likely to mislead a person usually dealing with one, to
accept the other if offered to him.
Honesty is an Exception [sub-section (4) of Section 11
read with Section 12!
Section 12 of the Trademarks Act, 1999 permits registration of
honest concurrent users. For availing this benefit, the applicant
must be bonafide prior or concurrent user.
Q. Give a brief account of Cartelization case of cement companies in
India dealt with by Competition Commission.
A.Cartels are agreements between enterprises to attempt to control
the production, distribution, sale and price of goods and services.
This could involve, say, allocating market share or sales quotas, or
engaging in collusive bidding or bid-rigging in one or more markets .
For consumers, cartelisation results in higher prices, poor quality and
less or no choice of goods and services.

The trigger
It all started when the Builders Association of India (BAI) lodged a
complaint with CCI in July 2010, alleging restrictive trade practices
and collusive price fixing in the cement industry. The BAIs charges
were mainly against Cement Manufacturers Association and 10
major cement manufacturers.
BAI in its complaint alleged that despite having large capacities,
these companies formed a cartel and used the platform of CMA to
synchronise the reduction of utilisation levels, thereby limiting
supplies to the market, and hiking the prices in tandem. While all
the cement companies have their manufacturing units located in
various parts of the country with different input and transportation
costs, the cement companies decided to hike prices of the
commodity uniformly and simultaneously, BAI alleged.
Under the scanner
Following complaints from BAI, the CCI directed its director general
(DG) of investigation in September 2010 to probe the matter and
submit a report.
According to a CCI official, the investigations were carried out based
on various inquiries, analyses of communications between the
cement companies and dealers, and data from various sources. In
the absence of no direct evidence, the DG also analysed
circumstantial evidence, including behavioural indicators to find out
whether there was any agreement and concerted action by
manufacturers to raise prices in tandem.
The DG, in its report submitted on 31 May 2011, concluded that,
yes, cement companies in fact entered into anti-competitive
agreements in order to control the supply of cement. It also said the
companies used the platform of CMA and indulged in collusive
price-fixing.
How the cartel worked
According to BAIs submissions to the CCI, major cement producers
along with CMA divided the whole market into five zones, which
enabled them to control the supply and fix prices by forming a
cartel.
According to DGs investigation report, CMA formed a high power
committee and the prices of cement were discussed in its meetings.
Even companies like ACC and Ambuja Cements, which had resigned
from CMA, continued to participate in such meetings. The CMA

apparently nominated different companies in 34 different centres to

collect and disseminate the retail as well as the wholesale price.
This information is either collected on phone or through e-mails.
The final word
Based on the finding of the DGs probe and after listening to
companies, the competition watchdog imposed a heavy penalty of
Rs 6,307.32 crore on the 10-top cement companies, including ACC,
Ambuja Cements, Ultratech and Jaypee Cements as well as CMA,
accusing them of creating a cartel.
The CCI has found these cement manufacturers in violation of the
provisions of the Competition Act, 2002 which deals with anticompetitive agreements, including cartels.
Grasim Cements (now merged with Ultratech Cements), Lafarge
India, JK Cement, India Cements, Madras Cements, Century
Cements and Binani Cements are among others found guilty and
penalised.

CONSUMER PROTRECTION ACT

FEMA
IDRA
COMPANY LAW
COMPETITION ACT
PATENTS AND TRADEMARKS ACTS
COPYRIGHT ACTS
IT ACT
SARFESI ACT