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JUDICIALDREAM

JD
JUDICIALDREAM
TARGET BIHAR PCS J
MOCK TEST SERIES

MOCK VI
4 OCTOBER 2020

QUESTION 150
DURATION 120 MINUTES

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TRANSFER OF PROPERTY ACT 1882

9. Match List I and List II and select the correct answer


List I List II
(A) Part-Performance 1. Section 118
(B) Contingent Interest 2. Section 35
(C) Election 3. Section 53A
(D) Exchange 4. Section 21
CODES
A B C D
(A) 3 2 4 1
(B) 2 4 1 3
(C) 3 4 2 1
(D) 4 2 1 3

The Indian Contract Act, 1872

16. When a person, at whose option a contract is voidable,


rescinds it, restoration of such benefit to the person from whom it
was received is called
(A) Remission
(B) Restitution
(C) Waiver
(D) Alteration

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Constitutional Law

25. All cases involving an interpretation of the constitution fall


within the
(A) Original Jurisdiction of the Supreme Court
(B) Advisory Jurisdiction of the Supreme Court
(C) Appellate Jurisdiction of the Supreme court
(D) None of the above
The Provincial Small Causes Courts Act, 1887

32. A suit for the possession of immovable property or for the


recovery of an interest in such property is
(A) cognizable by the court of small causes
(B) cognizable by a court of small causes with the permission
of the District judge
(C) not cognizable by a court of small causes
(D) Both (B) and (C)
Hindu Law

39. Who among the following is a Class I Heir?


(A) Father’s father
(B) Mother’s father
(C) Father’s mother
(D) All of the above

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Muslim law

55. Talaq-ul-biddat consists of


(A) a single pronouncement made during a tuhr clearly indicating an
intention irrevocably to dissolve the marriage
(B) three pronouncement made during a tuhr clearly indicating an
intention irrevocably to dissolve the marriage.
(C) both (A) and (B)
(D) either (A) or (B)
Tort

57. In which of the following cases, it was held that ‘no exemption
clause in a contract is capable of exempting a party from tortious
liability’
(A) Grant v. Australian Knitting Mills Ltd.
(B) White v. John Warrick & Co.
(C) Chesmore v. Richards
(D) Dickson v. Reuters Telegram Company
The Sales of Goods Act, 1930

68. A agrees to sell B, all crops to be grown in A’s farm during


next season for rupees two lakhs. Here the goods are
(A) Future goods
(B) Contingent goods
(C) Unascertained goods
(D) Existing goods

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Indian Trust Act, 1882

74. Which of the following rights of a trustee are recognised


under the Indian Trusts Act?
(I) Right to title deed
(II) Right to re-imbursement of expenses
(III) Right to indemnify from gainer by breach of trust
(IV) Right to settlement of accounts
(A) II, III and IV
(B) I, II and III
(C) I, III and IV
(D) I, II, III and IV
ADMINISTRATIVE LAW
76. The subject of Delegated Legislation was thoroughly enquired
by
(A) Donoughmore Committee 1932
(B) Law Commission 14th report
(C) Administrative reforms Committee
(D) All of the above

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SPECIFIC RELIEF ACT, 1963

86. Which of the following is not a salient features of the Specific


Relief (Amendment) Act, 2018?
(A) Section 6 amended to widen ambit for persons who can
file suit if dispossessed of immovable property
(B) Section 10 amended and substituted to empower the
enforcement of specific performance of a contract by courts
subject to section 11(2), section 14 and section 16 of the Act
(C) Section 16(c) amended to provide that "to aver readiness
and willingness to perform" in pleadings is necessary
(D) Section 14A incorporated to provide engagement of
experts to assist on specific issues involved in a suit and also
direct the production of documents in cases where court
considers it necessary
ARBITRATION AND CONCILIATION ACT, 1996

95. In which of the following cases The Supreme Court held that,
"A person who has an interest in the outcome or decision of the
disputes must not have the power to appoint a sole arbitrator?"
(A)Perkins Eastman Architects DPC &Anr. Vs. HSCC (India) Ltd.
(B) BgsSgs Soma JV vs. NHPC Ltd.
(C) Shri Chand Construction and Apartments Pvt. Ltd. vs. Tata
Capital Housing Finance Ltd.
(D)None of the above

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CODE OF CRIMINAL PROCEDURE, 1973

103. In which of the following cases The Supreme Court held


that, "A Magistrate has power to order further investigation into
an offence under section 156(3) of the Code of Criminal
Procedure, 1973, in post cognizance stage, until the trial
commences?"
(A)R.K. Dalmia vs. Delhi Administration
(B) Samsul Haque vs. State of Assam
(C) Vinubhai Haribhai Malaviya and Ors. vs. The State of Gujarat
and Anr.
(D)None of the above
The Indian Evidence Act, 1872

115. Which of the following sections of The Indian Evidence Act,


1872, deals with the "Rule of Necessity" as to the admissibility of
an evidence?
(A) Section 45
(B) Section 25
(C) Section 60
(D) Section 32

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CODE OF CIVIL PROCEDURE, 1908

122. In which of the following cases, it was held that, "Plaint can
either be rejected as a whole or not at all. It is not permissible to
reject the plaint qua any particular portion of a plaint including
against some of defendants and continue the same against the
others?"
(A) Madhav Prasad Aggarwal &Ors. vs. Axis Bank Ltd. &Ors.
(B) Vineeta Sharma vs. Rakesh Sharma
(C) Pradeep Ram vs. State of Jharkhand
(D) None of the above
THE NEGOTIABLE INSTRUMENT ACT, 1881

131. In which of the following cases, The Supreme Court issued


directions for speedy disposal of dishonour of Cheque cases with
the use of modern technology?
(A) M/s Meters and Instruments Private Limited &Anr. v.
Kanchan Mehta
(B) Dayawati v. Yogesh Kumar Gosain
(C) Smt. Asha Baldwa v. Ram Gopal
(D) None of the above

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THE COMPANIES ACT, 2013

143. Which of the following sections of The Companies Act, 2013,


defines the term "Company Secretary"?
(A) 2(21)
(B) 2(22)
(C) 2(23)
(D) 2(24)
THE INDIAN PARTNERSHIP ACT, 1932

144. Which of the following cases forms the basis of the provisions
of section 6 of The Indian Partnership Act, 1932?
(A) Bentley vs. Craven
(B) Cox vs. Hickman
(C) Balfour vs. Balfour
(D) K.T. Chettiar vs. E.M.I. Muthappa

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ANSWER KEY
SR.NO. ANSWERS DESCRIPTION

1. (D) Section 6 of Transfer of Property Act


Property of any kind may be transferred,
except as otherwise provided by this Act or
by any other law for the time being in force.
2. (A) Section 11 Restriction repugnant to interest
created.
Where, on a transfer of property, an interest
therein is created absolutely in favour of any
person, but the terms of the transfer direct that
such interest shall be applied or enjoyed by
him in a particular manner, he shall be
entitled to receive and dispose of such interest
as if there were no such direction.
3. (B) Refer Section 17 of Transfer of Property Act,
1882
4. (B) Rule of lis pendens is based on the principle
of ut lite pendent nihil innovetur which means
nothing new should be introduced into a
pending litigation.
5. (C) The equitable rule under section 53A of the
Transfer of Property Ac 1882 was originally
laid down in Walsh v. Lonsdale.
6. (C) Refer section 126 of the Transfer of Property
Act, 1882
7. (B) Refer section 65A of the Transfer of Property
Act, 1882
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8. (A) Refer section 106 of the Transfer of Property


Act, 1882
9. (C) Part Performance – Section 53A
Contingent Interest – section 21
Election – Section 35
Exchange – section 118
10. (C) In Sheshumullah M. Shah v. Sayed Abdul
Rashid it was held that the possession of a
manager cannot be treated as ostensible
ownership with the consent of the real owner
11. (C) Section 4 of Indian Contract Act, 1872

Communication when complete-


The communication of a proposal is complete
when it comes to the knowledge of the person
to whom it is made. The communication of an
acceptance is complete,— as against the
proposer, when it is put in a course of
transmission to him, so as to be out of the
power of the acceptor;
12. (D) Refer section 23 of Indian Contract Act, 1872
13. (C)
14. (C) When the consent of a party to a contract has
been obtained by undue influence or fraud,
the contract is voidable.
15. (B) Supervening impossibility or illegality
16. (B) When a person at whose a contract is
voidable, rescinds it, restoration of such

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benefit to the person from whom it was


received is called Restitution.
17. (D) Injunctions, damages or Specific performance
are the remedies for breach of contract.
18. (D) Section 201 to 210 of the Indian Contract Act,
1872 lay down the provision relating to the
termination of agency.
19. (A) A minor’s agreement is void ab initio and
cannot be ratified.
20. (A) Tinn v. Hoffman & Co.
21. (C) The 42nd Amendment changed the description
of India from a “sovereign democratic
republic” to a “sovereign, socialist secular
democratic republic” and also changed the
words “unity of the nation” to “unity and
integrity of the nation”
22. (D) Democracy and Judicial review.
23. (D) Refer Article 19(1)(e) of the Constitution of
India.
24. (B) Article 61 of the Constitution of India
provides the process of impeachment of the
President on the ground of “violation of the
Constitution”.
25. (A) All cases involving an interpretation of the
Constitution fall within the original
jurisdiction of the Supreme Court.
26. (D) Writs can be issued for the enforcement of
Fundamental Rights by the Supreme court. To
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enforce the Fundamental Rights, the Supreme


Court is empowered under Article 32, to issue
writs of various forms. The Article 226
empowers High Courts to issue directions,
orders or writs in the nature of habeas corpus
etc.
27. (A) The Twenty-fourth Amendment of the
Constitution of India enables the parliament
to dilute Fundamental Rights through
Amendments of the Constitution. It also
amended Article 368 of the Constitution to
provide expressly that parliament has power
to amend any provision of the Constitution.
28. (C) In Justice K S Puttaswamy v. Union Of India,
the Supreme Court held that right of privacy
is a constitutional right and the decision in
MP Sharma and Kharak Singh’s case was
overruled.
29. (D) Refer Article 217 of the Constitution of India.
30. (D)
31. (A) The Registrar of a Small Causes court can try
a suit the value of which does not exceed Rs
20.
32. (C) A suit for the possession of immovable
property or the for the recovery of an interest
in such property is not permissible by the
courts of small causes.
33. (B) The State Government has authority to

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abolish Courts of Small Causes.


34. (B) Refer section 5 of the Hindu Marriage Act,
1955
35. (D) Refer section 12 of the Hindu Marriage Act,
1955
36. (C) In Hiranand S Managaonkar v. Sunanda, the
Supreme Court held that “a decree of judicial
separation does not dissolve the bond of
marriage but rather provides an opportunity to
the spouses for reconciliation and
readjustment”.
37. (D) Refer Section 14 of the Hindu Succession
Act, 1956
38. (A) Refer Section 30 of the Hindu Succession
Act, 1956
39. (D)
40. (C) In Gita Hariharan v. RBI, the Supreme Court
held that even when father is alive, mother
can act as a natural guardian.
41. (D) Refer section 7 of the Hindu Adoptions and
Maintenance Act, 1956.
42. (C) Section 19 of Hindu Adoptions and
Maintenance Act provided for Maintenance
of widowed daughter in law
43. (C) Refer section 8 of the Hindu minority and
and Guardianship Act, 1956
44. (B) In Navin Kohli v. Neetu Kohli, the Supreme

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Court held that bad temper and rude


behaviour of wife, living separately for more
than 10 years is a ground for divorce.
45. (B) Fosterage is not an essential for a valid
marriage under Muslim law,
46. (D) Khyar ul bulugh giving a blanket right to the
minor to repudiate the marriage on attaining
puberty was available only when the marriage
was contracted for a minor by any guardian
other than the father or the grandfather
47. (C) In Mohd. Ahmad Khan v. Shah Bano, the
Supreme Court held that a Muslim woman
deserted by her husband without divorce is
entitled to maintenance under section 125
CrPC.
48. (D)
49. (C) In ahsan talaq, once the husband pronounce
talaq, there has to be three month iddat period
to factor in three menstrual cycles of the
woman. This time is meant for reconciliation
and arbitration. During this period if any
cohabitation occurs, the talaq is considered to
have been revoked.
50. (B) Conversion of a non-Muslim wife to Islam
shall not ipso facto dissolve her marriage.
51. (C) In Hanafi law, a gift is valid when there is a
declaration by the donor, acceptance by the
done and delivery of possession.

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52. (B) The Muslim Woman (protection of Rights on


Divorce) Act, 1986 enables a Muslim woman
to claim maintenance from her husband.
53. (C) Impotency is aground for divorce under
Dissolution of Muslim Marriage Act, 1939.
54. (C) The dower can be prompt dower and deferred
dower.
55. (D) Talaq ul biddat consists of :

1. Three pronouncement made during a tuhr


clearly indicating an intention irrevocably to
dissolve the marriage
2. a single pronouncement made during a tuhr
clearly indicating an intention irrevocably to
dissolve the marriage.
56. (B) A tort is a violation of a right in rem i.e.,
against the world at large.
57. (B) In white v. John Warrick & co. it was held
that no exemption clause in a contract is
capable of exempting a party from tortuous
liability.
58. (D) When the principal expresses or impliedly
authorises some act to be done he is liable for
such an act of the agent if the same has been
done in the course of performance of his
duties as an agent.
59. (B)
60. (D) While libel is both civil as well as criminal

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wrong and offence, slander is merely a civil


wrong except in the cases where the spoken
words are blasphemous, seditious and
obscene and such as may amount to contempt
of the court.
Under Indian law they are treated alike, both
of them are considered to be an offence.
Moreover, weight of various decisions in
India is to make slander like libel actionable
per se. The limitation period for filing an
action for libel as well as slander is one year.
61. (A) Tort of conspiracy occurs when two or more
persons combine to injure a third party by
unlawful means.
62. (C)
63. (B) The activity has been carried on for the last
20 years.
64. (D)
65. (D)
66. (D) Essentials of malicious prosecution

1. the plaintiff was prosecuted by the


defendant
2. The prosecution was malicious
3. The prosecution resulted in damages to the
plaintiff.
67. (B) Res ipsa loquitor is a rule of evidence.
68. (A) In Sec 2(6) 0f the Sale of Goods Act, 1930

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future goods have been defined as the goods


that will either be manufactured or produced
or acquired by the seller at the time at the
time of the contract of sale is made,
69. (C) Refer section 9 of the SOGA, 1930.
70. (C) Refer section 16 of the Sale of Goods Act,
1930.
71. (B)
72. (C) Chapter VI and section 55 to 69 of Indian
Trusts Act deal with rights and liabilities of
the beneficiaries,
73. (B) Refer section 9 of the Indian Trusts Act, 1882
74. (D)
75. (B) In Thyarmmal (dead) by LR v. Kanakammal
and others, the Supreme court held that
provisions of the Indian Trusts Act
76. (A) The subject of Delegated Legislation was
thoroughly enquired by Donoughmore
Committee 1932
77. (A) The historical backdrop of the delegation of
power can be followed from the Charter Act
of 1833
78. (C) Queen vs. Burah:- The Privy Council
considered "the nature and extent of
Legislature power and the feasibility of its
delegation and held that Councils of
Governor- General was supreme Legislature
and has ample number of powers and who are
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entitled to transfer certain powers to


provincial executors."
79. (B) The object of Central Vigilance Commission
is to check corruption amongst Government
Officials
80. (D) Principle of Res- Judicata does not apply
upon the writ of Habeas Corpus
81. (C) Ivor Jennings:- Administrative Law "The law
relating to administration. It determines the
organization, powers and duties of
administrative authorities."
82. (A) Hung Assembly means when no particular
political party has majority to form a
government.
83. (C) Union of India vs. Indo- Afghan Agencies
Ltd.:- Supreme Court for the first time applied
the doctrine of estoppel against the
government on the basis of equity
84. (B) The Indian Institution of Law:-Administrative
law as "Administrative law deals with the
structure, powers and functions of organs of
administration, the methods and procedures
followed by them in exercising their powers
and functions, the method by which they are
controlled and the remedies which are
available to a person against them when his
rights are infringed by their operation."
85. (D) Ivor Jennings wrote the book "The law and

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the Constitution" in the year 1959


86. (C)
87. (A) Cotton Corpn. Of India vs. United Industries
Bank Ltd.:- In this case, The Supreme Court
held that, "The court will ordinarily decline to
grant interim injunction if the plaint and the
affidavit filed by the parties show on the face
of them that the case is not for a perpetual
injunction."
88. (C) Indumatiben vs. Union Bank of India:-In this
case, it was held that, "In the case of Section
34 the court cannot grant a declaratory relief
where further relief is capable of being
granted. In the case of section 37 there is no
such restriction and injunction can be granted
without any prayer for declaration although in
many cases declaration is inherent in the grant
of an injunction."
89. (C) According to section 2(e) of The Specific
Relief Act, 1963,
All other words and expressions used herein
but not defined, and defined in the Indian
Contract Act, 1872 have the meanings
respectively assigned to them in that Act.
90. (B) See the contents of The Specific Relief Act,
1963
91. (B) Section 35 of The Specific Relief Act, 1963,
deals with the rule of Right in personam.

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92. (C) According to section 20C of The Specific


Relief Act, 1963, if any suit is filed under this
act that must be disposed of within the period
of 12 Months from the date of service of
summons to the defendant.
93. (D) See The Specific Relief (Amendment) Act,
2018.
94. (D) According to section 20B of The Specific
Relief (Amendment) Act, 2018, with the
consultation of Chief Justice of High Court,
the State Government can designate one or
more Civil Courts as Special Courts, within
the local limits of the area to exercise
jurisdiction and to try a suit under this Act in
respect of contracts relating to infrastructure
projects
95. (A) Perkins Eastman Architects DPC &Anr. Vs.
HSCC (India) Ltd.:- In this case, The
Supreme Court held that, "A person who has
an interest in the outcome or decision of the
disputes must not have the power to appoint a
sole arbitrator."
96. (C) According to section 87 of the Amendment
Act, Arbitration and Conciliation Act, 2015,
shall only apply to arbitral proceedings which
started on or after 23 October, 2015
97. (D)
98. (A) Hindustan Construction Company Ltd. vs.
Union of India:- In this case, "Section 87 of
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the Arbitration Act struck down as being


manifestly arbitrary."
99. (B) Indian Oil Corporation Ltd. vs. Toyo
Engineering Corporation

In this case, The Hon'ble court held that,


"There is no mandate of law that in every case
the court should direct 100% deposit of the
awarded amount. This is purely in the
discretion of the court and discretion has to be
exercised in the facts and circumstances of
each case."
100. (A)
101. (A) Shakuntla Sawhney vs. Kaushalaya Sawhney

In this case, The Supreme Court observed


that, "Finest hour of justice is the hour of
compromise when parties after burying the
hatchet, re- unite by a reasonable and just
compromise."
102. (C) According to Section 43M of Arbitration and
Conciliation (Amendment) Act, 2019, Chief
Executive Officer of the Council shall be
responsible for day to day administration of
the Council
103. (C) Vinubhai Haribhai Malaviya and Ors. vs. The
State of Gujarat and Anr

In this case, The Supreme Court held that, "A

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Magistrate has power to order further


investigation into an offence under section
156(3) of the Code of Criminal Procedure,
1973, in post cognizance stage, until the trial
commences."
104. (D) According to Section 2(wa) of The Code of
Criminal Procedure, 1973

The expression "Victim" includes Guardian


and Legal Heirs
105. (B) See the relevant sections.
106. (C) The founder of Deterrence Theory of
Criminal law was Jeremy Bentham
107. (B) Parvinder Kansal vs. State of NCT of Delhi:-
In this case, it was held that an appeal filed by
victim seeking enhancement of sentence not
maintainable
108. (D) According to section 162(2) of The Code of
Criminal Procedure, 1973,
Nothing in this section shall be deemed to
apply to any statement falling within the
provisions of clause (1) of section 32 of the
Indian Evidence Act, 1872
109. (B) Refer the relevant sections
110. (D) State of Maharashtra vs. Christian
Community Welfare Council of India
In this case, Supreme Court observed that,
"While arresting a female person, all efforts

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should be made to keep a lady constable


present but in circumstances where the
arresting officer is reasonably satisfied that
such presence of a lady constable is not
available or possible and/ or the delay in
arresting caused by securing the presence of a
lady constable would impede the course of
investigation, such arresting officer for
reasons to be recorded either before the arrest
or immediately after the arrest, be permitted
to arrest a female person for lawful reasons at
any time of the day or night depending on the
circumstances of the case even without the
presence of a lady constable."
111. (B) Under section 313 of Code of Criminal
Procedure, 1973, the statement of an accused
has to be recorded without oath
112. (C) A fact is said not to be proved when it is
neither proved nor disproved
113. (B) Section- 14:- Facts showing existence of state
of mind or body or bodily feeling:-
Explanation-II:- But where, upon the trial of a
person accused of an offence, the previous
commission by the accused of an offence is
relevant within the meaning of this section,
the previous conviction of such person shall
also be a relevant fact.
114. (B) Khushal Rao vs. State of Bombay:- In this
case, it was held that, "Once, court has come

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to the conclusion that the dying declaration


was the truthful version as to the
circumstances of the death and the assailants
of the victim, there is no question of further
corroboration."
115. (D) Section- 32 of The Indian Evidence Act,
1872, deals with the "Rule of Necessity" as to
the admissibility of an evidence
116. (A) The fact of legitimacy of a child under section
112 of The Indian Evidence Act, 1872, can be
disproved because it is a conclusive proof of
rebuttable character
117. (D) Arjun Panditrao Khotkar vs. Kailash
Kushanrao Gorantyal and Ors.:- In this case,
it was held that, "Certificate of competent
authority is required for the admissibility of
an Electronic Evidence under section 65B (4)
of The Indian Evidence Act, 1872 and
certificate is a condition precedent to
admissibility."
118. (A) Sanjay Rajak vs. State of Bihar:- In this case,
it was held that, "The failure of Police to
recover the dead body will not by itself render
the prosecution case doubtful entitling the
accused to acquittal on benefit of doubt. It is
only one of the relevant factors to be
considered along with all other attendant facts
and circumstances to arrive at a finding based
on reasonability and probability based on

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normal human prudence and behaviour."


119. (B) A agrees to sell to B for Rs. 1000, "My white
horse". A has two white horses. Evidence
may be given of fact which show which of
them was meant.
[Illustration:- (a) of section 96 of The Indian
Evidence Act, 1872]
120. (A) Refer the relevant sections of The Indian
Evidence Act, 1872.
121. (A) Section 114:- Court may presume existence of
certain facts:- The court may presume the
existence of any fact which it thinks likely to
have happened, regard being had to the
common course of natural events, human
conduct and public and private business, in
their relation to the facts of the particular
case.
122. (A) Madhav Prasad Aggarwal &Ors. vs. Axis
Bank Ltd. &Ors.:- In this case, it was held
that, "Plaint can either be rejected as a whole
or not at all. It is not permissible to reject the
plaint qua any particular portion of a plaint
including against some of defendants and
continue the same against the others."
123. (B) U.C. Surendranath vs. Mambally's Bakery:-
In this case, it was held that, "A person can be
held guilty of wilful disobedience of the
Order- XXXIX Rule- 2A of the Code Of Civil
Procedure, 1908, not for mere "disobedience"

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but only for "wilful disobedience."


124. (D) B can file a suit either at Chandigarh or at
Delhi
125. (B)
126. (B) Section- 21:- Objections to Jurisdiction:-
(1) No objection as to the place of suing
shall be allowed by any appellate or
Revisional Court unless such
objection was taken in the Court of
first instance at the earliest possible
opportunity and in all cases where
issues or settled at or before such
settlement, and unless there has been
a consequent failure of justice.
(2) No objection as to the competence of
a Court with reference to the
pecuniary limits of its jurisdiction
shall be allowed by any Appellate or
Revisional Court unless such
objection was taken in the Court of
first instance at the earliest possible
opportunity, and in all cases where
issues are settled, at or before such
settlement, and unless there has been
a consequent failure of justice.
(3) No objection as to the competence of
the executing Court with reference to
the local limits of its jurisdiction shall
be allowed by any Appellate or
Revisional Court unless such
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objection was taken in the executing


Court at the earliest possible
opportunity, and unless there has
been a consequent failure of justice.
127. (D) According to Order V Rule 1(1) of Code of
Civil Procedure, 1908, a defendant is required
to appear and answer the claim and to file the
written statement within the period of 30 days
128. (D) Refer the relevant Order and rules.
129. (A) Ashok Kumar Kalra vs. Wing Cdr. Surendra
Agnihotri:- In this case, The Supreme Court
held that, "Counter claim cannot be filed after
framing of issues."
130. (A) If a suit is dismissed under Order XXV of
Code of Civil Procedure, 1908, for non-
furnishing of security for payment of costs,
then suit can be restored but by the same
court.
131. (A) M/s Meters and Instruments Private Limited
&Anr. v. Kanchan Mehta:- In this case, The
Supreme Court issued directions for speedy
disposal of dishonour of Cheque cases with
the use of modern technology
132. (A) Dashrath Rupsingh Rathod v. State of
Maharashtra &Anr.:- In this case, The
Supreme Court held that, "in cases of
dishonour of cheque, only those courts within
whose territorial limits the drawee bank is
situated would have the jurisdiction to try the
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case."
133. (C) Section 143A:- Power to direct interim
compensation:-
(1) Notwithstanding anything contained in the
Code of Criminal Procedure, 1973, the Court
trying an offence under section 138 may order
the drawer of the cheque to pay interim
compensation to the complainant—
(a) in a summary trial or a summons case,
where he pleads not guilty to the accusation
made in the complaint;
(b) In any other case, upon framing of
charge.
(2) The interim compensation under sub-
section (1) shall not exceed twenty percent of
the amount of the cheque.
(3) The interim compensation shall be paid
within sixty days from the date of the order
under sub-section (1), or within such further
period not exceeding thirty days as may be
directed by the Court on sufficient cause
being shown by the drawer of the cheque.
(4) If the drawer of the cheque is acquitted,
the Court shall direct the complainant to
repay to the drawer the amount of interim
compensation, with interest at the bank rate as
published by the Reserve Bank of India,
prevalent at the beginning of the relevant
financial year, within sixty days from the date
of the order, or within such further period not

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exceeding thirty days as may be directed by


the Court on sufficient cause being shown by
the complainant.
(5) The interim compensation payable under
this section may be recovered as if it were a
fine under section 421 of the Code of
Criminal Procedure, 1973.
(6) The amount of fine imposed under section
138 or the amount of compensation awarded
under section 357 of the Code of Criminal
Procedure, 1973, shall be reduced by the
amount paid or recovered as interim
compensation under this section.’’.
134. (B)
135. (C) Section 13:- Negotiable Instrument:-
(1) A “negotiable instrument” means a
promissory note, bill of exchange or cheque
payable either to order or to bearer.
Explanation (i) A promissory note, bill of
exchange or cheque is payable to order which
is expressed to be so payable or which is
expressed to be payable to a particular person,
and does not contain words prohibiting
transfer or indicating an intention that it shall
not be transferable. Explanation (ii) A
promissory note, bill of exchange or cheque is
payable to bearer which is expressed to be so
payable or on which the only or last
endorsement is an endorsement in blank.
Explanation (iii)Where a promissory note, bill

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of exchange or cheque, either originally or by


endorsement, is expressed to be payable to the
order of a specified person, and not to him or
his order, it is nevertheless payable to him or
his order at his option.
(2) A negotiable instrument may be made
payable to two or more payees jointly, or it
may be made payable in the alternative to one
of two, or one or some of several payees.
136. (D) Section 138:- Dishonour of cheque for
insufficiency, etc., of funds in the account:-
Where any cheque drawn by a person on an
account maintained by him with a banker for
payment of any amount of money to another
person from out of that account for the
discharge, in whole or in part, of any debt or
other liability, is returned by the bank unpaid,
either because of the amount of money
standing to the credit of that account is
insufficient to honour the cheque or that it
exceeds the amount arranged to be paid from
that account by an agreement made with that
bank, such person shall be deemed to have
committed an offence and shall, without
prejudice to any other provisions of this Act,
be punished with imprisonment for a term
which may be extended to two years, or with
fine which may extend to twice the amount of
the cheque, or with both
Provided that nothing contained in this

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section shall apply unless:-


(a) the cheque has been presented to the bank
within a period of six months from the date
on which it is drawn or within the period of
its validity, whichever is earlier;
(b) the payee or the holder in due course of
the cheque, as the case may be, makes a
demand for the payment of the said amount of
money by giving a notice in writing, to the
drawer of the cheque, within thirty days of the
receipt of information by him from the bank
regarding the return of the cheque as unpaid;
and
(c) The drawer of such cheque fails to make
the payment of the said amount of money to
the payee or, as the case may be, to the holder
in due course of the cheque, within fifteen
days of the receipt of the said notice.
Explanation:- For the purposes of this section,
“debt or other liability” means a legally
enforceable debt or other liability.
137. (B) Section 148:- (1) Notwithstanding anything
contained in the Code of Criminal Procedure,
1973, in an appeal by the drawer against
conviction under section 138, the Appellate
Court may order the appellant to deposit such
sum which shall be a minimum of twenty
percent of the fine or compensation awarded
by the trial Court.
Provided that the amount payable under this

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sub-section shall be in addition to any interim


compensation paid by the appellant under
section 143A.
(2) The amount referred to in sub-section (1)
shall be deposited within sixty days from the
date of the order, or within such further
period not exceeding thirty days as may be
directed by the Court on sufficient cause
being shown by the appellant.
(3) The Appellate Court may direct the
release of the amount deposited by the
appellant to the complainant at any time
during the pendency of the appeal.
Provided that if the appellant is acquitted, the
Court shall direct the complainant to repay to
the appellant the amount so released, with
interest at the bank rate as published by the
Reserve Bank of India, prevalent at the
beginning of the relevant financial year,
within sixty days from the date of the order,
or within such further period not exceeding
thirty days as may be directed by the Court on
sufficient cause being shown by the
complainant.
138. (D) Salomon vs. Salomon & Co. Ltd.:- In this
case, The Doctrine of Corporate personality
was approved for the first time and held that
Corporation has a personality of its own
which is different from the personalities of
the individuals

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139. (A) Life Insurance Corporation of India vs.


Escorts Ltd. and Ors. is one of the first Indian
cases that dealt with the issue of a company
as an independent juristic personality and the
lifting of the veil, known almost as well as
Salomon
140. (B) Section 409(1):- The President shall be a
person who is or has been a Judge of a High
Court for five years.
141. (C) Section 31:- Shelf Prospectus:-
(1) Any class or classes of companies, as the
Securities and Exchange Board may provide
by regulations in this behalf, may file a shelf
prospectus with the Registrar at the stage of
the first offer of securities included therein
which shall indicate a period not exceeding
one year as the period of validity of such
prospectus which shall commence from the
date of opening of the first offer of securities
under that prospectus, and in respect of a
second or subsequent offer of such securities
issued during the period of validity of that
prospectus, no further prospectus is required.
(2) A company filing a shelf prospectus shall
be required to file an information
memorandum containing all material facts
relating to new charges created, changes in
the financial position of the company as have
occurred between the first offer of securities
or the previous offer of securities and the

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succeeding offer of securities and such other


changes as may be prescribed, with the
Registrar within the prescribed time, prior to
the issue of a second or subsequent offer of
securities under the shelf prospectus:
Provided that where a company or any other
person has received applications for the
allotment of securities along with advance
payments of subscription before the making
of any such change, the company or other
person shall intimate the changes to such
applicants and if they express a desire to
withdraw their application, the company or
other person shall refund all the monies
received as subscription within fifteen days
thereof.
(3) Where an information memorandum is
filed, every time an offer of securities is made
under sub-section (2), such memorandum
together with the shelf prospectus shall be
deemed to be a prospectus.
Explanation.—For the purposes of this
section, the expression "shelf prospectus"
means a prospectus in respect of which the
securities or class of securities included
therein are issued for subscription in one or
more issues over a certain period without the
issue of a further prospectus.
142. (B) Section 41:- Global Depositary Receipt:- A
company may, after passing a special

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resolution in its general meeting, issue


depository receipts in any foreign country in
such manner, and subject to such
conditions, as may be prescribed.
143. (D) Section- 2(24):- Company Secretary:-
"company secretary" or "secretary" means a
company secretary as defined in clause (c) of
sub-section (1) of section 2 of the Company
Secretaries Act, 1980 (56 of 1980) who is
appointed by a company to perform the
functions of a company secretary under this
Act
144. (B)
145. (C) Commissioner of I.T. vs. Jayalakshmi Rice &
Oil Mills Contractor Co.:- In this case, it was
held that, "A suit by an unregistered firm
could not be validated by the subsequent
registration of the firm
146. (B) See the contents of The Indian Partnership
Act, 1932
147. (A) M/S. Hindustan Infrastructure Construction
Corporation Limited &Anr. vs. M/S. R.S.
Wood International:- In this case, it was held
that, "When suit is purely based on the
liability created under The Negotiable
Instrument Act, 1881, and is not based on the
statutory rights created under the contract
between the parties, then suit cannot be
considered as barred under section 69(2) of

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The Indian Partnership Act, 1932"


148. (B) Section- 27:- Liability of firm for
misapplication by partners:-
Where-
(a) a partner acting within his apparent
authority receives money or property from a
third party and misapplies it, or
(b) A firm in the course of its business
receives money or property from a third party,
and the money or property is misapplied by
any of the partners while it is in the custody
of the firm the firm is liable to make good the
loss.
149. (A) Refer the relevant sections of The Indian
Partnership Act, 1932
150. (B) Reconstitution of a partnership firm means:-
The firm never extinct and continues under
altered circumstances as to membership

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