ICSI Syllabus For Executive Group 2 Economic and Labour Laws June 2012

ICSI Syllabus For Executive Group 2

Economic and Labour Laws

June 2012

Time allowed : 3 hours Maximum marks : 100
Total number of questions : 8 Total number of printed pages : 7
(Answer Question No.1 which is compulsory
and any three of the rest from this part.)
1. With reference to the relevant legal enactments, write short notes on any five of the following :
(i) Deficiency in service
(ii) Hazardous substance
(iii) Predatory pricing
(iv) Functions of Central Pollution Control Board
(v) Term of patent
(vi) Salient features of the Legal Metrology Act, 2009
(vii) Current account transactions.
(3 marks each)
2. State, with reasons in brief, whether the following statements are true or false. Attempt any five :
(i) The Competition Act, 2002 prohibits dominance as well as abuse of dominant position.
(ii) The property confiscated for money laundering vests with the central government.
(iii) Mens rea is an ingredient of the offence punishable under the Essential Commodities
Act, 1955.
(iv) Foreign direct investment is permitted in infrastructure companies in securities market
(stock exchanges, depositories, and clearing corporations).
(v) The redressal forums constituted under the Consumer Protection Act, 1986 are quasijudicial
in nature and scope.
(vi) Registration of a trade mark under the Trade Marks Act, 1999 is a prima facie evidence
of the validity of registration in all legal proceedings.
(3 marks each)
Economic and Labour Laws

3. (a) Distinguish between any two of the following :
(i) ‘Political party’ and ‘an organisation of political nature’.
(ii) ‘Seizure of an essential commodity’ and ‘confiscation of an essential commodity’.
(iii) ‘Contract of service’ and ‘contract for service’.
(iv) ‘Infringement of trade mark’ and ‘passing off’.
(5 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) The process of money laundering can be classified into _______, layering and
(ii) The registration of trade mark requires to be renewed for successive periods
of _______.
(iii) The compulsory licence in respect of a patent is granted after the expiration of
_______ from the date of grant of a patent subject to certain conditions.
(iv) Foreign contribution means any donation, delivery or transfer made by _______.
(v) The total surface area of the package where the information is required to be
given is called _______.
(1 mark each)
4. (a) With reference to the relevant provisions of the Foreign Exchange Management Act, 1999
and the rules and regulations made thereunder, advise on the following :
(i) Anand desires to donate US $10,000 to Rotary International, an NGO in
Chicago, USA.
(ii) Atul Ltd., an Indian company intends to export its software of the value of
(iii) Suresh desires to pay US $10,000 through international credit card being the
remittance out of lottery earnings.
(iv) Super Green Tea Ltd. intends to send its tea bags of the value of
`50,000 as gift to its foreign customers.
(v) Aadarsh Education Society, engaged in education sector, intends to make
investment in the education sector in a joint venture in USA.
(1 mark each)

(b) Ramesh took out four life insurance policies with double accident benefits, premium
payable half-yearly. When the third premium fell due, the general agent of the Life
Insurance Corporation (LIC) met Ramesh and took a bearer cheque towards the premium
payable by him in respect of the policies. Although the cheque was encashed immediately,
yet the payment of premium was not deposited with the LIC for another three months.
In the meantime, Ramesh met with a fatal accident and died. Ramesh’s wife filed claim
for the payment of the sum assured. Will she succeed ? Give reasons.
(5 marks)
(c) Mention the powers of the central government to protect and improve the quality of
environment under the Environment (Protection) Act, 1986.
(5 marks)
5. (a) Explain the powers of the Controller in respect of an application for a patent which
has substantial risk of infringement.
(5 marks)
(b) Ajay Ltd. is engaged in the manufacture and sale of industrial alcohol. In the course
of manufacture of industrial alcohol, the industrial unit discharged noxious and polluted
trade effluents into a nearby river through a drain, which is a stream within the meaning
of the Water (Prevention and Control of Pollution) Act, 1974. The company and the
industrial unit, had applied for the grant of requisite consent to discharge the trade effluents
into the stream but the consent was withheld as it did not make good the inadequacies
and defects pointed out by the State Pollution Control Board.
Are the managing director and other members of the Board of directors liable to be
proceeded against under the Water (Prevention and Control of Pollution) Act, 1974 in
the absence of prosecution of the company owning the industrial unit ? Give reasons
and refer to decided case law, if any.
(5 marks)
(c) Discuss the provisions of the Copyright Act, 1957 relating to infringement of a copyright.
(5 marks)


(Answer ANY TWO questions from this part.)
6. Write notes on any four of the following :
(i) The theory of notional extension of employment under the Workmen’s Compensation
Act, 1923.
(ii) Protection of gratuity under the Payment of Gratuity Act, 1972.
(iii) Employees’ Pension Scheme under the Employees’ Provident Funds and Miscellaneous
Provisions Act, 1952.
(iv) Purposes for which ESI fund may be expended under the Employees’ State Insurance
Act, 1948.
(v) Certification of standing orders under the Industrial Employment (Standing Orders)
Act, 1946.
(5 marks each)
7. (a) Distinguish between any two of the following :
(i) ‘Lay-off’ and ‘retrenchment’ under the Industrial Disputes Act, 1947.
(ii) ‘Principal employer’ and ‘immediate employer’ under the Employees’ State
Insurance Act, 1948.
(iii) ‘Minimum wages’ and ‘fixation of the minimum rates of wages’ under the
Minimum Wages Act, 1948.
(5 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) As per the provisions of the Payment of Bonus Act, 1965, an employee is
entitled to bonus provided he has worked for not less than __________ in that
(ii) The industrial dispute is a dispute relating to employment or non-employment or
terms of employment or ______ of any person.

(iii) Adolescent means a person who has completed _____ of age but not completed
his 18th year.
(iv) The employer is liable to pay the amount of gratuity within ____ days from the
date of its becoming payable to the employee.
(v) A period of service shall be deemed to be continuous which has not been
interrupted by a period of absence exceeding ______ days.
(1 mark each)
(c) Write the most appropriate answer from the given options in respect of the following :
(i) Which of the following is not a type of ‘bonus’ under the Payment of Bonus
Act, 1965 —
(a) Profit based bonus
(b) Customary bonus
(c) Attendance bonus
(d) Voluntary bonus.
(ii) Under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952,
what percentage of the basic wage, dearness allowance and retaining allowance
of an employee is paid or contributed by the employer —
(a) 8%
(b) 10%
(c) 12%
(d) 13%.
(iii) Which of the following injuries does not come under the term ‘personal injury’
under the Workmen’s Compensation Act, 1923 —
(a) Nervous shock
(b) Mental strain
(c) Loss of money
(d) Breakdown.

(iv) Which of the following is considered an ‘industry’ under the Industrial Disputes
Act, 1947 ––
(a) Posts and Telegraph Department
(b) Central Institute of Fisheries
(c) Construction and maintenance of National and State highways.
(d) Dock Labour Board.
(v) Under the Industrial Employment (Standing Orders) Act, 1946, which of the
following documents must a ‘standing order’ be in conformity with ––
(a) Standard Standing Orders
(b) Model Standing Orders
(c) Uniform Standing Orders
(d) Formal Standing orders.
(1 mark each)
8. Attempt any five of the following stating relevant legal provisions and decided case law,
if any :
(i) A copy of the ‘memorandum of settlement’ was not dispatched by the Conciliation Officer
to the appropriate government. Will the settlement be treated as invalid ?
(ii) A dispute arose about the payment of subsistence allowance to a suspended employee.
He claimed the allowance as per the rates prescribed by the law of the particular State.
The employer wanted to pay as per the rate specified in the Industrial Employment
(Standing Orders) Act, 1946. Will the employee succeed ?
(iii) Naresh was working in Navodaya School continuously for 30 years. The school has
been employing 30 teachers. On attaining the age of superannuation, he retired from
service. The management declined to pay gratuity to Naresh. He preferred a claim
for the payment of gratuity before the authority concerned under the Payment of Gratuity
Act, 1972. Will he succeed ?
(iv) Hotel Harsha Ltd. has engaged an electrician to attend to electrical repairs required in
the hotel. There is an agreement between the hotel and the electrician that he will be
required to attend to repair work whenever required on call. The electrician is paid
a consolidated sum of `10,000 per month for the services rendered by him. Can the
electrician be called an employee of the hotel under the provisions of the Factories
Act, 1948 ?

(v) Visual Electronics Ltd. sells household consumer durables such as TV, washing machines,
electric stoves, etc., of various manufacturers in its sales outlet. While delivering these
items to the homes of the customers, it deputes its employees to install and explain the
salient features of these items. It pays its employees an additional amount of defray
for the actual travelling expenses. The Employees’ State Insurance Corporation demanded
contribution on this additional payment including travelling expenses under the head
‘wages’. Is the demand of Employees’ State Insurance Corporation justified ?
(vi) Vaibhav Rice Mills is employing 15 persons in its factory for its regular operation. During
inspection, the Provident Fund Inspector found that whenever the goods arrived and also
whenever the goods were sent out of the factory premises, a few casual labourers were
engaged for loading and unloading purposes. The Provident Fund Inspector demanded
the employer to comply with the provisions of the Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952 on the ground that the total number of employees
(including casual labourers) exceeded 20. Is the Provident Fund Inspector justified ?
(vii) Azad Ltd. implemented a scheme of re-organisation of the business. It resulted in the
surplus of 10 employees. The company dispensed with their services. The employees
union challenged it that it was not a ground for the retrenchment of the employees. Will
the union succeed ?
(4 marks each)

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