CLAT PG Intellectual Property, Company And Environmental Law Flashcards

24 sample cards from the Intellectual Property, Company And Environmental Law deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What is a 'debenture' in company law?

   A debenture is an instrument acknowledging a debt/loan taken by the company, usually carrying a fixed rate of interest; debenture holders are creditors of the company, not members/owners.

2. Distinguish 'authorised capital', 'issued capital', and 'paid-up capital'.

   Authorised (nominal) capital is the maximum capital a company can raise per its MOA; issued capital is the part offered to investors; paid-up capital is the amount actually paid by shareholders on the issued shares.

3. Which classes of companies must constitute a Corporate Social Responsibility (CSR) Committee under Section 135 of the Companies Act, 2013, and what is the minimum spend?

   Companies with net worth of Rs.500 crore+, or turnover of Rs.1000 crore+, or net profit of Rs.5 crore+ in the immediately preceding financial year. They must spend at least 2% of average net profits of the preceding 3 financial years on CSR.

4. What is the role of an 'independent director' under the Companies Act, 2013?

   A non-executive director who is not a promoter/related person and has no material pecuniary relationship with the company; meant to bring objectivity and protect minority/stakeholder interests in corporate governance.

5. What is the difference between members' voluntary winding up and compulsory winding up?

   Members' voluntary winding up is initiated by solvent company shareholders by special resolution with a declaration of solvency. Compulsory winding up is ordered by the Tribunal (NCLT) on specified grounds such as inability to pay debts or acts against sovereignty/integrity of India.

6. Which tribunal has jurisdiction over company winding up and corporate disputes under the Companies Act, 2013?

   The National Company Law Tribunal (NCLT), with appeals to the National Company Law Appellate Tribunal (NCLAT).

7. Which Articles/provision of the Indian Constitution form the basis for environmental protection as fundamental duties and directive principles?

   Article 48A (Directive Principle - State to protect/improve environment and safeguard forests/wildlife) and Article 51A(g) (Fundamental Duty of citizens to protect the natural environment). Article 21 (right to life) has been judicially read to include the right to a clean/healthy environment.

8. Which constitutional amendment introduced Articles 48A and 51A(g) on environmental protection?

   The 42nd Constitutional Amendment Act, 1976.

9. Name the principal Indian statutes for water and air pollution control.

   The Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981.

10. What is the significance of the Environment (Protection) Act, 1986?

    It is an umbrella legislation enacted following the Bhopal gas tragedy, empowering the Central Government to take all measures to protect and improve the environment; it derives constitutional sanction from Article 253 (implementing the Stockholm Conference, 1972).

11. State the 'Polluter Pays Principle.'

    The polluter must bear the cost of preventing, controlling and remedying pollution and compensating victims, including the cost of restoring environmental degradation. Recognised in Indian Council for Enviro-Legal Action v. Union of India and Vellore Citizens case.

12. State the 'Precautionary Principle' in environmental law.

    Where there is a threat of serious or irreversible environmental damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation; the burden of proof lies on the developer/industrialist.

13. What is the doctrine of 'Public Trust' in environmental law?

    The State holds natural resources like rivers, seashores, forests and air as a trustee for the public and is under a duty to protect them; it cannot transfer them to private ownership. Recognised in M.C. Mehta v. Kamal Nath (1997).

14. What is the principle of 'absolute liability' and which case established it?

    An enterprise engaged in hazardous/inherently dangerous activity is absolutely (without exceptions) liable to compensate for harm caused, irrespective of negligence; established in M.C. Mehta v. Union of India (Oleum Gas Leak case, 1987), departing from the rule in Rylands v. Fletcher.

15. What is the 'Sustainable Development' principle as adopted by Indian courts?

    Development that meets the needs of the present without compromising the ability of future generations to meet their own needs; it balances economic development with environmental protection (Vellore Citizens Welfare Forum v. Union of India, 1996).

16. What is the National Green Tribunal (NGT), and under which Act was it established?

    A specialised statutory tribunal for effective and expeditious disposal of cases relating to environmental protection and conservation, established under the National Green Tribunal Act, 2010.

17. Within what period must the NGT endeavour to dispose of applications/appeals, and where do appeals from NGT lie?

    The NGT must endeavour to dispose of cases within 6 months of filing; appeals from NGT orders lie to the Supreme Court of India (generally within 90 days).

18. What is the constitutional position of labour as a legislative subject?

    Labour is in the Concurrent List of the Seventh Schedule, allowing both Parliament and State Legislatures to legislate on it.

19. Name the four Labour Codes that consolidate India's labour laws.

    (1) Code on Wages, 2019; (2) Industrial Relations Code, 2020; (3) Code on Social Security, 2020; (4) Occupational Safety, Health and Working Conditions Code, 2020.

20. What does the Industrial Disputes Act / Industrial Relations Code provide regarding 'lay-off' versus 'retrenchment'?

    Lay-off is the temporary failure/inability of an employer to give employment (e.g., due to shortage of power, raw material) where the employee is not removed from rolls. Retrenchment is the permanent termination of a workman's service for any reason other than punishment, excluding voluntary retirement, superannuation, etc.

21. Which body administers competition law in India and under which statute?

    The Competition Commission of India (CCI), under the Competition Act, 2002.

22. What are the three main anti-competitive concerns regulated by the Competition Act, 2002?

    (1) Anti-competitive agreements (Section 3, including cartels); (2) Abuse of dominant position (Section 4); (3) Regulation of combinations - mergers, amalgamations and acquisitions (Sections 5-6).

23. What is a 'cartel' under the Competition Act, 2002?

    An association of producers, sellers, distributors, traders or service providers who by agreement limit, control or attempt to control production, distribution, sale or price of goods/services; such horizontal agreements are presumed to have an appreciable adverse effect on competition (AAEC).

24. Distinguish 'direct tax' from 'indirect tax' with examples, and name the unified indirect tax in India.

    Direct tax is levied directly on income/wealth of a person and cannot be shifted (e.g., income tax, corporate tax). Indirect tax is levied on goods/services and its burden can be shifted to the consumer. India's unified indirect tax is the Goods and Services Tax (GST), introduced by the 101st Constitutional Amendment in 2017.

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