CHALLENGE

50
MCQ
SUPER
MCQS
By CA Shivangi Agrawal
CA Inter Law Marathon
 Super 50 MCQs – Sept 24 Exams
- Compiled by CA Shivangi Agrawal

Multiple Choice Questions

1. Which of the following statements is true about the books of accounts for a Limited Liability
Partnership?
a. Every partner of LLP must obtain b. A Limited Liability Partnership can
DPIN maintain its books of accounts on the
cash basis
c. A Limited Liability Partnership d. None of the above
should maintain its accounts at the
head office

2. Where a company passes the necessary resolution for variation of rights attached to the
shares of any class, the dissenting shareholders, if they are eligible may, within -----, make an
application to the Tribunal to cancel such variation
a. 7 days b. 14 days
c. 21 days d. 30 days

3. Being in need of further capital, Rimsi Cotton-Silk Products Limited opted to offer 50.00 lacs
equity shares of Rs. 1 each to 50 identified persons on ‘private placement’ basis and
accordingly a letter of offer accompanied by serially numbered application form was sent to
them after fulfillment of due formalities including passing of special resolution. One of the
applicants, Rajan made a written complaint to the company highlighting the fact that the
letter of offer was incomplete as well as illegal, for the same did not contain ‘renunciation
clause’ though he wanted to exercise his ‘right of renunciation’ in favour of one of his son
Uday. By choosing the correct option, advise the company in this matter.
a. As the ‘Right of Renunciation’ cannot b. The company is prohibited from
be denied, the company needs to providing ‘Right of Renunciation’ and
rectify its mistake by including the therefore, the letter of offer
same in the letter of offer and the and the application form need not
application form. include any such clause.
c. Instead of absolute prohibition, the d. Instead of absolute prohibition, the
company needs to provide ‘Right of company needs to provide ‘Right of
Renunciation’ limited to 25% of Renunciation’ limited to fifty percent
offering of offering.

4. Which one of the following required ordinary resolution?

a. To change the name of the company b. To alter the articles of association
c. To reduce the share capital d. To declare dividends.

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5. Ganesh Company Ltd, a public company incorporated under the Companies Act, 2013 has
Mr. Jay- Director, Mr. Sagar – Independent Director, Mr. Abhishek – Nominee Director and
Mr. Yash – Whole time director. Mr. Abhishek wants to inspect the books of account of
Shankar Company Limited, the subsidiary of Ganesh Company Limited. You are required to
state whether Mr. Abhishek is eligible to inspect the books of account of Ganesh Company
Limited?
a. Yes, Mr. Abhishek can inspect the b. No, Mr. Abhishek being a nominee
books of account of Shankar director can only inspect the books
Company limited only on of account of Ganesh Company Ltd.
authorization of the public financial and not its subsidiary company.
institution on whose behalf he has
been so appointed in the board of the
Ganesh Company Ltd.
c. Yes, Mr. Abhishek can inspect the d. Yes, Mr. Abhishek can inspect the
books of account of Shankar books of account of Shankar
Company limited only on Company limited only on
authorization by way of resolution of authorization by way of resolution of
the board of directors. the members holding not less than
25% of the paid-up share capital of
the company.

6. Sapan and Tapan reserved a name by making an application accompanied by requisite fee to
the Registrar for forming a new private company. The Registrar accorded its approval on
6th July, 2024. However, its documents are not ready and one of their friends told that
reserved name may be extended for another 40 days but he is unsure of the fees that needs
to be paid for the same. Please help him in this regard.
a. 2000 b. 3000
c. 5000 d. 100/ day

7. Aabra ka daabra Ltd. is incorporated on 3rd January, 2024. As per the Companies Act, 2013,
what will be the financial year for the company:
a. 31st March, 2024 b. 31st December, 2024
c. 31st March, 2025 d. 30th September, 2025

8. A charge was created by Cyprus Limited on its office premises to secure a term loan of Rs. 1
crore availed from ABM Bank Limited through an instrument of charge executed by both the
parties on 16th February, 2023. Inadvertently, the company could not get the charge
registered with the concerned Registrar of Companies (ROC) within the first statutory
period permitted by law and the default was made known to it by the lending banker with a
stern warning to take immediate steps for rectification. The latest date within which the
company must register the charge with the ROC so as to avoid paying ad valorem fees for
registration of the charge is:
a. 27th April, 2023 b. 17th April, 2023
c. 2nd May, 2023 d. 16th June 2023

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9. As per the provisions of the Companies Act, 2013, which of the following statement is
correct with respect to the surplus arising out of the CSR activities:
a. The surplus cannot exceed 5% of b. The surplus shall not form part of the
total CSR expenditure of the business profit of a company.
company for the financial year.
c. The surplus cannot exceed 10% of d. The surplus shall form part of the
total CSR expenditure of the business profit of a company.
company for the financial year.

10. According to Section 27 of the General Clauses Act, 1897, what three conditions must be
fulfilled for a service by post to be deemed effective?
a. Properly addressed, Pre-paid, and b. Properly addressed, Pre-paid, and
Posting by ordinary post Posting by registered post
c. Properly addressed, Pre-paid, and d. Properly addressed, Pre-paid, and
Sending by courier Hand delivery

11. Swagat Hospitality Limited defaulted in the repayment of last two instalments of term loan
availed from National Commercial Bank. On 30th September, 2019, they cleared all the dues
by repaying it. When can it issue equity shares with differential voting rights?
a. Upon expiry of five years from the b. Upon expiry of three years from the
date on which the default was made end of the financial Year in which the
good default was made good
c. Upon expiry of five years from the d. Upon expiry of seven years from the
end of the financial Year in which the end of the financial Year in which the
default was made good default was made good

12. Ruchita wants to renew her deposit of Rs. 5.00 lakh maintained with Kewal Constructions
Limited before the expiry of original period with a view to avail higher rate of interest. For
how much extended period, Ruchita is required to renew her deposit, so that the company
shall pay her higher rate on deposits?
a. One and a half times the unexpired b. Double the unexpired period of
period of original deposit original deposit.
c. Six months more in addition to the d. Longer than the unexpired period of
unexpired period of deposit. deposit.

13. For the purpose of LLP, Resident in India means:

a. Person who has stayed in India for a b. Person who has stayed in India for a
period of not less than 182 days during period of not less than 180 days during
the current year. the immediately preceding one year.
c. Person who has stayed in India for a d. Person who has stayed in India for a
period of not less than 181 days during period of not less than 120 days during
the immediately preceding one year the financial year.

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14. In view of the fact that a private company enjoys a number of privileges, Orange Pharma
Limited having 20 members is contemplating to convert itself into the private company. For
this purpose the company needs to alter its articles by inserting three restrictive clauses as
specified in Section 2 (68) and the change in name is to be authorized by members by
passing --------------.
a. A special resolution and after b. A special resolution and after
obtaining approval of the Central obtaining approval of the National
Government. Company Law Tribunal (NCLT).
c. A special resolution and after d. A special resolution and after
obtaining approval of the Registrar obtaining approval of the State
of Companies (ROC). Government.

15. 5K Cosmetic Shop plc., a company incorporated in Switzerland, is involved in digital supply
services through electronic mode, the server of which is located outside India. The company
follows calendar year as its financial year. Every year the company is required to prepare a
balance sheet and profit and loss account. You are required to choose the correct timeline
within which such documents shall be filed with the Registrar of Companies considering the
provisions of Chapter XXII of the Companies Act, 2013:
a. Within a period of 30 days from the b. Within a period of 3 months from the
close of the financial year of 5K close of the financial year of 5K
Cosmetic Shop plc. Cosmetic Shop plc.
c. Within a period of 60 days from the d. Within a period of 6 months from the
close of the financial year of 5K close of the financial year of 5K
Cosmetic Shop plc. Cosmetic Shop plc.

16. Mr. Raman, a non-resident Indian, has a Systematic Investment Plan (SIP) with a prominent
Indian mutual fund. Due to some impending financial difficulties, he requested his elder
brother Mr. Raghav, a resident Indian currently working as Manager in a multi-national
company at Mumbai, to make payment of a few subsequent instalments of SIP on his behalf.
Which option, do you think, correctly signifies whether Mr. Raghav is permitted to
undertake such transaction of paying a few instalments of SIP on behalf of his non-resident
brother considering the applicable provisions of the Foreign Exchange Management Act,
1999:
a. Mr. Raghav is not permitted to b. Mr. Raghav is permitted to
undertake such transaction of paying undertake such transaction of paying
a few instalments of SIP on behalf of a few instalments of SIP on behalf of
his non-resident brother since it his non-resident brother since Mr.
amounts to payment for the credit of Raman is his real brother.
a non-resident person.
c. Mr. Raghav is permitted to d. Mr. Raghav is permitted to
undertake such transaction of paying undertake such transaction of paying
a few instalments of SIP on behalf of a few instalments of SIP on behalf of
his non-resident brother only if his his non-resident brother only if he
employer permits. obtains prior permission of Reserve
Bank of India.

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17. After five years of stay in USA, Mr. Umesh came to India at his paternal place in New Delhi on
October 25, 2019, for the purpose of conducting business with his two younger brothers
Rajesh and Somesh and contributed a sum of ` 10,00,000 as his capital. Simultaneously, Mr.
Umesh also started a proprietary business of selling artistic brass ware, jewelry, etc.
procured directly from the manufacturers based at Moradabad. Within a period of two
months after his arrival from USA, Mr. Umesh established a branch of his proprietary
business at Minnesota, USA. You are required choose the appropriate option with respect to
residential status of Mr. Umesh and his branch for the financial year 2020-21 after
considering the applicable provisions of the Foreign Exchange Management Act, 1999:
a. For the financial year 2020-21, Mr. b. For the financial year 2020-21, Mr.
Umesh and his branch established at Umesh is a resident in India but his
Minnesota, USA, are both persons branch established at Minnesota,
resident outside India. USA, is a person resident outside
India.
c. For the financial year 2020-21, Mr. d. For the financial year 2020-21, Mr.
Umesh and his branch established at Umesh is a person resident outside
Minnesota, USA, are both persons India but his branch established at
resident in India. Minnesota, USA, is a person resident
in India.

18. A issue house (share broker) has issued an advertisement in two leading newspapers for
selling a big number of shares allotted to it by a company under a private placement. In
which of the following conditions the advertisement will not be deemed as prospectus:
a. Advertisement was given within six b. Advertisement was given after six
months from the date of allotment months from the date of allotment
and the issue house paid the entire
consideration to the company
c. The issue house did not pay entire d. advertisement was given within
consideration to the company till the three month from the date of
date of allotment allotment

19. The statement of account and solvency in a Limited Liability Partnership should be
prepared __________.
a. Within four months from the end of b. Within six months from the end of
the financial year the financial year
c. Within three months from the end of d. Within two months from the end of
the financial year the financial year

20. A limited liability partnership shall, where a person becomes or ceases to be a partner and
where there is any change in the name and address of the partner, file a notice with the
Registrar:
a. Within thirty days from the date he b. Within sixty days from the date he
becomes or ceases to be a partner. becomes or ceases to be a partner.

c. Within fifteen days from the date he d. Within forty five days from the date
becomes or ceases to be a partner. he becomes or ceases to be a partner.

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21. In the absence of agreement as to any matter, the mutual rights and duties of the partners
and the mutual rights and duties of the limited liability partnership and the partners shall be
determined by the provisions relating to that matter, which are set out in:
a. The Second Schedule. b. The Fourth Schedule.
c. The First Schedule d. The Third Schedule.

22. Goals Limited, a listed company has authorised share capital of Rs. 25,00,000 (issued,
subscribed and paid up capital of Rs. 20,00,000). The company has planned to buy back
shares worth Rs. 10,00,000. What is the maximum amount of equity shares that the
company is allowed to buy back based on the total amount of equity shares?
a. Rs. 2,00,000 b. Rs. 5,00,000
c. Rs. 6,25,000 d. Rs. 8,00,000

23. The Annual General Meeting (AGM) of Green Limited was held on 31.8.2022. Suppose the
Chairman of the company after two days of AGM went abroad for next 31 days. Due to the
unavailability of the Chairman, within time period prescribed for submission of copy of
report of AGM with the registrar, the report as required was signed by two Directors of the
company, of which one was additional Director of the company. Comment on the signing of
this report of AGM.
a. Yes, the signing is in order as the b. No, the signing is not in order as only
report can be signed by any director the Chairman is authorised to sign
in the absence of Chairman. the report
c. Yes, the signing is in order, as in the d. No, the signing is not in order, since
absence of Chairman at least two in case the Chairman is unable to
directors should sign the report. sign, the report shall be signed by
any two directors of the company,
one of whom shall be the Managing
director, if there is one and company
secretary of the company.

24. Yellow Limited’s General Meetings are held at its registered office situated in Kochi. The
minute book of General meetings of Yellow Limited will be kept at:
a. That place where members of Yellow b. That place where all employees of
Limited will decide. Yellow Limited will decide.
c. Registered office of the company d. That place where senior officials of
Yellow Limited. Yellow Limited will decide

25. ABC Infrastructures Limited is a listed company quoted at National Stock Exchange. The
company closed its Register of Members in June and August, 2022 for 12 and 21 days
respectively. The CFO of company has informed the company secretary to consider closing
of register in December for another 15 days for some strategic reasons. Referring to the
provisions of Companies Act, 2013, examine the validity of above action of the company.
a. Valid, as the closure of register of b. Invalid, as company cannot go for
members by company each time is closure of Register of members more
not exceeding 30 days. than twice in a year.
c. Invalid, as the period of closing d. Invalid, as the period of closing the
register of members exceeding 30 Register of members by the company
days in a year. is exceeding 45 days in a year.

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26. Red Flag Ltd., which has its registered office at Delhi and having 12,500 members is holding
its Annual General Meeting in Ashoka Hotel. Despite swanky arrangements most of the
members did not turn up and quorum was not present within half an hour of the schedule
time of the meeting, as a result meeting was adjourned. However, due to heavy booking
schedule, hotel authorities could not make available, for adjourned meeting, sufficient space
in the same hall where meeting was originally called but allowed conduct of meeting in a
different hall on a different floor next week at same time. Please advise the option available
to board:
a. The meeting stands adjourned b. As same banquet hall is not available
automatically to the same place and meeting can be held at different
time next week as per provisions of place as may be decided appropriate
law. There is no alternate but to hold by the Board.
meeting in the same hall.
c. As the same hall is not available to d. As the same hall is not available to
conduct meeting after one week, a conduct the meeting, the company
fresh notice of 21 days is needed for needs to conduct meeting
a different location. electronically through internet and
give sufficient notice to shareholders.

27. A Ltd. is the holding company of B Ltd. Another company C Ltd. is the subsidiary company of
B Ltd. Is there any relationship between A Ltd. and C Ltd.
a. There is no relationship between A b. C Ltd. is deemed to be the subsidiary
Ltd. and C Ltd. of A Ltd.
c. A Ltd. shall be deemed to be the d. C Ltd. shall be deemed to be the
holding company of C Ltd. provided subsidiary of A Ltd. if the latter
A Ltd. acquires at least 10% stake in company acquires minimum 10%
C Ltd. stake in the former company within
six months after C Ltd. becomes
subsidiary of B Ltd.

28. Mr. A died at the age of 72 leaving behind some movable and immovable properties to be
distributed between his two sons C & D, as per his registered will. His will clearly mentioned
that all the immovable property should go to C and all the movable property should go to D.
Both the brothers divided the property as per will except below mentioned properties,
because they could not establish which property should go to whom. Kindly help them by
ticking the property/ies which should go to D (as per the provisions of the general Clause
Act, 1897):
a. Standing crop in the fields b. Cut, crop, ready to sell
c. Tube well in the agriculture land d. Sandal wood tree

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29. NTW Ltd. is listed on National Stock Exchange and has a turnover of ₹ 4,500 crores. NTW
Ltd. has 12 subsidiaries, 3 associate companies and 5 joint venture companies (collectively
referred to as NTW Group). AKW & Co. LLP is the statutory auditor of NTW Ltd. NTW Ltd.
wants to appoint AKW as the statutory auditors for entire NTW Group. In respect of this,
please advise the management of NTW Group.
a. AKW & Co. LLP can be appointed as b. AKW & Co. LLP can be appointed as
statutory auditors for only 10 statutory auditors for only 20
companies of NTW Group. companies of NTW Group.
c. AKW & Co. LLP can be appointed as d. AKW & Co. LLP can be appointed as
statutory auditors for all the statutory auditors for all the
companies of NTW Group. companies of NTW Group provided
they meet the limits requirements as
per the Companies Act, 2013.

30. Win Limited bought 15% shares of Om Limited in the year 2018. In the year 2020 it formed
a trust for its employees and donated its 15% shares of Om Limited along with 10,00,000 to
the trust and became its trustee. In February 2023, Om Limited acquired 55% stake in Win
Limited through an in-house deal. Can a subsidiary company hold shares in its holding
company justifiably in this situation?
a. Win Limited cannot represent itself b. Win Limited can represent itself as a
as a trustee after it becomes a trustee only after it was a holding
subsidiary of Om Limited. company of Om Limited.
c. Win Limited cannot hold shares as a d. Win Limited can do so as it is holding
trustee even though it is a subsidiary shares in Om Limited prior to
company. becoming a subsidiary of it.

31. The time limit within which a copy of the contract for the payment of underwriting
commission is required to be delivered to the Registrar is:
a. Three days before the delivery of the b. At the time of delivery of the
prospectus for registration prospectus for registration
c. Three days after the delivery of the d. Five days after the delivery of the
prospectus for registration prospectus for registration

32. Newage Private Limited issued 9% Non-convertible Debentures worth 10 lakh and
thereafter, the directors contemplated to get them listed. After due formalities, these
privately placed non- convertible debentures of 10 lakh were listed. Which of the following
options is applicable in the given situation:
a. Newage Private Limited shall be b. Newage Private Limited shall not be
considered as a listed company. considered as a listed company.
c. Newage Private Limited shall be d. Newage Private Limited shall be
considered as a listed company only considered as a listed company only
when minimum amount of listed when minimum amount of listed
privately placed non- convertible privately placed non- convertible
debentures is Rs. 15 lakhs. debentures is minimum Rs. 20 lakhs.

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33. Krishna Religious Publishers Limited has received application money of 20,00,000 (2,00,000
equity shares of 10 each) on 10th October, 2022 from the applicants who applied for
allotment of shares in response to a private placement offer of securities made by the
company to them. Select the latest date by which the company must allot the shares against
the application money so received.
a. 9th November, 2022 b. 24th November, 2022
c. 9th December,2022 d. 8th January, 2023

34. Due to the management disputes, Flow Writing Industries Limited could not hold its current
Annual General Meeting by the latest due date. Even after lapse of the due date, it seemed
rather impossible to convene the AGM. In such a grim situation, one option available was to
approach National Company Law Tribunal (NCLT) and seek direction for the calling of AGM.
Out of the following four options, which one is applicable in the given case:
a. Any member of the company can b. A member of the company holding at
make an application to the National least 1% of the total paid-up share
Company Law Tribunal (NCLT) and capital must make an application to
seek direction for the calling of AGM. the National Company Law Tribunal
(NCLT) and seek direction for the
calling of AGM.
c. Minimum two members of the d. Minimum five members of the
company holding at least 1% of the company holding at least 1% of the
total paid-up. Share capital must total paid-up share capital must
make a joint application to the make a joint application to the
National Company Law Tribunal National Company Law Tribunal
(NCLT) and seek direction for the (NCLT) and seek direction for the
calling of AGM. calling of AGM.

35. The Board of Directors of Vidyut Limited are contemplating to declare interim dividend in
the last week of July, 2022 but the company has incurred loss during the current financial
year up to the end of June, 2022. However, it is noted that during the previous five financial
years i.e., 2017-18, 2018-19, 2019-20, 2020-21 and 2021-2022 the company had declared
dividend at the rate of 8%, 9%, 12%, 11% and 10% respectively. Advise the Board as to the
maximum rate at which they can declare interim dividend despite incurring loss during the
current financial year.
a. Maximum at the rate of 10%. b. Maximum at the rate of 11%.
c. Maximum at the rate of 10.5%. d. Maximum at the rate of 11.5%.

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36. During the half year ended September 2022, the board of directors (BOD) of Gold Leaf
Limited has made an application to the Tribunal for revision in the accounts of the company
for the financial year ending on March 2020. Further during the year ended March 2023, the
BOD has again made an application to the Tribunal for revision in the boards report
pertaining to the year ended March 2022. You are required to state the validity of the acts of
the Board of directors
a. The act of the BOD is valid only to b. The act of the BOD is valid as
the extent of application made for application made for revision in the
revisions in accounts as board's accounts and boards report pertains
report are not eligible for revision. to two different financial year.
c. The act of the BOD is invalid as the d. The act of the BOD is invalid as to
law provides for only one time the application made for revision in
application to be made in a financial accounts pertains to a period beyond
year for revision of accounts and 2 years immediately preceding the
boards report. year 2023. The application made for
revision in the Board report is
however valid in law

37. Who shall sign the Statement of Account and Solvency prepared by the LLP:
a. By any one partner, authorized in b. By at least two partners, authorized
this behalf in this behalf
c. By all the partners d. By the designated partners

38. Aniket Builders Ltd (ABL) was promoted by Aniket and his family members and is in
construction business for more than 10 years. Aniket's brother Saket purchased a running
cement manufacturing company named Unique Cements Ltd (UCL) and removed the
existing directors of the company and appointed majority of the directors of ABL in the
Board of UCL. What shall be the status of UCL in such situation:
a. UCL is an Associate Company of ABL b. UCL is a Subsidiary Company of ABL
c. UCL is a Holding Company of ABL d. UCL is a Joint Venture Company of
ABL

39. Mr. Mohit had purchased Food items from Balak Food court LLP amounting to 5,00,000. He
made a claim of 5,00,000 against the LLP as he was supplied with all expired food items, this
transaction was done by Mr. Heera (one of the partners of LLP), but LLP was unaware of this
transaction. Mr. Mohit also claimed for compensation as this transaction was done with
intention to defraud him. The worth of the assets of LLP are only 2,00,000. Now Mr. Mohit
wants to make all the partners of LLP personally liable for the deficiency of 3,00,000.

What is the correct option as per the Limited Liability Partnership Act, 2008.
a. As this act is done with intent to b. The LLP itself will be liable for such
defraud Mr. Mohit by supplying act to the full extent of its assets. In
expired food items in such case the other words, Mr. Mohit cannot claim
liability of partners who has done personally from partners. The
such act, shall be unlimited for all or liability of the partners will be
any of the debts or other liabilities of limited to their agreed contribution
the LLP. Hence Liability of Mr. Heera in the LLP.
is unlimited. It can be extended up to
the personal assets of Mr. Heera.

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c. All Partners, whether or not aware d. Mr. Heera, who has done this
about this act will be liable equally, transaction with intension to defraud
their liability will be unlimited.. Mr. Mohit, will be liable to
compensate him but his liability will
be limited to his contribution in LLP
only. Hence, Mr. Heera will not be
personally liable for the same

40. Where an act of parliament does not expressly specify any particular day as to the day of
coming into operation of such Act, then it shall come into operation on the day on which:
a. It receives the assent of the b. It receives the assent of the Governor
President General
c. It receives assent of both the houses d. It receives assent of the Prime
of Parliament Minister

41. Abhilasha and Amrita have incorporated a not-for-profit private limited company which is
registered under Section 8 of the Companies Act, 2013. One of their friends has informed
them that their company can be categorized as a small company because as per the last
profit and loss account for the year ending 31st March, 2022, its turnover was less than Rs.
40 crore and its paid- up share capital was less than Rs. 4 crores. Advise.
a. A section 8 company, which meets b. If the acquisition of minimum 5%
the criteria of turnover and paid-up stake in another small company
share capital in the last financial materializes in the financial year
year, can avail the status of small (and not in the immediately
company only if it acquires at least following financial year) after
5% stake in another small company meeting the criteria of turnover and
within the immediately following paid-up share capital then with the
financial year. written permission of concerned
ROC, it can acquire the status of
small company.
c. The status of small company cannot d. A section 8 company, if incorporated
be bestowed upon a not-for-profit as a private limited company (and
company which is registered under not as public limited company) can
Section 8 of the Companies Act, avail the status of small company
2013. with the permission of concerned
ROC, after it meets the criteria of
turnover and paid-up share capital

42. _____________ means that when two or more words that are susceptible of analogous meaning,
are coupled together they are understood to be used in their cognate sense.
a. Noscitur a Sociis b. Contemporanea Expositio
c. Prima facie d. Absoluta sententia expositore non
indiget

43. A clause that begins with the words "Notwithstanding anything" contained is called:
a. An obstacle clause b. A non-obstante clause
c. An objectionable clause d. A superior clause

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44. Every drawl of foreign exchange for transactions included in Schedule III of the FEM
(Current Account Transactions) Rules, 2000 shall require prior approval of RBI. Which
among the following transaction no approval of RBI is required:
a. Where the payment is made out of b. Where the remittance of USD 275000
funds held in Resident Foreign is made for maintenance of close
Currency (RFC) Account of the relatives abroad
remitter.
c. Where the drawl of foreign currency d. Drawl of USD 260000 for private
of USD 400000 is for studies abroad visit to USA

Self practice case based MCQs

Tech Inspiration Private Limited was incorporated on 30.06.2018. The main object of the
company was to provide guidance classes for engineering aspirants. For this purpose, they
opened a coaching center at Freedom Plaza, Near Bhagwan Talkies, Bye Pass Road, Agra. The
premise was owned by the company. The company also made a “Employee Appointment
Committee” for the systematic selection and appointment of employees including faculties for
teaching. In the first slab, committee appointed nine teachers, 3 clerical staff and one peon. For
the purpose of expansion of business, company decided to open a branch of the company at
nearby city of Agra. After the due research, the company decided to open its branch at city
“Bharatpur” which was just 50 kilometers far from Agra. The company approached Mr.
Raghuram Meena owner of land at Bharatpur suitable for company. Mr. Raghuram Meena leased
his land for ten years to Tech Inspiration Private Limited. The land had a small temple of lord
Ganpati at its centre. The company constructed the classrooms on the land and many students
joined the coaching classes. Besides it, the temple generated some income in the form of
“Chadhava” (donation). Mr. Raghuram Meena claimed the income of temple with the contention
that he had leased only the land and not the temple.
Further one more problem arose in the company. “Employee Appointment Committee” found
that one of the faculties, Mr. Nitesh Gupta was not performing well. He was not justifying his
duties. Therefore, “Employee Appointment Committee” decided to terminate him with effect
from 31.01.2024 and send him notice of termination by properly addressing and by registered
post to Mr. Nitesh Gupta. Mr. Nitesh Gupta refused to accept the notice and returned back it to
the postman. After two months, on 01.04.2024, Mr. Nitesh Gupta filed a suit against the
company for claiming the salary for the period from 01.01.2024 to 31.03.2024 with the view
that his appointment cannot be terminated because of two reasons:
(i) “Employee Appointment Committee” was established just to appoint the employees. They are
not authorised for their termination.
(ii) Mr. Nitesh Gupta’s refused to accept the notice of termination with the contention that it was
not properly served to him.
On the basis of above facts and by applying applicable provisions of the Limited Liability
Partnership Act, 2008 and the applicable Rules therein, choose the correct answer (one out of
four) of the following MCQs (45-47) given herein under: -

45. Whether Mr. Raghuram Meena is correct in his claim? Whether he may claim the income of
temple:
a. Yes, Mr. Raghuram Meena was correct b. Yes, as temple is a constructed
in his views as he leased only land not building, not land.
the temple, situated on such land.
c. No. ‘Immovable Property’ in terms of d. No. It is the right of Tech Inspiration
the General Clauses Act, 1897 includes Private Limited to decide that who will

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CA Inter Law - Super 50 MCQs By CA Shivangi Agrawal
land, benefits to arise out of land, and claim the income of temple.
things attached to the earth, or
permanently fastened to anything
attached to the earth. So, benefits
attached to land and income from
temple will be of Tech Inspiration
Private Limited.

46. Whether “Employee Appointment Committee” may terminate Mr. Nitesh Gupta even the
authority letter given to “Employee Appointment Committee” has no specific clause authorizing
it for termination of employees?
a. No, as “Employee Appointment b. Yes, because section 16 of the General
Committee” was authorised only for Clauses Act, 1897, provides that unless
appointment and not for termination a different intention appears, power to
of employees. appoint to include power to suspend
or dismiss.
c. No, because section 16 of the General d. No, It’s only board of directors of Tech
Clauses Act, 1897, provides that power Inspiration Private Limited who has
to appoint does not include power to the right to terminate its employees in
suspend or dismiss. board meeting.

47. Whether the refusal to accept the notice sent by post, by Mr. Nitesh Gupta would be termed
as not serving of notice of termination?
a. Yes, as Mr. Nitesh Gupta had not b. Yes, refusal to accept the post will
accepted the notice. always be considered as not served.
c. No, because as per section 27 of the d. No, Mr. Nitesh Gupta had the
General Clauses Act, 1897 the service information of sending of notice.
by post shall be deemed to be effected
by properly addressing, pre-paying,
and posting by registered post.

Vidhya Masterminds LLP was incorporated on 15th April, 2023. Sagar, Manthan, Vishnu and
Vasuki were partners in the firm. Sagar and Manthan were also the designated partners in this
firm. The firm was incorporated with the object of manufacturing and trading of cycles. The
business was going too smoothly.
But on 30th April, 2023, some Mr. Vidhyaram Tolaramani filed an application to registrar that
he has a registered trademark in the name of “Vidhya Masters” which he has got registered
before 15.04.2023. Therefore, the LLP “Vidhya Masterminds LLP” should change its name. On
the basis of basic investigation, registrar found that Mr. Vidhyaram Tolaramani was correct in
contention. The registrar sent a direction to Vidhya Masterminds LLP to change its name as it
too nearly resembles with the trademark of Mr. Vidhyaram Tolaramani i.e. “Vidhya Masters”.
The notice was issued by the registrar on 5th May, 2023 by post but due to some internal
problem of postal department, notice reached the LLP on 10th May, 2023. Vidhya Masterminds
LLP ignored the notice and continued working under the same name. On 15th August, 2023 the
registrar suo-moto allotted the LLP a new name “Sahitya Masterminds LLP” and entered this
new name in the register of LLP and also issued a fresh certificate of incorporation to Vidhya
Masterminds LLP with new name. Vidhya Masterminds LLP, now “Sahitya Masterminds LLP”
was not comfortable with new name. It started the process to change the name allotted by the
registrar.
Meanwhile, Vishnu was appointed as designated partner in Vidhya Masterminds LLP on 25th
July, 2023 but this information was not sent to the registrar. On 20th June, 2023, Mr. Vasuki had

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CA Inter Law - Super 50 MCQs By CA Shivangi Agrawal
given a written notice to the LLP that he could not continue as a partner in LLP with effect from
22nd July, 2023. This cessation from the LLP was also not informed by either LLP or Mr. Vasuki,
to the Registrar.
On the basis of above facts and by applying applicable provisions of the Limited Liability
Partnership Act, 2008 and the applicable Rules therein, choose the correct answer (one out of
four) of the following MCQs (48- 50) given herein under: -

48. When the registrar directed Vidhya Masterminds LLP to change its name, by which date the
LLP should have changed the name of LLP?
a. By 5th August, 2023 i.e. within a b. By 10th August, 2023 i.e. within a
period of 3 months from the date of period of 3 months from the date of
issue of such direction by registrar. receiving of such direction by the firm.
c. By any time according to the d. Vidhya Masterminds LLP is not liable
convenience of Vidhya Masterminds to change its name.
LLP.

49. Vishnu was appointed as designated partner in the Vidhya Masterminds LLP on 25th July,
2023. By what time limit the LLP should have informed the registrar?
a. 9th August, 2023 i.e. within 15 days of b. 24th August, 2023 i.e. within 30 days
appointment of appointment
c. 25th August, 2023 i.e. within 1 month d. 25th October i.e. within 3 months of
of appointment appointment.

50. Whether Mr. Vasuki will be liable for penalty for not intimating the registrar about the
appointment of Mr. Vishnu as designated partner?
a. a. No, as he was not partner in LLP on b. Yes, as former partner is to be
the date of appointment of designated regarded still being a partner of the
partner. LLP unless a notice has been delivered
to the Registrar by former partner or
LLP.
c. Yes, even if a notice has been delivered d. No, in any case Mr. Vasuki will not be
to the Registrar by LLP about his liable.
retirement.

Answer to MCQs

1 b 11 c 21 c 31 b 41 c
2 c 12 d 22 b 32 b 42 a
3 b 13 d 23 d 33 c 43 b
4 d 14 a 24 c 34 a 44 a
5 c 15 d 25 d 35 b 45 c
6 b 16 a 26 b 36 b 46 b
7 c 17 c 27 c 37 d 47 c
8 b 18 b 28 b 38 b 48 a
9 b 19 b 29 d 39 a 49 b
10 b 20 a 30 d 40 a 50 b

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CA INTER www.BookMyVideo.in
+91- 89 707070 77

LAW
New Recorded Batch for Jan 25/ May 25
by CA Shivangi Agrawal

Video Duration
Regular: 140 Hours
Exam Oriented: 110 Hours

Study Material Details

Total 3 Books
1 Main Book (B&W)
1 Question Bank (B&W)
1 Chart Book (Coloured)
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