Case Study 1

Anand is an account holder in a Bank. Anand drew a cheque bearing no. 110020, in favour of Ram dated 12.7.2020, for Rs. 1,00,000/-. Anand had duly signed the cheque and filled up all the necessary particulars on the cheque. Anand had handed over the said cheque to Ram on the same day i.e. 12.7.2020. Then on 2.11.2020 Ram deposited the said cheque, which was not honoured by the Bank.

Based on these facts answer the following questions in one word:

a) Whether the Bank is justified in dishonouring the cheque?

b) What is the reason for dishonouring the cheque?

c) What is the period of validity of a cheque?

d) Whether a criminal complaint under section 138 of the Negotiable Instruments Act, 1881, be filed by Ram against Anand on the said above ground of dishonour of chequer?

e) Can Ram compel Anand to draw a fresh cheque in his favour?

Case Study 2

On 12.10.2020 a company imported machinery and stored it in an open warehouse for a period of 6 months by paying the necessary charges to the warehouse authorities on the same day. During the period of storage, on 18.10.2020, the machinery was heavily damaged due to fall of the warehouse shed. The warehouse authorities did not inform the said fact to the company. Therefore, the company on 2.11.2020, filed a consumer complaint claiming a compensation of Rs. 1.5 Crore on the ground of deficiency in service on part of the warehouse authorities.

Based on these facts answer the following questions in one word:

a) Whether the Company is a consumer?

b) Is there a deficiency in service on part of the warehouse authorities?

c) Which forum shall have the jurisdiction to entertain this complaint?

d) Whether the consumer complaint filed is within the period of limitation?

e) Can a company file a complaint in its own name?

Case Study 3

The total number of directors in a Public Limited Company is 20. The Board of directors of the said Company decided to issue a Prospectus to raise the funds for the Company, thereby inviting the public to invest in the Company by subscribing to the Company's shares. The directors registered the Prospectus with the Registrar of Companies (ROC). The directors have not disclosed the fact in the Prospectus that the Company is running into losses for past 2 years.

Based on these facts answer the following questions in one word:

a) Can a Company have more than 15 directors?

b) Can a public company issue Prospectus?

c) Is there a mis-statement in the Prospectus?

d) Whether registration of the Prospectus with ROC is mandatory?

e) Can the Company be sued for mis-statement in the Prospectus?