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Business Law
Dec 2025 Examination
Q1. A partnership firm named M/s Strawgoh Traders, recently formed in Mumbai by three individuals—Amit Shah, Bhavesh Patel, and Charan Mehta—has encountered an internal dispute. The firm was registered under the Indian Partnership Act,
1932, and a partnership deed was executed outlining the roles and responsibilities of each partner. Amit, one of the partners, independently entered into a supply contract with a third- party vendor for procurement of raw materials, claiming it was essential for the firm’s daily operations. However, Bhavesh and Charan objected, stating that Amit had exceeded his authority as defined in the partnership deed. The deed explicitly listed certain powers (express authority), such as signing cheques and approving expenses above Rs.50,000, but was silent on routine procurement decisions.
Now, the firm faces potential liability if it fails to honor the contract, and the partners must determine whether Amit’s actions were legally binding on the firm and suggest a resolution strategy for this dispute. (10 Marks)
Q2. A private limited company is currently embroiled in a significant internal conflict between its shareholders and board of directors. The dispute centers around the scope of permissible business activities and the extent of decision- making authority held by the board. As the company has expanded and diversified its operations over time, the original constitutional documents—namely, the Memorandum of Association (MOA) and Articles of Association (AOA)—have remained unchanged since incorporation.
This lack of revision has led to ambiguities and interpretational challenges, particularly regarding the alignment of the company’s current operations with its stated objectives in the MOA, and the procedural clarity in the AOA concerning board powers, shareholder rights, and conflict resolution mechanisms. The disagreement has escalated to formal legal proceedings, with both parties relying on outdated and vague provisions to support their positions.
Evaluate the effectiveness of the company’s Memorandum of Association (MOA) and Articles of Association (AOA) in governing internal management and external relationships. Critique the current provisions in light of a recent dispute between shareholders and directors, and recommend amendments to strengthen corporate governance and prevent future conflicts. (10 Marks)
Q3(A). Mrs. Kavita Sharma, a resident of Pune, purchased a premium refrigerator from a reputed electronics brand through an online marketplace. Within two months of purchase, the refrigerator began malfunctioning—failing to cool and making loud noises. Despite multiple service requests, the company delayed repairs and refused replacement, citing minor technical issues. Mrs. Sharma incurred additional expenses for food spoilage and had to rent a temporary appliance. Mrs. Sharma alleges deficiency in service and defective product delivery, and seeks compensation for financial loss and mental agony. She decides to file a complaint under the Consumer Protection Act, 2019. Please help her in understanding on how to use the greviance redressal form established under Consumer Protection, 2019 (5 Marks)
Q3(B). A group of entrepreneurs have incorporated a private limited company to launch a technology venture. They are aware of the regulatory requirements under the Companies Act, 2013, and want to establish a strong foundation for corporate governance and social responsibility (CSR). The founders seek a detailed governance framework that addresses board structure, compliance, stakeholder communication, and CSR initiatives. Create a comprehensive governance framework for a newly incorporated private limited company, focusing on compliance with the Companies Act, 2013, and best practices in corporate governance and CSR. How would you ensure transparency, accountability, and stakeholder engagement from the outset? (5 Marks)
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