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Answer Writing Practice – Day 16 – Season 1

Aaj k questions c-law

Q1. The managing director of a public limited company applied for purchasing a company’s flat. The price of the flat is 40 lakh. The managing director suggested that he may be allowed to pay 20 lakh and the balance of ` 20 lakh may be recovered from his salary in 40 installments. Accounts department observed that it will tantamount to providing house building advance to the managing director which is not covered by the rules of the company. Being the Company Secretary of the company, you have been asked by the Board of directors to examine and submit a note stating the rules in this regard and action to be taken for considering the request.(8 marks) 

JIGL (interp.. of statue)

Q1. Explain the rule of ‘beneficial construction’ while interpreting the statutes quoting an example.


Q1. Mugambo is an allottee of a flat in a real estate project promoted by the company, but he has nat been delivered flat as per Agreement. He has approached you to know, whether he can make application under Insolvency and Bankruptcy Code, 2016 and in what status he can make application and is there any timelines.



Where the language used in a statute is capable of more than one interpretation, the  

most firmly established rule for construction is the principle laid down in the Heydon’s  

case. This rule enables, consideration of four matters in constituting an act : 

(1) what was the law before making of the Act, 

(2) what was the mischief or defect for which the law did not provide, 

(3) what is the remedy that the Act has provided, and 

(4) what is the reason for the remedy. 

The rule then directs that the courts must adopt that construction which ‘shall sup- 

press the mischief and advance the remedy’. Therefore even in a case where the usual  

meaning of the language used falls short of the whole object of the legislature, a more  

extended meaning may be attributed to the words, provided they are fairly susceptible  

of it. If the object of any enactment is public safety, then its working must be inter- 

preted widely to give effect to that object. Thus in the case of Workmen’s Compensa- 

tion Act, 1923 the main object being provision of compensation to workmen, it was held  

that the Act ought to be so construed, as far as possible, so as to give effect to its  

primary provisions. However, it has been emphasized by the Supreme Court that the  

rule in Heydon’s case is applicable only when the words used are ambiguous and are rea- 

sonably capable of more than one meaning [CIT v. Sodra Devi (1957) 32 ITR 615 (SC)].


Corporate insolvency and resolution process describe krna h

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