q papers MU

1. Question Bank in the subject of Corporate Law
Que.1] M/s. Dr. P.B’s Health & Glow Clinic Ltd. (the Borrowers) is the debtors and had availed
the credit facilities from the Bank. The Borrowers made repayment of loan to some extent but
not entirely, and accordingly the Bank took recourse under the provisions of Section 13(2) of the
SARFAESI Act, 2002. Consequently, possession of the mortgaged property was taken up and it
was duly advertised. The Borrower also filed an application under Section 17(1) of the
SARFAESI Act, 2002 before the Debts Recovery Tribunal, which was dismissed by the
impugned order. Being aggrieved, the Borrowers approached the High Court. The Borrowers
contended that the Reserve Bank of India has provided guidelines for one time settlement of the
loan and accordingly, one time settlement should have been duly considered by the Bank. The
Bank without following that settlement formula had taken possession of the property. The Bank
provided the statement of accounts to show the quantum of dues from the Borrowers to the Bank.
Also, in reply to the notice under Section 13(2) of the SARFAESI Act, 2002, the Borrowers had
sent a letter dated December 18, 2012 requesting the Bank to permit them to repay the dues in
small weekly installments and had also deposited 10 cheques amounting to Rs.25.50 lakhs. The
Borrower did not point out any irregularities against the steps under Section 13(2) of the 2002
Act.
Please discuss the case. State as to who (Borrower or Bank) could win the case. Justify your
views.
Que.2] Explain following under Depositories Act (any Two)
A] Registered Owner
B] Depository
C] Participant
Que.3] Explain following under SARFAESI Act (any Two)
A] Borrower
B] Guarantor
C] Non-Performing Asset
Que.4] Explain following under DRT Act (any Two)
A] Debt
B] Financial Institution

2. C] Recovery Officer
Que.5] Explain following under Prevention of Money Laundering Act (any Two)
A] Attachment
B] Chit Fund Company
C] Money Laundering
Que.6] Explain following under SEBI Act (any Two)
A] SEBI as the Market Regulator
B] Securities Appellate Tribunal
C] Functions of SEBI
Que.7] Explain following under Foreign Exchange Management Act (any Two)
A] Purpose and objectives of FEMA Act
B] Adjudicating Authority
C] Authorized Person
Que.1] The Financial Company incorporated under the Companies Act, 1956. is regulated by
the guidelines framed under the National Housing Bank Act, 1986, and is engaged in providing
finance for the purpose of construction of dwelling units and in development thereof. The
Financial Company extended financial assistance to the Borrowers on the terms and conditions
contained in the Loan Agreement as well other documents executed in this context. The
Borrowers had, with a view to secure the financial assistance, created an equitable mortgage in
favour of the Financial Company by way of deposit of title deeds with respect to their
immovable property being Residential House situated at Village:Timbavadi, Dist:Junagadh.
In view of the defaults committed by the borrowers, the Financial Company had classified their
account as a Non Performing Asset and issued notice dated 06.06.2009 under Section 13(2) of
the SARFAESI Act to the borrowers, calling upon the borrowers and the guarantors to pay to
the Financial Company the amount stated in the said notice within 60 days from the date of the

3. said notice. Though more than 60 days passed since the date of receipt of the said notice,
neither the borrowers nor the guarantors paid the amount stated in the notice. Therefore, the
Financial Company in exercise of the powers conferred under Section 13(4) of the SARFAESI
Act, decided to take possession of the mortgaged property. The Borrowers declined to hand
over the possession of the mortgaged property to the Financial Company on the ground that
they can not take possession of residential House without the order of the Court.
Discuss the case in the light of SARFAESI Act and advise the Financial Company about the
course of action for taking over the possession of the residential House.
Que.2] Explain following under Depositories Act (any Two)
A] Beneficial Owner
B] Services of Depository
C] Pledge of securities held in depository
Que.3] Explain following under SARFAESI Act (any Two)
A] Borrower
B] Default
C] Non-Performing Asset
Que.4] Explain following under DRT Act (any Two)
A] Attachment
B] Financial Institution
C] Presiding officer
Que.5] Explain following under Prevention of Money Laundering Act (any Two)
A] Main provisions under Prevention of Money Laundering Act
B] Chit Fund Company
C] Money Laundering
Que.6] Explain following under SEBI Act (any Two)
A] SEBI as the Market Regulator

4. B] Securities Appellate Tribunal
C] Functions of SEBI
Que.7] Explain following under Foreign Exchange Management Act (any Two)
A] Purpose and objectives of FEMA Act
B] Authorized Person
C] Salient features of Foreign Exchange Management Act