July 23, 2024

AKU Sem 6 – BLIR – important previous years question and answer

BLIR important previous years question and answer


Question: Define the contract of indemnity. Describe the rights of indemnifier and indemnity holder as per Indian contract act


The contract of indemnity is defined under Section 124 of the Indian Contract Act, 1872. It states that a contract of indemnity is a contract in which one party promises to compensate the other party for any loss or damage that the latter may suffer due to an act done by the promisor or by some other person.

In a contract of indemnity, there are two parties involved:

  1. Indemnifier: The indemnifier is the party who promises to compensate the indemnity holder for any loss or damage. They undertake the responsibility of reimbursing the indemnity holder in case the specified event occurs.
  2. Indemnity Holder: The indemnity holder is the party who is protected against any loss or damage. They are entitled to claim compensation from the indemnifier if the specified event covered by the contract occurs.

Rights of the Indemnifier:

  1. Right to be indemnified: The indemnifier has the right to receive reimbursement from the indemnity holder for any loss or damage suffered by them as per the terms of the contract.
  2. Right to take legal action: If the indemnifier is required to compensate the indemnity holder, they have the right to take legal action against the responsible party to recover the amount paid as indemnity.
  3. Right to recover costs and expenses: The indemnifier is entitled to recover any costs, expenses, or legal fees incurred while fulfilling their obligation under the contract of indemnity.

Rights of the Indemnity Holder:

  1. Right to be indemnified: The indemnity holder has the right to claim compensation from the indemnifier for any loss or damage suffered by them as per the terms of the contract.
  2. Right to enforce the contract: The indemnity holder has the right to enforce the contract of indemnity and seek the fulfillment of the indemnifier’s obligation to compensate them for the specified event.
  3. Right to claim consequential losses: The indemnity holder may have the right to claim not only the direct loss or damage but also the consequential losses that arise as a result of the specified event covered by the contract.

It’s important to note that the rights and obligations of the indemnifier and indemnity holder may vary depending on the specific terms and conditions agreed upon in the contract of indemnity. It is advisable to carefully review and understand the terms of the contract before entering into such an agreement. Consulting with legal professionals can provide further clarity and guidance regarding the rights and obligations under the Indian Contract Act.

Q: Distinguish a holder and holder in due course. Explain fully the privileges granted to holder in due course under negotiable instrument act


In the context of the Negotiable Instruments Act, a “holder” refers to any person who is in possession of a negotiable instrument (such as a promissory note, bill of exchange, or cheque) and is entitled to receive payment on it. On the other hand, a “holder in due course” refers to a specific type of holder who acquires a negotiable instrument without any defect, for value, before it is due, and without notice of any defect in the instrument or the underlying transaction.

Distinguishing Holder and Holder in Due Course:

  1. Holder: A holder can be any person who possesses a negotiable instrument and is entitled to receive payment on it. They can become a holder by either being the original payee or by receiving the instrument through proper negotiation, such as by endorsement or delivery.
  2. Holder in Due Course: A holder in due course is a person who meets certain additional requirements:
  3. Acquisition without defects: They acquire the instrument in good faith, meaning they are not aware of any defects or irregularities in the instrument or the underlying transaction.
  4. For value: They give consideration or something of value in exchange for the instrument. It could be money, goods, services, or a legal obligation.
  5. Before it is due: They acquire the instrument before it becomes payable, meaning they obtain it within a specific time frame.
  6. Without notice of defects: They have no notice of any defect in the instrument, such as forgery, fraud, or a prior claim or defense against it.

Privileges granted to the Holder in Due Course:

The Negotiable Instruments Act provides certain privileges and protections to a holder in due course:

  1. Free from defects: A holder in due course is not affected by any defects or irregularities in the instrument or the underlying transaction. They can enforce the instrument against all parties liable on it, and their rights are not subject to any personal defenses that might be available against the previous parties.
  2. Title free from previous claims: A holder in due course acquires a title to the instrument that is free from any prior claims or ownership disputes. They can claim the instrument as their own, and their right to payment cannot be defeated by the claims of others.
  3. Recovery against prior parties: A holder in due course has the privilege to recover the amount due on the instrument from all prior parties, including the maker, drawer, and prior endorsers, subject to certain conditions specified in the Act.
  4. Defenses against holder: While a holder in due course is protected from personal defenses, they are still subject to certain real defenses. These defenses include forgery, fraud, material alteration of the instrument, discharge of the instrument, or any incapacity or lack of legal capacity of the parties involved.

It is important to note that to enjoy the privileges of a holder in due course, the individual must fulfill the specific requirements mentioned earlier. The concept of a holder in due course is designed to promote the circulation of negotiable instruments by providing greater certainty and protection to innocent holders who acquire them in good faith and for value.


Define trade union and discuss its management. describe the problem faced by trade union in india in recent times.


A trade union is an organization formed by workers or employees to protect and promote their collective rights and interests. It acts as a representative body for workers and engages in negotiations with employers or management on various employment-related issues, such as wages, working conditions, benefits, and job security. The primary objective of a trade union is to safeguard the welfare and rights of its members and improve their working conditions.

Management of a Trade Union:

The management of a trade union involves various activities and responsibilities, which typically include:

  1. Membership Recruitment: Trade unions strive to increase their membership by attracting workers from a specific industry or occupation. They undertake recruitment drives and campaigns to inform workers about the benefits and services offered by the union.
  2. Collective Bargaining: Trade unions engage in collective bargaining with employers or management to negotiate and secure favorable terms and conditions of employment for their members. This includes discussions on wages, working hours, leave policies, job security, and other employment-related matters.
  3. Grievance Handling: Trade unions address individual and collective grievances of their members. They provide support and guidance in resolving workplace disputes, conflicts, and unfair treatment by employers.
  4. Advocacy and Lobbying: Trade unions advocate for workers’ rights and interests by influencing labor laws, government policies, and industry regulations. They engage in lobbying activities, participate in consultations, and may organize protests or strikes to highlight and address issues affecting workers.
  5. Education and Training: Trade unions often provide education and training programs to their members to enhance their skills, knowledge, and awareness of labor rights and issues. This empowers workers to actively participate in union activities and make informed decisions.

Problems Faced by Trade Unions in India in Recent Times:

In recent times, trade unions in India have faced several challenges and issues, including:

  1. Fragmentation: The presence of numerous trade unions representing different sectors and interests often leads to fragmentation and lack of unity among workers. This can weaken the collective bargaining power and effectiveness of trade unions.
  2. Informal and Contractual Labor: The rise in informal and contractual employment arrangements poses challenges for trade unions. These workers often face difficulties in forming unions, as they may lack job security and face the risk of termination or retaliation by employers.
  3. Limited Coverage: Trade unions in India have relatively low membership density, particularly in the private sector. Many workers, especially those in the informal sector, are not covered by unions, making it challenging to represent their interests effectively.
  4. Political Interference: Trade unions in India often have affiliations with political parties, which can lead to interference in their activities. Political considerations may sometimes take precedence over the genuine concerns and welfare of workers.
  5. Legal Framework: Some provisions of labor laws and regulations in India impose restrictions on trade union activities, such as stringent requirements for union registration, limitations on collective bargaining, and the use of strikes as a means of protest. These legal constraints can hinder the functioning and effectiveness of trade unions.
  6. Technological Changes and Automation: The advent of automation and technological advancements has led to job losses and changes in work patterns. Trade unions face the challenge of adapting to these changes and representing the interests of workers in the evolving landscape.

Trade unions in India continue to play a crucial role in advocating for workers’ rights and welfare. However, addressing these challenges requires collective efforts, effective leadership, strategic planning, and collaboration among unions, workers, employers, and policymakers to ensure the protection and advancement of workers’ interests in the dynamic labor environment.

Question:  Explain the function and process of joint management council in India. Why have they fail? Give reasons.


In India, a Joint Management Council (JMC) is a platform or mechanism established in certain industries or establishments to facilitate communication, collaboration, and joint decision-making between the management (employers) and the workers (employees) in matters related to the workplace. The JMC serves as a forum for discussions, consultations, and negotiations on various issues affecting both parties. Its primary function is to promote harmonious industrial relations, enhance productivity, and address concerns of both management and workers.

Function and Process of Joint Management Council in India:

  1. Consultation and Negotiation: The JMC facilitates consultation and negotiation between management and workers on matters such as wages, working conditions, working hours, productivity improvement, safety measures, welfare activities, and other employment-related issues.
  2. Grievance Redressal: The JMC acts as a platform for addressing individual and collective grievances of workers. It provides an opportunity for workers to present their concerns, and management representatives are responsible for investigating and resolving these grievances in collaboration with the workers’ representatives.
  3. Policy Formulation: The JMC may play a role in policy formulation and decision-making, particularly in areas directly affecting workers. It enables both parties to participate in the development of policies, rules, and regulations, ensuring that the interests and perspectives of workers are considered.
  4. Collective Bargaining: In industries or establishments where collective bargaining is practiced, the JMC can be involved in the negotiation and formulation of collective agreements between management and workers’ representatives. It helps in achieving mutually beneficial agreements on wages, benefits, working conditions, and other employment terms.
  5. Communication and Information Sharing: The JMC facilitates effective communication and information sharing between management and workers. It ensures that important information, such as company policies, changes in procedures, or other relevant matters, is disseminated to both parties in a transparent and timely manner.

Reasons for Failure of Joint Management Councils:

  1. Lack of Trust and Mutual Respect: The success of a JMC relies on trust, mutual respect, and a genuine commitment from both management and workers to collaborate. If there is a lack of trust or an adversarial relationship between the parties, it becomes challenging to achieve productive outcomes.
  2. Power Imbalance: In some cases, a significant power imbalance between management and workers can undermine the effectiveness of the JMC. If the management holds significantly more power and decision-making authority, the workers’ representatives may feel marginalized and their concerns inadequately addressed.
  3. Limited Representation: The composition of the JMC may not always ensure adequate representation of all workers, particularly those in marginalized or vulnerable positions. If certain groups of workers are not adequately represented, their concerns may go unnoticed or unaddressed.
  4. Lack of Implementation and Follow-through: Even if agreements or decisions are reached within the JMC, the lack of commitment or failure to implement them can lead to disillusionment and distrust among the workers. Inadequate follow-through on agreed-upon actions undermines the credibility and effectiveness of the JMC.
  5. Insufficient Resources and Support: Some JMCs may face challenges due to insufficient resources, including funding, training, and administrative support. Inadequate resources can hinder the functioning and capacity of the JMC to address issues effectively.
  6. External Factors: External factors such as economic downturns, changes in government policies, or shifting market conditions can impact the functioning of the JMC. These factors may influence the management’s priorities or limit the scope of negotiations, making it difficult to achieve meaningful outcomes.

Addressing these challenges requires a commitment from both management and workers to foster a collaborative and inclusive environment within the JMC. It is essential to build trust, provide adequate representation, allocate resources, ensure implementation of decisions, and adapt to changing circumstances for the JMC to effectively serve its intended purpose.

Question: “The indemnifier becomes liable as soon as liability of indemnity holder becomes absolute” explain.


The statement “The indemnifier becomes liable as soon as the liability of the indemnity holder becomes absolute” refers to the timing of the indemnifier’s responsibility to compensate the indemnity holder. In the context of a contract of indemnity, the indemnifier’s liability arises when the indemnity holder’s liability becomes definite or fixed.

Here’s an explanation of why the indemnifier becomes liable under the stated condition:

  1. Contractual Obligation: In a contract of indemnity, the indemnifier agrees to compensate the indemnity holder for any loss or damage that the latter may suffer. This obligation is based on the terms and conditions agreed upon in the contract.
  2. Triggering Event: The indemnity holder’s liability typically arises from a specific event or circumstance mentioned in the contract. Once that event occurs and the indemnity holder incurs a loss or becomes liable to a third party, their liability becomes absolute or definite.
  3. Timing of Liability: As per the contract, the indemnifier assumes the responsibility to compensate the indemnity holder when their liability becomes absolute. This means that the indemnifier’s obligation to provide compensation is triggered as soon as the indemnity holder’s liability is established.
  4. Indemnity Payment: Once the indemnity holder’s liability becomes absolute, they have the right to claim compensation from the indemnifier. The indemnifier is then required to fulfill their obligation by reimbursing the indemnity holder for the loss or damage suffered.

It is important to note that the indemnifier’s liability is contingent upon the indemnity holder’s liability becoming absolute. If the indemnity holder’s liability does not arise or if there is no loss or damage suffered, the indemnifier’s obligation to compensate may not be triggered.

The specific terms and conditions of the contract of indemnity determine the extent of the indemnifier’s liability, the procedures for making a claim, and any limitations or exclusions on the indemnifier’s responsibility. It is advisable to refer to the contract and seek legal advice for a comprehensive understanding of the rights and obligations of the indemnifier and indemnity holder in a specific situation.

 Question: Explain the difference between discharge of party and discharge of an instrument when would an instrument be discharged?


The terms “discharge of a party” and “discharge of an instrument” refer to different concepts in the context of negotiable instruments. Let’s explore their differences and when an instrument can be discharged:

  1. Discharge of a Party: Discharge of a party refers to the release or termination of the liability of a person (party) involved in a negotiable instrument. It means that the person is no longer legally obligated to fulfill their obligations under the instrument. Discharge of a party can occur through various means, including:
  2. Payment: When the party liable on the instrument makes full payment to the holder or other entitled party, their liability is discharged. The obligation to pay is fulfilled, and the party is released from further liability.
  3. Cancellation or Surrender: If the holder voluntarily cancels, returns, or surrenders the instrument to the party liable on it, the liability is discharged. The act of cancellation or surrender signifies the termination of the obligation.
  4. Agreement or Accord and Satisfaction: Parties involved in the instrument may mutually agree to settle the obligation through an accord and satisfaction. This occurs when the creditor (holder) agrees to accept something different from what was originally promised, and the debtor (party liable) fulfills the agreed-upon alternative.
  5. Discharge of an Instrument: Discharge of an instrument refers to the legal termination of the instrument itself, rendering it no longer valid or enforceable. The instrument is discharged when it is no longer legally effective, meaning it cannot be further negotiated, enforced, or used for any legal purpose. Discharge of an instrument can happen in the following situations:
  6. Payment in Due Course: When a negotiable instrument is paid in due course to the holder in good faith and without any notice of defects, the instrument is discharged. Payment in due course extinguishes the instrument and relieves all parties from further obligations.
  7. Material Alteration: If there is a material alteration made to the instrument without the consent of all parties involved, the instrument is discharged. Material alteration refers to any unauthorized changes that affect the obligations, parties, or amounts mentioned in the instrument.
  8. Renunciation: If the holder voluntarily renounces their rights to the instrument by signing a renunciation document or providing a written statement of renunciation, the instrument is discharged. Renunciation releases all parties from their obligations under the instrument.

When an instrument is discharged, it signifies the completion or termination of the rights and liabilities associated with it. It is important to note that the discharge of a party does not necessarily discharge the instrument, and the discharge of an instrument does not automatically discharge the parties. Each concept operates independently, and the circumstances surrounding the instrument and the parties involved determine when and how discharge occurs.

Question: Discuss the important problems of trade union in India. Suggest the measures to remove these problems.


Trade unions in India face several important problems that can hinder their effectiveness and impact. Some of the key issues include:

  1. Fragmentation and Multiplicity: There is a large number of trade unions in India, often representing different interests, affiliations, and ideologies. This fragmentation leads to a lack of unity among workers and dilutes the collective bargaining power of trade unions.
  2. Low Membership Density: The membership density of trade unions, particularly in the private sector, is relatively low in India. Many workers, especially those in the informal sector, are not part of any union. This reduces the overall bargaining power and influence of trade unions.
  3. Political Interference: Trade unions in India often have affiliations with political parties, which can lead to interference in their activities. Political considerations may take precedence over the genuine concerns and welfare of workers, leading to a loss of autonomy for the unions.
  4. Inadequate Legal Framework: Some provisions of labor laws in India impose restrictions on trade union activities. Stringent requirements for union registration, limitations on collective bargaining, and the use of strikes as a means of protest can impede the functioning of trade unions.
  5. Lack of Awareness and Education: Many workers, especially those in the informal sector, have limited awareness of their labor rights and the role of trade unions. Lack of education and awareness hampers the ability of unions to mobilize and organize workers effectively.

To address these problems and strengthen trade unions in India, several measures can be taken:

  1. Consolidation and Unity: Trade unions should work towards consolidating their efforts and forming broader alliances to increase their collective bargaining power. This involves overcoming ideological differences and focusing on common goals and interests.
  2. Outreach and Organizing: Trade unions should invest in outreach programs to expand their membership base, particularly in the informal sector. They can provide education and awareness programs to inform workers about their rights, benefits, and the role of trade unions.
  3. Strengthening Legal Framework: Trade unions should advocate for labor law reforms that support and protect workers’ rights to organize and bargain collectively. They can engage in dialogue with policymakers to address restrictive provisions and create a more conducive legal environment.
  4. Autonomy and Democratic Processes: Trade unions should strive for autonomy and independence from political parties. They should adopt democratic decision-making processes and ensure that the interests of workers are prioritized over political considerations.
  5. Training and Capacity Building: Trade unions should invest in training and capacity building programs for their members and leaders. This enhances their knowledge and skills in negotiating, organizing, and addressing workers’ issues effectively.
  6. Public Awareness Campaigns: Trade unions can launch public awareness campaigns to highlight the contributions of unions and educate the general public about the importance of workers’ rights and the role of unions in improving labor conditions.

By implementing these measures, trade unions in India can overcome the challenges they face and play a more effective role in safeguarding workers’ rights, promoting collective bargaining, and improving the overall working conditions and welfare of workers.

  Question: Discuss the concept of collective bargaining. Analyse the various issues considered and  process of collective  bargaining.

Collective bargaining is a process in which representatives of workers, typically trade unions, negotiate with employers or their representatives to establish mutually agreed-upon terms and conditions of employment. It is a fundamental aspect of industrial relations and serves as a mechanism for addressing and resolving issues related to wages, working conditions, benefits, and other employment-related matters. Here’s an overview of the concept of collective bargaining, the issues considered, and the process involved:

Concept of Collective Bargaining: Collective bargaining is based on the principle that workers have the right to join together and negotiate with employers as a collective entity rather than individually. It aims to balance the power dynamics between employers and employees by providing workers with a platform to voice their concerns, protect their interests, and participate in decision-making processes that affect their working lives.

Issues Considered in Collective Bargaining: Collective bargaining covers a wide range of employment-related issues, including:

  1. Wages and Compensation: Negotiations often focus on determining fair wages, salary structures, pay scales, and other forms of compensation, such as bonuses or incentives.
  2. Working Hours: The duration of work hours, overtime policies, rest periods, and other aspects of working time arrangements are commonly discussed in collective bargaining.
  3. Working Conditions: This includes considerations such as health and safety regulations, workplace amenities, leave policies, grievance handling procedures, and other factors that contribute to a conducive work environment.
  4. Employment Security: Matters related to job security, layoffs, retrenchments, and procedures for addressing redundancies are addressed through collective bargaining.
  5. Benefits and Social Security: Negotiations may involve discussions on employee benefits like healthcare, pension plans, insurance coverage, maternity/paternity benefits, and other social security measures.
  6. Training and Development: Collective bargaining can address opportunities for skill development, training programs, career advancement, and promotion policies.

Process of Collective Bargaining: The process of collective bargaining typically involves the following steps:

  1. Preparing and Organizing: Trade unions or worker representatives analyze the issues and interests of the workers they represent. They gather information, conduct surveys, and consult with members to establish their bargaining positions and demands.
  2. Negotiation: The union and the employer or their representatives engage in direct negotiations to reach a mutually acceptable agreement. Discussions involve exchanging proposals, counterproposals, and engaging in dialogue to find common ground.
  3. Bargaining Strategies: Both parties use various bargaining strategies to advance their positions. This may involve tactics like making concessions, engaging in pressure tactics such as strikes or lockouts, or seeking mediation or arbitration to resolve disputes.
  4. Reaching an Agreement: Through negotiations, the parties aim to reach a collective bargaining agreement (CBA) that outlines the terms and conditions of employment. The CBA is a legally binding document that governs the employment relationship within the specified period.
  5. Ratification and Implementation: Once the CBA is reached, it is presented to the workers for ratification. If the workers approve the agreement, it is implemented and enforced by both parties. The terms of the CBA are honored, and any disputes are resolved through agreed-upon procedures.
  6. Monitoring and Review: Both parties monitor the implementation of the agreement and periodically review its provisions to ensure compliance and address emerging issues. Negotiations may resume at the expiration of the CBA to establish a new agreement.

It is important to note that the process and specific practices of collective bargaining can vary across countries, industries, and organizations. The principles of good faith, fairness, and mutual respect are crucial in fostering productive collective bargaining and maintaining harmonious labor relations.

  Question: Discuss the working of judicial machinery in India for the settlement of industrial disputes.


The judicial machinery in India plays a significant role in the settlement of industrial disputes. It consists of various judicial bodies and forums that handle disputes between employers and employees or trade unions. Here’s an overview of the working of the judicial machinery for the settlement of industrial disputes in India:

  1. Labor Courts: Labor Courts are specialized tribunals established under the Industrial Disputes Act, 1947. They have the authority to adjudicate disputes related to the terms and conditions of employment, unfair labor practices, illegal dismissals, and other matters specified in the Act. Labor Courts are presided over by a judge with expertise in labor laws and have the powers of a civil court.
  2. Industrial Tribunals: Industrial Tribunals are similar to Labor Courts and are established to resolve industrial disputes. They have jurisdiction over more complex and significant disputes that cannot be resolved at the level of Labor Courts. Industrial Tribunals are headed by a qualified judge and have the authority to hear and decide disputes referred to them by the appropriate government.
  3. National Industrial Tribunals: National Industrial Tribunals are set up by the central government to handle disputes of national importance or those involving multiple states. They have jurisdiction over matters such as disputes in major industries, public sector undertakings, and inter-state disputes. National Industrial Tribunals are staffed by experienced judges and have the power to pass legally binding awards.
  4. Arbitration and Conciliation: Apart from judicial bodies, the Industrial Disputes Act also provides for arbitration and conciliation as alternative methods of dispute resolution. Arbitration involves the appointment of an impartial arbitrator who hears the arguments of both parties and issues an award. Conciliation aims to facilitate negotiations and achieve a mutually acceptable settlement with the assistance of a neutral conciliator.
  5. Appellate Bodies: Various appellate bodies exist to review decisions and awards made by Labor Courts, Industrial Tribunals, and National Industrial Tribunals. These include the High Courts and the Supreme Court of India. Appellate bodies ensure that legal principles are followed, and fair decisions are rendered. They have the power to uphold, modify, or set aside the decisions of lower courts and tribunals.

Working Process: The working process of the judicial machinery for settling industrial disputes in India typically involves the following steps:

  1. Filing of Complaint: The party initiating the dispute, whether it is the employee, employer, or trade union, files a complaint or reference with the appropriate authority, such as the Labor Court, Industrial Tribunal, or National Industrial Tribunal.
  2. Hearings and Evidence: The judicial body conducts hearings where both parties present their arguments, evidence, and witnesses. The parties have the opportunity to cross-examine witnesses and present their case before the tribunal.
  3. Decision and Award: After considering the arguments and evidence presented, the judicial body deliberates and issues a decision or award. The decision can include orders for reinstatement, compensation, back wages, changes in working conditions, or any other appropriate relief.
  4. Enforcement: Once the decision or award is issued, it is binding on both parties. The party against whom the decision is made is legally obligated to comply with the orders. Failure to comply may result in further legal action and penalties.
  5. Appeals: Parties dissatisfied with the decision of a lower court or tribunal have the right to appeal to the appropriate appellate body, such as the High Court or the Supreme Court. The appellate body reviews the case and issues a final decision, which may affirm, modify, or reverse the lower court’s decision.

The judicial machinery in India strives to provide a fair and impartial resolution of industrial disputes. However, the process can be time-consuming, and the backlog of cases remains a challenge. To improve the efficiency and effectiveness of the judicial machinery, efforts are being made to expedite case disposal, introduce alternative dispute resolution mechanisms, and enhance the capacity of judicial bodies to handle industrial disputes effectively.


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