Practice Questions for CLAT PG 2020

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Practice Questions for CLAT PG 2020PASSAGE[Excerpted from the judgment Hindustan Construction Company Ltd. v. Union of India, 2019]The power to invalidate a legislative or executive act lies with the Court. A judicial pronouncement, either declaratory or conferring rights on the citizens cannot be set at naught by a subsequent legislative act for that would amount to an encroachment on the judicial powers. However, the legislature would be competent to pass an amending or a validating act, if deemed fit, with retrospective effect removing the basis of the decision of the Court. Even in such a situation the courts may not approve a retrospective deprivation of accrued rights arising from a judgment by means of a subsequent legislation.​​ However, where the Court's judgment is purely declaratory, the courts will lean in support of the legislative power to remove the basis of a court judgment even retrospectively, paving the way for a restoration of the status quo ante. Though the consequence may appear to be an exercise to overcome the judicial pronouncement it is so only at first blush; a closer scrutiny would confer legitimacy on such an exercise as the same is a normal adjunct of the legislative power. The whole exercise is one of viewing the different spheres of jurisdiction exercised by the two bodies i.e. the judiciary and the legislature. The balancing act, delicate as it is, to the constitutional scheme is guided by the well-defined values which have found succinct manifestation in the views of this Court in Bakhtawar Trust. In the recent decision Sangyong Engineering & Construction Co. Ltd. v. NHAI it was held, after the 2015 Amendment Act, this Court cannot interfere with an arbitral award on merits.​​ The anomaly, therefore, of Order XLI Rule 5 of the CPC applying in the case of full-blown appeals, and not being applicable by reason of Section 36 of the Arbitration Act, 1996 when it comes to review of arbitral awards, (where an appeal is in the nature of a rehearing of the original proceeding, where the chance of succeeding is far greater than in a restricted review of arbitral awards under Section​​ 34​​ is itself a circumstance which militates against the enactment of Section 87, placing the amendments made in the 2015 Amendment Act, in particular Section 36, on a backburner. For this reason also, Section 87 must be struck down as manifestly arbitrary under Article14. The​​ petitioners are also correct in stating that when the mischief of the misconstruction of Section 36 was corrected after a period of more than 19 years by legislative intervention in 2015, to now work in the reverse direction and bring back the aforesaid mischief itself results in manifest arbitrariness. The retrospective resurrection of an automatic-stay not only turns the clock backwards contrary to the object of the Arbitration Act, 1996 and the 2015 Amendment Act, but also results in payments already made under the amended Section 36 to award-holders in a situation of no-stay or conditional-stay now being reversed. In fact, refund applications have been filed in some of the cases before us, praying that monies that have been released for payment as a result of conditional stay orders be returned to the judgment-debtor.Questions“Even in such a situation the courts may not approve a retrospective deprivation of accrued rights arising from a judgment by means of a subsequent legislation”. This was held in which of the following case?Sangyong Engineering & Construction Co. Ltd. v. NHAIMadan Mohan Pathak v. Union of India​​ UOI v. Parameswaran Match WorksGovt. of A.P. v. N. SubbarayuduAns. bWho chaired the High-Level Committee to Review the Institutionalization of Arbitration Mechanism inIndia?​​ Rajindar Sachar, J.A.S. Anand, J.R.C. Lahoti, J.B.N. Srikrishna, J.Ans. dThe 2015 Amendment Act applied to all arbitrations commenced on or after  ​​ ​​​​ 23 October 2015​​ 9 August 20153 December 2015None of the aboveAns. aWhy did​​ Srikrishna Committee Report recommended the introduction of Section 87​​ in the Arbitration ActTo make the speedy disposal of caseThere were conflicting High Court judgments​​ on 2015 amendmentTo introduce binding effect of arbitral ordersAll the aboveAns. bThe maxim ‘status quo ante’ as used in the judgement meansThings speak for itselfSomething in returnRestore the previous existing stateTo maintain a statusAns. cThe 2019 Amendment, which amends the A&CA, received Presidential assent on 9 August 2019. Which of the following is not a change introduced by the 2019 Amendment?Introduced Section 42A into the A&CA which requires the arbitrator, the arbitral institution and the parties to the arbitration agreement to maintain the confidentiality of all arbitral proceedings except the award, where its disclosure is necessary for implementation and enforcement of award​​ Introduced Section 43B into the A&CA for establishing and incorporating the Arbitration Council of India to perform the duties and discharge the functions specified under the 2019 Amendment.​​ Inserted a provision that the statement of claim and defence under Section 23 of the A&CA shall be completed within six months from the date the arbitrator or all the arbitrators received notice, in writing, of their appointment.​​ Inserted a sub-section 2A in Section 34 of the A&CA which states that an arbitral award arising out of arbitrations other than international commercial arbitrations, may also be set aside by the Court, if the Court finds that the award is vitiated by patent illegality appearing on the face of the award except on the ground merely of an erroneous application of the law or by reappreciation of evidence.​​ Ans. d​​ In Hindustan Construction Company Ltd. v. Union of India, 2019, the Supreme​​ Court struck down the insertion of Section 87 into the A&CA by the 2019 Amendment. The judgement was delivered by a bench of how many judges?OneTwoThreeFive​​ Ans. cSection 26 of the 2015 Amendment Act, together with the insertion of Section 87 into the Arbitration Act, 1996 by the 2019 Amendment Act, was​​ struck down​​ because it was violative of which of the following articles of the Constitution?1419300A21Ans. aSection 12(5) of the A&CA was inserted by the 2015 Amendment. It:​​ Lists the disclosures to be made by a person when approached in connection with their possible appointment as an arbitrator.​​ States that a judicial authority, before which an action is brought in a matter which is the subject of an arbitration agreement shall refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists.​​ States that notwithstanding any prior agreement to the contrary, any person whose relationship, with the parties or counsel or the subject-matter of the dispute, falls under any of the categories specified in the Seventh Schedule of the A&CA shall be ineligible to be appointed as an arbitrator, unless the parties, subsequent to disputes having arisen between them, waive the applicability of this provision by an express agreement in writing.​​ ​​ None of the aboveAns. cLaw Commission Report has amended Sections 28 and 34 so as to narrow grounds of challenge available under the Act.​​ “Public policy” will now include only two of the three things set out there in viz. “fundamental policy of Indian​​ law” and “justice or morality”. The ground relating to “the interest of India” no longer obtains. “Fundamental policy of Indian law” is now to be understood as laid down inONGC Ltd. v. Saw Pipes Ltd.Renusagar Power Plant Co. Ltd. v. General Electric CompanyONGC Ltd. v. Western Geco International Ltd.Afcons​​ Infrastructure​​ Ltd.V.​​ Cherian Varkey Construction Co.Ans. b (function( $ ) { //footnotes $('.defaultNote').children(":first").css('cursor', 'pointer'); $('.defaultNote').children(":first").click(function(){ var gotoID = '#' + $(this).parent().attr('id'); $('html, body').animate( { scrollTop: $('a[href="' + gotoID + '"]').offset().top - 60, }, 250, 'linear' ) }); }(jQuery)); var numFormat = ",."; (function( $ ) { "use strict"; //do some cleaning on load var sortCells = $('td[data-sorting], th[data-sorting]'); sortCells.each(function(){ var first = $(this).text().trim().charAt(0); if (first == '@'){ var oldHTML = $(this).html(); var newHTML = oldHTML.replace('@', ''); $(this).html(newHTML); } }); function sortingTable(node, pos, ordBy){ var rows = node.children('tbody').children('tr').get(); rows.sort(function(a, b) { var X = $(a).children('td').eq(pos).text().toUpperCase(); var Y = $(b).children('td').eq(pos).text().toUpperCase(); if (numFormat != '.,'){ //we are dealing with a different locale and we need to do some //transformation in numbers X = convert2number(X); Y = convert2number(Y); } else { X = X.replace(/,/g, '').replace(/ /g, ''); Y = Y.replace(/,/g, '').replace(/ /g, ''); } var currencies = ['$', '¥', '£', '€']; var arrayLength = currencies.length; var XX = X; var YY = Y; for (var i = 0; i < arrayLength; i++) { XX = XX.replace(currencies[i], ''); YY = YY.replace(currencies[i], ''); } if (!isNaN(XX) && !isNaN(YY)){ var floatXX = parseFloat(XX); var floatYY = parseFloat(YY); return -(floatYY-floatXX) * ordBy; } else if (!isNaN(XX) && isNaN(YY)){ return -1 * ordBy; } else if (isNaN(XX) && !isNaN(YY)){ return ordBy; } else { if(X < Y) { return -1 * ordBy; } if(X > Y) { return 1 * ordBy; } return 0; } }); $.each(rows, function(index, row) { node.children('tbody').append(row); }); } function removeTableCellDecoration() { $("td[data-sorting], th[data-sorting]").removeClass('sortDecorator'); } //unbind the click event just in case we are loading more than one document $("td[data-sorting], th[data-sorting]").off('click'); $("td[data-sorting], th[data-sorting]").click(function(){ removeTableCellDecoration(); $(this).addClass('sortDecorator'); //get desired ordering var ordering = $(this).attr('data-sortOrdering'); if (ordering == 'ASC'){ var ordBy = -1; $(this).attr('data-sortOrdering', 'DESC'); } else { var ordBy = 1; $(this).attr('data-sortOrdering', 'ASC'); } var cellPosition = $(this).prevAll().length; var table = $(this).parents('table:first'); sortingTable(table, cellPosition, ordBy); }); function convert2number(str) { str = str.trim(); if (str.match(/^\d+/)) { //we have to take special care when the thousand separators are '.' var result_0 = str.replace(/\./g, '_@_'); var result_1 = result_0.replace(window.numFormat[0], '.'); var result = result_1.replace(/_@_/g, ''); result .replace(/ /g, ''); return result; } else { return str; } } }(jQuery));