Questions to Practice Legal Reasoning for CLAT 2020

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Questions to Practice Legal Reasoning for CLAT 2020PASSAGE 1The Bill seeks to amend The Citizenship Act, 1955 to make Hindu, Sikh, Buddhist, Jain, Parsi, and Christian illegal migrants from Afghanistan, Bangladesh, and Pakistan, eligible for citizenship of India. In other words, the Bill intends to make it easier for non-Muslim immigrants from India’s three Muslim-majority neighbours to become citizens of India. Under The Citizenship Act, 1955, one of the requirements for citizenship by naturalisation is that the applicant must have resided in India during the last 12 months, as well as for 11 of the previous 14 years. The amendment relaxes the second requirement from 11 years to 6 years as a specific condition for applicants belonging to these six religions, and the aforementioned three countries. Under The Citizenship Act, 1955, a person who is born in India, or has Indian parentage, or has resided in India over a specified period of time, is eligible for Indian citizenship. Illegal migrants cannot become Indian citizens. Under the Act, an illegal migrant is a foreigner who: (i) enters the country without valid travel documents like a passport and visa, or (ii) enters with valid documents, but stays beyond the permitted time period. Illegal migrants may be put in jail or deported under The Foreigners Act, 1946 and The Passport (Entry into India) Act, 1920. However, in 2015 and 2016, the government exempted specified groups of illegal migrants from provisions of the 1946 and 1920 Acts. They were Hindus, Sikhs, Buddhists, Jains, Parsis and Christians from Afghanistan, Bangladesh and Pakistan, who reached India on or before December 31, 2014. This meant that these particular categories of illegal migrants would not be deported or jailed for being in India without valid documents. The Citizenship (Amendment) Bill, 2016 was introduced in Parliament to amend The Citizenship Act, 1955, so that these people could be made eligible for citizenship of India. The Bill was tabled in Lok Sabha on July 19, 2016, and was referred to a Joint Parliamentary Committee​​ on August 12, 2016. The Committee submitted its report on January 7, 2019 and, the following day (January 8, 2019), the Bill was passed in Lok Sabha. With the 16th Lok Sabha nearing the end of its term, the government was racing against time to introduce it in Rajya Sabha. However, massive protests against the Bill in the Northeast acted to restrain the government, and Rajya Sabha adjourned sine die on February 13, 2019, without the Bill being tabled. According to Parliamentary procedures, all Bills that have been passed by Lok Sabha but not by Rajya Sabha lapse when the term of Lok Sabha ends. The relevant provision in the Legislative Procedure in the Rajya Sabha says: “A Bill pending in Rajya Sabha which has not been passed by Lok Sabha does not lapse on the dissolution of Lok Sabha but a Bill which is passed by Lok Sabha and is pending in Rajya Sabha lapses on the dissolution of Lok Sabha.” (Procedure regarding Bills originating in Lok Sabha and transmitted to Rajya Sabha: Provision regarding lapsing of Bills. The Citizenship Amedment Bill too, therefore, lapsed. The Bill is now likely to be introduced afresh in the Winter Session. It will have to be passed by both Houses in order to become a law. The government, however, maintains that the Bill aims to grant citizenship to minorities who have​​ faced religious persecution in Muslim-majority foreign countries. BJP leaders, including Prime Minister Narendra Modi, have spoken of this Bill as righting the wrongs of history by granting refuge to the sons and daughters of “Ma Bharti”, who were left stranded by Partition. In the Northeastern states, the prospect of citizenship for massive numbers of illegal Bangladeshi migrants has triggered deep anxieties, including fears of demographic change, loss of livelihood opportunities, and erosion of the indigenous culture. Almost the entire Northeast was wracked by massive protests for more than a month leading up to the anticipated introduction of the Bill in Rajya Sabha earlier this year.QUESTIONSX a hindu​​ male,​​ living in Pakistan, in the year 2010 he got converted into a muslim because he wanted to marry a muslim girl. In the year​​ 2012 he came to India because of good business opportunity. After the Citizenship Amendment Act X claimed citizenship of ​​ India as it has been 6 years he was living in India and originally he was a hindu so the second condition of 11 years out of 14 years shall be relaxed to 6 years. The government denied the same. Decide​​ The government is wrong in its action as originally X was a hindu so he should be given exceptionThe government is right in its action as X shifted to India after valid conversion thus he will not get the exceptionThe government should allow the exception to X as his conversion was for illegal purposeThe government should allow the exception as X was doing business in India and he was generating income in IndiaAns. bRationale: the exception of the second requirement from 11 years to 6 years as a specific condition for applicants belonging to​​ make Hindu, Sikh, Buddhist, Jain, Parsi, and Christian illegal migrants from Afghanistan, Bangladesh, and Pakistan, eligible for citizenship of India and not to muslims of these countries.Who shall be considered as an illegal immigrant?an illegal migrant is a foreigner who enters the country without valid travel documents like a passport and visaan illegal migrant is a foreigner who enters with valid documents, but stays beyond the permitted time periodboth a and bonly a or bAns. dRationale: Under the Act, an illegal migrant is a foreigner who: (i) enters the country without valid travel documents like a passport and visa, or (ii) enters with valid documents, but stays beyond the permitted time period.S, a parsi of Afghanistan origin came to India on 31st​​ December 2014 without passport through international waters. He was doing business in India but the government in 2020​​ declared him as illegal immigrant and wanted to deport him under The Passport (Entry into India) Act, 1920. DecideThe government can do so as S entered illegally without passport through international watersParsis who have entered India​​ on and​​ before 31st​​ December 2014 shall be given citizenship of IndiaBoth ​​ a and bNone of the aboveAns. bRationale: In 2015 and 2016, the government exempted specified groups of illegal migrants from provisions of the 1946 and 1920 Acts. They were Hindus, Sikhs, Buddhists, Jains, Parsis and Christians from Afghanistan, Bangladesh and Pakistan, who reached India on or before December 31, 2014.What is the full form of JPC in parliamentary terms?Joint Parliamentary CommitteeJoint Parliamentary CouncilJoint Presidential CommitteeJoint Presidential CouncilAns. aRationale: JPC refers to Joint Parliamentary CommitteeA bill was passed by Lok Sabha and then it was pending in Rajya Sabha but before the passage of the bill in Rajya Sabha, the Lok Sabha got dissolved. When the Lok Sabha again formed it claimed to take up the bill again and did not consider the bill as lapsed. DecideThe bill shall lapse for both the housesThe bill shall remain pending only in Rajya SabhaThe Rajya Sabha can act upon the bill on its discretion​​ For Lok Sabha the bill shall remain passedAns. a​​ Rationale: A Bill pending in Rajya Sabha which has not been passed by Lok Sabha does not lapse on the dissolution of Lok Sabha but a Bill which is passed by Lok Sabha and is pending in Rajya Sabha lapses on the dissolution of Lok Sabha PASSAGE 2The Cabinet ministers of the Indian Government on 17 July 2019 said it would again amend the Insolvency and Bankruptcy Code, 2016 (Code), a signature reform of Prime Minister Narendra Modi's first term. The legislation was getting mired in frustrating legal delays and bizarre judgments, threatening to scare off global investors from a $200-billion-plus bad-debt clean-up. The proposed amendments are aimed to fill critical gaps in the corporate insolvency resolution process and will explicitly hand power over distribution of proceeds to creditors' committees. That should return some common sense to a process that would have required financial creditors to share the money from any new buyer of a bankrupt business equally​​ with sundry suppliers and other unsecured lenders. The proposed amendments will lead to further promotion of ease of doing business, de-clogging of National Company Law Tribunal and Special Courts. The focus would be on serious cases of violations of the Act and ensuring enhanced compliance by corporates. The Central Government by introducing this Amendment Bill intends to speed up the bankruptcy resolution process which has been delayed in various ongoing cases due to the involvement of courts and rectification of irregularities, thereby affecting the efficiency and intention of the Code since the law came into force in 2016. Also, this Amendment Bill after getting the approval of the Union Cabinet will resolve the concerns all secured creditors who were worried after the interpretation of the Code by NCLAT in the Essar Steel case. Alternative restructuring schemes: The amendment seeks clarity on inclusion of alternative restructuring schemes like mergers, demergers and amalgamations as part of the resolution plan. The existing provisions in IBC do not have any provisions for alternative restructuring plans. Strict timeline for resolution: The current timeline for resolution is 270 days, however, in several cases, this period has been prolonged due to exclusion of time taken for litigation. According to the amendments, however, the resolution will now need to be completed within 330 days, which includes the time spent for litigation. Further, companies will be sent for liquidation if the resolution process goes beyond this limit. More power to Committee of Creditors: The Committee of Creditors will now have the power to make decisions on the distribution of funds to various creditor categories. Further, operational and unsecured financial creditors will not necessarily be treated on par with secured financial creditors. Majority voting threshold reduced in Committee of Creditors: The decision of financial creditors will be approved if 50% of those 'present and voting' vote in favour of the decision vs. the 66% threshold earlier. More power to homebuyers: In the case of homebuyers who file cases against builders for non delivery of houses, the proposed change ensures that a majority vote, i.e., more than 50% of those present and voting, from homebuyers will be counted as a 100% vote from that class of creditors in favour of or against a resolution plan. IBC decisions to be binding on all govts: The resolution or liquidation decision under IBC will be binding on central, state, and local governments to whom the firm may owe dues. Reducing delays at the admission stage: The NCLT benches will need to explain an application which has not been admitted or rejected within 14 days. The changes are expected to lead to timely admission of applications and timely completion of the Corporate Insolvency Resolution Process, greater clarity on permissibility of corporate restructuring schemes, manner of distribution of amounts amongst financial and operational creditors, clarity on rights and duties of authorized representatives of voters and applicability of the resolution plan on all statutory authorities. Overall, this has the makings of a significant positive step to re-energize the resolution process in India and invite foreign capital.QUESTIONSWhat is the difference between merger and amalgamation?Amalgamation is the consolidation or combination of two or more companies whereas merger refers to the consolidation of two or more business entity to form one single jointMerger is the consolidation or combination of two or more companies whereas amalgamation refers to the consolidation of two or more business entity to form one single jointA merger occurs when two separate entities combine forces to create a new, joint organization whereas amalgamation refers to the takeover of one entity by another.A amalgamation occurs when two separate entities combine forces to create a new, joint organization whereas merger refers to the takeover of one entity by anotherA is an unsecured creditor of X firm and B is a secured creditor of X firm. A owes Rs. 50000​​ on 5.06.2010​​ and B owes Rs. 60000​​ on 5.06.2015. On dissolution​​ of​​ X​​ firm total money realised was Rs. 50000. A was denied any payment. DecideA and B will be paid equally i.e. Rs. 25000​​ eachA will be paid entire Rs. 50000 as he is a long term creditor than BB will be paid Rs. 50000 as he is a secured creditorB has to be paid entire Rs. 60000 as he is a secured creditorAns. cRationale: secured creditor is given preference over unsecured creditor and the amount which is realised on liquidation and not more than that.National company law tribunal (NCLT) was made on the recommendation of which of the following committee?V. Balakrishna Eradi committeeMalimath committeeK M Munshi committeeB. R. Ambedkar committeeAns. aRationale:​​ NCLT is a quasi​​ judicial body which was established on the recommendation of V. Balakrishna Eradi committeeThe timeline for resolution of housing matters in the recent times is270 days330 daysBoth a and bNone of the aboveAns. bRationale: the resolution will now need to be completed within 330 days, which includes the time spent for litigationWhat is​​ the object behind Insolvency and Bankruptcy Code 2019?speed up the bankruptcy resolution process which has been delayed in various ongoing cases due to the involvement of courtsensuring enhanced compliance by corporateboth a and bnone of the aboveAns. cRationale: The proposed amendments will lead to further promotion of ease of doing business, de-clogging of National Company Law Tribunal and Special Courts. The focus would be on serious cases of violations of the Act and ensuring enhanced​​ compliance by corporates. 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