Legal Terms — Set 5

Correct Answer: D. Employees' Provident Fund Organisation

EPFO stands for the Employees' Provident Fund Organisation, a statutory body that manages social security for workers. It is one of the largest such organizations in the world in terms of clientele and financial volume. It operates under the control of the Ministry of Labour and Employment.

Correct Answer: B. Prevention of Money Laundering Act

PMLA stands for the Prevention of Money Laundering Act, which was enacted to fight the generation of black money. It allows for the attachment and confiscation of property involved in money laundering. The Enforcement Directorate is the primary agency for its implementation.

Correct Answer: D. Foreign Exchange Management Act

FEMA stands for the Foreign Exchange Management Act, which liberalized the laws related to foreign currency. It replaced the older FERA which was considered too restrictive. It aims to facilitate external trade and promote the orderly development of the foreign exchange market.

Correct Answer: C. Service Level Agreement

SLA stands for Service Level Agreement, a contract between a service provider and a customer that defines the level of service expected. It includes metrics by which the service is measured and penalties if the levels are not met. It is a fundamental part of IT and outsourcing contracts.

Correct Answer: B. Presiding Officer

In a legal context, 'PO' usually stands for Presiding Officer, the person who leads the proceedings of a court or tribunal. They are responsible for making sure the trial follows established legal procedures. The PO has the authority to deliver judgments and pass orders.

Correct Answer: C. Income Tax Appellate Tribunal

ITAT stands for the Income Tax Appellate Tribunal, which is a quasi-judicial institution set up in 1941. It deals with appeals under the Income Tax Act. It is known as the 'mother tribunal' in India as it was the first such body created.

Correct Answer: B. Board for Industrial and Financial Reconstruction

BIFR stands for the Board for Industrial and Financial Reconstruction, which was established to determine the sickness of industrial companies and assist in their revival. It was created under the SICA (Sick Industrial Companies Act). Many of its functions have now been taken over by the NCLT.

Correct Answer: C. National Company Law Tribunal

NCLT stands for the National Company Law Tribunal, a quasi-judicial body that adjudicates issues relating to companies in India. It has powers formerly held by the High Courts and the BIFR. It plays a major role in the insolvency and bankruptcy process.

Correct Answer: D. Debt Recovery Tribunal

DRT stands for Debt Recovery Tribunal, established to help banks and financial institutions recover their bad debts. It provides a specialized forum for the speedy recovery of dues. Appeals against DRT orders are made to the Debt Recovery Appellate Tribunal (DRAT).

Correct Answer: D. Securities Appellate Tribunal

SAT stands for the Securities Appellate Tribunal, a statutory body established under the SEBI Act. It hears appeals against orders passed by SEBI and other regulators like IRDAI. Its main aim is to provide a specialized dispute resolution mechanism for the financial market.