CLAT 2027 Daily Current Affairs September 21, 2026 | Tata Sons, Court Deposits, India-EU FTA

1. Tata Trusts challenges Tata Sons chairman reappointment

In the news: Tata Trusts has challenged the September 17 Tata Sons Board decision to reappoint N. Chandrasekaran as chairman. The Trusts has argued that the Articles of Association require both its nominated directors to give affirmative support to the resolution. Noel Naval Tata, one of the two Trust nominees, voted against the reappointment.

Tata Trusts has also questioned the use of independent director Harish Manwani's casting vote to approve the resolution. It said there was no deadlock at the meeting and, therefore, no occasion to use a casting vote.

The Trusts has relied on a 2020 Supreme Court judgment in the Cyrus Mistry case, which recognised the affirmative voting rights of Trust-nominated directors under Articles 104B and 121 of the Tata Sons AoA.

What CLAT 2027 aspirants should know

• Articles of Association: The AoA contains the rules governing a company's internal affairs, including the powers and voting rights of directors.

• Affirmative voting right: Tata Trusts' nominated directors have specific voting rights under the Tata Sons AoA. The present dispute centres on whether the required affirmative support was available.

• Casting vote: A casting vote is used to break a tie. Tata Trusts has disputed its use in the September 17 Board meeting, saying there was no deadlock.

• Articles 104B and 121: These provisions of the Tata Sons AoA were considered by the Supreme Court while examining the voting rights of Trust-nominated directors.

• 2020 Supreme Court judgment: The Court had upheld the affirmative voting rights of Tata Trusts' nominee directors in the case concerning Cyrus Mistry's removal.

MCQs

Q1. Who has challenged N. Chandrasekaran's reappointment as Tata Sons chairman?

A) Tata Consultancy Services

B) Tata Trusts

C) Tata Motors

D) Tata Capital

Answer: B

Q2. Which document is at the centre of the dispute over the Tata Sons Board's voting process?

A) Memorandum of Understanding

B) Articles of Association

C) Companies Rules

D) Share Purchase Agreement

Answer: B

Q3. Which Tata Trusts nominee voted against Chandrasekaran's reappointment?

A) Venu Srinivasan

B) Noel Naval Tata

C) Harish Manwani

D) Ratan Tata

Answer: B

2. Supreme Court seeks law for protection of court deposits

In the news: Crores of rupees deposited by litigants during court proceedings are being handled without a common system. The Supreme Court has now said that legislation is needed to bring uniformity to the process.

A Bench of Justices P.S. Narasimha and Alok Aradhe noted that courts and tribunals currently decide how such money should be deposited or invested on a case-by-case basis. As a result, large amounts remain invested through different banks and financial instruments, with varying rates of interest.

The Court suggested creating a statutory framework for managing these deposits. It referred to the United States' Court Registry Investment System as a possible model for pooling court deposits into a common investment mechanism.

A copy of the judgment was directed to be sent to the Law Commission of India, RBI Governor and the Secretaries of the Finance and Law and Justice Ministries.

What CLAT 2027 aspirants should know

• Court Registry Investment System: A US system for centrally managing money deposited with courts.

• Law Commission of India: An advisory body that examines laws and recommends legal reforms.

• Time value of money: The principle that money available today has a different value from the same amount received later, partly because of its earning potential.

• Judicial recommendation for legislation: Courts may recommend that Parliament or legislatures address a legal gap, but they do not themselves enact legislation.

• Standardisation: Creating common rules instead of leaving the same issue to different case-by-case approaches.

MCQs

Q1. Which US system did the Supreme Court refer to while discussing court deposits?

A) Federal Reserve Deposit Scheme

B) Court Registry Investment System

C) Treasury Bond Allocation Model

D) National Litigation Fund

Answer: B

Q2. Who delivered the judgment on court deposits?

A) Justices D.Y. Chandrachud and Sanjiv Khanna

B) Justices P.S. Narasimha and Alok Aradhe

C) Justices Surya Kant and B.V. Nagarathna

D) Justices J.B. Pardiwala and Manoj Misra

Answer: B

Q3. Which body was asked to examine the issue along with the RBI and government ministries?

A) NITI Aayog

B) Law Commission of India

C) SEBI

D) Comptroller and Auditor General

Answer: B

3. India-EU FTA draft raises copyright concerns

In the news: The European Commission has asked EU member states to approve the signing and conclusion of the India-EU Free Trade Agreement. The draft Intellectual Property Chapter has also brought attention to possible changes in India's copyright regime.

The draft excludes the WIPO Copyright Treaty from the National Treatment provision in Article 10.8, while retaining provisions dealing with Technological Protection Measures and Rights Management Information. According to an assessment published in The Hindu, this could require changes to India's Copyright Act, 1957.

One concern is Section 52, which provides exceptions to copyright infringement for activities such as research and education. Another is Section 65A, which contains exceptions relating to the circumvention of technological protection measures for lawful purposes.

The draft could also affect the legal protection available to Internet service providers under Sections 52(1)(b) and (c). The issue is therefore closely linked to how India's existing copyright exceptions would operate if the proposed FTA provisions come into force.

What CLAT 2027 aspirants should know

• WIPO Copyright Treaty: An international treaty dealing with copyright protection in the digital environment.

• TRIPS Agreement: WTO agreement setting international standards for intellectual property protection.

• National Treatment: A principle under which foreign rights holders are generally given treatment comparable to domestic rights holders in specified areas.

• Section 52, Copyright Act: Contains exceptions to copyright infringement, including fair dealing provisions.

• Section 65A: Deals with protection of technological measures used to protect copyright.

• DU Photocopy Case: Delhi High Court case associated with copyright exceptions for educational use.

MCQs

Q1. Which treaty has been excluded from the National Treatment clause in the draft India-EU FTA?

A) TRIPS Agreement

B) WIPO Copyright Treaty

C) Berne Convention

D) Paris Convention

Answer: B

Q2. Which section of the Copyright Act deals with fair dealing exceptions?

A) Section 44

B) Section 52

C) Section 65A

D) Section 78

Answer: B

Q3. Which provision deals with Technological Protection Measures?

A) Section 52

B) Section 57

C) Section 63B

D) Section 65A

Answer: D

4. Karnataka moves to give Tulu additional official language status

In the news: Tulu could soon get a place in Karnataka's administrative work. The state Cabinet, at its September 18 meeting in Mangaluru, decided to give Tulu additional official language status in Dakshina Kannada and parts of Udupi district.

The decision will cover government and administrative work in the two districts. Chief Minister D.K. Shivakumar said Rs 82 lakh would be provided every year for translation, training and other requirements linked to the use of Tulu.

The move cannot be implemented through the Cabinet decision alone. Section 2 of the Karnataka Official Language Act, 1963, which currently provides for Kannada as the sole official language, will have to be amended. Article 345 of the Constitution provides the legal basis for a state to adopt a regional language for official purposes.

What CLAT 2027 aspirants should know

• Article 345: A state can choose a regional language for its official work through legislation.

• Official Language Act, 1963: The present Act makes Kannada the official language of Karnataka. It will require amendments to put the Tulu decision of the Cabinet into practice.

• Tulu: The language is spoken extensively in the Dakshina Kannada and Udupi regions. It is also spoken in the Kasaragod area of Kerala.

• Eighth Schedule: Tulu is not included in the Eighth Schedule of the Constitution.

• Administrative use: The proposed status is limited to government and administrative purposes in Dakshina Kannada and the specified areas of Udupi. It does not give Tulu official status throughout Karnataka.

MCQs

Q1. Which Article allows a state to adopt a regional language for official purposes?

A) Article 343

B) Article 344

C) Article 345

D) Article 346

Answer: C

Q2. Which law needs to be amended for Tulu to receive the proposed status in Karnataka?

A) Karnataka Official Language Act, 1963

B) Kannada Development Authority Act

C) Karnataka Panchayat Raj Act

D) Karnataka Administrative Reforms Act

Answer: A

Q3. Is Tulu currently included in the Eighth Schedule?

A) Yes, since 1967

B) Yes, since 2003

C) No

D) Only as a dialect of Kannada

Answer: C

5. Nepal seeks fresh push in ties with India

A month after devastating floods caused by the Bhotekoshi disaster wrecked areas in Nepal, Nepal's Finance Minister Swarnim Wagle said the country's new government is intensifying efforts for reconstruction support, and confirmed that Prime Minister Balen Shah's first bilateral visit abroad would be to India later this year.

In an interview, Mr. Wagle said Nepal's National Disaster Risk Reduction and Management Authority had given an early estimate of about $1.8 billion in direct damages and around $900 million in losses, calculated at replacement value, with total reconstruction needs estimated between $4.7 billion and $5 billion over the next three to five years.

He noted that after the 2015 earthquake, India had extended around $250 million in grant assistance and $750 million as a line of credit to Nepal, and said the new government was seeking to revise the 2009 Trade Treaty with India while also pushing for long-pending overflight permissions for international flight to Nepal's underutilised airports at Pokhara and Bhairahawa, which India has denied for the past decade citing security concerns.

What CLAT 2027 aspirants should know

• Bhotekoshi disaster: The direct loss from the flood in Nepal is estimated at approximately $1.8 billion and the reconstruction is estimated to cost up to $5 billion.

• Nepal received earthquake assistance from India: After the 2015 earthquake, India offered Nepal $250 million in grants and a line of credit of $750 million.

• Line of Credit: It is a type of financial aid that must be repaid according to a set of terms.

• Trade treaty: Nepal is looking for reopening of the trade treaty with India as part of the strategy to improve economic cooperation with India in 2009.

• Overflight rights: Nepal is seeking long-pending overflight rights for international flights using the airports at Pokhara and Bhairahawa.

• NDRMA: The damage and reconstruction assessment after the floods has been undertaken by NDRMA (Nepal's National Disaster Risk Reduction and Management Authority).

MCQs

Q1. Which India-Nepal treaty does Nepal want to revise?

A) 2009 Trade Treaty

B) 1950 Treaty of Peace and Friendship

C) 1996 Mahakali Treaty

D) 2015 Constitution Treaty

Answer: A

Q2. Nepal is seeking overflight permissions for international flights to which airports?

A) Kathmandu and Biratnagar

B) Pokhara and Bhairahawa

C) Nepalgunj and Dhangadhi

D) Janakpur and Simara

Answer: B

Q3. How much line of credit did India provide to Nepal after the 2015 earthquake, according to the interview?

A) $250 million

B) $500 million

C) $750 million

D) $900 million

Answer: C

CLAT 2027 Daily Current Affairs September 21, 2026 Quick Revision

1. Articles of Association: Central to the Tata Sons Board voting dispute.

2. Court Registry Investment System: US model referred to for managing court deposits.

3. WIPO Copyright Treaty: Excluded from the National Treatment clause in the draft India-EU FTA.

4. Article 345: Provides for adoption of regional languages for state official purposes.

5. Line of Credit: Repayable financial assistance between countries.

6. 2009 Trade Treaty: India-Nepal agreement Nepal wants to revise.

CLAT 2027 Daily Current Affairs September 22-28, 2026