The General Clauses Act 1897 provides fundamental legal definitions and principles including: (1) Offense means any act or omission punishable by law for the time being in force; (2) Singular includes plural and vice versa, but gender-specific words cannot be interpreted to include opposite gender; (3) When an offense is punishable under two different acts, the person can be punished under either act but not both; (4) A person includes an association or body of individuals and a company, whether incorporated or not; (5) If an Act does not specify a date for coming into force, it becomes applicable from the day the President gives assent; (6) Any authority empowered to issue a notification also has the power to cancel or modify it.
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General Clauses Act | Past Questions | CA Intermediate Law | CA Abhishek Bansal | Yeshas Academy
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Hi guys, what's up? So today we are starting with general clauses set. I hope you guys have uh started recalling the concepts and uh you have enjoyed the previous session. So people who have come for the first time I'll just tell you we have done preliminary we have done dividends we have done deposits we have done LLP today is our fifth session that is general clauses act okay so today's general clause act guys I hope you you have revised the concept because GC is a very small very logical I would say illogical rather okay uh chapter 1897 chapter how are you guys doing I hope you guys are amazing you are fine you are studying very well and you are also preparing your other subjects Okay, my pencil is getting charged in the meantime. Let's little talk. Okay, today it's been long. We have not spoken. So guys, how's the preparation going? I mean, are you all set for your upcoming exams, revisions going proper?
What about your test? I mean, are you appearing for the test? What academy is taking?
Please go and write that test because it's very important to practice. You are going on a battlefield. You do not know how to fire a gun, how to play with the sword, you do not know obviously there will be a blunder later on. So it's very important that you write in the at least I would say two papers for each subject you need to write that will only give you lot of confidence okay law I'm helping you out okay whatever I can do best for you I'm doing it out u as such there is no amendment only uh small company amendment was there which we have already done which we have already done we have already covered uh in the class itself plus I'm just waiting uh once the results of the previous attempts are out then I'll upload all the amendments from the RTP recording it out RTP is out as such but there's no amendment which is impacting your exam except small company amendment small company will be there in the exam for Let me just check why it is not Okay, give me 1 minute.
Okay.
So now if I see May 24 people, okay, May 24 Okay. Now if you see May 24. So in May 24 ICI have asked GCA for eight marks.
Just see the weightage. Okay.
September 24 again GCA was asked for eight marks. Today there's a problem.
Just give me one minute. Yeah. So sorry this is the extension.
Yeah. So if you see September 24, ICF asked for GCA 8 marks. Eight marks.
Okay. Now if I move on to Jan 25 again it came for 8 marks. May 25 again if you can see this GCA 8.
May 25 GCA 8th number.
If I see September 25, GCA 8.
If I see Jan 26, GCA again it came for eight marks. Eight marks. So, and again May 26 also it came for eight marks. So every attempt GCA is coming definitely for eight marks. So you can't skip this chapter. So uh 8 mark year plus two to four marks in your MCQ. It's again 10 mark weighted chapter averagely. Okay. If you guys want to connect me, you can connect to Telegram, Instagram, YouTube.
Cool. Now, so uh they have uploaded the today's link, I mean today's uh PDF in the description.
So you can download from there.
So now we are doing general clauses at 1897. Are you guys ready guys?
Are you guys ready?
Please message in the chat that you are ready.
Okay.
So let's start one by one as usual we do from the previous I mean from the last page.
Oh total 66 questions are there but if you see most of it are repeated. Most of it are repeated. Okay 66 question. So we are first doing reverse Jan 26 car attempt.
ABC Limited is in the business of manufacturing of life-saving drugs. The company has it planted in Kerala. The turnover for the last financial year cross 52 crores. During the first quarter of the current financial year, the company turnover has already reached 50 cr. ABC is expecting the turnover to reach 200 cr for the financial 2425.
The company held its board meeting on 1st a 1st August 24th and decided to appoint a coster for their 2425. Now if I read the question from year to year I am clueless in the exam and from which chapter they have asked clueless totally clueless. Now when I talk about cost writer it is coming in chapter but if you see the question what they have asked they're asking according to GCA by what date ABC must file the cost order appointment and how is the timeline calculated. So they're asking us the timeline of appointment of cost order.
Now to answer this question you should know the time limit for appointment of cost auditor. So cost orders is appointed by the board of directors within at the board meeting or or at the board meeting or within 6 months in 180 days from the end of the financial year from the commencement of the financial year whichever is later like this provision is here. Now ABC's failure to appoint cost auditor where it's fally required consider offense offense under the section 148 of company act 2013. So what is meant by offense under GCA? So now if you see the question two and question one is totally unrelated. They're using this word cost auditor but it is irrelevant. They're asking offense definition. Offense have already been asked in the exam prior.
Okay. So four mark answer two marks each.
Now see every company shall inform the cost order consent officer or appointment and file notice of such appointment with the CG within a peri of 30 days of the board meeting in which such appointment is made or within a period of 180 days of the commencement of financial whichever is earlier. Sorry I said later my mistake earlier. So board meeting or 182 commission of financial which arised earlier you have to file that appointment with the CG with the CG as per section 9 of GCA timeline 9 timeline it shall be sufficient for the purpose of calculating excluding of first in a series of day first day you have to exclude and to include the last day in the question the time will be 31st August within 30 days of 1st August so exclude the first include the last 31st August or 27th September within 18 days from the commencement of financial year whichever is earlier which is earlier.
So you have to file a cost to reconment by 31st August 24th the year you are supposed to calculate also so 30 days from the date of board meeting or 180 from the commencement of financial year which is basically 27th September you can mark it up because it gone it will never be changed so 31st August 24 or 27th September 24th whichever is earlier which is earlier according to section 3 of GCA offense means any act or omission made punishable by law for timing in force.
This was the answer for two marks. Any act or omission made punishable by any law for time being enforced. This is the penalty. GCA understood offense. So new question in your notes you can mark question 66 from the question bank PDF. Question 66 from question bank PDF.
Please mark it.
Question 65.
Under enactment, an excise duty of 10 is led on every 100 liter of so rupees 10 is led on every 100 lit of a chemical produced in a factory. During inspection was found that a factory A had produced 50 lit of that but had paid duty for 100 lit. So every 100 people are supposed to pay 10 rupees.
350 P how much it is basically because they have only paid for 300 literal act only qualif uh specifies duty per 100 lit and does not mention fractional quantities because if you say GST is applicable on 100 rupees as 18% correct if I'm buying a good of 30 rupees it will also be on 18% only now same logic so if they are saying 100 rupees is 10 rupees so sir 300 uh 350 it will be how much they have only paid on 300. So they're supposed to pay on 50 also. That is basically 5 rupees you have to pay. 100 pay 10 300 they have paid 30 rupees. Correct? So 50 balance they're supposed to pay more 5 rupees.
Read the answer.
Read the answer from the screen.
Done.
Now Jan 26 over September 25. Question 64.
Nice question. It's very interesting.
This we have discussed in the class if you remember. But let's see today how we will answer.
Jumbo road lines is a public company engaged in business of interstate goods transportation. The company owns a fleet of more than 10 heavy duty trucks which has a capacity to transport up to 100,000 tons in goods in one consignment as per registration. The transportation company received an order to transport 1,000 tons of goods particularly plastic parts of automobile to be loaded from a production facad and offloaded an automobile factory in Pune Manra. The driver loaded the heavy truck duty to a maximum capacity. On its way to Pune, the driver further loaded 100 tons of other goods from a local trader who led him for some extra payment. The driver on his way with his overload truck ran into a road divider causing damage to public property. Full story. The local traffic police charged Jumbo Limited for overloading a truck under motor vehicles act 1988 and filed a suit against the transporter company. Further, the highway authority filed another suit against the company under prevention of damage to public property act 1984 for dumping for for damaging the dividers and island riders installed on the roadides. The jumbo road lines oppose the suits on the plea of double geop party. Double geop party and double punishment for the same act under two different law. Will a plea given by the road lines of double geop party be accepted by the court described as per GC. So the story here is one there's an offense under motor vehicles act. Another is an offense of damage to public property act 1984.
Okay. and Jumbo the company is saying that sir they oppose the suit the the two people have filed cases okay two different law they are the company the company's opposing these two saying that such a double geop party AB sir has taught us that if there's an offense which is under two act you will not be punishable under both acts you'll be punished under either of the acts this we are opposing who who's saying this company is saying this the government authority saying you're punishable under two acts company is saying that no no sir we'll be punished only under one act you tell me whether the P you have to answer from the company point where the plea given by the road lines of double geop party be accepted by the code means is the company correct yes or no please answer is the company correct yes or no Peace.
So Shashank Mjushi Kevin your answer is wrong.
Your answer is wrong. Now read the story properly.
There's one offense of what?
Overloading.
overloading under motor vehicles act.
The other offense is damaging the public property under public property act. So two different act but two different offense. Two different acts. Two different offense.
If you have if you remember the section I think it is 27 I may be wrong. 26.
Yeah 26. What does it says? But if there's an offense which is punishable the same offense or similar offense is punishable under two acts then only then only somebody would be punished under either of the acts not under both the acts here I agree there are two different act but the offense are also two different now one is overloading other one is damaging the public property there are two different offenses very very very interesting case maximum people went wrong in the exam okay was it is two different offense so here they will be punished under both the acts. So I would answer like this. The plea given by the road lines or double geop party cannot be accepted by the court because the company is incorrect. The court is the authorities are valid. That is my answer. Let's check.
So this is the theory of section 26 from the note you will write. It says the section 26 apply only when two offenses form the subject matter of prosecution is the same. That is the ingredients which constitute the two offense and are the same. If offenses under two enactments are distinct and not identical, none of this provision will apply then they have copied the question.
As the offense under two acts are distinct and not identical. Hence the P given by road lines of the double geop party cannot cannot be accepted by the court cannot be accepted by the court.
Have you understood this question guys?
Done.
So please mark in your notes also question 64.
Question 63.
Dream Builders was engaged in the activity of building and selling budget friendly apartments. It recently started a new project of NOA. Pending approval, the builder started the construction work. On verification of documents, a corporation of NOA refused to sanction the permission and the assistant commissioner Mr. S is a demolition order signed by him under this authority. The Mr. S has issued a demolition order signed by him under his authority.
The builders filed an appeal at the court and state the demolution taken a stay order on the demolition.
After 6 months of the court trials, the verdict was announced in favor of the corporation of NOA. Mr. G, the present assistant commissioner initiated the demolition process. Now, first Mr. S was there, now Mr. G is there. The builders argued that the order was passed by Mr. S and since he's no longer in the authority, the order stands cancel and G cannot demolish the construction.
Again, the builders argue that the order was passed by Mr. S and since he's no longer in the authority, the order stands cancel and G cannot demolish the construction. Why? Because S has passed the order. Now, G is there referring to provision GCA determine the validity of claim of the builders. Now, you tell me are builders correct? Are builders correct?
Are builders correct?
No sir sir if my principal has removed me from the class okay and then principal got changed so I'm still restricted from restrict restricated from the class right I'm removed right though here order is not passed by the person the order has is passed by an authority so even there's a change in the authority even there's a change in the authority the order will still be valid. So here the claim of the builder is incorrect. Okay.
Now see so it says as per the facts of the question combined reading of section 17 and 18 of GCA, Mr. G in his capacity as current assistant commission is legally competent to order the demolition of the construction. This is because the order was issued by Mr. as the formal assistant commissioner in his official capacity and the authority to act continues with the office not that individual. Hence the claim of builder is not valid. Hence the claim of builder is not valid.
Okay. Please write this also question number 63 to all these are different questions highle questions GCA four marks. Okay.
Question 62, May 25.
Purva Buildcon is a public company having two subsidiary companies, Arant and Sadhhat bricks. Purva is a CF of PBL. PBL. Okay. So this is a holding company subsidiary subsidiary Pulva the CFO of PBL Ashish and Min who were the CFOs of resigned from the respective company and Purva was offered to take charge of CFO in ACL and SBL which she has accepted whether Purva can be designated as CFO simultaneously in two subsidiaries being CFO of PBL.
Answer as per company Z as well as for GCA. So this question is there in our book. Uh some other company name is there. Question number one from our ICI uh behind question from the main book.
If you remember that you can answer this. Tell me yes or no. Can he be appointed?
Just answer yes or no.
Correct.
Yes. Provision B subsidiary includes subsidiaries.
Subsidiary into what? Subsidiaries.
So this is the provision of companies act.
So it says the whole time KMP shall not hold office in more than one company except in subsidiary company at the same time. So one main company and one subsidiary. Now when we read GCA okay the word singular shall include plural and vice versa it says whether a whole time KMP of holding company can be appointed more than one subsidy or can be appointed one subsidiary company. It may be noted that the word singular shall include plural.
Therefore purva can hold office in more than one subsidiary as per the present law. Understood? So they have used a concept of singular includes plural and vice versa. And then they have framed that question. The same question is there question number one. I still remember in my book the first question from ICA pass exam question because it was asked long back. Okay.
Now this is way 24.
So question 61 it says the board of cool private limited through a resolution pass in the board meeting granted authorization to Mr. Shared the CEO of the company to appoint two employees for the procurement department. Subsequently, Mr. Sharat selected Mr. Suresh and Mr. Hmon for the position. However, after 1 month, Sharat notice noticing unsatisfactory performance and lack of honesty in their duties issued dismissal order for both employee citing proper reasons. Mr. Surish contested he dismisses the court arguing that the board has only empowered Shahad for appointment and not for dismissal. Hence the dismissal order is invalid. So the board has said to Mr. Sharat that please appoint two people. He appointed two people but they were not performing so he removed. So one of the person who's removed he's saying that boss sharat board has said to as appoint not to remove assess the value of Mr. Shur's argument under the provision of GCA. Now you tell me argument of sur valid invalid. Suresh is saying that shah you can't only a point does not remove is sur valid invalid the argument of sur.
Tell me.
sir. So it is invalid.
Then Mr. M issued a check of three lakh dated 31st March 23 at 10 a.m. to Mr. N as a concession towards medical services provide by the later Mr. and present the check on 31st March 24.
This is a banking business but the check was disontented within the requisite time of 3 months as under section 130 of negotiable act.
Decide whether the plea for dishoning the check was valid. So M given a check to N as a consideration and deposited on 31st month that is the last day. Okay.
But bank is uh dishonoring it saying that it is not presented within time limit of 3 months.
You you need to answer whether the plea or plea for dishonor check was valid.
But I mean is the bank correct? Whether they whatever the dishonor they have is it valid or invalid? Tell me.
this one. Valid. Yeah. Invalid.
Please answer guys. Valid. Invalid.
Sir, it is valid.
The plea for dishonor. The check was dishonored. It was not. If you read the question, what are they asking? The check was dishonored taking the plea that it was not presented. It was not presented within time of 3 months.
Whether the plea for dishon was valid, I think it will be invalid. If I read the question, see if you remember exclude the first include the last. Exclude the first include the last. So if I present on 31st month, I mean uh it means that I have presented well within the time. If I have presented well within the time, it should not be dishonored. But here they have dishonor. The plea for dishonoring the check was valid. So it is invalid. Now let's see what they have answered.
Correct. Since the check was presented within the 3 months that is 31st March 24th sir it is eligible for honor and payment. Hence the plea for disin the check is not valid. Read the question.
What are they asking? How are they asking? How you are supposed to answer?
That is very much important.
Read the answer.
Please read from the screen. Maximum people went wrong here and let me know once it is done.
Done.
Now there are few questions which were as in the past exam but they were repetitive. So I'll just show you which are those question now if you see this question number 50 what they have asked it is old and new material study material September 24 mark exam question. September 24 exam question.
Refer as per GC find the day in which the act came into force. Act came into force. Sir the act of parliament which has not specified a particular date which has not mentioned a particular date. So if the date is not mentioned the act will become applicable from the day when the it's parliament when the president of India gives the ascent when the president gives the ascent. Correct. Now the SEBI regulation was issued by SEBI white notion dated 14th August with effect from 1st January 2016. Sir if the date is mentioned it will be applicable from the that midnight of that particular date midnight of that particular date.
So when any central act has not specifically mentioned a particular date to come into force, it shall be implemented on the day when it receives the ascent of the president in case of an act of parliament. If any specificity of enforcement is prescribed in the official gadget, the act shall come into enforcement from such date. Okay. So it will come from 1st January 2016. So this is an exam question guys. September 21 previous model question it is there.
Question 41. It's a direct question. We have written this in the notes. It says if you see previous year paper November 23 four marks and September 25 for marks same question no change direct question explain the provisions applicable to rules or bylaws made under previous publication made after the previous publication as inominated in section 23 of GCA 1897.
Okay. So this is question number 41 November 23 September 25. Same question.
This also we have done in the class a lot of times. November 194 marks previous September 24 mark answer.
What do you understand with the term good for you? Write the definition.
Explain it as per the provision of GCA.
Mr. X purchase a watch from Y carelessly without making proper inquiry guys.
without making proper inquiry. Now you answer whether whether the purchase is made good could set to be made in good faith. Is the purchase made in good faith? Answer yes or no. Please answer yes or no.
Is the purchase made in good faith?
No. So you will write good faith theory from the notes. Copy. This is a question. An honest purchase made carelessly without making proper inquiries cannot be said to have been made in good faith so as to convey good title. So as to convey good title. Over.
One more previous paper marks May 23 September 24 marks. Whenever act is repealed, it must be considered as if it has never existed. Comment and explain the effect of repeal under GCA. Repeal answer. So there are two theory question if you remember in the notes. One was that previous publication. how the act is uh drafted and published in official gadget. The other one is repeat. This is repeat provision. So both from the notes directory you have to write. Okay.
Repetitive h MTP April 22 previous Jan 25 for marks.
Jan 25. So I'm just covering all the new syllabus questions. So in the exam they had asked person person definition of person.
So movable property means property of every discussion except immo property.
Thus any property is not imward property is movable property. Thus any property which is not in property is a movable property like debts, shares, electricity are movable property. Person they have asked ABC.
A B C association B body of individual C company A association B body of individual C company whether incorporate or not four mark answer Jan 25 exam question ABC person means what A B C A association B body of C company if you Remember we have done something on gender and numbers. Gender and number section 13. So MTB four marks March 22 previous paper May 24 marks. So they had as this gender and number question. So in property is a separate question but in the exam Jan 24 they as this gender the word bulocks could be interpreted to include college gender and number. If you remember gender number one answer, the word bula could not be interpreted to to include cows. The statement is not valid when a word conoting a common gender is available. But the word used conveys a specific gender. There is a presumption that the provision of GCA will not apply. Therefore, the words bulah could not be interpreted to include cows. Male includes female, vice versa, not possible. Singular includes plural and vice versa. The word bulock cannot be interpreted to include cows.
If you remember this, this we have studied. This we have studied. Okay.
Same answer.
Then question 16 was directly repeated repeated in the exam.
Question 16 was directly repeated in the exam.
volume in the term document as per GCA discuss which of the following will be today's document two mark answer power of attorney two mark answer check so document definition you have to write and one mark one mark so two mark definition of document and one mark power of attorney one mark check is power of attorney document yes is check a document Yes, please read the answer from screen.
If you remember this also we have discussed here September 24 R and advocate fraudily deceit disclaimer Mr. Chandan for state for who was taking his expert advice on taxation matters. Now R is liable to a fine for his fraudulent act both under advocate act and income tax act both under advocate act and income tax act.
State the provision as to whether the offense is punishable under both acts.
Now you tell me this similar question, similar concept we have discussed which was a tough question 64 or 65 number.
Okay. You tell me in this case whether he will be punished under both the acts.
Hello.
My voice is not proper.
Let check. Hello. Hello. Hello.
under one act. Kevin can just confirm whether the voice is proper or not.
Somebody has messaged the voice is not proper.
Sir, he can be punished under any one of the acts if the offense is established.
Very good, Shiv.
done.
Superb. So guys, we have completed all the chapters.
I mean all the questions from the past attempt. Okay. Whatever questions were asked from May 24 when the syllabus got changed till Jan 26. Okay, we have completed all.
How was the session? Have you got confidence guys?
So if I count the total number of marks dividend is like sorry uh py was two marks dividend five marks 7 deposit five marks 12 then 10 marks is your llp 22 22 + 8 is your GCA 30 at the most 30 I'm saying we let's take a 50% cut at least 15 marks 15 marks we can easily get have you enjoyed the session Okay, now let's do a different thing.
Let's do May 26 question also. Now before we move on to May 26, I'll give you a trick. If you want to find out GCA questions in the exam, what I have analyzed is 2 C 5C 2 C 5 C.
Sir some chapters are so big to remember. So what we should do play danda it's your C exam of course you have to study what we can do nothing we can do we have to study no option take 2 days you finish no such chapters except auditors auditors is little lengthy and meetings those two chapters are very lengthy I would I would say they will take two three days to you for you to study okay but of course if you watch the revision session I have revised the entire syllabus in one one hour if you watch those chart revision from the channel okay and plus all MCQs I mean solve the question bank manushi I can't do it for auditor because I have not taught you audit some other faculty has taught so it will be unethical on my part to do it okay I can help you with law only okay now let's move on to m 26 Okay.
So if you see question number two C four mark the CG under the powers by a central act issued a notification first when granting a tax exemption to specify class of manufacturers for a period of 3 years. No question. Subsequently, due to the misuse of exemption, the government issued another notification for December 25 withdrawing the exemption with image effect. A manufacturer who had already made substantial investment relying on the exemption challenge the validity of the withdrawal on the ground that original notification could not be resigned. It means could not be withdrawn, could not be canceled before the expire 3 years. Examine the val of the government action withdrawing the exemption with reference to the provision of GCA 1897. Four mark different question.
One second.
Now see whereby any law or regulation power to issue notification order rule or bylaw is conferred then the power accessible in like minor and subject to the like sanction conditions. If I need to add, amend, vary or resign any notification order shall rule or bylaw so issued means the the authority who has a power to issue notification any order any circular that same authority also has a power to amend change cancel that order.
Okay.
Now see if you read the second paragraph, Supreme Court held that under section 21 of the act an authority which has a power to issue a notification has the undoubted power to cancel or modify the notification in that like manner. Supreme also held that power under section 21 the act is not so limit as to access only one's power can be said from time being having regard to exigency of time means they can can do it at any point of time. There's no time limit given as such. So in the above case the person was saying you can't withdraw for 3 years. No the person is wrong. The government came up with the order. If they want to cancel they can cancel anytime.
Okay. Section 21 that is May 26. In your notes please write section 21 module page 1.30.
Module page 1.30.
Now 5 C.
So I told you the hint is 2C and 5 C.
See there are certain questions which are patterned like 1 C 6 C is FEMA. 2 C 5 C is GCA.
3 C 4 C is interpretation of statues.
It's a fixed pattern. So I know which question when to attempt. Okay. Now see 5 C. 6 A C A C A C A C A C A C A C A C A C A C A is here to 5 C. You tell me whether you know this or not. Who shall be including the definition person? You have discussed this with me right now.
Please write in the chat. Please write in the chat. Who shall be included in the deficit person? Please write in the chat. I have given a shortcut also.
ABC very good. uh association body of individuals and company very good very good again same question good fit answer same theory so if you know see four mark was a different question but four mark is same so GC mean no amendment no change variety no variety 66 questions are there few are very repetitive just do that G and GC will be in your head guys eight marks 8 I'm just saying four marks I'm just taking 50 personal deduction sort out of 30 marks whatever we have done 15 marks so easily we can get 50 is 15 is bare minimum Okay, obviously you can get 18, 20, 22, 24, 26 also, but I'm just taking 50% cut. I need 50%, that's it. I mean obviously I have to get more but my hope is that 50% should be there at least. Understood?
Cool. So Monday to Friday we have done five chapters. Okay. The other five block chapters maybe we'll do it in the next week. So we can have given an off for you guys so that you can uh take a gap do some other subjects. So we move on to prospectors chapters in the next week Monday. So I'll just give you line up. Monday is prospectors. Tuesday is accounts of company and witness FEMA.
Witness is FEMA. Okay. So prospectors accounts FE that's the next uh lineup.
So you can revise prospectors accounts and company. Accounts of company and FEMA. Maybe on weekend or on the same particular day. Let's do prospectors question on Monday same time 7:00 p.m.
Uh next week probably in mid week I'll be changing the time till half an hour late 7:30 or 8. Then I'll update you when we do it. But Monday we are meeting at 7:00 p.m. only. Okay. So guys, let's meet on Monday 7:00 p.m. Do share this video with all your friends and other WhatsApp and Telegram groups. Do like this video. Comment if you have any doubt. Can connect with me on Instagram, Telegram. Make sure this is your last attempt and you clear as soon as possible. Bye guys. Take care.
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