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Rajasthan Judiciary (RJS) exam

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Judiciary

This article has been written by Stuti Agarwal. The article enumerates everything a Rajasthan Judicial Examination aspirant wants to know. It is your one-stop solution to learn about the syllabus, vacancies, application process, and other intricacies involved during the preparation of this coveted exam. You can also find some words of motivation and strategy building for the journey you are embarking on!

Table of Contents

Introduction

Entering the judicial services examination is one of the supreme choices in the career of law students. Judicial service is one of the dreams that law aspirants have had since the inception of their careers. With the fame gained, the law field as a career choice has been one of the popular choices of students after school. Due to an influx of aspirants in the legal field, the candidates opting for the judicial services examinations as their career options have also seen a significant increase. Thus, there exists a lot of competition in the judicial services examination, and so the aspirants need to have a study plan in place that particularly suits them and not the popular belief or notion. 

In this article, we are going to discuss the Rajasthan Judicial Services Examination and the nuances associated with it. The Rajasthan Judicial Services Examination is one of the popular judicial services exam choices of law students, as its preliminary stage can be attempted even before procuring the degree; that is, candidates can sit for the exam in their final year of college. Other judicial services exams majorly require an LLB degree from the candidates in the application process, mandatorily. This is why the Rajasthan Judicial Services Examination has become a popular choice for judicial services exam aspirants, as it saves them a year for them.

Rajasthan Judicial Services (RJS) exam : an overview

The Rajasthan High Court conducts the examination for the recruitment of civil judges in the Rajasthan Judiciary. The number of posts filled each year in the exam conducted by the Rajasthan High Court varies depending on the vacancies created. The number of posts filled each year is released each year in the form of a notification by the Rajasthan High Court. The last exam conducted was in 2022, pursuant to a notification released on 22.07.2021

The article talks about the Rajasthan Judicial Services Examination at length in accordance with the previous notifications released in respect of the same, covering each and every aspect of the same along with the guidance to prepare for the same. There are various questions and confusions in your mind regarding the Rajasthan Judicial Services Examination, which will be answered through this article.

The competition in the Rajasthan Judicial Examination is immense, keeping in mind the number of takers and the preference given to domiciled candidates. It should be kept in mind that candidates who do not belong to Rajasthan are, irrespective of their categories, treated under the general category, which puts the domiciled candidates of Rajasthan on a better footing than the others. Not only this, a preference is given to the candidates who have knowledge about the Rajasthani culture or Rajasthani traditions, as questions related to Rajasthan and its customs are put up in the interview stage to gauge a candidate’s knowledge about the same. Candidates have an edge and gain brownie points when they convince the panel of interviewers about their knowledge and familiarity with the cultural background of the culturally rich state of Rajasthan.

Rajasthan Judicial Services (RJS) designation and pay scale

What is the post for which the aspirants do so much hard work? The post of civil judge is the result of all the dedication and hard work that the students who sit for the Rajasthan Judicial Services Examination get in return. The pay scale for the same Notification No. F. 11 (3) Judi/2002, dated 7-5-2003, published in Rajasthan Rajpatra dated 17-5-2003:

S.No.

Name of Post

Grade

Scale of pay

(a)

Civil Judge (Junior Division)

III

9000-250-10750-300-13150-350-14550.

(b)

Cum-Judicial Magistrate (F.C.)

II

If found suitable by the High Court on completion of satisfactory and continuous service of five years from the date of entry and has passed the departmental examination, if any, prescribed by the High Court, then, Rs. 10750-300-13150-350-14900.

(c)

Cum-Judicial Magistrate (F.C.)

I

If found suitable by the High Court after completion of another five years of satisfactory and continuous service. Rs. 12850-300-13150-350-15950-400-17550.

(d)

Civil Judge (Senior Division) cum-Chief Judicial Magistrate or Additional Chief Judicial Magistrate

III

Rs. 12850-300-13150-350-15950-400-17550.

(e)

Civil Judge (Senior Division) cum-Chief Judicial Magistrate or Additional Chief Judicial Magistrate

II

If found suitable by the High Court after Five years of satisfactory and continuous service as a Civil Judge (S.D.) Grade III Rs. 14200-350-15950-400-18350.

(f)

Civil Judge (Senior Division) cum-Chief Judicial Magistrate or Additional Chief Judicial Magistrate

I

If found suitable by the High Court after completion of another five years of satisfactory and continuous service as a Civil Judge (S.D.) Grade II Rs. 16750-400-19150-450-20500.

(g)

District Judges including additional District Judges

Entry Level

Rs. 16750-400-19150-450-20500.

(h)

District Judges

Selection Grade

Rs. 18750-400-19150-450-21850-500-22850.

(i)

District Judges

Super Time Scale

Rs. 22850-500-24850.

Rajasthan Judiciary (RJS) exam

Rajasthan Judiciary (RJS) exam Application form 

The application form for enrolling in the Rajasthan Judicial Services Examination is made available online on the Rajasthan High Court’s official website. The candidates should also read the Rajasthan Judicial Service Rules, 2010 (as amended up to 01.07.2021) which came into force with effect from 19.01.2010, for a better understanding of the dos and don’ts regarding their candidature. The candidates must strictly adhere to the instructions on the admit card and the Rajasthan Judicial Service Rules, 2010 to avoid any regulatory action against them, which can lead to the rejection of their application, and they may be barred from sitting for the Rajasthan Judicial Services Examination.

The candidates must declare their eligibility with the utmost care and shall refrain from making a fake representation, as if anything declared related to eligibility is found wrong at a later stage, it may lead to the rejection of a candidate’s application altogether.

There is a nominal fee which is levied on the Rajasthan Judicial Services Examination aspirants when they fill out their enrolment form. However, the said fee varies according to the category to which a particular candidate belongs. The following chart shows the fees levied for the application form across categories as per the notification dated 22.07.2021 for the Civil Judge Cadre exam:

Category 

Fee

  1. General Category or other creamy layers of other backward categories

INR 1000/-

  1. Non-creamy layer of other backward classes of Rajasthan / Economically weaker Sections of Rajasthan

INR 750/-

  1. Scheduled Caste / Scheduled Tribe / Divyaang category of Rajasthan

INR 500/-

In no event can the application fee for the enrolment of the Rajasthan Judicial Services Examination be refunded to the applicants once it is paid by them. The only event in which the refund can be processed is if the candidate is not admitted to the examination by the court.

The directions to fill out the online application form were issued by the Rajasthan High Court on 30.07.2021. The candidates are mandatorily required to go through the directions specified thoroughly before filling out the online application form for the Rajasthan Judicial Services Examination.

Documents required for Rajasthan Judiciary (RJS) exam

We know that the application for the Rajasthan Judicial Services Examination may have to be submitted in physical form, that is, the printout of the online application form affixed with a recent coloured passport-size photograph, affixed with signature at the specified place, along with such other documents as asked, whenever directed by the authorities to do so.

There are some prerequisites that every candidate shall be ready to fulfill in order to apply for the Rajasthan Judicial Services Examination for the District Judge post, as per the notification dated 05.01.2023. Following is the list of documents that need to be attached to the application form compulsorily by all the candidates:

  1. Senior Secondary (Class 12th) school passing certificate;
  2. Senior Secondary (Class 12th) school mark sheet;
  3. Higher Secondary (Class 10th) school passing certificate;
  4. Higher Secondary (Class 10th) school mark sheet;
  5. Graduation mark sheet;
  6. LLB degree;
  7. Birth Certificate or Senior secondary certificate for Date of birth proof; 
  8. Passport size photographs – 2;
  9. Identity documents (either Aadhar Card, PAN card, Voter ID card, Passport, or Driving Licence);
  10. Enrolment Certificate with a bar if practising lawyer;
  11. *Original Certificate from District Judge concerned/ Registrar of the concerned High Court/Supreme Court in the prescribed format as ANNEXURE I or ll (with Seal of the concerned Authority) regarding character and length of actual practice of candidate (for District Judge post)
  12. *Certified copies of those ten (10) judgments of which the candidate has furnished particulars while submitting the online application form. (for the district judge post)
  13. Original Character Certificates as ANNEXURE lll of two responsible persons not related to him issued not prior to six months from the date of submission of the application form (for District Judge post);
  14. Original ‘No Objection Certificate’ of the Department for appearing in the examination and proof of length of service (if any) (for District Judge post);
  15. Attested copy(ies) of document relating to Dismissal / Removal / Termination (if any) (for District Judge post);
  16. Certified copy(ies) of Judgement/Order relating to conviction or acquittal (if any);
  17. Certified copy(ies) of registered FIR (if any);
  18. Certified copy(ies) of Charge-sheet filed in a Court of Law (if any);
  19. Certified copy(ies) of the negative final report filed in a Court of Law and order passed thereon regarding acceptance/rejection/present status, if any;
  20. Attested copy(ies) of Order relating to permanently Debarring/Disqualifying from appearing in any Examination or interview (if any);
  21. Attested copy(ies) of Order relating to Professional Misconduct under Advocates Act, 1961 or any other Law for the time being in force (if any);

Note- [*Every practising candidate is required to accompany their application with a certificate in the format prescribed by the Recruiting Authority, from the District Judge concerned where ordinarily the applicant is practising, as to the character and length of the actual practice of the candidate, along with such other documents as may be specified. If the applicant is practising in the High Court, the certifying authority shall be the Registrar of the concerned High Court, and if he is practising in the Supreme Court, the certifying authority shall be the Registrar of the Supreme Court.

Not only this, every candidate shall furnish particulars of 10 judgements (which they have been a part of) of the preceding seven years for the examination for the post of District Judge. He shall produce certified copies of such judgements before the Main Examination, as prescribed by the Recruiting Authority. The Candidate is required to provide particulars of final orders/judgments personally argued by him, not interlocutory orders, bail orders, orders based on compromise or orders of withdrawal of the case.]

Other specific documents required for people applying under a certain category as per the last notification of the Rajasthan Judicial Services Examination:

  1. A married woman desirous of getting the benefit of reservation in the category of Scheduled Caste, Scheduled Tribes, Other Backward Classes and more backward classes shall have to produce a Caste/Class Certificate issued with the name of her father, parental address and parental income failing which the reservation claimed for shall not be allowed in light of Circular No. F.15(24)DOP/AIl/75 Jaipur dated 24.06.2008 of Department of Personnel (A-ll), Govt. of Rajasthan.
  2. In the case of a widow, she will have to furnish a certificate of death of her husband from the competent authority, and in case of divorce, she will have to furnish proof of divorce.
  3. Candidates seeking reservation under the Economic Weaker Section of the society have to produce a certificate issued to them as proof of their eligibility from a certain Authority prescribed for the same and recognized under such applications.
  4. Persons with benchmark disabilities shall have to produce a certificate of their disability in a prescribed format duly issued by the Certifying Authority authorized by the Appropriate Government.
  5. Candidates belonging to SC, ST, OBC or MBC shall have to produce a caste certificate for claiming the benefit of reservation in a prescribed format duly issued by the competent authority, in case OBC (NCL), not prior to one year from the last date of submission of the application form.
  6. Proof of residency in Rajasthan if taking domicile category reservation under any category.

Rajasthan Judiciary (RJS) exam admit card

The Admit Card of the Rajasthan Judicial Services Examination is made available some days before the Prelims stage. The admit cards are to be downloaded from the Rajasthan High Court website – www.hcrai.nic.in. There is no other way in which the admit cards may be made available.

The details required by the candidate to download the admit card are:

  1. User name (must have been created while submitting the application form);
  2. Password (the same password as created by the candidate during submission of the application form);
  3. Captcha code.

The candidates must carry a printout of the admit card downloaded by them. The candidates must then carry with them the physical copy of the admit card to the examination center. The candidates need to follow each and every instruction written on the admit card to avoid disqualification from sitting in the exam. They should also adhere to the norms specified for the conduct during the examination and strictly not use or attempt to use any unfair means.

Date and place of Rajasthan Judiciary (RJS) exam

The date of conducting the Rajasthan Judicial Services Examination is announced by the Rajasthan High Court through a notification. The place where the Rajasthan Judicial Services Examination takes place is in two cities in Rajasthan, namely, Jaipur and Jodhpur. However, if, in a particular attempt, the number of aspiring candidates increases beyond the limit which can be accommodated to appear in the examination in these two cities, then the same can be held in any other city as well.

The admit card released to all the candidates mentions the date and center of the particular attempt of the Rajasthan Judicial Services Examination.

Rajasthan Judiciary (RJS) exam vacancies

There are never the same vacancies released in any judicial services examination. The vacancies are the first thing checked by an aspirant of the judicial services exam because they determine the competition which the candidate has to beat by sitting in the exam. 

The vacancies announced each year are divided into various categories. In 2023, the following number of vacancies are expected to be released:

Category

Number of expected posts

General

46

SC

14

ST

10

Other Backward Classes (OBC)

18

Most Backward Classes (MBC)

1

The number of vacancies can be amended and varied after the announcement, through a follow-up notification released by the Rajasthan High Court for a particular attempt at the Rajasthan Judicial Services examination.

It is important to note that for the Rajasthan Judicial Services Examination, the candidates having a domicile outside of Rajasthan are all categorized under the General Category, irrespective of the fact that they belong to any category such as Scheduled Castes, Scheduled Tribes, Other Backward Classes, More Backward Classes and Economically Weaker Sections, in any of their respective states. This means that the Rajasthan Judicial Services Examination provides preference in reservation benefits to candidates domiciled in Rajasthan itself.

In case the candidates for filling the vacancies in a particular category are not found available, then the same are filled as per the provisions prescribed under the Rajasthan Judicial Service Rules, 2010.

Past vacancies in Rajasthan Judiciary (RJS) exam

The vacancies in the past for the District Judge post as per notification dated 05.01.2021 of the Rajasthan Judicial Services Examination are enumerated in the schedule attached below:

Year

Total Vacancies Announced

General category

SC

ST

OBC

EWS

MBC

Disabled

2020-21

60

23 (out of which 6 posts reserved for women, and out of these 6 posts 1 post reserved for widow woman)

09 (out of which 2 posts reserved for women)

07 (out of which 2 posts reserved for women)

12 (out of which 03 posts reserved for women)

06 (out of which 1 post reserved for women)

03

Out of the total of 60 vacancies, 03 posts reserved for persons with benchmark disabilities)*

2019-20

02

02

Backlog vacancies 2018-19

04

02

02

Backlog vacancies 2016-17

02

01

01

Backlog vacancies 2015-16

09

05 (out of which 1 post reserved for woman)

04 (out of which 1 post reserved for woman)

Backlog vacancies 2011-12

08

05 (out of which 1 post reserved for woman)

03

*Out of the total of 03 vacancies enlisted for persons with benchmark disability, 1 post was reserved for blindness and low vision, 1 post reserved for deaf and hard of hearing persons and 1 for locomotor disability including cerebral palsy, leprosy cured, dwarfism, acid attack victims and muscular dystrophy.

The vacancies for women, including widows and divorcees, are always horizontal, that is, within the category. This means that the selected woman will be adjusted in the relevant category, that is, among the SC / ST / OBC /MBC / EWS / General categories, to which such a woman belongs. The same thing applies to the category of persons with benchmark disabilities.

Vacancies in the past in the Rajasthan Judicial Services Examination for the Civil Judge Cadre post are as follows, as per the notification dated 22.07.2021:

Year

Total Vacancies Announced

General category

SC

ST

OBC

EWS

MBC

Benchmark Disability

2020

Up to December 2020

35 (out of which 10 posts reserved for women, and out of these 10 posts 02 post reserved for widow woman)

14 (out of which 4 posts reserved for women, and out of these 4 posts 1 post reserved for widow woman)

10 (out of which 3 posts reserved for women)

18 (out of which 5 posts reserved for women, and out of these 5 posts 1 post reserved for widow woman)

8 (out of which 2 posts reserved for women)

4 (out of which 1 post reserved for woman)

4*

31

Up to December 2021

14 (out of which 4 posts reserved for women, and out of these 4 posts 1 post reserved for widow woman)

4 (out of which 1 post reserved for woman)

03

6 (out of which 1 post reserved for woman)

03

01

01*

*Out of the total of 05 vacancies enlisted for persons with benchmark disability, 1 (one) post was reserved for blindness and low vision, 1 (one) post reserved for deaf and hard of hearing persons and 1 (one) for locomotor disability including cerebral palsy, leprosy cured, dwarfism, acid attack victims and muscular dystrophy and 2 (two) for autism, intellectual disability, specific learning disability and mental illness and multiple disabilities including deafness and blindness in the posts identified for such benchmark disabilities.

The vacancies for women, including widows and divorcees, are always horizontal, that is, within the category. This means that the selected woman will be adjusted in the relevant category, that is amongst SC / ST / OBC /MBC / EWS / General categories, to which such a woman belongs. The same thing applies to the category of persons with benchmark disabilities.  

Rajasthan Judiciary (RJS) exam eligibility

Each candidate who fulfills the eligibility criteria mentioned in the Rajasthan Judicial Services Examination notification becomes eligible to write and appear in the said examination. There is no relaxation in favor of any candidate who does not fulfill the eligibility criteria as mentioned in the official notification.

The following is the eligibility requirement for sitting in the Rajasthan Judicial Services Examination:

Citizenship 

The candidates must be Indian citizens.

Age limit 

The minimum age requirement is 23 years and the maximum age limit is 35 years. However, there is a relaxation of 5 years in the upper age limit for Scheduled Caste (SC), Schedule Tribe (ST) and Other Backward Class candidates (OBC).

Educational requirement 

The applicants must hold a bachelor’s degree in law from a recognized law university.

Disqualification for Rajasthan Judicial Services (RJS) exam

In the notification for the Rajasthan Judicial Services Examination, there are some elaborate pointers regarding the disqualification from appearing in the exam. The following are such disqualification criteria mentioned in the past notification for the recruitment of District Judge dated 05.01.2021 and have generally also been notified under the Rajasthan Judicial Services Rules, 2010:

  1. A person dismissed by the Central Government or by the State Government or convicted of an offence involving moral turpitude or any such offence, which in the opinion of the Recruiting Authority renders him unsuitable for appointment in Judicial Service shall not be eligible for appointment.
  2. No person shall be appointed as a member of the service unless he is in good mental and bodily health and free from any physical defect likely to interfere with the efficient performance of his duties as a member of the service. Before a candidate is finally approved for appointment by direct recruitment, he shall be required to appear before a Medical Board which will examine him and certify if he is fit for appointment to the service.
  3. No person shall be qualified for appointment to the Service or being in Service if he has more than one spouse living.
  4. No person shall be qualified for appointment to the service or being in service if he has been dismissed or removed from service by any High Court, government or statutory body or local authority.
  5. No person shall be qualified for appointment to the service or being in service if he was or is convicted for any offence involving moral turpitude or has been permanently debarred or disqualified by any High Court or Union Public Service Commission or any State Public Service Commission from appearing in any examination or interview.
  6. No person shall be qualified for appointment to the Service or being in Service if he, being an Advocate, was found guilty of professional misconduct under the provisions of the Advocates Act, 1961 (Central Act 25 of 1961) or other law for the time being in force.
  7. No person shall be qualified for appointment to the Service or being in Service if he has accepted or accepts dowry at the time of his marriage. ln this clause, the word “dowry” shall have the same meaning as assigned it in the Dowry Prohibition Act, 1961 (Central Act 26 of 19671.
  8. No person shall be qualified for appointment to the service or being in service if he has more than two children on/or after the date of commencement of the Rajasthan Judicial Service Rules, 2010 came into force w.e.f. 19.01.2010 (“Rules”). However, the said pointer comes with the following provisos:

8.1. the candidate having more than two children shall not be deemed to be disqualified for an appointment so long as the number of children he/she has on the date of commencement does not increase;

8.2.  where a candidate has only one child from earlier delivery but more than one child is born out of a single subsequent delivery, the children so born shall be deemed to be one entity while counting the total number of children;

8.3. while counting the total number of children of a candidate, the child born from earlier delivery and having disability shall not be counted;

8.4. any candidate who performs remarriage, which is not against any law, and before such remarriage, he is not disqualified for appointment under this sub-rule, he shall not be disqualified if any child is born out of single delivery from such remarriage;

8.5. a child born within 280 days from the date of commencement of the “Rules” shall not constitute disqualification. 

Phases of Rajasthan Judiciary (RJS) exam

The Rajasthan Judicial Services Examination for Civil Judge Cadre is conducted under three different stages. These stages are the Preliminary Stage (Prelims), Mains Stage (Mains) and the Interview Stage. This is a clear and go-ahead type of process to reach the final stage. Minimum cut-off marks are announced in the Prelims which the candidates are required to secure in order to move to the Mains stage. Similarly, the cut-off marks for the Mains stage are announced to reach the final Interview stage.

Rajasthan Judiciary (RJS) exam Prelims

The Prelims stage exam consists of an objective type question paper containing 100 questions, divided into 70 questions of law and 30 questions of language (English and Hindi). Each question contains 1 mark without any negative marking. The duration of the Prelims exam is 2 hours. 

This exam is conducted on OMR sheets. The official answer key is published by the Rajasthan High Court after the exam is conducted before declaring the result. In various instances, answers officially announced in the key are challenged by students or other stakeholders before the High Court and the decision on the same decides the future course of action of how the answer to a particular question will be treated for evaluation.

Points to remember in the Prelims stage:

  1. A candidate must not prepare for the Prelims only witha complete focus on Prelims per se. The syllabus for Prelims (law section) and Mains (both law papers) is the same. Not only this, there is very little time given in between the Prelims stage and the Mains stage. If a candidate only focuses on Prelims, that is, only with respect to a view of objective type questions, then it will be very difficult to cover the whole syllabus from the subjective point of view for the Mains stage, keeping in mind the time given for conducting the Mains stage after the result for Prelims is declared.
  2. The Prelims stage is an OMR based examination. The candidates should strictly follow the instructions with respect to filling up the details in the OMR sheet as any mistake in the same can lead to rejection of the attempt.
  3. Candidates should also take extra care while filling the answers in the bubble of the OMR sheet as it is often seen that candidates commit mistakes in filling the answers against the correct bubble number, which leads to a problem as OMR sheets are not changed by the examiners.

Rajasthan Judiciary (RJS) exam Mains

The Mains stage is the subjective exam. The candidates who qualify for the Prelims stage are eligible to sit for the Mains exam.

The Mains stage is conducted in the form of 4 separate exams, the details of which are contained herein below:

Subjects

Marks

Duration

Law Paper – I (Civil Law)

100

3 hours

Law Paper – II (Criminal Law)

100

3 hours

Hindi Essay

50

2 hours

English Essay

50

2 hours

The Committee constituted by the Chief Justice shall scrutinise the applications of the applicants who are qualified for the main examination and shall satisfy itself before granting a certificate in case the application has been made strictly in accordance with the provisions of Rajasthan Judicial Service Rules, 2010 and the decision as to the eligibility or otherwise of the candidates for admission in the Main Examination shall be final. No candidate shall be admitted to the Main Examination unless he holds a certificate of admission granted by the person authorised by the Chief Justice.

Rajasthan Judiciary (RJS) exam Interview

The interview stage of the Rajasthan Judicial Services Examination is reached by a candidate only after clearing the Mains stage. The maximum mark out of which the candidates are marked is 35 marks in the interview stage.

As per the notification released by the Rajasthan High Court, the interview stage of the Rajasthan Judicial Services Examination typically involves questions based on the personal and academic background of the candidate. Not only this, the interview also includes questions based on current affairs, general knowledge and legal knowledge of the candidate.

The candidates are also marked on the basis of their proficiency in the Rajasthani dialect and their knowledge of Rajasthani social customs. However, this is just an added feature and not the only attribute on which the candidates are marked at this stage. They are also judged on their demeanour, personality and overall knowledge of the questions put up.

After the interview, a merit list of the candidates (category-wise) shall be prepared on the basis of their aggregate marks obtained in the Main Examination and interview, considering their suitability in general.

Action in case of a tie

The general suitability for service of the candidates securing equal aggregate marks in the Main Examination and interview shall firstly be determined on the basis of higher marks obtained in the interview and in case, the candidates secure equal marks even in the interview, the merit shall be determined by giving higher preference to the candidate who was enrolled as an advocate on the earlier date.

Minimum qualifying marks in each stage

The Rajasthan Judicial Services Examination provides for the minimum marks which a candidate needs to secure for recruitment in the post of Civil Judge in order to be eligible for the merit list of the particular stage. These minimum marks required also vary across various categories, as mentioned below:

Category

Minimum Qualifying Marks (Prelims)

Minimum Qualifying Marks in each Law Paper of Mains Stage

Minimum Qualifying Marks in Aggregate in Mains Stage

General

45%

35%

40%

SC

40%

30%

35%

ST

40%

30%

35%

EWS (Economically Weaker Section)

45%

35%

40%

OBC (Other Backward Class)

45%

35%

40%

Rajasthan Judiciary (RJS) exam syllabus

The syllabus across all three stages of the Rajasthan Judicial Services Examination for Civil Judge Cadre Post is provided in the official notification issued by the Rajasthan High Court itself. Following is the syllabus segregated for the Civil Judge Cadre post under all three stages, respectively:

Rajasthan Judiciary (RJS) exam Prelims

The Prelims stage consists of just one objective type exam which is divided into two broad categories that is – (i) Section for law and (ii) Section for language. The syllabus of law for Prelims contains all the laws, whether civil, criminal or local, of Rajasthan.

The syllabus for the law section is the same as that of the syllabus of law for the Mains exam which is as follows:

  • The Constitution of India  
  • Civil Procedure Code, 1908  
  • Law of Contract & Partnership, 1872  
  • The Indian Evidence Act, 1872  
  • The Limitation Act, 1963  
  • The Rajasthan Rent Control Act & Revenue Laws, 2001  
  • The Specific Relief Act, 1963  
  • Hindu Law  
  • Muslim Law  
  • The Transfer of Property Act, 1882  
  • Interpretation of Statutes  
  • General Rules (Civil) & Order/Judgment Writing
  • Criminal Procedure Code, 1973  
  • The Indian Penal Code, 1860  
  • Law on Narcotic Drugs and Psychotropic Substances  
  • Law on Juvenile Delinquency, 2015  
  • The Negotiable Instruments Act, 1881 (Chapter XVII)  
  • Law of Probation of Offenders, 1958  
  • Protection of Women from Domestic Violence Act, 2005  
  • Framing of Charges (Criminal) & Judgment Writing 

The syllabus for the language section (for English Proficiency) of the Prelims exam is as follows:

  1. Tenses  
  2. Articles and Determiners  
  3. Antonyms – Synonyms  
  4. Active Voice – Passive Voice  
  5. Phrasal Verbs & Idioms  
  6. Direct Speech – Indirect Speech  
  7. Modals expressing various concepts – (Obligation, Request, Permission, Intention, Condition, Prohibition, Probability, Possibility, Purpose, Reason, Companions, Contrast)
  8. Coordination – Subordination  
  9. Legal Maxims 

In all, the syllabus of law for the Prelims contains all the central legislations from both the civil and criminal sides. There is no such explicit bifurcation in the Prelims law paper though (consisting of 70 marks component) and there is no such division of marks in the paper in this stage. 

Rajasthan Judiciary (RJS) exam Mains

The Mains stage consists of 4 (four) exams, which is enumerated as follows:

  1. Law Paper – I
  2. Law Paper – II
  3. Hindi Essay Writing
  4. English Essay Writing

The syllabus for Law Paper – I is as follows:

  1. The Constitution of India  
  2. Civil Procedure Code, 1908  
  3. Law of Contract & Partnership, 1872  
  4. The Indian Evidence Act, 1872  
  5. The Limitation Act, 1963  
  6. The Rajasthan Rent Control Act & Revenue Laws, 2001  
  7. The Specific Relief Act, 1963  
  8. Hindu Law  
  9. Muslim Law  
  10. The Transfer of Property Act, 1882  
  11. Interpretation of Statutes  
  12. General Rules (Civil) & Order/Judgment Writing

The syllabus for Law Paper – II is as follows:

  1. Criminal Procedure Code, 1973  
  2. Law of Evidence, 1872 
  3. The Indian Penal Code, 1860  
  4. Law on Narcotic Drugs and Psychotropic Substances  
  5. Law on Juvenile Delinquency, 2015  
  6. The Negotiable Instruments Act, 1881 (Chapter XVII)  
  7. Law of Probation of Offenders, 1958  
  8. Protection of Women from Domestic Violence Act, 2005  
  9. Framing of Charges (Criminal) & Judgment Writing 

The other two segments, which are the Hindi essay writing and the English essay writing do not have definite syllabus for the same. As per the notification, the topics for preparation can be divided into categories such as:

  1. Rajasthan and its culture
  2. Legal Topics
  3. Contemporary socio-economic issues
  4. Current Affairs and relevant news articles

Rajasthan Judiciary (RJS) exam interview

The interview stage of the Rajasthan Judicial Services Examination contains 35 marks. Candidates who qualify for the Mains stage reach the interview stage. General knowledge, legal knowledge, general awareness, Rajasthani dialect, knowledge about Rajasthani culture and customs etc. are some of the criteria which help candidates in the interview stage. Rajasthan Judicial Services gives an edge to the candidates who know Rajasthani culture and generally about Rajasthan, therefore, good knowledge about the same can help earn brownie points.

Other important pointers as per the notification

The Rajasthan Judicial Services Examination enumerates some of the important guideline pointers to ensure hassle free and confusion free conduct of the exam. Following are some of these important pointers:

Applicability of Right to Information law on the recruitment process under Rajasthan Judicial Services Examination 

Before the conclusion of the entire recruitment process, no information pertaining to this recruitment shall be provided on the application submitted under the Rajasthan Right to Information (High Court and Subordinate Courts) Rules, 2006, and the same could be provided as per rules, only after the conclusion of the recruitment process. The information shall be provided as per the rules on the application(s) submitted within 06 months from the date of declaration of the final result. However, no information shall be provided on the application submitted beyond 06 (six) months from the date of the declaration of the final result.

Prohibition of gadgets in the examination hall 

No candidate shall be allowed to bring/possess/keep with them cellular phone, calculator, Bluetooth or any other electronic / communication device and purse etc. in the examination centre. Candidates are allowed to bring only a pen, pencil, admit card or any other material as specifically directed by the Rajasthan High Court in the examination room. Centre Superintendent / Rajasthan High Court shall not be responsible for the safety of the above gadgets if deposited or kept somewhere outside the examination hall and this shall be done on the candidate’s own responsibility.

Availability of writers 

Every candidate shall themselves write answers to the questions in the examination. However, the facility of Scribe will be provided to such persons as per existing Rules, who are unable to write the answer on their own. Such facilities will not be provided to the persons who temporarily or accidentally get disabled.

Prohibition of the use of unfair means and consequences thereof 

All the candidates shall comply with the instructions issued by the Rajasthan High Court / Centre Superintendent/Invigilator/Officer authorized by the Rajasthan High Court. lf any candidate fails to comply with the instructions given herein or is found using unfair means or  actions in the exam, such candidate shall face consequences as may be taken under the Rajasthan Public Examination (Prevention of Unfair Means) Act, 1992.

Consequences of impersonation and other offences in the Rajasthan Judicial Services Examination: 

A candidate who is or has been declared by the Recruiting Authority or the Appointing Authority, as the case may be, guilty of impersonation, of submitting fabricated or tampered with documents, of making statements that are incorrect or false, of suppressing material information, using or attempting to use unfair means in the examination or interview or otherwise resorting to any other irregular or improper means for obtaining admission to the examination or appearance at interview shall, in addition to rendering himself liable to criminal prosecution, be debarred either permanently or for a specified period:

  1. by the Recruiting Authority or the Appointing Authority, as the case may be, from admission to examination or appearing interview held by the Recruiting Authority for selection of candidates, or
  2. by the Government from employment under the Government.

Use of external forces in selection is strictly prohibited: 

No recommendation for recruitment either written or oral other than that required under the Rajasthan Judicial Service Rules, 2010, shall be taken into consideration. Any attempt on the part of a candidate to enlist support directly or indirectly for his candidature by other means shall disqualify him for recruitment herein under Rajasthan Judicial Services.

Points to remember for Rajasthan Judiciary (RJS) judgement writing

The aspiration of becoming a judicial officer is one of the key driving factors behind the hustle which the candidates sitting for the Rajasthan Judicial Services Examination accept with full might. One very important aspect of this examination is the segment regarding Judgement Writing.

The candidates should keep in mind the following pointers for better results:

  1. The first and foremost essential quality which a judgment should possess is impartiality. It should not reflect that the judgment delivered or written has chosen a certain side, in short, it should not drip any bias on the face of it.
  2. The judgment should be reasonable and logical, not just legally but also seem reasonable to a layman factually. 
  3. Maintaining integrity while writing a judgment should not be forgotten.
  4. Reference to relevant laws is a sine qua non, as it makes the judgment legally sound and helps the readers comprehend the reasoning behind it.
  5. The chronology of facts, legal provisions and previous case laws on the subject must be followed, which traces back the writer’s steps in arriving at the decision in the judgment.
  6. The focus of the judgment should be to be justiciable to the aggrieved party, as the end goal of a judgment is to deliver justice.
  7. The principle “justice should not only be done but also seen to be done” should be strictly followed.
  8. The judgment should be of meaning to all the stakeholders in the legal fraternity apart from being of use to the litigant parties.
  9. Simple sentences must be used in the judgment as a verbose and technical text of judgment has a limited reach and the goal of a judgment is to reach out to the masses to act as deterrence.
  10. The text must be direct and precise and should not seem to be beating around the bush.

How to prepare for Rajasthan Judiciary (RJS) interview 

The interview rounds of any competitive exam are to judge the spontaneity and smartness of a candidate. The panel of interviewers judge a candidate on the basis of how well a particular candidate presents a mixture of their knowledge, creativity, mindfulness and confidence with their answers to the questions put up. Bookish knowledge is not the only key to cracking the judicial services examinations, or for that matter, any competitive examination. 

It is rightly said that one should be smart and not a bookworm. However, this does not in any way diminish the significance of the knowledge of the law subjects through books and bare acts. That is all important, but not JUST that can ensure one’s selection in the Rajasthan Judicial Services Examination. 

The key to success in a competitive exam or any judicial services exam, like in this case Rajasthan Judicial Services Examination, is to balance one’s book knowledge of the law and the language subjects along with general awareness. Beyond general awareness, one should focus on one’s demeanour, confidence, fluency in the language, and most importantly, one’s ability to handle the pressure and stress before the panel of interviewers.

How to prepare for Current Affairs

In the Rajasthan Judicial Services Examination, we do not need to pay a very extensive attention to current affairs, as there is no such subject in the syllabus of the Prelims and Mains stages of the Examination. However, current affairs are a determinant factor in the interview stage as the panel of interviewers can delve into a recent issue and ask questions about it. For this, the candidate can prepare by reading a regular newspaper or reading about a particular issue through online articles.

Candidates can also procure material for general knowledge and read articles and other materials on the same. The candidates need to go a step ahead if they get into topics through material for general knowledge as merely knowing the answer to a particular question is not enough to talk about a certain issue in the interview. The knowledge through materials can only prepare a candidate for the questions put up in the written exam but cannot prepare a candidate to express his / her opinion on the same until and unless he/she possesses a deep understanding of the same.

The candidates should also try to prepare their opinions on certain prevalent affairs on the global and national front related to politics, the environment, sports or any social cause. This way they will learn to frame their opinions on issues. They should also practice speaking aloud on a topic and try to speak impromptu on the topics. When they practice speaking aloud, it will boost their confidence and reflect on their personality on the final day.

Rajasthan Judiciary (RJS) exam previous year question papers

Rajasthan High Court provides on its website the link which contains previous year question papers for the aspirants’ ease of reference. The link provides question papers for both the District Judge paper and Civil Judge Cadre paper under separate heads.

Books to refer for Rajasthan Judiciary (RJS) exam

There is a plethora of books and an abundance of material for all the judicial services examinations. However, since the pattern of the exam, syllabus and other nitty-gritty of the exam are different for judicial services examinations in different states, there are books dedicated to particular states’ judicial services examinations as well. Therefore, some of the famous books for the Rajasthan Judicial Services Examination are mentioned below in tabular form:

Name of Books

Authors and Publications

Subjects

Rajasthan Judicial Service (Pre.) Examination

Published by Law & Justice Publishing Co.

Solved Past Year Rajasthan Judicial Services Exam Question Papers

Rajasthan Judicial Services Examination Preliminary Examination

Written by Anand Prakash Solanki and published by Global Publishing House

MCQ question on various laws for holistic preparation

Minor Acts Rajasthan Judicial Service Examination (MCQs And Answer )

Published by Singhal Law Publications

Multiple Choice Questions for minor acts of the syllabus

TOPPERSNOTES Rajasthan Judicial Services Exam For Civil Judge Cadre Set of Book 8

Published by Toppernotes

Law paper wise set of books divided volume wise (set of 8 books)

Rajasthan Judicial Service Preliminary Examinations Objective – HINDI LANGUAGE

Published by Delight Law Publishers

Hindi language handbook for preparation of Rajasthan Judicial Services Examination

RJS Exam Book In Hindi By Solanki

Published by Delight Law Publishers written by Anand Prakash Solanki

Guide on Hindi language for Rajasthan Judicial Services Examination

Judgement Writing

Published by Universal Law Publishers written by Basantilal Babel

Guide on judgement writing, order writing, framing of issues and framing of charges 

Rajasthan Judiciary (RJS) exam preparation essentials

Any competitive exam requires a lot of mental strength and self belief, if you secure mental toughness, you have won half the battle. At this point in your career, you will find your peers to earn money through corporate jobs and it is natural human nature to have doubts and second thoughts regarding your career choices. The preparation stage, therefore, not only requires hard work and discipline but also needs the mind to be strong. Holding confidence in oneself is the most essential ingredient to sail through the preparation stage.

The aspirants must maintain a positive mindset. It is understandable that you will have your lows, you shall face moments where you feel like giving up, but what matters is how you gather yourself from that point to fight back again to achieve the goal.

How to increase concentration

The judicial services examination requires a lot of hard work, diligence, positivity and concentration throughout the preparation stage of the exam. However, the most prevalent problem which most of the aspirants to the judicial services examinations face is building concentration. These days, it has been observed that our generation is facing a lot of issues in maintaining attention span, which affects our overall concentration levels for any task we do, not just studies.

Candidates pursuing Rajasthan Judicial Services Examination or any other states’ judicial services examination must try to get into a habit of practicing meditation. Meditation is said to help in increasing one’s concentration and also helps in bringing positivity and calmness into one’s day. Not only this, meditation also helps in increasing the retention power of an individual, which also helps in the preparatory stage for competitive examinations.

Mental strength is very important to be maintained during the whole process of preparation for the competitive Rajasthan Judicial Services Examination, especially for the purpose of this article though. There is no set standard rule or process which can be followed by all the candidates for achieving and maintaining a positive approach as there are different factors which affect different people in a different manner. It is completely alright to have ones’ lows and moments of self doubt as competitive examination aspirants do not have a guaranteed result. 

How to deal with distraction

Candidates have a major concern about dealing with the distractions around them during their preparation stage. The types of distractions faced by candidates can be divided as follows, along with their corresponding solutions to tackle the same:

Distractions from peers earning money and moving forward in life 

It is very natural to feel low and distracted by the fact that the peers of the candidate are moving forward in their careers while on the other hand, the candidate is still preparing for an uncertain examination. It is very natural to feel that life is at a standstill and stagnant as compared to other people in the profession. However, at such a time, the candidate needs to focus on the fact that “slow and steady wins the race.” The mantra for feeling low because of uncertainty in life is to have a thought that whatever you are working towards will bring your life at par with everyone else who, at this moment, you feel is ahead of you in life. The thought that the goal you are trying to achieve and are working for will settle your life ahead. This thought itself should be motivating enough to not fall back into the depressing thought and work even harder to achieve the goal one is striving for.

Distractions related to low motivation 

There might be times when a certain attempt does not go well for a candidate. This can be a mode of demotivation for them and bouncing back from that stage is a very important aspect which candidates must learn. Dealing with failures is what one needs to learn to survive in the preparation stage of competitive exams, and thus, this applies to the Rajasthan Judicial Services Examination aspirants. Surrounding oneself with people with a positive approach in life is a very important factor which impacts the psyche of an affected person immensely. It is not just a fight within oneself but a fight against people who surround us as there are a variety of people around who affect us in varied manners.

Distractions on social media

It is often seen that people crave something which is denied to them or that they do not have access to. It is, thus, not necessary to abandon one’s profiles on social media, but one should try to refrain from using it during a study schedule. Strict study schedules need to be followed by the candidates. A strong willpower is needed to adhere to one’s study plans and timetables. Abandoning smartphones or social media is no solution. One should rather use them as a treat or reward for fulfilling one’s study targets.

Distractions from not achieving study goals 

While preparing for a competitive examination, every candidate sets a particular target for themselves, on a daily basis or for a few days. However, in the initial phase itself, there can be instances when an aspirant is unable to achieve its targets, which demotivates the person. In such a case, one should always review their target set. Sometimes, one should try to set those targets which they are sure of achieving. This will not only boost their confidence but will also help them to gain the zeal to even try to increase those targets gradually and achieve them.

Distraction from failing one attempt 

It is very common to have re-takers of competitive examinations. Similarly, there can be instances where a candidate doesn’t get through a particular attempt and re-takes the exam. It can be seen that a person feels low on motivation because they missed out on the previous attempt. Maybe a candidate feels disheartened because of missing the attempt by a very small margin. Even after all this, the only thing that can keep one moving is the dream of seeing themselves adorning that prefix. Also, a person who has experienced one attempt is always on a better footing than freshers and should try to reap that experience for their better performance.

Strategy for preparation

It is a known fact that there cannot be a standard which can be followed for preparation for any competitive examination as the calibre, skills and grasping power of each and every individual cannot be the same and at par. No two individuals can be said to possess the same set of skills to learn a particular concept. Therefore, the strategies can only be suggestive and can be tailor-made according to one’s own set of skills as self-awareness is essential for the preparation stage of these competitive exams including the Rajasthan Judicial Services Examination.

The first and foremost question which arises is the time as to when one should start preparing for the Rajasthan Judicial Services Examination. The answer to this question is dependent upon the following two situations:

If a candidate is pursuing 5 year integrated program LLB degree

In this case, the candidate should start preparing for the exams from their 3rd year of college, at least. However, if not from the 3rd year, the candidate should definitely start their preparation from the 4th year of their law school. This is because they can extend their law school curriculum for their preparation for the judicial services examination and also strengthen their conceptual clarity for better retention. There are many candidates who appear for Rajasthan Judicial Services examination after their 5 year law school. The Rajasthan Judicial Services Examination can also be given by the aspirants before they have passed their final exams of the last year of law school i.e., when the candidate is in the last year of college and has not received the degree yet. Rajasthan judiciary is the only state which gives such a privilege to judicial exam aspirants. There are various candidates who appear for the Prelims of the Civil Judge Cadre post of the Rajasthan Judicial Services Examination and come out with flying colours as they are in the momentum of their academic force right in their law school. The candidates in this scenario take assistance from various mock tests available to strengthen their preparation.

However, there is no loss, even if you are someone who has not yet started your preparation and are in the last leg of your law school. In such a case, the candidates are in a state where they can devote their total focus on the preparation and can take assistance from online courses available to guide the preparation of the judicial services aspirants, like one offered by LawSikho. The candidates can prepare well for the Rajasthan Judicial Services Examination in a year and can sit for the attempt after one year of passing their law school. 

If a candidate is pursuing a 3-year LLB degree

In this case, the candidate should start preparing for the judicial services exam from 2nd year of college for the best results. This is to make sure they do not waste their time after their law school completion and can be ready to crack the judicial services examination at the earliest possible attempt. 

Candidates often also take coaching classes alongside their law school to streamline their preparation for the judicial services examination. The candidates in the last leg of their preparation also opt for test series and other mock exams to strengthen their preparation and prepare them for their exam day. Lawsikho is one of the leading platforms which provide various courses and packages to help judicial examination enthusiasts prepare for the same and make their dreams a reality.

Tips and tricks for Rajasthan Judiciary (RJS) Prelims preparation 

The Prelims is the entry stage for the Rajasthan Judicial Services Examination. The determinants on which candidates are judged in this stage are:

  1. Time management
  2. Legal Aptitude
  3. Hold on Hindi Language
  4. Hold on English Language
  5. Decision Making

There are some mantras that candidates can keep in mind for getting through the Prelims stage and coming out with flying colours:

  1. Habit of reading bare acts: Bare Acts must be thoroughly read by the candidates at the Prelims stage itself which can help them in the following stages as well. Since Prelims is the MCQ stage, it guarantees direct questions from the bare acts itself which helps the candidates score better.
  2. Reading between the lines: To attempt MCQs, it is very important to look for the minutest of the details. For this, the acts must be read with utmost precision. A detail oriented preparation will help candidates crack the Prelims effortlessly.
  3. Practice mocks: The more MCQs one practices, the better prepared he/she gets for the Prelims stage exam. This is because mocks help a person to manage time and help them practice in the same format of the exam which prepares the candidate for the d-day.
  4. Elimination method: We know that there is no negative marking in the Prelims stage of the Rajasthan Judicial Services Examination. Therefore, the candidates must attempt all the questions in the paper. It is important to go about with the elimination method when one doesn’t know the answer. This helps to make an intelligent guess in the MCQ format of the exam. The elimination method essentially means the trick to intelligibly eliminate each option in the question by putting in reasoning and arriving at a tentative guess of the option for marking as the answer to the question. This helps in making a guess even if a person is not sure of the answer.

Tips and tricks for Rajasthan Judiciary (RJS) Mains preparation 

After cracking the Prelims, the Mains stage of the Rajasthan Judicial Services Examination is to be given by the candidates. The candidates are evaluated on:

  1. Writing Skills
  2. Legal Knowledge and Aptitude
  3. Retention Power
  4. Creativity

The tips to stand out on the Mains stage are:

  1. Increase retention power: The Mains stage, as we know by now, is the subjective exam type paper, for which the candidates need to retain the law and provisions to gain better marks in the law papers.
  2. Think beyond bare acts: For preparation in the Mains stage, candidates need to study beyond the bare acts. They should read commentaries and other books which explain a concept in detail along with the case law references so that they can write a meaningful subjective answer in the Mains law exams.
  3. Practice essay writing: Candidates often take law subjects seriously and ignore the essay writing as they think they can write and handle the same. However, they should not do this. One should practice essay writing as it helps form the flow of thoughts, which helps the brain function on the final day.
  4. Practice writing long answers: Studying a concept is different from attempting to write answers to the questions asked. Therefore, as mocks or as part of practising past year question papers, candidates must practice the same by writing their own answers by putting timers so that they can practice writing in a time-bound manner. Practising this helps the candidates on the final day.

Tips and tricks for Rajasthan Judiciary (RJS) interview preparation

When a candidate gets through the Mains stage of the Rajasthan Judicial Services Examination, the last and the final stage left is the interview stage. The interview stage is the mixture of questions such as law questions, general awareness, intersection of law and current affairs, Rajasthani culture and traditions and other related and incidental topics.

Following are a few important things to remember while sitting for an interview:

  1. Ability to hear the question: It is often noticed that people when they think that they know about a particular subject/question put up to them, they rush to answer without letting the other person complete his / her question. This leaves a very bad impact on the interviewers and reflects on the personality of the candidate. Therefore, one should always let the interviewer complete his / her question or sentence before jumping to the answer or replying to the same.
  2. Staying calm: Nervousness before such a big stage of a career is an ingredient which is natural in the recipe for competitive exams. However, being strong and confident is very important for the portrayal of a balanced personality. Therefore, a candidate should always strive to be calm and composed in front of the interviewers.
  3. Understanding the thin line between confidence and overconfidence: The candidates in the interview round should not try to overcompensate for the nervousness they feel. It is often seen that candidates try to pretend to be confident and end up presenting themselves as over-confident. This gives a bad impression on the panel of interviewers and can be detrimental to their interview marks.
  4. Being truthful: When a candidate tries to be pretentious, it is very well grasped by the panel of interviewers. When a candidate does not know a particular answer, he/she must never try to mislead the panel of interviewers, rather he/she should be confident enough to accept the same. Not only this, but the ability to bail oneself out of such a situation is what buys brownie points to a candidate.
  5. Lead the panel of interviewers: The candidates should curate their answers in such a manner which initiates a question out of it. It is a skill which should be practised by the candidates and learned to ace the interview. This way one can lead from the front and channel their interview in an efficient manner.

Frequently Asked Questions (FAQs) on Rajasthan Judiciary (RJS) exam

Is there any fixed pattern which is required to follow for the preparation of Prelims?

No. The preparation for Prelims is undertaken as per the paper pattern which is notified in the notification for the exam every year. Since, the Prelims stage is a multiple choice question type stage, the preparation is done accordingly as per one’s own study pattern which suits them. There is no set number of hours or schedule as capability of each candidate varies and requires a different strategy to crack the exam.

Can the marks of Prelims secured by me be carried forward for another attempt or it expires in each attempt?

The marks in each stage of the Rajasthan Judicial Services Examination expire in each attempt and are NOT carried forward in any circumstance. Therefore, even if you crack the Prelims and move to the Mains stage in one attempt, but somehow fail to crack the Mains subsequently, then next year if you wish to sit for the Rajasthan Judicial Services Examination, you have to again sit for all the stages starting from the Prelims and thereafter advance accordingly.

How many months before should I start preparing for the Prelims?

There is no standard answer to this question. However, candidates must keep this in mind that preparation for the Rajasthan Judicial Services Examination people cannot just prepare in a few months. It should be a proper study plan with not just Prelims stage in mind but as a whole including all three stages together. Please refer to the section of the article which mentions the strategy for preparation for detailed guidance.

Is coaching important for successfully cracking the Rajasthan Judicial Services Examination?

It is advisable to take coaching or classes so as to ensure consistency in preparation.. It is advisable to enroll in a course or coaching to prepare for the Rajasthan Judicial Services Examination. It gives a systematic approach towards the syllabus and creates a regularity in preparation. Furthermore, it can be a tedious job for oneself to handle the pressure of a voluminous syllabus. Not only this, law is a subject where amendments also take place regularly. Keeping track of these amendments. That too of a voluminous legal syllabus as in judicial services examinations, is a very tedious job with chances of missing something or the other. Therefore, guidance is advisable to be taken in order to keep track of the changed and updated status of laws. 

This, however, cannot be taken as universal advice, as people have different abilities and calibres. The advice given is only based on a popular opinion and after coming across the difficulties faced by the candidates actually pursuing or have pursued the preparation of the judicial services examination in the past.

Is there any limit on the number of attempts that a candidate can sit for in the Rajasthan Judicial Services Examination?

No, there is no limit in terms of the number of attempts, directly. However, there is an age bar for sitting in the Rajasthan Judicial Services Examination which is mentioned hereinabove in this article. This age bar is also different for different categories.


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An overview of corporate taxation

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This article has been written by Navya Raghunath Srivastav pursuing a Diploma in Corporate Law & Practice: Transactions, Governance and Disputes course from LawSikho.

This article has been edited and published by Shashwat Kaushik.

Introduction

India is one of the fastest-developing countries, and so it is home to the biggest business houses. According to the World Bank reportEase of Doing Business Report, 2020,” India ranked 63rd among 190 countries. India’s trade-friendly policies not only attract corporations for investments but also for doing business. The biggest companies in the world are opening their offices in India. Apple, known for its electronic items like mobile phones, Macbooks, etc., has opened its office in Bangalore, India. These business ventures earn profit in India, as the Indian market is very diverse and large.

Companies are legal persons under company law. Each individual has a legal duty to pay tax to the government, and so do companies, which have a legal as well as a moral responsibility to pay taxes to the government of India out of the company’s income. The Income Tax Act of 1961 makes it compulsory for companies, whether domestic or international, to pay income tax.  

 The question will arise as to why the Indian government allows foreign companies to set up their offices in India. The answer is very simple. The government earns capital from these companies for setting up any company, and to run it, companies are levied several types of taxes, from which the Indian government earns revenue. This income tax is a major source of revenue for any country.

Corporate taxation : an overview

Corporate taxation can be defined as a process by which the government collects taxes from business entities operating in a country, whether foreign or domestic. The government levies taxes on companies, which companies have to pay out of their income. Section 2(13) of the Income Tax Act, 1961, defines business as “any trade, commerce or manufacture or any adventure of concern in the nature of trade, commerce or manufacture.” Thus, business has a wider aspect and is not limited to certain activities. Also, under Section 2(17) of the Income Tax Act of 1961, corporations will include each company, whether incorporated inside India or outside India, under foreign rules and regulations. 

In India, each company, whether private or public, that is registered under the Companies Act of 2013 comes with the ambit of a tax payee and it is mandatory for the companies to pay taxes. Corporate tax is different from personal tax, as the former government levied tax on any company or firm and it is the primary source of the government’s income. In the latter, the government imposes a tax on personal salary, income, or earnings.

For national companies, tax is levied on the income earned from within the country and also from outside but for non-national companies, tax is levied only on the income that is earned within the country but not from outside the country.

Determining taxable income

The government decides how much of the company’s income will be deducted and this depends on the income of the company. The corporate tax rate is the rate or percentage that is to be deducted from a company’s income. Based on income, companies are put in different tax slabs to avoid the burden of tax. There is a different tax rate for a domestic company, i.e., a company registered under the Companies Act, 1956 or 2013, that is controlled and managed wholly in India, and a foreign company, i.e., a company based outside India or any of its functions, that is operated from another country. The corporate tax rate is decided by the central government. The finance ministry annually decides tax rates in the annual budget.

The tax rate is applicable to the taxable income of the corporation. The taxable income of a company includes any profit or gain earned by the company during the previous financial year, the amount of interest and dividend earned by the company by treasury operations, earnings after the sale of any asset, i.e., capital gain, and also income earned from rent. All these incomes add up to calculate the taxable income of a corporation.

Taxable events

A taxable event is another source for levying taxes on any corporation. It is based on the happening of any business event or any transaction that results in the levying of taxes payable to the government. This event includes capital gain, selling of stock shares for the purpose of profit earning, receiving payment of dividends, etc.

Let’s delve into some common taxable events:

  1. Capital Gain: When a corporation sells an asset, such as property or stocks, for a higher price than its original purchase cost, it generates a capital gain. This gain is subject to taxation, and the amount of tax owed depends on the corporation’s tax bracket and the holding period of the asset. Short-term capital gains, realised from assets held for one year or less, are taxed as ordinary income, while long-term capital gains, realised from assets held for more than a year, benefit from lower tax rates.
  2. Sale of stock shares for profit: Corporations engaged in trading stocks may recognise taxable gains when they sell their shares at a profit. The difference between the selling price and the original purchase price constitutes the capital gain, which is subject to taxation. The tax treatment of these gains aligns with the rules for capital gains mentioned above, distinguishing between short-term and long-term holding periods.
  3. Dividend income: When a corporation receives dividend payments from its investments in stocks or mutual funds, these distributions are considered taxable income. Dividends represent a portion of the profits that a company shares with its shareholders, and they are subject to taxation at the corporate level. The tax liability for dividend income depends on the corporation’s tax bracket and any applicable tax credits or deductions.
  4. Other business transactions: Beyond the aforementioned events, various other business transactions can give rise to taxable events. For instance, if a corporation engages in the sale of goods or services, its revenue from these activities is subject to taxation. Similarly, interest income earned on investments or rental income from properties owned by the corporation is also taxable.

Transfer pricing rules

India has witnessed a web of corporations that are related to one another in one way or another. Some companies deal in the same commodity and transfer those to other companies; it can be a sister company or its holding company, etc. The price at which a good or service is transferred is known as the transfer price. This is used to represent the price value attached to a good or service. 

Tax reporting and compliance

Tax reporting is the process of filing documents about companies’ income, profit, revenue, etc., and other relevant documents. This process maintains the transparency of companies` revenue and transaction details. Tax compliance can be understood as adhering to legal provisions of taxation guidelines of a country, like sharing honest reports with authority, paying taxes on time, complying with the documentation process, etc. 

Tax treaties

A tax treaty is a bilateral treaty to avoid any conflict concerning double taxation. This is important when any corporation or individual has investments in a foreign country. India has signed tax treaties with various countries, including the USA, France, Australia, etc.

Double taxation occurs when the same income or asset is subject to taxation in two different jurisdictions. This can arise in various scenarios, such as when a corporation has operations in multiple countries or when an individual resides in one country but derives income from another. The implications of double taxation can be substantial, potentially leading to increased tax liabilities and a dampening effect on international investment and economic growth.

The role of tax treaties

Tax treaties are bilateral agreements between two countries that aim to eliminate or mitigate the occurrence of double taxation. These treaties typically outline specific rules and provisions that determine how taxing rights are allocated between the respective jurisdictions. They often include measures such as tax credits, exemptions, and reduced tax rates to ensure that taxpayers are not burdened with excessive taxation.

India’s tax treaty network

India has actively engaged in the negotiation and implementation of tax treaties with numerous countries worldwide. These treaties play a pivotal role in fostering trade, investment, and economic cooperation between India and its treaty partners. Some notable examples of countries with which India has signed tax treaties include the United States, France, and Australia.

Key provisions in tax treaties

The specific provisions included in tax treaties can vary, but some common elements typically encompass:

  1. Tax residency: The treaties define the criteria for determining the tax residency of individuals and corporations, ensuring clarity and consistency in tax assessments.
  2. Permanent establishment: The treaties establish the conditions under which a business or individual is considered to have a permanent establishment in a particular country, thereby triggering tax liability in that jurisdiction.
  3. Taxation of business profits: The treaties outline how business profits are allocated and taxed in each jurisdiction, often employing methods such as the arm’s length principle to prevent artificial profit shifting.
  4. Taxation of dividends, interest, and royalties: Specific rules are provided to address the taxation of dividends, interest payments, and royalty income, ensuring fair and equitable treatment for cross-border investments.
  5. Exchange of information: Tax treaties often include provisions for the exchange of information between tax authorities, promoting transparency and facilitating effective tax administration.

Goods and Service Tax (GST)

Goods and Service Tax (GST) is levied on consumers who use goods and services, though it is remitted to the government by the corporation whose goods and services consumers use. This tax is levied on consumers, and it collects all the taxes that were previously levied at each step and unifies the taxation system into a single tax between manufacturers and consumers.

Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) is a tax levied on those companies that remain unchecked under the tax slabs, i.e., those with income that is less than taxable income. This tax is levied to make those small companies pay tax. As per Section 115JB of the Income Tax Act of 1961, 15% of the booked profit of the company will become the minimum alternate tax that the company has to pay when its income is less than the required income to fall under the tax slab.

These legal provisions have made the Indian corporate taxation system more efficient and decreased the possibility of tax evasion.

Challenges

There are legal provisions relating to corporate taxation, though tax authorities have to face challenges during taxation. The changing dynamics of the corporate world and the introduction of globalisation have posed challenges for tax authorities. Cross-border trade and businesses create difficulty in assessing taxable income, as it creates multiple jurisdictions and multiple tax laws to be followed. 

The complexity of tax laws and the lack of experts pose obstacles to the legitimate calculation of taxable income. These complexities made it difficult to comply with the regulations. The tax codes are technical and difficult to understand.

Corporations use loopholes to minimise their taxable income and to evade tax and the transfer price is one of the means for such evasion. Globalisation has encouraged countries to invite corporations into their countries and to attract them, countries used to levy low tax rates, which in turn lessened the government’s revenue. The unorganised sector remains unaddressed by tax authorities, resulting in a loss in revenue for the government. 

Digitalisation has impacted the taxation system. With digitalization, it has become difficult to calculate actual income and undervalued figures are measured for taxation.

There are various other challenges to the collection of black money, undervaluation of companies’ earnings for tax evasion, forming sister companies to divide the expenses, using loopholes for evasion, etc. “A report by the State of Tax Justice stated that $10.3 billion, or 0.41 percent of the $3 trillion GDP, is lost in taxes every year to global tax abuse.”

Relevant case laws

There are a large number of cases that involve tax evasion. A few of them are given below:

M/S Bharat Commerce & Industries Ltd. vs. Income Tax Commissioner (1988)

In the above-mentioned case, the assessee has paid interest on the delayed payment of income tax, which he claims was a business expenditure. The honourable Supreme Court of India has firmly disallowed it. The Court decided that interest payable due to delayed payment of income tax will come under the ambit of the tax but not as expenditure as it was the result of non-payment of tax on time.

The Court’s ruling establishes a clear distinction between interest on delayed tax payments and legitimate business expenditures. While business expenditures are generally deductible from taxable income, interest on delayed tax payments is not. This distinction is significant because it ensures that taxpayers are not incentivized to delay their tax payments in order to claim a tax deduction.

The decision also underscores the importance of timely tax payments. By emphasising the non-deductibility of interest on delayed tax payments, the court reinforces the principle that taxpayers should fulfil their tax obligations promptly to avoid additional financial burdens.

Overall, the Supreme Court’s ruling in this case provides clarity and guidance on the tax treatment of interest on delayed tax payments, ensuring that such interest is not considered a deductible business expenditure. This decision helps maintain the integrity of the tax system by discouraging taxpayers from delaying their tax payments for financial gain.

Hingir Rampur Coal Co. Ltd vs. Commissioner Of Income Tax, Bomaby (1970)

In the above-mentioned case, during a riot by the workmen of a colliery, the manager suffered stab wounds and died of the injuries. The assessee, with the government’s consent, helped the state prosecute the offending workers in court by engaging a council to assist the state prosecutor. The assessee incurred a large amount in procuring such legal assistance.

The Bombay High Court held the expenses incurred by the assessee( employer) were for business so the expenses came under the ambit of revenue expenditure and were liable for deduction under Section 37(1) of the IT Act.

Conclusion

Corporate taxation is not only a complex but dynamic concept that varies with jurisdictions. Globalisation and digitalisation have posed challenges in front of them, though continual evolution in government policies has helped tackle the situation efficiently. The implementation of GST and promoting digital transactions are imposed by the Government of India to reduce the incidence of tax evasion. 

A strong and accessible taxation environment is profitable for any country’s revenue. India`s evolved tax regime has helped India become the fastest-developing country and 5th in terms of GDP. India`s attractive tax regime attracted investors and foreign companies, which boosted India’s economy.

The tax regime of any country is a beautiful tool to garnish a country with talented people and boost the country’s growth.

References

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Statute of limitations in contract claims : an overview

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This article has been written by Filma Varghese pursuing a Diploma in International Contract Negotiation, Drafting and Enforcement course from LawSikho.

This article has been edited and published by Shashwat Kaushik.

Introduction

A contract is a legally binding promise by one party to fulfil an obligation to another party to do or not to do a specific act. The Statute of Limitations (SOL) is applicable primarily to various general acts that set a time limit within which a legal claim must be filed. In the realm of contract claims, the SOL specifies a time limit within which a party can initiate legal proceedings to enforce a contract or seek damages for breach of contract.

What is the limitation period and what do contract claims entail

The limitation period sets a timeline for the claimant to bring a claim against a defendant. It is the time frame for initiating legal proceedings by the contracting party or an aggrieved party, due to the actions of another party, to initiate a legal claim. By setting clear boundaries, the limitation period helps maintain efficiency and fairness in the resolution of legal matters.

The concept of the limitation period is rooted in the idea that justice delayed can be justice denied. Over time, evidence may become harder to gather, memories may fade, and witnesses may become unavailable, potentially compromising the integrity of a legal case. To prevent such situations and ensure the preservation of evidence, the law imposes a time limit on bringing claims.

The duration of the limitation period can vary depending on the jurisdiction and the nature of the claim. It is typically calculated from the date on which the cause of action arises, which may be the date of an accident, breach of contract, or other legally cognizable wrong. Different types of claims may have specific limitation periods, such as personal injury, property damage, or contractual disputes.

It is essential for individuals to be aware of the applicable limitation period for their specific claim to avoid missing out on their legal rights. Failure to file a claim within the prescribed time frame can result in the claim being time-barred, which means it will no longer be legally enforceable. This emphasises the significance of seeking legal advice promptly to ensure that claims are filed within the appropriate time frame.

A contract claim results from a breach of contract when one party alleges that the other party has failed to perform or not satisfactorily performed their obligations under the contract.

Understanding of limitations in contract claims

For a contractual claim, it is necessary to show a breach. A breach of contract occurs if the rights of one party under a contract are breached by any of the other parties; the wronged party then has the legal right to compensation, which may include damages and cancellation. The running of time for a contractual claim usually starts on the day on which the breach occurs, regardless of whether the claimant is aware of the breach or the damages they have suffered.

Applicability of limitations in contractual claims in India

Applicable law

The Limitation Act of 1963 governs the time limits for bringing legal action. This Act applies to all civil proceedings and arbitrations, and it outlines specific time periods for various types of suits and actions. These time limits are listed in the Schedule to the Act.

One important aspect of the Limitation Act is its applicability to claims arising under the Indian Contract Act of 1872. The Indian Contract Act governs the formation and enforcement of contracts in India, and it sets out the rights and obligations of parties to a contract. The Limitation Act provides specific time limits for filing lawsuits or taking other legal actions to enforce contractual rights or seek remedies for breaches of contract.

For instance, according to the Limitation Act, a suit for breach of contract must be filed within three years from the date on which the breach occurs. Similarly, a suit for the recovery of money due under a contract must be filed within three years from the date on which the money becomes due.

It’s worth noting that the Limitation Act may provide for different time limits for different types of contractual claims. Additionally, there are certain exceptions and circumstances that may extend or modify the applicable limitation period. It is crucial to consult with a legal professional to determine the specific limitation period applicable to a particular contractual claim.

Overall, the Limitation Act of 1963 plays a vital role in ensuring that legal actions are brought within a reasonable timeframe, promoting the efficient administration of justice and preventing unnecessary delays in the resolution of disputes.

Prescribed period for contractual claims 

Under normal circumstances, the Indian Limitation Act of 1963, under Section 14 of the Limitation Act, provides that a claim for breach of contract must be made within three years from the date of such breach. In India, in view of the wording of Section 3, there cannot be any extension of time by agreement of the parties. Under Section 9 of the Limitation Act, once time has begun to run, no subsequent disability or inability to sue stops it.

Exceptions to the general rule

There are certain circumstances in which the limitation period does not apply. Sections 17, 18, and 19 of the Limitation Act of 1963 and Section 25(3) of the Indian Contract Act provide exceptions to the general rule. These instances are explained below:

Fraud or mistake

Section 17 of the Limitation Act of 1963 protects creditors who have been wronged by debtors by fraud, mistake, or concealment of facts. In such cases, the limitation period is extended until the creditor discovers  the fraud, mistake or concealment of facts.  

Here are instances illustrating the application of Section 17: 

A debtor induces a creditor to sign a contract by making deceptive promises about the debtor’s financial situation. The creditor discovered the fraud later on and filed a lawsuit. Even though the usual time limit has elapsed for filing the lawsuit, the court could potentially extend the time limit under Section 17.

If a debtor makes a mistake on a bill, causing the creditor to overpay, and the creditor only discovers the mistake after the regular timeline for filing a lawsuit has passed, Section 17 may provide a basis for the creditor to pursue the legal action.

A debtor conceals that they have filed for bankruptcy from a creditor. If the creditor uncovers this fact after the usual time limit for filing a lawsuit has expired, Section 17 may provide a basis for the creditor to initiate legal proceedings.

Acknowledgment in writing

Section 18 of the Limitation Act of 1963 provides for an extension of the limitation if the defendant acknowledges the dues in the existing contract and expresses a willingness to perform its obligations. The limitation period can be extended from the date of the acknowledgment. In this case, the new limitation period will start from the said date of acknowledgement. 

An agreement to resolve a dispute through arbitration and the subsequent award is deemed an acknowledgment of the debt. This acknowledgement doesn’t establish a new right but merely prolongs the limitation period. An acknowledgment does not create a new right; rather, it extends the limitation period. The creditor seeking extension must act in good faith, and the onus lies on the creditor to prove that the acknowledgement was made within the stipulated time.

Acknowledging the existing contract doesn’t renew the contract and therefore differs from a novation of contract under Section 62 of the Contract Act. Consequently, a time-barred debt cannot be revived simply through acknowledgment; instead, it requires a new contract, specifically a promise to pay under Section 25(3) of the Indian Contract Act, 1872. 

Payment on account of debt or of interest on legacy

Section 19 of the Limitation Act of 1963 provides for the extension of the limitation period in which the debtor makes part payment of debt or interest before the expiry of the limitation period.

Continuing breach

Section 22 of the Limitation Act states that in cases of continuing breach, the claimant gets a new cause of action for every breach. A fresh period of limitation will only arise where the source of legal injury is continued. In M. Siddiq v. Suresh Das (2020), the Supreme Court has distinguished between a “continuing wrong” and a “continuing injury,” clarifying that in the case of a continuing injury, the damage resulting from a wrongful act may continue, but the same does not avail the plaintiff the right to seek recourse under the section.

Time limits in agreements

The Indian Contract Act’s Section 28 deals with agreements that try to limit the time frame for filing legal proceedings. It states that any agreement that sets a shorter time limit for initiating a lawsuit than the one prescribed by the Limitation Act is considered invalid.

The Limitation Act is crucial legislation that establishes the time limits within which legal actions must be commenced. It aims to prevent unnecessary delays in the justice system and ensure that disputes are resolved promptly. By setting a standard time frame for filing lawsuits, the Limitation Act promotes efficiency and discourages parties from deliberately prolonging legal proceedings.

Section 28 of the Contract Act recognises the importance of the Limitation Act and seeks to uphold its provisions. It declares that agreements that attempt to shorten the limitation period are legally unenforceable. This provision serves to safeguard the rights of individuals by ensuring that they are not deprived of their legal remedies due to restrictive agreements.

The rationale behind Section 28 is to prevent parties from contracting out of the Limitation Act’s provisions. Allowing such agreements would undermine the purpose and effectiveness of the Act, leading to potential injustice and a lack of uniformity in the legal system. By rendering such agreements invalid, Section 28 upholds the principles of fairness, equity, and access to justice.

It is essential to note that Section 28 does not apply to agreements that extend or modify the limitation period. Parties are free to enter into agreements that extend the time frame for filing a lawsuit, provided they adhere to the guidelines set forth in the Limitation Act. However, any attempt to shorten the limitation period will be deemed invalid and will not be recognized by the courts.

Expiry of the limitation period

A contract claim that is filed after the expiration of the SOL is considered time-barred, precluding its enforcement in a court of law. The defendant can raise a plea of statute of limitations as a defence to the claim, rendering the claim unenforceable. 

Rationale for limitation periods 

The purpose of limitation periods is to prevent legal claims from being brought too long after the cause of action has accrued. The reasons for limitation periods are to protect the defendants from stale claims and encourage prompt action by claimants, as the evidence becomes less reliable over time and memories fade, making it difficult for a defendant to defend themselves effectively. 

Limitations provide a sense of finality, ensuring that disputes are resolved within a reasonable timeframe. 

Why is limitation in litigation important?

Where a party has a strong case but the limitation period has expired, the claim will be likely to fail. Even in unusual circumstances, where a party is prevented from issuing its claim in time for reasons beyond its control, the court has no discretion to extend the limitation period for this type of claim. It is, therefore, crucial that limitation issues are considered at the outset of any potential claims. However, it should be noted that, when a debt becomes time-barred, it does not become extinguished but only unenforceable in a court of law.

Case laws

There are numerous cases in India that have dealt with the application of the SOL in contract claims. A very few have been mentioned below:

In the case of Syndicate Bank vs. Channaveerappa Beleri and Ors. (2006), the Supreme Court ruled that if a guarantee agreement specifies payment upon demand,. The limitation period starts when the demand is made and the guarantor commits a breach by not complying with the demand.

In the case of Dena Bank (now Bank of Baroda) vs. C. Shivakumar Reddy (2020), the Supreme Court emphasised that acknowledgment of a debt in a company’s balance sheet extends the limitation period.

The Hon’ble Delhi High Court in Kotak Mahindra Bank Ltd. vs. Anuj Kumar Tyagi (2015), observed that: “the period of limitation would, though, commence from the date of the last defaulted EMI, which is made the subject matter of the notice and not from the date of the notice itself.”

Conclusion

The Limitation Act of 1963 provides definite timeframes for filing appeals and initiating legal proceedings for all civil proceedings and arbitrations, including claims arising under the Indian Contract Act, 1872. The essence of this Act revolves around the notion of imposing strict time limits to encourage diligence in pursuing legal action. Parties who fail to initiate legal action within the statute of limitations may find themselves barred from asserting their claims. Parties to a contract should be mindful of the statute of limitations and safeguard their rights within the prescribed timelines. Once the statutory limitation period expires, courts are generally reluctant to revive claims.

References

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Section 164 CrPC : examination of a witness

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Character Evidence

This article was written by Sushant Pandey and further updated by Pujari Dharani. This article explains the step-by-step procedure laid down in Section 164 of the Code of Criminal Procedure to record the confessions and statements and answer all questions surrounding them.

It has been published by Rachit Garg.

Table of Contents

Introduction 

Section 164 of the Code of Criminal Procedure, 1973 (hereinafter mentioned as “CrPC”) deals with the powers available to a Judicial Magistrate or Metropolitan Magistrate with respect to the recording of confessions and statements. This provision is mentioned under chapter XII of the Code, namely, information to the police and their powers to investigate. This provision provides a detailed procedure that has to be followed by the competent Judicial Magistrate while recording confessions and statements during the course of investigations. The whole object of prescribing such a procedure is to ensure that the person who is making a confession or giving a statement is doing so freely and voluntarily, without any coercion or undue influence.

What is a confession

Confession is the admission of guilt, stating or suggesting an inference as to guilt by an accused made in custody. According to Justice Stephen, a “confession”, is an admission made at any time by a person charged with a crime stating or suggesting the inference that he committed that crime.

In State (NCT of Delhi) v. Navjot Sandhu (2005), the apex court observed that confessions are considered highly reliable because no rational person would make an admission against himself unless prompted by his conscience, to tell the truth. For more (see here).

What statements may be called a confession

A confession is a statement made by the accused admitting his guilt. Thus, if the maker does not incriminate himself, the statement will not be a confession. Further, a mixed statement which even though contains some confessional statements will lead to acquittal is no confession. Thus, a statement that contains self-exculpatory matter which is not true would negatively the offence and cannot amount to a confession. This is so because a confession must either be  as a whole or rejected as a whole, and the court is not competent to accept only the inculpatory part and reject the exculpatory part (statement of self-defence).

Statements recorded by Magistrate under Section 164 CrPC

Need for recording

The need for recording statements of a witness under section 164 of the code is two-fold:

  1. To deter witnesses from changing their versions subsequently: and
  2. To get over the immunity from the prosecution in regard to the information given by the witness under section 162 of the code. Another reason for recording statements of witnesses under section 164 of the code is to minimize the chance of changing the versions by the witness at the unit under the fear of being involved in perjury.
  3. If the statement made by any witness was recorded immediately after the incident occurred, such a statement has more evidentiary value as it is deemed to be more trustworthy compared to later narrations made by a witness.

Types of confession under Section 164 CrPC

There are broadly two types of confession, namely, judicial confession and extra-judicial confession. Judicial confessions are those confessions that are either made before a qualified Magistrate or in front of the court during trial proceedings, whereas extra-judicial confessions refer to those made outside the court, i.e., not before the Magistrate or Court.

Therefore, judicial confessions are made by the accused person before the Judicial Magistrate during the investigation or before the Jurisdictional Magistrate in the court proceedings. Section 164 of the CrPC deals with the former instance, that is, those confessions made during the course of the investigation.

Legal provisions under Section 164 CrPC

Section 164 CrPC talks about the statements recorded by the Magistrate:

Sub Section (1) authorizes the Magistrate to record the statement of a person or his confession, no matter whether he possesses jurisdiction in the case. If he does not possess such jurisdiction Sub Section (6) will apply. The word statement is not limited to a statement by a witness but includes the accused and not amounting to a confession.

Sub Section (1) states that: any Metropolitan Magistrate or Judicial Magistrate may, whether or not he has jurisdiction in the case, record any confession or statement made to him in the course of an investigation under this chapter or any other law for the time being in force, or at any time afterwards before the commencement of the inquiry or trial.

From the afore-mentioned Sub-Section (1) of Section 164 of the CrPC, it is understood that the provision instructs the competent Magistrate to record any confession or statement only during the course of an investigation or afterwards, but before the beginning of an inquiry or trial. In Re: Yendra Narasimha Murthy v. Unknown (1965), the High Court of Andhra Pradesh held that the confession should not be considered valid evidence if it is recorded by the Magistrate when there is no investigation carried out by police or charges framed against the person who made a statement before the Magistrate.

Warning under Section 164 Subsection 2 CrPC

Sub Section (2) of Section 164 mentions a warning. Under the statutory provision, the Magistrate is first required to explain to the accused that he was not bound to make a confession and that he did so, it might be used against him. This is the sine qua non for recording confession. The other mandatory requirement is that the Magistrate must put questions to the accused to satisfy himself that the confession was a voluntary so as to enable him to give the requisite certificate under Sub Section (4). The Magistrate cautioned the accused that he was not bound to make a confession, but did not put questions to the accused to satisfy himself that the accused was making a confession voluntarily.

In Mahabir Singh v. State of Haryana (2001), the court observed that Where the Magistrate failed to explain to the accused that he was not bound to make the confession and that if he did so, such confession might be used as evidence against him, that confession so recorded, cannot be taken into consideration.

Sub-section (2) also provides at the end that the Magistrate, who is recording the confession, has reason to believe that the accused is voluntarily giving such a confession. In this context, the meaning of the phrase “has reason to believe” is that the Magistrate must perceive and believe that the accused confessed voluntarily with a very high degree of expectation fulfilled with reason, a deep-rooted satisfaction and free from all doubts. In Chandran v. State of Tamil Nadu (1978), the Supreme Court did not take into consideration the memorandum in which the Magistrate, a judicial officer, advisedly chose to use the word “hope”, instead of “believe” because he was not fully convinced that the confession had been voluntarily made and his mind was troubled by suspicion and doubt as to the voluntariness of the confession. In view of this, the retracted confession should be excluded from consideration. Thus, the confidence of the Magistrate in the voluntariness of the accused’s confession is much more significant.

The Magistrate must satisfy himself that no pressure or force was used on the accused who makes the confession. Any mark of the person of the accused to vitiate the voluntary character of the confession. When was held not only inadmissible under the section but it could not be used under the other provisions of the Indian Evidence Act, 1872 such as Sections 21 and 29

Bar against police pressure

Sub Section (3) guarantees that police pressure is not brought on the person who is unwilling to make a confession. Where the accused was in judicial custody for more than 2 days prior to the giving of confession it was held by the Gauhati High Court in the case of Debaru Hemram @ Bohira Hamron v. The State of Assam (2019) that the period is sufficient to shed fear and influence of the police, if any and therefore the confession could be made voluntary by the accused.the interval between preliminary questioning and recording of the confession need not necessarily be 24 hours duration. A confession was held not to be rejected merely because the Magistrate had failed to assure the accused that he would not be sent back to police custody in the event of his failure to make the confession.

Manner of recording confessions, signatures, etc

The manner in which confessions are to be recorded under Section 164 of the CrPC is different, and more care has to be taken by the Judicial Magistrate when compared with the recording of statements. The reason why the procedure for recording confessions is more elaborate is to ensure that confessions are freely and voluntarily given and recorded accurately.

Sub Section (4) says that the confession should be recorded in a manner provided under Section 281 and shall be signed by the person making it. The Magistrate shall then make the memorandum at the foot of such confession. The Magistrate cannot merely sign a printed instruction supplied to him. This will be violative of this section. The confession which was made voluntarily and recorded correctly in a different language can be said to have amounted to an irregularity. The entire confession must be brought on record. The confession must be shown to be voluntary before it can be acted upon.

The provision instructs the Magistrate to mention in the memorandum that he or she gave an afore-mentioned warning to the accused that he is not obligated to confess and should give voluntarily. However, by virtue of Section 29 of the Indian Evidence Act, 1872, the record of the confession will be admissible even if the Magistrate did not give a warning, provided that the court inquiring on it has to satisfy that the accused person has knowledge that there is no compulsion on him to make a confession and that it was absolutely voluntarily and according to his will and wish.

In addition to this, the provision also requires the accused person to sign the memorandum. Nevertheless, apparently, it is neither obligatory to record the satisfaction of the Magistrate nor to take the signature of the accused in the memorandum. For instance, in the case of State of Rajasthan v. Darbara Singh (2000), the application for recording confession was signed by a police officer instead of the accused. However, the Rajasthan High Court held that the value of the confession would not be reduced just because it was recorded by the Magistrate at the request of the police officer. Further, the Court said that it is immaterial on whose request the confession was recorded;   it is important to examine whether the Magistrate followed all the procedures that are mentioned in Section 164 of the CrPC before such a confession is recorded.

It is necessary that the confession should be signed by the accused. If it is not, will be admissible in evidence, the commission will not vitality the confession and the irregularity is curable under Section 463. The attestation of the accused is unnecessary when a confession is made in court to the officer trying the case at the time of trial.

The confession without a memorandum that it is voluntary is bad in law and cannot be admitted in evidence.

Manner of recording statements other than confession

In Section 164(5) of the CrPC, one can find the manner in which the Magistrate has to record the statement of the accused or any other witnesses. It states that the procedure, which is followed for recording evidence under Section 272 to 299 of the CrPC, should also be followed by the Metropolitan Magistrate or any other Judicial Magistrate for recording the non-confessional statement, during an investigation or anytime before the trial has begun. This provision also conferred the Magistrate with the power to administer an oath before a statement is recorded.

Recording the statement of a rape victim

Sub Section 5A was inserted in the CrPC in the year 2013 because of the recommendation made by a Committee chaired by J.S. Verma. The Section reads as a mandatory provision for recording the statement of the prosecutrix under Section 164(5A) of the CrPC by the Magistrate when the offence in question falls under Section 354, Section 354A, Section 354B, Section 354C, Section 354D, Section 376(1) or 376(2), Section 376A, Section 376AB, Section 376B, Section 376C, Section 376D, Section 376DA, Section 376DB, Section 376E or Section 509 of the Indian Penal Code, 1860.. As soon as the crime is brought to the knowledge of the police officer, he is dutybound to take the victim to the nearest Judicial Magistrate for recording her statement. The victim approaches the court for recording her statement being distressed and aggrieved with the attitude of the investigating agency. Thus, it is the duty of the Magistrate to record her statement. Any professional, like interpreters or special educators, can assist the Magistrate in recording her statement, which will be videographed. This obligation on the part of the police officer is also mentioned under Section 154(1)(c) of the CrPC. For more click here.

Transfer of confession or statement to Magistrate of jurisdiction

This Sub Section (6) states that the Magistrate recording a confession or statement under this section shall forward it to the Magistrate by whom the case is to be inquired into or tried.

Such a confession made by the accused or a statement made by the accused or witnesses that was recorded by a Magistrate shall, according to Section 80 of the Indian Evidence Act, 1872, be considered valid evidence, even if said Magistrate did not appear before the court as a witness during the trial or inquiry.

Step-by-step procedure for recording confession under Section 164 CrPC

Usually, the Magistrate will follow certain steps one by one while recording a confession from the accused. Those steps are as under:

Making the accused’s mind free from police influence

The Magistrate shall give a warning to the accused as mentioned under Section 164(2) of the CrPC before the confession is recorded. Thereafter, the Magistrate should give time and space to the accused to think and reflect on the same. In Sarwan Singh v. the State of Punjab (1957), the accused was unreasonably kept in police custody for four days and brought before the Magistrate to make a confession. The injured accused was given only half an hour to think about whether he had to make any confession, and the police officer was at the verandah of the Magistrate’s office. By considering all the aforesaid circumstances, the Supreme Court held that the confession is not voluntarily made on the ground that the accused has not been given enough time to think over the matter. The Court, further, said that there is no hard and fast rule to be followed by the Magistrate while recording confessions, but advised that the accused should be transferred to judicial custody 24 hours before the confessional statement is made so as to ensure that all possible pressure and influence from police is absent while recording the confession. If the Magistrate believes that the accused was trained or made a confessional statement under fear of the police, much more time should be given to him.

Knowing how the accused was treated in police custody

The Magistrate should inquire about the accused in order to know how he or she was treated by police officers in custody prior to recording the confession. The Magistrate shall also know from the authorities regarding the accused previous custody and future custody. The reason behind knowing the aforesaid details by the Magistrate, who is authorised to record confession, is to ensure that the police officer or any other person who was interested in proving the case of the prosecution is not exerting any undue influence or threatening the accused person to make a confessional statement. In the above-mentioned Sarwan Singh case, the Supreme Court mandated the Magistrates to enquire from those accused who possessed marks of injuries on him. In the case of Gurubaru Praja and Anr. v. The King (1948), Orissa High Court affirmed that “Magistrates should bear in mind that they have no jurisdiction to record until they satisfy themselves on making proper enquiries from the accused that he is making the statement voluntarily.

Removal of handcuffs, if any

If the accused is handcuffed, then the Magistrate should order the police personnel concerned to remove the same and ensure the accused is free from all possible influence that comes from the investigating officers. The Magistrate can also order the police officers to leave his office or court in order to create an atmosphere free from threat and influence for the accused to make a voluntary confession.

Remit the accused to judicial custody after recording a confession

Firstly, the Magistrate should ask whether the accused is willing to make a confessional statement or not. The accused have every right to accept or reject it. If he or she denies confessing, such a person should not be sent back to police custody, as per Section 164(3) of the CrPC, because the accused, in this case, has a greater threat of torture from police or any individual who wants the prosecution to prove the guilt of the accused. In these cases where the accused denies making a confessional statement,  the Magistrate should guarantee that he or she will be given all possible safeguards from such extraneous agents. Even in cases where the accused made a confession and the Magistrate recorded the same, he or she should be remitted to judicial custody, not police lock-up.

Knowing the reason behind the confession

It is well-known to everyone, including the accused, that the confession will go against him, as he or she may even be convicted based on the confession if made voluntarily and following all requirements mentioned under Section 164 of the CrPC. Even after knowing this fact, it would, usually, be most likely for an accused to make a confessional statement to the Magistrate. Hence, the Magistrate should ask all reasonable questions to the accused and know the reasons behind making a confession in order to maintain the voluntary character of the same. Furthermore, the Magistrate shall let the accused know about the substantial nature of the confession as evidence against him in the trial proceedings, even if he takes back the statement he made and pleads not guilty.

The confession shall include all the replies of the accused

The Magistrate, being a judicial officer, shall ask, by applying his judicial mind, all reasonable questions which are required to determine the voluntariness of the confession by the accused. All those questions should be recorded and noted in the confession itself. Thus, the record of confession shall include the questions asked by the Magistrate as well as the replies to those questions and the confessional statement of the accused. 

Language of the record of the confession

The record shall have, as far as possible, the same language in which the accused answered. If that is not possible, then the court’s language should be used. In earlier cases, the Magistrate should read over the contents of the record to the accused before signing it; and, in later cases, where the accused could not understand the language of the court, the Magistrate must translate into the language known to the accused and let him know what the record contains. The accused should also be at liberty to make changes or add more statements to the same.

Memorandum at the end of the confession

Whatever procedure has been followed by the Magistrate, the accused, as per Section 164(4) of the CrPC, should sign the record of the confession. After this, the said provision instructs the Magistrate to make a memorandum at the end of the record of the confession in the following format:

I have explained to (name) that he is not bound to make a confession and that, if he does so, any confession he may make may be used as evidence against him and I believe that this confession was voluntarily made. It was taken in my presence and hearing, and was read over to the person making it and admitted by him to be correct, and it contains a full and true account of the statement made by him.

(Signed) A. B. 

Magistrate”

Furthermore, as mentioned before, if the language of the accused is practicable to be used in the record of the confession, the Magistrate uses such language. But if the Metropolitan Magistrate is the one who is recording the confession, the contents of the memorandum should be in the language of the court, not the language of the accused, as mandated in Section 281(1) of the CrPC.

Putting things simply

  • The statement of an accused though recorded in the presence of the Magistrate but not in accordance with the provision of Section 164 CrPC is inadmissible in evidence.
  • A Magistrate has the discretion to record or not to record a confession. If he elects to record it, this is section requires him to comply with four provisions:
    • It should be recorded and signed in the manner provided in Section 281 and then forwarded to the Magistrate concerned.
    • He should give a statutory warning that the accused is not bound to make a confession.
    • He should be first satisfied that it is being made voluntarily,
    • He should add a memorandum at the foot of the confession.
  • Thus it is sufficient if before commencing to record the confession, a Magistrate puts the necessary questions required by that section to the accused and it is not mandatory that he should keep on repeating those questions to him after every break in the recording of a long confession.

Are the recorded statements a public document

Statement recorded by a Judicial Magistrate or Metropolitan Magistrate under Section 164 CrPC, is a public document under Section 74 of the Indian Evidence Act,1872. This evidence is admissible under Section 80 of the Indian Evidence Act, 1872. In Guruvind Palli Anna Roa & Ors. v. State of Andhra Pradesh (2003), the Hon’ble High Court held that” The statement of witness recorded under section 164 Crpc, is a public document which does not require any formal proof and there is no necessity to summon the magistrate who records the same.”

SC principles for Section 164 CrPC

In Rabindra Kumar Pal alias Dara Singh v. Republic of India (2011), the Supreme Court of India laid down the following principles:

  1. The provisions of Section 164 Cr.P.C. must be complied with not only in form but in essence.
  2. Before proceeding to record the confessional statement, a searching enquiry must be made from the accused as to the custody from which he was produced and the treatment he had been receiving in such custody in order to ensure that there is no scope for doubt of any sort of extraneous influence proceeding from a source interested in the prosecution.
  3. A Magistrate should ask the accused as to why he wants to make a statement which surely shall go against his interest in the trial.
  4. The maker should be granted sufficient time for reflection.
  5. He should be assured of protection from any sort of apprehended torture or pressure from the police in case he declines to make a confessional statement.
  6. A judicial confession not given voluntarily is unreliable, more so, when such a confession is retracted, the conviction cannot be based on such retracted judicial confession.
  7. Non-compliance with Section 164 Cr.P.C. goes to the root of the Magistrate’s jurisdiction to record the confession and renders the confession unworthy of credence.
  8. During the time of reflection, the accused should be completely out of police influence. The judicial officer, who is entrusted with the duty of recording confession, must apply his judicial mind to ascertain and satisfy his conscience that the statement of the accused is not on account of any extraneous influence on him.
  9. At the time of recording the statement of the accused, no police or police officer shall be present in the open court.
  10. Confession of a co-accused is a weak type of evidence.
  11. Usually, the Court requires some corroboration from the confessional statement before convicting the accused person on such a statement

Who is a qualified person for recording statements under Section 164 CrPC

According to Section 164(1) of CrPC, Judicial Magistrate or the Metropolitan Magistrate, whether or not having jurisdiction in the matter can record the confession or statement made to him in the course of the investigation. The proviso added to the Subsection also removed those confessions recorded by a police officer in whom any power of magistrate has been conferred under the law for the time being in force. Hence only a judicial magistrate or Metropolitan Magistrate has the power to record the statement under section 164 of the Code.

From Section 164(1) of the CrPC, we can infer that the competent person to record the confession of the accused or statement made either by the accused or witness is a Metropolitan Magistrate or a Judicial Magistrate, not an investigating officer, irrespective of whether the Magistrate has jurisdiction in the said matter. Besides this, an Executive Magistrate or any other Magistrate, who is not empowered under Section 164(1) to record confessions or statements is not allowed to record them. Even if such Magistrate recorded confessions or statements, those cannot be adduced as evidence before a court of law, and, also, the oral evidence of the said Magistrate to support the confession of the accused is not admissible in the trial proceedings. Moreover, the Supreme Court, in State of Uttar Pradesh v. Singhara Singh and Ors. (1964), said that when particular officers like the Judicial Magistrate First Class are empowered to record confessions or statements under Section 164, such powers have to be performed only by those officers. If a Judicial Magistrate Second Class records, the same must be inadmissible.

For the Union Territories of Andaman and Nicobar Islands, Dadra and Nagar Haveli, and Lakshadweep Islands, there is a variation in the law for recording confessions or statements. A provision, i.e., Sub-Section (1A), was added after Sub-Section (1) of Section 164 in 1974. The provision gave relaxation to the above-said rule and allowed Executive Magistrates to record the confession, provided the following conditions were fulfilled:

  1. Any Judicial Magistrate qualified to record the confession was absent for the time being;
  2. The State Government opines that recording the confession of a particular accused is necessary and expedient;
  3. After consulting the High Court which has jurisdiction to deal with the matter, the State Government shall confer powers, which are mentioned under Section 164(1) of the CrPC, to an Executive Magistrate, not a police officer, to record the confession of a particular accused.

Discretionary power of the Magistrate under Section 164 CrPC

If a police officer requests a Magistrate to record a statement from any witness, such a Magistrate is not obligated to do it. The Magistrate has full discretion to record statements under Section 164 of the CrPC, and his denial will not affect the fair trial and principles of natural justice because the Magistrate should apply his or her judicial mind when deciding upon this matter, and if he does not satisfy himself on voluntariness or veracity of the statement, he can deny recording the same. The Supreme Court, in Jogendra Nahak and Ors. v. State of Orissa and Ors. (1999), cautioned those Magistrates to be vigilant enough when accepting to record, under Section 164, any statements of the witness who approached without an investigating officer, because such witnesses may be sent by the accused in order to use them as defence witnesses. However, it does not mean that the Magistrate can refuse to record the confession, even in cases where he has reason to believe that the circumstances and statements of the accused are genuine and credible.

Where can a confession be recorded

Nowhere in the CrPC is it mentioned as to where and at what time the Magistrate shall record the confession made by the accused. However, the confession will, normally, be recorded by the Magistrate in the open court and during court hours. However, there is no hard and fast rule regarding the venue for recording the confession. The most essential requirement is to ensure that the confession is free and voluntary. If the accused freely and willingly made the confession in jail, they cannot deny the same. For instance, in the case of Hem Raj v. the State of Ajmer (1954), the Supreme Court made the confession of a prisoner admissible even if it was recorded in jail because it was voluntarily made and no threat was inflicted by anyone on such a prisoner.

Form of recording a confession

Delhi High Court has prescribed the proper format for writing down the confession. For more click here.

Evidentiary value

According to Section 25 of the Indian Evidence Act, 1872, any confession made by an accused before a police officer cannot be used as evidence against the accused in a court of law. Hence, it is said that a confession made to a police officer is inadmissible as evidence in court. Not only confessions but also statements made by the accused or witness and recorded by the police officer during the investigation cannot be adduced as evidence before courts. Such restrictions were made in the provisions of the CrPC because the police personnel in India are not yet considered trustworthy. If the police officers are empowered with recording confessions or statements and using them against the person who made them, it is believed that such officers are more likely to misuse the power and even go to the extent of extorting or fabricating the confessions and manipulating the statements while exercising their power. Therefore, the CrPC came with a provision, Section 164, in which not the investigating officers but the Judicial Magistrates are empowered to record the confessions and statements made during the stage of the investigation.

Furthermore, any confession which was duly recorded by the Judicial Magistrate by following the procedure mentioned in Section 164 of the CrPC, can be adduced as substantive evidence before the court. Even if the Judicial Magistrate, who recorded such a confession, is not called as a witness for formally proving it by making a statement before the court during the trial of the accused, the record of such a confession is admissible as evidence. The rationale behind this was stated under Section 80 of the Indian Evidence Act, 1872. This section mandates that the court should presume that records of confession or statements produced are genuine, that the circumstances under which such statements are made are true, and that the same was duly recorded by the Judicial Magistrate. However, such presumptions made by the court can be disproved by the defence counsel in a criminal case.

Besides this, a non-confessional statement, which was recorded by the Judicial Magistrate as per Section 164 of the CrPC, cannot be used as substantial evidence. Nevertheless, the same statement can be adduced to corroborate or contradict his later testimony in court under Section 157 or Section 145 of the Indian Evidence Act, 1872, respectively, if the person who made such a statement was called a witness in the trial. However, a statement made by a woman victim recorded under Section 164(5A)(a) of CrPC can be used as an examination-in-chief, in accordance with Section 137 of the Indian Evidence Act, 1872 and the said woman can also be cross-examined regarding the said recorded statement.

What is the procedure to be followed while recording statements under Section 164 CrPC

The procedure to be followed while recording the statement is mentioned in Sub Section (5) of Section 164. This subsection states that any Statement (excluding confession) made under Sub Section shall be recorded in a manner hereinafter provided for the recording of evidence as is, in the opinion of the magistrate, best fitted to the circumstances of the case. The magistrate shall also have the power to administer an oath to the person whose statement is so recorded.

Delhi High Court while citing Punjab Government Circular Letter No. 6091-J.-36/39329 (H.—Judl.), dated the 19th December 1936, to all District Magistrates in the Punjab, in Delhi High Court Rules said that, before the Magistrate proceeds to record the confession, he should arrange so far as is compatible with his safety and that of his staff and with the safe custody of the prisoner—that the latter is left for some time (say, for half an hour) out of the hearing of police officers or other persons likely to influence him, in order to ensure that the statements made are voluntary.

Hence there is no such procedure prescribed and it is left to the magistrate to deal with the matter in the best-suited way, keeping in mind the circumstances of the cases.

Places where the recorded statements are used 

A statement made under Section 164 of the Code of Criminal Procedure may be used to corroborate or contradict a statement made in the court in the manner provided under Sections 157 and 145 of the Evidence Act,1872. It can be used for the purpose of corroboration. It can be used to cross-examine the person who made it show that the evidence of the witness is false but that does not establish that what he started out in the court under this section is true. A statement made by the witness under section 164 CrPC can be used for the purpose of cross-examining him and discrediting his evidence in the session’s court.

The Supreme Court in Kashmira Singh v. State of Madhya Pradesh (1952). answered the question of the use of the statement in the trial. The court observed that “In case of witness denies the fact of recording of his statement by Magistrate or if he denies a specific portion of his statement to be not told by him, examination of Magistrate is not necessary to prove contradiction which is unlike the case of the statement recorded by police under section 162”.

Additionally, in the case of Ramprasad v. State of Maharastra (1999), the Supreme Court held that any statement recorded by the Judicial Magistrate under Section 164 of the CrPC can be relied upon for the purpose of either corroborating the testimonies made by a witness as provided in Section 157 of the Indian Evidence Act, 1872, or contradicting a witness as provided in Section 155 of the said Act.

Relevance of statements recorded by Police during investigation 

Section 162 CrPC contains a prohibition Against the singing of the witness’s statement recorded during the investigation. It has  its origin in the historical distrust about the faithful recording of statement by the investigation officers. This practice helps untruthful police officers to mould in the way they like, sometimes to the utter dismay of the witnesses. This is only possible because of the validity of Section 162 CrPC which helps the accused to contradict the witness if during the trial in a court the witness comes to make a contradictory statement. This is impossible for the police to record contradictory statements even in the case of the truthful witness who must have said the same thing to the police as well as in the court. This statement in the case of Dairy often helps the accused to get acquitted if the court does not handle the issue carefully.

10 important concluding points

  • The statement recorded under Section 164 of the code focuses on the statement of the witness by the magistrate which is under this section recorded under this section on oath.
  • The object of recording the statement is to preserve the evidence, to get the account of the testimony of the witness at the first instance and while it is still fresh and to preserve retraction of the testimony at the later stage.
  • The statement recorded under section 164 of the code can be used for the corroboration of the witness’s testimony at the trial.
  • The application for recording the statement under this section is usually filed by the prosecution.
  • The magistrate has to ensure before recording the statement the voluntariness of a confession made before the magistrate is too well established for reiteration.
  • The magistrate has ought to be extremely careful as regards the identity of the witness/ complaint before proceeding to record the statement.
  • The statement of a witness recorded under Section 164 CrPC, is a public document which does not require any formal proof and there is no necessity to summon the magistrate who records the same.
  • Sub Section (1) of Section 164 CrPC authorizes the Magistrate to record the statement of a person or his confession, no matter whether he possesses jurisdiction in the case. If he does not possess such jurisdiction Sub Section (6) will apply
  • the confession recorded under Section 164 CrPC, should be recorded in a manner provided under Section 281 and shall be signed by the person making it. The Magistrate shall then make the memorandum at the foot of such confession.
  • Only a judicial magistrate or Metropolitan Magistrate has the power to record the statement under Section 164 of the Code

Non-compliance of the procedure

Non-compliance with the procedure as mentioned under Section 164 was provided under Section 463 of the CrPC. This provision states that the court, which received the record of confession or statement as evidence, can consider them even though the Magistrate did not follow due procedure while recording, provided the following two requirements are fulfilled:

  1. The said non-compliance of the procedure under Section 164 by the Magistrate does not harm the accused person in his defence on the merits.
  2. The accused person had duly recorded the statement.

The above provision is an exception to the rule laid down under Section 91 of the Indian Evidence Act, 1872, which necessitates the litigants to submit the document itself, not any other proof when it was made into a document as required by the law. According to this section, the recording of the confession shall not be considered evidence when it was not duly recorded as per the procedure in Section 164. However, Section 463 removes this rule in the case of recording the confession and makes it admissible in courts. It also allows the litigants to place oral evidence to prove that the procedure mentioned in Section 164 is abided by the Magistrate, as observed by the Supreme Court in the case of Kehar Singh and Ors. v. State (Delhi Administration) (1988). Besides this, if the Magistrate does not follow the prescribed manner while recording the confession, his oral evidence stating that the accused confessed to him is not admissible. If made admissible, the very object of Section 164, i.e., the confession of the accused can be proved if made in the prescribed manner, which also includes protection to the accused, will defect. Hence, proof of the confession by any other means is not permissible. Therefore, in State of Uttar Pradesh v. Singhara Singh and Ors. (1963), the Supreme Court made the oral evidence given by the Magistrate inadmissible.

Important case laws

K.I. Pavunny v. Assistant Collector (Head Quarter), Central Excise Collector (1997)

In this case, the Supreme Court held that it is a well-settled legal position that a voluntary confession made under Section 164 of the CrPC can stand solely as a basis for the conviction of its maker or the accused. However, if the confession is retracted by the accused at a later stage, such as during court proceedings, the burden of proving that the confession was not freely made is on the accused, and a reasonable doubt is enough to prove the same. After this, the burden of proof shifts to the prosecution to prove the voluntariness of the confessional statement. If the prosecution succeeds in the same, such retracted confessions can be utilised for the purpose of corroborating any other independent evidence. The Court further observed that “the retracted confession could be used as evidence corroborative to satisfy the conscience of the Court that the prosecution has proved its case beyond reasonable doubt from other evidence on record.” In the present case, the Supreme Court convicted the accused based on the confession and other evidence provided by the prosecution witnesses.

Mahabir Singh Etc. v. State of Haryana (2001)

In this case, the Supreme Court stated that if an accused person is willing to confess, then he or she can approach a qualified Magistrate and request a recording of the confession. For this, there is no requisite that the accused shall be sponsored ‘or produced by the police officer, unlike in the case of recording the statement of the witness or victim. Nonetheless, the Court further observed that the only requisite that a Magistrate shall consider and know before recording the confession is whether the person requesting to record the confession is concerned with the case and such accused is voluntarily giving the statements or is under fear and other extraneous influence. In the present case, because the Magistrate did not take all precautions to warn the maker of the confession that the same is not mandatory and made known to him its consequences, the Supreme Court did not consider the recording of the confession.

Babubhai Udesinh Parmar v. State of Gujarat (2006)

In this case, the accused person made a confession before the Magistrate under Section 164 of the CrPC. However, the facts in the testimonies of the witnesses and the confession differed and were inconsistent with each other. It was later known by the Supreme Court that the accused person made the confession on the administration of the oath. The Supreme Court held that the practice of administering an oath before or while taking a confession or statement from the accused is forbidden.

Varghese M.U. v. Central Bureau of Investigation, Cochin (2015) 

In this case, the Supreme Court directed the Magistrates who took the duty of recording the statements of a witness or victim to take all due care not to share the same with anyone except police personnel in charge of investigating the said case. However, if the said witness or victim himself made the statement before the media or general public, the said Magistrate is not responsible for the same. The Supreme Court further gave a direction to Magistrates to record the non-confessional statements made by witnesses, victims or anyone excluding the accused person in camera under Section 164 of the CrPC. The confidentiality of such statements shall be maintained by the concerned Magistrates. If not done, the defence, knowing something may be done with the statements, such as tampering or destroying evidence, may mislead and hamper the investigation, which is detrimental to the prosecution and leads to the injustice of the victim. The Court cautioned not just magistrates but also investigating officers to take all steps for non-disclosure of the statements made by witnesses or victims under Section 164 of the CrPC.

Conclusion

Thus, it is a false notion that the confession of the accused is not admissible in any case because, usually, any accused cannot make statements that are against his interests. However, there are a few situations in which the conscience of the accused persons makes them tell the truth and accept the guilt of the commission of the offence through confessions. It will be valid and substantial evidence if the confession is made before the Judicial or Metropolitan Magistrate freely and voluntarily without any undue influence and the same is recorded in a prescribed manner as provided under Section 164 of the CrPC. Voluntary confessions are deemed to be the most effective proof in law. Although, on the face, it appears to be against the accused, it does not violate the principles of natural justice and fair trial as there is a detailed procedure and reasonable manner prescribed under Section 164 of the CrPC, which also provides safeguards to the accused persons. The Magistrate can also record statements by the accused or any witnesses. However, the same cannot be considered to be substantial evidence.

Frequently Asked Questions (FAQs)

Whether the retracted confession made under Section 164 of the CrPC be reliable?

The retracted confession refers to the confession made by an accused person that was duly recorded as per the procedure under Section 164 of the CrPC during the investigation, which was, however, withdrawn or denied as committing the crime by the accused during the trial proceedings. Such a retracted confession can be relied upon by the court if it is strongly corroborated with circumstantial evidence as to the voluntary nature of the confession, irrespective of the maker’s subsequent retraction from his confession. This was observed by the Supreme Court in Henry Westmuller Roberts, Etc. etc. v. State of Assam and Ors. Etc. (1985).

Can a dying declaration be considered as a statement under Section 164 of the CrPC?

The Supreme Court answered this question in the case of Sunil Kumar and Ors. v. State of Madhya Pradesh (1997) where it was stated that the dying declaration recorded by the Magistrate by following the prescribed manner can be considered by the court as a statement under Section 164 of the CrPC and be used for corroboration or contradiction, even if the death of the maker of such a declaration did not take place. After much consideration by the court, such a dying declaration will no longer be a statement made under Section 32 of the Indian Evidence Act, 1872.

Whether the statement of the victim made as per Section 164 of the CrPC enough to frame charges?

Yes, solely based on the recording of the victim’s statement, which was recorded as per the requirements and procedure laid down under Section 164 of the CrPC, the court can frame charges against the accused because, in rape cases, the witnesses are, generally, victims and, hence, their statements must be given due weightage and relied upon for the purpose of framing charges. In State v. Mohd. Javed Nasir and Ors. (2022), the victim made a statement alleging the commission of rape by the accused that was duly recorded under Section 164 of the CrPC. However, the same statement was made by the victim in the FIR and, on this ground, the Trial Court erroneously discharged the accused. In the appeal, the Delhi High Court set aside the order made by the Trial Court and charged the accused under Section 376 of the Indian Penal Code, 1860 on the ground of the statement of the victim under Section 164 of the CrPC.

Can a victim request to record his or her statement several times?

Section 164 of the CrPC, for valid reasons, allows a police officer in charge of investigating the case to make several applications to a Judicial or Metropolitan Magistrate to record a statement because the subsequent statement by the victim or witness might be crucial due to the latest developments in the case or new findings. But, a victim cannot do so, if there is no reasonable cause, because such multiple requests lead to the rise of doubts as to the veracity of such statements. Recently, in the case of Smt. Manorama Singh v. State of U.P. and 3 Others (2023), where the petitioner/victim made a request for the third time for a video-graphed recording of her statement alleging that her previous statements were wrongly recorded by judicial officers, the Allahabad High Court observed, in this regard, that “doing so, will destroy the sanctity of such statements and in my view, shall frustrate the very purpose behind such statements”. In addition to this, the Court, in order to discourage such practices on the part of victims, imposed a penalty of Rs.20,000 on the petitioner that shall be paid to the State.

Whether someone can know the contents of the confession or statement made under Section 164 of the CrPC?

No, the contents of the confession or statement that was recorded by the Judicial or Metropolitan Magistrate under Section 164 of the CrPC shall not be revealed to anyone and the concerned authority must take all due care to keep the recording in a sealed cover adduce the same during trial proceedings as a disposition of witnesses or confession of the accused so that the defence can cross-examine it. The Supreme Court said in the case of State of Karnataka by Nonavinakere Police v. Shivanna @ Tarkari Shivanna (2014), in case of commission of the crime of rape, the Judicial or Metropolitan Magistrate shall give a copy of the statement made by the victim to him to the concerned investigation officer with a condition that the information in that document should not be revealed to anyone till chargesheet was filed in the criminal court. Despite such authorisation guidelines made by the Supreme Court in the Shivanna case, the confidentiality of the victim’s statement is repeatedly not being maintained by a few careless investigating officers and, thus, the rights of the victims are not preserved. These observations were made by the Supreme Court in A v. State of Uttar Pradesh and Anr. (2020) and Eega Soumya v. M. Mahender Reddy (2022).

References


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An analysis of insider trading regulations in India 

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This article has been written by Anjali Yadav pursuing a Diploma in US Corporate Law and Paralegal Studies course from LawSikho.

This article has been edited and published by Shashwat Kaushik.

Introduction

We cannot say that insider trading regulations are very old in India. As India is a developing economy, new laws and regulations are frequently introduced to fulfil the requirements of the current financial market. For the time being, India follows the Security Exchange Board of India (Prohibition of Insider Trading) Regulations of 2015 for insider trading. In addition to these regulations, the Companies Act of 2013 also provides certain provisions for the prohibition of insider trading. Indian companies can have their own or self-made insider trading regulations, which must adhere to the Securities Exchange Board of India (Insider Trading Regulations) of 2015.

Insider trading deals in stocks of public companies or other securities based on confidential information that has not been published or has not come into the public domain yet to make personal profits and avoid losses in the short or long run.  Insider trading can be legal or illegal; it is legal only when the insider person or the connected person goes in accordance with SEBI. In the event that insider trading happens without following the regulations and the Companies Act 2013’s provisions, it shall be illegal. Generally, it is an evil practice, but not all insider trading is unethical. Based on some studies, some of them are also beneficial to a greater extent for the larger investment community.

If all the information relating to the security of the company is disclosed publicly, then the correct price may be determined by the market. This will result in accurate pricing and benefit the public in several ways. In this way, corruption can also be reduced by accurate pricing of securities, decreased investor unsureness and better monitoring of management’s effectiveness.

Unpublished Price Sensitive Information or UPSI

UPSI can be any particulars that are directly or indirectly related to the company’s securities but are not available to the public, and upon becoming available, they shall materially affect the price of the security. This confidential information is known as “Unpublished Price Sensitive Information (UPSI).”

This UPSI is generally inclusive of the following information but not restricted to it:-

  • pecuniary consequences;
  • returns;
  • alteration in capital formation; 
  • amalgamations, disposals, delisting and other transactions; and
  • alteration in key managerial personnel.

There are some reasons that can be considered while dealing with confidential information:

  • That connected person has an unfair and confidential advantage over other people who do not have that knowledge.
  • This can be termed a breach of fiduciary duty due to a breach of trust and confidence.
  • This can lead to a conflict between the company’s and the insider’s interests.
  • Insider trading plays an important part in maintaining the integrity and fairness of shareholders.
  • All of these things are breaches of the fiduciary duties of officers of a company. 

What is the restriction relating to UPSI

Restrictions on Insider

  • As per Regulation 3 of PIT Regulations, the insiders are not supposed to be providing or communicating any confidential information pertaining to a listed or proposed to be listed corporation or its securities unless and until the communication is made for a legitimate purpose while doing their duties or fulfilling legal obligations.
  • As per Regulation 4 of PIT Regulations, it is strictly prohibited for insiders not to trade in securities during the period he/she is in possession of UPSI. In the event that the insider having UPSI is purchasing any security during that period, it shall be presumed that he has done so on the basis of his knowledge of that information. 

Restrictions on third parties dealing with insiders

No one should try to encourage any insider to reveal the UPSI about a corporation or listed securities, unless and until it is for performing their duties or fulfilling their legal obligations. This way, integrity and confidentiality can be maintained.

Obligations on the board of directors of listed companies

According to Regulation 8, policy defining legitimate purposes as a portion of the “Codes of Fair Disclosure and Conduct” is to be prepared by the Board of Directors. This policy, when made, will help insiders know when it is appropriate to share the UPSI in the day to day course of business with partners, collaborators, creditors, clients, dealers, merchant bankers, legal consultants, auditors, insolvency professionals, or other consultants. 

Who is an insider

As per Regulation 2(1)(g) of the PIT Regulations, an insider can be any person who is:

  • a connected person (includes immediate relatives); or
  • in possession of or having access to UPSI.

According to the PIT Regulation, we get to know that any person having UPSI for some legitimate purpose will be considered an ‘insider’. And it is their duty not to disclose the UPSI before it actually came into the public domain.

The definition says that an insider can be anyone who has access to UPSI, regardless of how the person got it. If someone alleges to some other person that the person has been trading while he was in possession of UPSI, in that case, the onus of proof will be on the person himself who is alleging that. The person alleged shall have a chance to prove on their part that they were not in possession of the information, did not trade, could not access it, or that their trading was justified by certain situations.

When an insider has UPSI, he shall not trade in securities of the company, except in the following situations:

  • The transaction was carried out through the block deal window mechanism. 
  • When the transaction in question is done as a consequence of legal or regulatory requirements for carrying out a bona fide transaction.
  • When the transaction in question is undertaken by utilising the stock options with respect to pre-determined price in accordance with the applicable regulations.
  • In the matter of non-individual insiders, individuals who are  taking the trade decision and individuals who possess the UPSI are distinct from each other and during the  taking of the trade decisions, the individuals did not have such UPSI and appropriate and adequate precautionary arrangements were made to ensure that these regulations are not in contravention, and there is no proof of such breach of arrangements.
  • The trades were in compliance with the trading plan provided by Regulation 5.

Obligation of the Board of Directors of a listed company (other than those listed above) in relation to UPSI

An internal digital database containing the nature of UPSI, the names of those with whom it was shared, along with their PAN or any other identifier recognised by the law, can be maintained by the Board of Directors or head of the organisation. The database should not be outsourced and should have internal control so that it can be prevented from being tempered.

After completion of the relevant transaction, the structured digital database shall be kept for a minimum of 8 years. And in the case of any investigation or enforcement proceeding, the information in the database is to be kept until the completion of those proceedings. 

Disclosure requirements in relation to UPSI 

Initial disclosure requirements

Any person who is going to be appointed as key managerial personnel or a director of the company, promoter or member of the promoter group shall, at the time of appointment or within 7 days of such appointment, disclose his holding of securities of the company

Continual disclosure requirements

It is required by the promoters, members of the promoter group, designated persons, and directors of a company to disclose the sum total of securities they possess or of securities disposed of within two trading days. When the value of the securities traded exceeds Rs. 10 lakh or a specified value,only then such disclosure is required. The company also needs to notify the stock exchange about such trading within two trading days

Disclosure by other connected persons

Companies having their securities listed on a stock exchange may require any connected person or class of connected persons to disclose their holding and trading in securities of the company.

Trading plans of insiders: formulation and notification of the same

According to Regulation 5, every insider should prepare an advance trading plan and present it before the Compliance Officer for his consent and public reveal. These can be the salient features of such trading plans:-

The lock-in period here shall be for a minimum of 12 months.

  • An existing plan shall not overlap.
  • Trading can commence only after six months of the public disclosure of the plan.
  • It shall include either the value of trades to be traded or the sum total of securities to be traded together with the dates on which such trades shall be effected or the nature of trade and trade intervals.
  • No trading shall be permitted between the 20th day before the closure of the financial period and the second day of trading after the disclosure of financial results.
  • The trading plan must be compulsorily approved by the compliance officer, and once approved, it shall be irrevocable, i.e., the insider shall necessarily have to implement the plan without deviating from the plan approved.

Role of SEBI in regulating insider trading

SEBI is a statutory body that was formed under the Securities and Exchange Board of India Act 1992. The function and powers of SEBI are given under  Section 11 of the SEBI Act.

One of the most important duties of SEBI includes the conservation or preservation of the returns of investors and the regulation of security markets.

SEBI may look into the matters of grievances made by financiers, negotiators, or any other persons in any case related to insider trading. SEBI may appoint some officers in this regard for the inspection of the books and records of the persons involved.

Before undertaking an investigation, the Board shall give reasonable notice to an insider for such a purpose. The investigating authority may inspect any books, records, documents, computer data or other material affirmation of any member, director, proprietor,partner or employee of the insider or other persons.

Procedure and penalty

Insider trading, as defined by Sections 12A and 15G of the Securities and Exchange Board of India Act, 1992, is considered an offence in India. This act aims to protect the integrity of the securities market and prevent individuals from taking advantage of non-public information for personal gain.

According to Section 12A, insiders, including directors, officers, and other individuals with access to confidential information, are prohibited from trading in the securities of the company if they possess unpublished price-sensitive information. Similarly, Section 15G outlines additional restrictions and penalises insiders who indulge in insider trading activities.

The penalty for insider trading in India is significant. Upon conviction, individuals can be liable for a minimum fine of 10 lakh rupees and a maximum fine of 25 crore rupees or three times the profit gained from the illegal trading, whichever is higher. These substantial penalties underscore the seriousness with which insider trading is viewed in the Indian legal system.

In addition to the monetary penalties, individuals found guilty of insider trading may also face imprisonment for a term ranging from 3 years to 10 years. The court’s decision is based on the severity of the offence and the impact it has on the securities market. This provision acts as a deterrent, emphasising the personal consequences individuals may face for engaging in insider trading.

Furthermore, the Securities and Exchange Board of India (SEBI), the regulatory body responsible for overseeing the securities market in India, has the authority to impose additional penalties, including disgorgement of profits, restrictions on trading activities, and ineligibility to hold certain positions within the securities industry. These measures are aimed at safeguarding investors and maintaining fair and transparent market practices.

India detected the first case related to insider trading in Infosys Technologies Ltd., in which  Sri Gopalkrishnan, its Chief Executive Officer, was punished. Other than Gopalkrishnan, Jeffrey Lehman, an independent director,  has also been fined $2000 for the very same violation. A penalty for omission to properly follow the method on the sale of shares was imposed on Mr. Lehman, and that amount, too, had been given to some other charitable institution.

Means of controlling insider trading

Criminal

Penal provisions are used to deter people from taking any action prohibited by law. Therefore, passing a statute, restricting such trades, making them penal and administering criminal actions against the accused can be a way.

Civil and administrative penalties

Civil and administrative penalties can be more effective remedies, which can be in the form of remuneration, reimbursement, or compensation, and the issue of various kinds of administrative actions, like a debar from the industry without going to court, is indeed an impactful remedy. The powers granted to the regulator to impose penalties of 25 crores or three times the gain made, lead to economic harm,but deterrence can easily be administered in this way. Regrettably, the language of the civil monetary penalties is crafted in such a bad manner that the penalties are certain to be cut down (or diluted) as unconstitutional. 

Failure of SEBI to regulate insider trading

There are many deficiencies discovered in the Insider Trading Regulations of SEBI, which makes it hard for investors to set their confidence in the laws made for the protection of their rights and interests against the practice of insider trading. Many times, due to a lack of evidence, SEBI fails to institute  and prove a case (beyond reasonable doubt ) for convicting the persons accused of insider trading.

Rakesh Agarwal vs. SEBI (2003) is a highlighting case that shows the vulnerability of SEBI’s 1992. In this case, Rakesh Agarwal is the Managing Director of ABS Industries Ltd. (ABS), who was involved in negotiations with Bayer A.G. pertaining to their idea of overtaking ABS. He had this unpublished, price-sensitive data. In a significant move to protect the interests of investors, the Securities and Exchange Board of India (SEBI) has directed Mr. Rakesh Agarwal to deposit a substantial sum of Rs. 34,00,000 with the Investor Education and Protection Funds of two prominent stock exchanges in India. This directive aims to provide a safety net for any potential claims that may arise in the future.

As per SEBI’s instructions, Mr. Agarwal is required to deposit an equal amount of Rs. 17,00,000 with the Investor Education and Protection Funds of both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). These funds serve as a crucial mechanism to safeguard the rights and interests of investors in the Indian securities market.

By directing Mr. Agarwal to contribute to these funds, SEBI is taking proactive measures to ensure that investors have access to resources and support in the event of any grievances or disputes. This move underscores the regulator’s commitment to fostering a fair and transparent trading environment where investors’ interests are paramount.

It is worth noting that the Investor Education and Protection Funds play a vital role in educating investors about their rights, responsibilities, and various aspects of the securities market. These funds also assist investors in resolving complaints and disputes through arbitration and conciliation mechanisms.

SEBI’s directive to Mr. Agarwal to contribute to these funds is a significant step towards strengthening investor protection measures and enhancing confidence in the Indian securities market. By ensuring that there is a dedicated pool of funds available to address investor claims, SEBI is providing a safety net that can benefit investors and promote the overall health and integrity of the market.

The regulation of 2015 contains the definitions of “connected person” and “insiders,” which are more expanded and clarified.

It widened the definition of insiders, which includes those persons who do not have any position in the company but have made some contracts with the company that lead to their contact with the company and its employees. They are well-versed in the operation of the company and this relationship involves the sharing of price-sensitive information.

The Regulation of 2015 has also introduced the concept of trading plans, which ensure compliance by insiders in possession of UPSI. According to the 2015 regulations:

An insider can make a plan related to a trading plan and produce it before the compliance officer for his consent and public revelation, under which trades may be carried out on his behalf by that plan.

Role of committees to prevent insider trading

In addition to the legislative measures, various committees have been formed to specifically address the issue of insider trading and make recommendations for its effective monitoring and prevention. These committees include:

  1. The Sachar Committee (1979): This committee, chaired by Justice P.N. Bhagwati was constituted to examine the Companies Act of 1956 and suggest amendments to strengthen corporate governance and prevent insider trading. The committee’s recommendations included the introduction of a code of conduct for directors and the establishment of a separate regulatory body for the securities market.
  2. The Patel Committee (1987): Headed by Justice S.N. Patel, this committee was set up to review the functioning of the capital market and suggest measures to enhance its efficiency and transparency. The committee’s report highlighted the need for stricter regulation of insider trading and recommended the establishment of a specialised enforcement agency to investigate and prosecute cases of insider trading.
  3. The Abid Hussain Committee (1989): Chaired by Justice Abid Hussain, this committee was formed to review the existing legal framework for the regulation of insider trading and suggest amendments to strengthen it. The committee’s recommendations included the introduction of a comprehensive definition of insider trading, the creation of a separate offence for insider trading, and the imposition of stricter penalties for violations.

Conclusion

Insiders mainly deal with the shares of the company to provide fair and free transferability of shares in the capital market. The primary reason behind the formation of these regulations is to promote the fair and free transferability of stocks. The aim behind these regulations is to make the public aware of the fact that no one can benefit from trading on insider, unpublished, or confidential information.

Insider regulations in India prohibit any kind of dealing, communicating, or negotiation on any matter related to insider trading. Any connected person acting in contravention of these regulations shall be considered to be accused of insider trading and prosecution against it can be initiated by SEBI under Section 24.

This topic can be concluded by stating that whatever steps can be taken by the regulatory authorities for the protection of price-sensitive information and insider trading, the situation can never be satisfied because some people will always have these particulars. It is the duty and obligation of these people to preserve this information as an ordinary prudent man would.

Usually, these accused get acquitted without suffering any punishment. Even in cases where they’re found at fault, they’re required to pay only a sum of money that is not even proportionate to the profit they might have made, or they are  prohibited from dealing in securities   for a period stipulated within the order. And as a result, the insider ends up being satisfied with the profit they have made.

References

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An overview of patentee’s rights and duties

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This article has been written by Anjani Anil Prasad pursuing a Diploma in Intellectual Property: Prosecution, licensing and litigation course from LawSikho.

This article has been edited and published by Shashwat Kaushik.

Introduction

The statutory history of a patentee’s rights and duties since the Indian Patents and Designs Act of 1911 has been one of continuous evolution and the Patents Act of 1970, with its recent amendment in 2016, is nothing but a continuation of what India demands to maintain its own identity in the world of patency. The present article will carefully analyse the present and futuristic patentee’s  rights and duties w.r.t. The Patent Act of 1970, which came into force on April 20, 1972.

Who is a patentee

The Patent Act of 1970, specifically Section 2(p), provides a clear definition of who qualifies as a patentee. According to this section, a patentee is an individual or entity that is officially recorded in the patent register as the grantee or proprietor of a particular patent. This legal recognition establishes the individual or entity ownership rights and exclusive privileges associated with the patented invention.

The term “patentee” holds significance in the context of patent law and intellectual property rights. It signifies the individual or entity that has successfully obtained a patent for an invention. A patent, granted by a government authority such as a patent office, confers exclusive rights to the patentee for a specified period, usually 20 years from the filing date of the patent application.

During the patent term, the patentee has the sole right to exploit the patented invention for commercial purposes, including manufacturing, using, selling, or licensing the invention to others. The patentee can also take legal action against any unauthorised use or infringement of their patent rights.

It’s important to note that the status of a patentee can change over time. If a patent is assigned or transferred to another individual or entity, the new assignee or transferee becomes the patentee. Similarly, if there are multiple inventors or joint patentees, they may collectively hold the rights and responsibilities associated with the patent.

The concept of a patentee is crucial to safeguarding the rights of innovators and promoting technological advancements. By providing exclusive rights to patentees, the patent system incentivizes individuals and organisations to invest in research and development, leading to new inventions and contributions to society.

Sections under the Patents Act of 1970 dealing with rights  of a patentee

Sections 3 and 4 provide an inclusive list of inventions that cannot be patented. This, in turn, leaves room for an exhaustive list of inventions that can be patented. For example, with  the Patents (Amendment) Act of 2005, inventions relating to methods or processes of manufacture are now  patentable. The Patents (Amendment) Act of 2005 introduced significant changes to the Indian patent regime, expanding the scope of patentable subject matter. One of the key amendments was the inclusion of inventions relating to methods or processes of manufacture within the ambit of patentable inventions.

Prior to this amendment, such inventions were excluded from patentability under Section 3(k) of the Patents Act, 1970. This exclusion was based on the rationale that methods or processes of manufacture were not considered to be “new inventions” as they did not involve the creation of a new product or composition of matter.

However, the Patents (Amendment) Act of 2005 recognised the importance of protecting and encouraging innovation in the field of manufacturing processes. By amending Section 3(k), the Act now allows for the grant of patents for inventions relating to methods or processes of manufacture that are new, non-obvious, and have industrial application.

In addition to the inclusion of methods or processes of manufacture, the Patents (Amendment) Act of 2005 also made several other changes that have had a positive impact on the Indian patent system. For example, Sections 3 and 4 of the Act were amended to provide more clarity and flexibility in the interpretation of what constitutes an invention. These amendments have helped to create a more conducive environment for innovation and have encouraged the filing of more patent applications in India.

Overall, the Patents (Amendment) Act of 2005 has been a positive step forward for the Indian patent system. The amendments introduced by the Act have helped to promote innovation and have made India a more attractive destination for foreign investment and technology transfer.

But no invention is patentable if one is not entitled to qualify as a patentee. It is here that Section 6 comes into play. Only a true and first inventor, an assignee of the person claiming to be the true and first inventor, the inventor’s legal representation upon the inventor’s death or one who was a joint inventor can apply to become a patentee. This leaves no stone unturned from blocking any capable inventor from accessing its right to become an exclusive patentee for an invention. Although anyone falling outside the scope of Section 6 is prohibited from becoming a patentee.

Even when obtaining a patent falls under the territorial jurisdiction of India, foreign applications for patent rights in India are also welcomed under Section 8. But with the right comes the duty of a patentee. Here, such an application for a patent can only be entertained by a controller. It is the duty of a prospective patentee to keep the controller updated until the grant of a patent in India. Further, from time to time, the controller should be updated on any other application filed for the same invention outside India.

Section 43 is the heart of the Act, as it provides grant of a patent if it fulfils the conditions, i.e., the patent application should not be refused by the Controller or be in contravention of the Patents Act, 1970. The patent is then expeditiously provided to the patentee. But here, one may notice that the act does not mention any time frame to substitute the word ‘expeditiously’. Expeditiously could mean 1 day, 30 days or years. Therefore, this section lags behind the certainty of time. 

Section 44 provides grace to a deceased patentee if, at the discretion of the controller and falling under the norms of the Act, a patent that was granted to a person or body corporate has died or ceased to exist, respectively. The controller, in its power, will allow the patent to be in effect. 

Section 46 states that the Patents Act of 1970 will be effective throughout India. This in turn was a very bold step given the time and geo-political conditions of India, e.g., the then volatile state of Jammu and Kashmir. This gave inventors the opportunity and control over the centre to supervise the right and effective use of a patent.

Now, Section 48 explicitly states the right of the patentee against a third party for a product or process. This section categorically disallows a third party from the act of using the product/process and from the act of using, offering for sale, selling or importing for those purposes the process/product obtained directly by that product/process in India.

Section 49  clearly talks about the right of a patentee when his/her infringement of that right takes place. Let’s dive into what causes infringement of rights and what recourse a patentee has if his right is infringed. According to Section 49 (1), if a vessel , aircraft or land vehicle registered in a foreign country enters the Indian Territory accidentally or temporarily and the use of the patent was on board the vessel and was needed, further when such a patent is used for the construction or working of the aircraft or land vehicle, then no infringement takes place. But if such rights are not provided to Indian residents in the foreign country’s territorial jurisdiction, it is an infringement of a patentee’s right and a judicial proceeding transcends all. This way, no patentee’s rights can be infringed just by giving any excuse for an emergency. The legislation made sure that mere misuse of the rights of a patentee would cause a chain of unwanted judicial events. 

Sometimes within a patent, the interests of many patentees reside, and they therefore, together, become the ‘co-owners’ of patents. Here comes Section 50 to the aid of such co-ownership. Section 50 (1) explicitly states that unless there is a contract to the contrary, joint owners are entitled to an ‘equal and undivided share’. Furthermore, Section 50 (2) states that if one of the co-owners wants to exploit and retain profits in a patent, without sharing profits with the other owner(s), he/she is free to do the same. Here, one must worry that if the profit is huge, repelling other patentees from enjoying the profit would do more harm than good, as people, even after making great inventions, would stay away from the idea of co-ownership of patents. However, a fail switch is under way with Section 50(3). Under it, any one joint owner cannot, without the consent of all the other co-owners, grant a licence or ownership interest to a third party.

Section 53 is specially included in this article to explain that 20 years of a patent granted to an invention is also a form of right, as this gives impetus to new developments within the same invention or, all together, makes the patentees make new innovations. This also boosts the research and development of the Indian economy.

But in a situation where a patentee has already made an application known as the main application and, after a while, requires some improvement or modification to the main application. Here, Section 54 comes into play as it permits a patentee to do the same under certain conditions. The applicant has to be the same for the main invention and the improvement / modification and the language of the provision suggests that if the improvement / modification involves an additional applicant, a patent of addition may not be pursued.  Further, a patent of addition should either be filed on the same date or a date later than the date of filing of the main application. Therefore, in principle, a patent of addition can be filed even after the grant of the main application. Where the improvement or modification over the main application is the subject of an independent patent, and if the patentee is the same in respect of both inventions, the controller may, on request by the patentee, revoke the independent patent and grant the same as a patent of addition.        

There are no special rules governing the priority date of patents of addition and hence, the default rule will apply – the date of filing of the patent of addition will be considered the priority date, subject to other provisions in the Act.        

In the case of a patent of addition, Rule 13(3) of the Patents Rules states that each such patent of addition shall include a reference to the main patent or the application for the main patent  and also include a definitive statement that the invention is an improvement or modification of the invention claimed in the complete specification of the main application.

What if  a patent gets lapsed, which could occur due to many reasons like non-payment of required annual fee or not being able to comply with the stipulated conditions? Here, Section 60 is the best recourse. It provides a remedy. Now, if the shortcomings are remedied, the controller will restore the patent. 

Section 62 will now be in full effect by permitting full rights to the patentee. This helps in the protection of innovation and simple procedural formalities.

The Act also provides the patentee’s right to ‘Surrender of Patent’ under Section 63. This is a unique clause, as generally statutes provide positive rights to a party but here a negative right is also welcomed. Here, again, the role of the controller and his discretion come into play. The surrender gives power and rights to other applicants/third parties to join the race to get hold of the invention’s patent journey, while the controller follows the procedure of publishing and notifying the applicants.

Other rights of the patentee

In addition to the exclusive rights to make, use, offer for sale, sell, and import the patented invention, the patentee is also entitled to other rights, including:

  1. The right to mark the patented invention: The patentee has the right to mark the patented invention with the word “patent” or “patented,” along with the patent number. This serves as a notice to the public that the invention is protected by a patent and that unauthorised use or infringement of the patent may result in legal consequences.
  2. Sue for infringement: The patentee can sue for infringement under Section 104A, which occurs when the patentee’s rights are violated.
  3. Duplicate patent: Patentees also have the right to be issued a ‘Duplicate Patent’ under Section 154 of the Indian Patents Act, 1970, when ‘Loss or Destruction of Patents’ occurs.
  4. Convention application: Patentees can make a ‘Convention Application’ under Section 135 for protection of patents in Convention Countries. This right is based on the ‘Principle of Reciprocity’ and national treatment of international law.
  5. The right to assign the patent: The patentee can assign the patent to another person or entity. The assignment can be for the entire patent or for a specific share of the patent.
  6. The right to licence the patent: The patentee can also licence the patent to another person or entity. The licence can be exclusive or non-exclusive, and it can be for a specific field of use or for the entire patent.
  7. The right to file for a patent extension: In certain circumstances, the patentee can file for a patent extension. This can be done if the patent was delayed due to factors beyond the patentee’s control, such as a regulatory delay or a patent interference proceeding.
  8. The right to challenge the validity of the patent: The patentee has the right to challenge the validity of the patent in court. This can be done if the patentee believes that the patent is invalid due to prior art, lack of novelty, or other reasons.

These additional rights of the patentee are important for protecting the patentee’s invention and ensuring that the patentee is able to fully benefit from the patent.

Analysis of the duties of the patentee

Obligation not to abuse the patent

A patent owner cannot use his patent to violate  laws or regulations, harm the public interest, or unfairly dominate the market. The patent owner may not make false or misleading claims about the invention in advertisements, marketing or other promotional material.

Obligation to carry out the invention

A patentee cannot refrain from using his invention in the belief that, by doing so, he might be able to  prevent others from making or using his invention. It is the responsibility of the patentee to practise the invention in India by actively marketing the invention by manufacturing the product or licensing the invention to others. The reasonable demands of the public for the patented invention must be met. These proprietary products should also be available to the public at reasonable prices.

Obligation to pay legal and support charges

Concerning the enrollment interaction, the patentee should pay the important legal charges. Likewise, to keep a patent in force, the patentee should pay support charges to the patent office at determined intervals over the lifetime of the patent, or else the patent will be repudiated, assuming that the patentee neglects to pay the upkeep charges. Non-payment of these charges, as outlined in Section 142 of the Act, renders the patent ineligible for consideration.

Obligation to address objections

When the First Examination Report (FER) is made available by the Patent Inspectors, it might contain a few complaints. It is then the obligation of the patentee to answer such complaints. The patentee’s application will be naturally dismissed in the event that the explanations are not looked at within a span of one year from the date of issue of the first examination report.

Patent disclosure obligation

Patents are granted in exchange for the publication of an invention. The patent owner must disclose the invention fully and accurately in the patent application and  update the notice as necessary during the patent process.

Duty to request an inspection under Section 11B

Here,  no patent application shall proceed unless the applicant or other interested party files an application for re-examination within the prescribed  period. It is  the duty of the patent owner to ask the patent examiner about the development of the patent.

Conclusion

Now everything boils down to what a patentee decides to do with his innovation. Although not absolute, the legislation has explicitly granted a number of rights to the patentee. From applying for a patent to surrendering the same, from choosing to be a single patentee to co-ownership of a patent, the legislation has been flexible and quite modern in its approach, considering its enactment year being 1970. The Act has been able to contain itself even in today’s world of innovation, research and development. But since the Act also provides for underlining duties, it becomes the ethical and moral duty of a patentee to maintain its innovation’s duty to help build a better society. From misappropriation to not delivering the desired result, these are the plagues that haunt the world of securing patents. Assurance of unbiased development is the need of the hour. 

References

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Tamil Nadu District Municipalities Act, 1920

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Criminal justice system

This article is written by Monesh Mehndiratta. The article explains the important provisions of the Tamil Nadu District Municipalities Act, 1920. It explains the constitution of various authorities in a municipality along with their powers and functions. It further provides provisions for the imposition of taxes, levy of fees and charges, maintenance of streets, wells, tanks etc, construction of public buildings etc within a municipality. 

It has been published by Rachit Garg.

Table of Contents

Introduction

Do you know that there are three tiers or levels of government? These are the Central Government, State Government and Local Government. Also, are you aware that every district in a state has a municipality?

This municipality carries out administrative activities and takes care of other necessary actions to be taken in a district for the smooth functioning of all activities and development. 

Do not be shocked if I tell you that this municipality is also governed by legislation made and enacted by the state. Entry 5 of the State list under Schedule 7 of the Indian Constitution empowers the state to enact laws on matters of local governance including municipal corporations, improvement trusts, districts boards, mining settlement authorities and other local authorities. The present article deals with one such legislation that has been enacted in the State of Tamil Nadu. The Tamil Nadu District Municipalities Act, 1920 is a legislation that regulates the functioning of municipalities in the state. It explains the powers and functions of a municipality, the constitution, and appointment of various authorities in a municipality, imposition of taxes and levy of fees and charges, maintenance of public streets and granting licences to the owners for construction and other such activities. 

Applicability and objective of Tamil Nadu District Municipalities Act, 1920

The Act has been enacted to:

  • Consolidate the law relating to district municipalities; 
  • Amend the law relating to district municipalities. 

It is applicable in the whole of the state of Tamil Nadu except the city of Chennai. The Act has also repealed certain enactments mentioned in Schedule 1. The following table gives the extent to which certain Acts have been repealed by this Act:

YearNumberName of the ActExtent of repeal
1884IVThe Tamil Nadu District Municipalities Act, 1884Whole Act has been repealed.
1897IIIThe Tamil Nadu District Municipalities (Amendment) Act, 1897Do. 
1899IThe Tamil Nadu District Municipalities (Amendment) Act, 1899Do. 
1907IIThe Tamil Nadu Hill Municipalities Act, 1907Do. 
1909VThe Tamil Nadu District Municipalities (Amendment) Act, 1909Do. 
1913IIIThe Tamil Nadu District Municipalities and Local Boards (Amendment) Act, 1913Section 2,3 and 4
1914VIIIThe Tamil Nadu Decentralisation ActSchedule that related to The Tamil Nadu District Municipalities Act, 1884
1916IXThe Tamil Nadu District Municipalities (Amendment) Act, 1916Whole Act 

Scheme of Tamil Nadu District Municipalities Act, 1920

The Act has been divided into 6 parts, 16 chapters, 376 Sections and 10 Schedules. The scheme of the Act is as follows:

  • Part 1 provides for Chapter 1 to Chapter 1B:
    • Chapter 1 deals with the title and extends and provides definitions of the terms used in the Act.
    • Chapter 1A deals with third grade municipalities.
    • Chapter 1B deals with town panchayats.
  • Part 2 deals with the establishment, constitution, and government of district municipalities:
    • Chapter 2 provides provisions for the creation and abolition of municipalities.
    • Chapter 3 deals with the constitution of municipal authorities.
    • Chapter 4 deals with the appointment and election of councillors.
    • Chapter 5 deals with the power of municipal authorities with respect to property, contracts and establishments.
  • Part 3 provides for:
    • Chapter 6 deals with taxation and finance.
    • Chapter 6A specifically deals with the tax on trade, profession and employment.
  • Part 4 provides provisions for public health, safety and convenience.
    • Chapter 7 provides provisions for water supply, lighting, and drainage.
    • Chapter 8 deals with scavenging.
    • Chapter 9 deals with streets that include provisions for public and private streets.
    • Chapter 10 deals with building regulations.
    • Chapter 10A provides regulations for the construction of buildings in hill stations.
    • Chapter 11 deals with nuisances.
    • Chapter 12 deals with licences and fees. 
    • Chapter 13 provides provisions for prevention of dangerous disease which includes smallpox and its vaccination.
  • Part 5 deals with subsidiary legislation and penalties:
    • Chapter 14 provides rules, by-laws and regulations.
    • Chapter 15 deals with penalty provisions.
  • Part 6 provides for:
    • Chapter 16 explains the procedure and miscellaneous provisions.
  • The Schedules further provide for:
    • Schedule 1 deals with enactments that are repealed by the current Act and the extent to which they are repealed.
    • Schedule 2 provides a list of hill stations.
    • Schedule 3 provides for rules regarding the proceedings of the council.
    • Schedule 4 deals with taxation and finance rules.
    • Schedule 5 provides purposes for which premises may not be used without a licence.
    • Schedule 6 gives a list of dangerous diseases.
    • Schedule 7 provides ordinary penalties. 
    • Schedule 8 provides penalties for continuous breaches.
    • Schedule 9 gives a list of municipalities for which commissioners are appointed.
    • Schedule 10 provides matters for which plans are to be prepared by the municipalities. Some of these are roads and bridges, economic and social development, slum improvement, urban poverty alleviation etc. 

Important definitions under Tamil Nadu District Municipalities Act, 1920

Building

According to Section 3(3), the term building includes house, out-house, stable, shed, hut, wall (other than a boundary wall not exceeding the height of eight feet) and any other structure made up of bricks, wood, mud, metal or any other material. 

Municipality and Local Authority

According to Section 3(12B), local authority includes a cantonment authority under its ambit while municipality means an institution of self-government which is constituted for a smaller urban area defined in Article 243Q of the Constitution (Section 3(12D)).   

Nuisance

Section 3(14) defines the term ‘nuisance’. It means any act, omission, place or thing that causes or is likely to cause injury, danger, annoyance or any offence to the sense of sight, smell or hearing or any danger to life and injurious to health and property. 

Public street and private street

The deals with two kinds of streets, i.e., Public street and private street. Public street means any street, road, square, court, alley, passage or riding path over which the public has a right and also includes:

  • Roadway over any public bridge. 
  • Footway attached to any street, public bridge or causeway,
  • Drains attached to public bridge, street or causeway,

verandah or any other structure lying on either side of the roadway upto the boundaries of the adjacent property, irrespective of whether that property is public or private (Section 3(21)). 

Private street, on the other hand, means any street, road, square, court, alley, passage or riding-path which is not a public street over which the public has a right. However, it does not include a pathway which is made by the owner of a premise on his property for convenient use of his own property (Section 3(20)). 

Scavenger

According to Section 3(28), a scavenger is a person who is employed to collect or remove filth, clean drains or slaughter houses or drive carts for removal of such filth. 

Overview of Tamil Nadu District Municipalities Act, 1920

Third grade municipalities

Chapter 1A of the Act deals with third grade municipalities and provides provision for their formation, constitution, incorporation, and alteration of classification of transitional areas. According to Section 3(29A), a third grade municipality is an institution of self-government which is constituted for a transitional area as defined under Article 243Q of the Constitution. This was added in the Act by Tamil Nadu District Municipalities (Amendment) Act, 2006 before that it was town panchayat.

Formation of third grade municipalities

Section 3B deals with the formation of third grade municipalities. The governor has the power to classify and declare any local area which has one or more revenue villages or any portion of it or a contiguous portion of two or more revenue villages and a population not less than thirty thousand, as a transitional area. This declaration of governor is also dependent on other factors like revenue generation, employment in non-agricultural activities, economic factors etc. 

Formation of third grade municipalities in a transitional area 

The Section also provides that a third grade municipality will be established in every transitional area (according to Section 3(29AA), a transitional area is an area in transition from rural to urban area). The governor also has the power to exclude any area from being declared as a transitional area provided that its population is less than thirty thousand. He can also:

  • Include any local area in a transitional area.
  • Cancel or modify notifications related to the declaration and specification of the name of a transitional area.  
  • Alter the name of such an area. 

Constitution of third grade municipalities

Section 3C of the Act deals with the constitution of third grade municipalities. It consists of all the members that are duly elected. According to the Section, the following persons will also be a part of third grade municipalities:

  • Members of the House of People and state legislative assembly representing the constituency which is a part of the third grade municipality.
  • Members of the Council of State who are registered as electors within the area of third grade municipality.

However, these members can take part in proceedings or meetings of third grade municipalities, but do not have a right to vote in such meetings. Also, according to Section 3D of the Act, the administration of the transitional area will vest in the third grade municipality. 

Characteristics of third grade municipalities 

As described in the Act, every third grade municipality is:

  • a corporate body in the name of a transitional area, 
  • has perpetual succession,
  • common seal,
  • can sue and be sued within the restrictions imposed by the Act. 

Strength and duration of third grade municipalities

Section 3F of the Act, the strength or the total number of members of third grade municipalities will be notified by the inspector according to the population as calculated or ascertained according to the last preceding census. However, the inspector can alter the strength from time to time. 

Section 3G of the Act provides the duration of third grade municipalities. The duration of every third grade municipality is five years from the date appointed for its first meeting, and the expiry date will be taken as its dissolution. The election to constitute the third grade municipality shall be completed either within the period mentioned above or before the expiry of six months from the date of dissolution of the third grade municipality. 

Appointment of a special officer in some districts

Section 3GG provides for the appointment of a special officer in Sholinghur for which a third grade municipality cannot be constituted on 25 October 2001, even after resorting to the election process, the government may appoint a special officer in order to discharge the functions and powers of such third grade municipality until the first meeting of such third grade municipality after the election are conducted. The special officer appointed in this regard will hold office only for six months or a short period as notified by the government.

Section 3GGG provides that for Koothappar town panchayat in Tiruchirappalli district for which town panchayat could not be constituted on 25th October 2006, even after resorting to the election process, the government may appoint a special officer in order to discharge the functions and powers of the town panchayat until the first meeting of such town panchayat after the elections are conducted. The special officer appointed in this regard will hold office only for six months or a short period as notified by the government.

Election of members for third grade municipality

Section 3H of the Act provides for the election of members for third grade municipality. It states that no member shall be elected for more than one third grade municipality. Section 3I further provides for the reservation of seats. The seats in the third grade municipality will be reserved for the following persons:

  • Persons belonging to Scheduled Castes and Scheduled Tribes. 
  • One-third of seats for women belonging to Scheduled Castes and Scheduled Tribes. 
  • One-third seats for women, which includes the seats reserved for women belonging to Scheduled Castes and Scheduled Tribes. 
  • Seats will also be reserved for the office of chairpersons of third grade municipalities for people belonging to Scheduled Castes and Scheduled Tribes. The number of seats reserved for this purpose is the proportion of the total number of offices in the state as the population of Scheduled Castes or Scheduled Tribes in the third grade municipalities to the total population of all third grade municipalities in the state. 
  • Seats for the chairperson’s office will be reserved for women belonging to Scheduled Castes and Scheduled Tribes, and the number of seats so reserved must not be less than one-third of the total seats reserved for people belonging to Scheduled Castes and Scheduled Tribes. 
  • Seats for the office of chairperson will also be reserved for women, which will be one-third of the total offices of chairpersons. This also includes the seats reserved for women belonging to Scheduled Castes and Scheduled Tribes. 

Term of office of the members

According to Section 3K, the term of office of the members of every third grade municipality is five years, which will commence from the date appointed for its first meeting. If a member has been elected in a casual vacancy, he shall hold office only till the time the member in whose place he was elected, would be entitled to office, if there was no vacancy. Section 3J provides that in order to conduct elections of councillors (members from each ward in the third grade municipality), the inspector will divide the transitional areas into wards after consulting the third grade municipalities and determining the number of members to be elected according to the scale. It further provides that only one member will be elected from each ward.

Section 3L provides that the electoral roll of a third grade municipality will be the same as the electoral roll of the Tamil Nadu Legislative Assembly. Section 3M provides that the state government has the power to direct that any provisions of the Act or rules made under the Act would be applicable to the town panchayat to such extent with restrictions and modifications as specified in the notification. 

Village Panchayat as third grade municipality

Section 3 MM of the Act provides that the President and members of a village panchayat who have been elected and are holding office immediately before the date of constitution of a village panchayat as third grade municipality, will be deemed to be the chairman and members of such third grade municipality, and they will continue to hold office till any notification in this regard by the state government or completion of their tenure according to Tamil Nadu Panchayats Act, 1994. 

All the employees, except provincialised employees of the village panchayat, will be the employees of third grade municipalities. The provincialised employees will be transferred by the Director of Rural Development within 3 months from the date on which the third grade municipality has been constituted. 

Section 3N provides that the provisions of this Act will be effective notwithstanding anything inconsistent in this Act or any other law. It further provides that the provisions of this chapter will be in addition ato and not derogatory to any other provisions of the Act. 

Town panchayats

According to Section 29A of the Act, a town panchayat is an institution of self-government which is constituted for a transitional area as defined in Article 243Q of the Constitution. Chapter 1B of the Act deals with town panchayats. 

Constitution and formation of town panchayat 

The Governor has the power to classify and declare any local area which has one or more revenue villages or any portion of it or contiguous portion of two or more revenue villages and a population not less than thirty thousand, as a panchayat town. This declaration is also dependent on other factors like revenue generation, employment in non-agricultural activities, economic factors etc. Every such panchayat town will have a town panchayat. 

The governor also has the power to exclude any area from being declared as a panchayat town. He can also:

  • Include any local area in a panchayat town. 
  • Cancel or modify notification related to the declaration and specification of the name of a transitional area.
  • Alter the name of such an area.

Any inhabitant of such an area can appeal to the High Court within the prescribed period against any notification issued under the Section. 

Section 3Q of the Act deals with the constitution of town panchayats. It consists of all the members that are duly elected. According to the Section, the following persons will also be a part of town panchayats:

  • Members of the House of People and state legislative assembly representing the constituency which is a part of the town panchayats. 
  • Members of the Council of State who are registered as electors within the area of town panchayats.

However, these members can take part in proceedings or meetings of town panchayats but do not have a right to vote in such meetings. Section 3R deals with the incorporation of town panchayats. It provides that a town panchayat will be constituted for every panchayat town and consist of such elected members as notified. Further, the administration of the panchayat town will vest in the town panchayat, but it will not exercise any functions vested in the chairman or any other authority. The town panchayat will be a body corporate with perpetual succession, can sue and be sued and enter into contracts as well. 

Strength and duration of town panchayat

Section 3T of the Act, the strength or the total number of members of town panchayats will be notified by the inspector according to the population as calculated or ascertained according to the last preceding census. However, the inspector can alter the strength from time to time. 

Section 3U of the Act provides the duration of town panchayats. The duration of every third grade municipality is five years from the date appointed for its first meeting, and the expiry date will be taken as its dissolution. The election to constitute the town panchayats shall be completed either within the period mentioned above or before the expiry of six months from the date of dissolution of the third grade municipality. 

Election of members and their term of office

Section 3V of the Act provides that no member shall be elected for more than one town panchayat. Section 3W further provides for the reservation of seats. The seats in the town panchayats will be reserved for the following persons:

  • Persons belonging to scheduled castes and scheduled tribes. 
  • One-third of seats for women belonging to scheduled castes and scheduled tribes. 
  • One-third seats for women, which includes the seats reserved for women belonging to scheduled castes and scheduled tribes. 
  • Seats will also be reserved for the office of chairmen of third grade municipalities for people belonging to scheduled castes and scheduled tribes. The number of seats reserved for this purpose is the proportion of the total number of offices in the state as the population of scheduled castes or scheduled tribes in the third grade municipalities to the total population of all third grade municipalities in the state. 
  • Seats for chairmen’s office will be reserved for women belonging to Scheduled Castes and Scheduled Tribes, and the number of seats so reserved must not be less than one-third of the total seats reserved for people belonging to Scheduled Castes and Scheduled Tribes. 
  • Seats for the office of chairperson will also be reserved for women, which will be one-third of the total offices of chairmen. This also includes the seats reserved for women belonging to Scheduled Castes and Scheduled Tribes. 

The term of office of the members of every town panchayat is five years, which will commence from the date appointed for its first meeting. If a member has been elected in a casual vacancy, he shall hold office only till the time the member in whose place he was elected, would be entitled to office, if there was no vacancy. Section 3Y provides the term of office of the members. It provides that the term of office of the members elected at the ordinary election will be five years and commence from the date appointed for its first meeting. However, a member elected for casual vacancy will hold office only till the time the member in whose place he is elected would have held the office. Section 3AA further provides that the state government has the power to direct that any provisions of the Act or rules made under the Act would be applicable to the town panchayat to such extent with restrictions and modifications as specified in the notification. 

Village panchayat constituted as town panchayat

Section 3CC of the Act provides that the President and members of a village panchayat who have been elected and holding office immediately before the date of constitution of a village panchayat as town panchayat, will be deemed to be the chairman and members of such town panchayat, and they will continue to hold office till any notification in this regard by the state government or completion of their tenure according to Tamil Nadu Panchayats Act, 1994. The Chairman and the members will exercise all powers and perform duties mentioned under the Act. 

All the employees, except provincialised employees of the village panchayat, will be the employees of town panchayat. The provincialised employees will continue to serve under the town panchayat. 

District municipalities under Tamil Nadu District Municipalities Act, 1920

According to Section 2D, a municipality is an institution of self-government which is constituted for a smaller urban area defined under Article 243Q of the Constitution. Part II of the Act deals with establishment, constitution, and government of district municipalities. Chapter II specifically deals with creation and abolition of municipalities. 

Creation of municipalities

Section 4 of the Act deals with the creation of municipalities at the district level. According to the Section, the governor, on the basis of employment per cent in non-agricultural activities, revenue generated for local administration, population etc, declares his intention to:

  • Constitute a municipality.
  • Exclude from the municipality any local area comprising therein.
  • Include within a municipality any local area within the vicinity. However, no cantonment can be included in such an area. 

The Section provides that any inhabitant of a local area or tax-payer of a municipality can raise objections regarding any notification published with respect to such municipality, to the governor within six weeks from the date of publication of the notification. After considering the objections and the expiry of six weeks, the governor can either declare, exclude or include any local area in the municipality. Further, the state government can classify municipalities for efficient administration as:

  • Special grade
  • Selection grade
  • First grade
  • Second grade.

Township

The governor on the basis of the size of the area, and municipal service provided by industrial establishments in that area and other areas declared an urban area comprising any municipality as an industrial township. He will also constitute a township committee. He will further issue a notification declaring that the functions of the municipal council will be vested with the township committee and provide:

  • Total number of members of the township committee.
  • Selection of the members of the committee.
  • Chairman of the committee and manner in which he will be elected.
  • Term of office of all the members and chairman.
  • Any restriction or condition regarding the functions of the committee.
  • Procedure of committee. 

According to Section 4B of the Act, a governor may declare any industrial township as a municipality by issuing a notification in this regard. Section 5 provides that the duration of every municipality will be five years from the date appointed for its first meeting. After the expiry of said period, the municipality will be dissolved. It further provides that the election for constituting a new municipality will be completed:

  • Either before the expiry of its duration or,
  • Before the expiry of six months from the date of its dissolution. 

Constitution of municipal authorities

Chapter 3 of the Act deals with the constitution of municipal authorities. According to Section 6, the following are the municipal authorities that are charged to carry out functions mentioned in the Act:

  • Council
  • Chairman
  • Executive authority 

It further provides that the municipal council is a body corporate, has perpetual succession, and can sue and be sued. It can hold, acquire and transfer property and also enter into contracts. 

Constitution of the Municipal Council

According to Section 7 of the Act, the Municipal Council consists of councillors and the number of councillors will be determined by the state government. This power of state government to decide the number of councillors must not be exercised more than once within the period of five years. However, the number of councillors must not be more than fifty-two and less than twenty. However, if in case no councillor is elected at an ordinary or casual election held under Section 8, Tamil Nadu State Election Commissioner will fix a day for fresh elections in this regard and the councillor so elected will hold office till the date he would have been in the office if he had been elected at the ordinary or casual election. This is given under Section 9 of the Act. 

The following members will also be represented in the municipality:

  • Members of the House of People and state legislative assembly representing the constituency which is a part of the municipality. 
  • Members of the Council of State, who are registered as electors within the area of the municipality.

However, these members can take part in proceedings or meetings of town panchayats but do not have a right to vote in such meetings.

Reservation of seats for municipal council

The Section further provides that the seats will be reserved for the following persons:

  • Persons belonging to scheduled castes and scheduled tribes. 
  • One-third of seats for women belonging to scheduled castes and scheduled tribes. 
  • One-third seats for women, which includes the seats reserved for women belonging to scheduled castes and scheduled tribes. 
  • Seats will also be reserved for the office of chairmen of third grade municipalities for people belonging to scheduled castes and scheduled tribes. The number of seats reserved for this purpose is the proportion of the total number of offices in the state as the population of scheduled castes or scheduled tribes in the third grade municipalities to the total population of all third grade municipalities in the state. 
  • Seats for chairmen’s office will be reserved for women belonging to scheduled castes and scheduled tribes, and the number of seats so reserved must not be less than one-third of the total seats reserved for people belonging to scheduled castes and scheduled tribes. 
  • Seats for the offices of the chairperson of the municipality will also be reserved for women, which will be one-third of the total offices of chairmen. This also includes the seats reserved for women belonging to scheduled castes and scheduled tribes. 

Term of office of the members of council

Section 8 provides that the term of office of the members of councillors is five years, which will commence from the date notified by the state government. In case of ordinary vacancy, the seat will be filled up by ordinary election, which will be done within three months before the occurrence of vacancy. If a member has been elected in a casual vacancy, he shall hold office only till the time the member in whose place he was elected, would be entitled to hold office, if there was no vacancy.

Appointment of Chairman and Vice-Chairman

According to Section 12 of the Act, every council is under an obligation to elect one of its members as chairman and one as vice-chairman. It shall also nominate a panel of three members, one of whom will perform the functions of chairman in the absence of both Chairman and Vice-Chairman. The chairman and vice-chairman will have to vacate the office on the expiry of their term as councillors.

The Section further provides that in case the chairman is absent, the Vice-Chairman will perform all the functions of the Chairman. Also, they will be eligible for re-election. It is also provided that both Chairman and Vice-Chairman will be deemed to have assumed office on the declaration of them as Chairman and Vice-Chairman. 

According to Section 12A, if no person is elected as Chairman or Vice-Chairman in the elections held under Section 12, a fresh election will be held. Section 12B further provides that no Chairman or Vice-Chairman or councillors will be paid any remuneration or salary from the funds under the control of the Council for any services rendered by him. They are also not allowed to take any foreign trip in their official capacity except with the permission of the state government (Section 12BB). 

Appointment of Commissioner

According to Section 12C of the Act, a Commissioner will be appointed by the state government in the case of municipalities mentioned in Schedule IX of the Act. There are 54 such municipalities for which commissioners are appointed. Some of these are Coimbatore, Kumbakonam, Octacamund, Salem, Tanjore, Tiruchirapalli, Tuticorin, Tirupattur, Erode, Dindigul, Ambur, Tiruvallur, Rasipuram, Tindivanam, Karur etc. 

The Commissioner appointed is the whole time officer of the municipality and will not undertake any work which is not connected with his office without the permission of the municipal council and state government. Further, the State Government has been empowered under the Act to regulate the methods of recruitment, conditions of service, pay and allowances, discipline and conduct of Commissioners appointed. 

Rights and duties of commissioner 

According to Section 18A of the Act, the following are the rights and duties of a commissioner:

  • He has the right to participate in the meetings of the council or committee but cannot vote or move resolutions in the meeting. 
  • He will also have to attend the meetings if asked by the chairman to do so. 
  • For municipalities mentioned in Schedule IX, the officers and servants will be subordinate to the commissioner.
  • He can also delegate his functions to any officer or servant of the council, with restrictions and limitations imposed by him. 

Functions of authorities under Tamil Nadu District Municipalities Act, 1920

The Act specifies powers and functions of chairman, executive authority and the council separately in different provisions which are discussed below-

Functions of Chairman

According to Section 13 of the Act, the Chairman of the Municipal Council will perform the following functions:

  • Make arrangements to conduct elections of vice-chairman.
  • Convene the meetings.
  • Perform all duties as mentioned in the Act. 
  • According to Section 18, he can delegate his functions to the vice-chairman. 

Powers and functions of executive authority

The following are the functions of executive authority under the Act (Section 13A):

  • Bring the resolutions of the council into effect.
  • Furnish periodical reports to the council regarding progress in carrying out the resolutions and collection of taxes. 
  • According to Section 15, the executive authority also has emergency powers. In cases of emergency, he can direct the execution of work which requires the sanction of the council, that the expenditure in carrying out the exception will be paid from the municipal fund. 
  • Under Section 16, the authority also has the power to incur petty contingent expenditure not exceeding fifty rupees. After that, he has to report such expenditure in the next meeting of the Council.
  • Under Section 216, the Executive Authority has the power to ask the owner or builder of a building to demolish or make alterations according to it if the construction of the building was done without due permission of the council or construction was carried on without following the plan or such construction breached any provisions of the Act or bye-laws. 
  • Under Section 223, the Executive Authority will grant permission to construct a well, tank, pond or fountain. However, if any of the above-mentioned constructions are done without permission, the authority will either ask the owner to demolish it or grant permission to retain such work, but the owner will be liable for contravention of the provisions of the Act. 
  • Under Section 253, the Executive Authority or any person authorised by them has the power to enter any factory, workplace or work-shop any time between sunrise and sunset, when the industry is being carried on or at any time during day or night if there is a reason to believe that any offence has been committed at such place. 
  • Under Section 271, the Executive Authority has a duty to make inspection of animals, carcasses, meat, poultry, game, flesh, fish, fruit, etc kept for sale.
  • Under Section 274, the authority has the power to seize diseased animals and noxious food. 

Powers and functions of the council

The following are the functions of the council:

  • According to Section 19, all the municipal administration will vest in the council.
  • Under Section 21, it can ask the executive authority to produce documents which are in its custody. Further, the executive authority will give effect to all the resolutions of the council, unless it is modified, suspended, or cancelled by the controlling authority. 
  • Further, Section 23 provides that the council can appoint a standing committee with the approval of the state government. Such an appointment is made after a resolution is passed by not less than one-half of the sanctioned strength of the Council.
  • It can also constitute a special committee of members belonging to any committee who possess special qualifications and are not councillors. However, the number must not exceed one-third of the total members of such a committee. (Section 24)
  • Under Section 24A, a development plan has to be prepared for the  municipality and the Panchayat Town which will be then submitted to the District Planning Committee constituted under Section 241 of the Tamil Nadu Panchayats Act, 1994 having jurisdiction over the municipality, third grade municipality or town panchayat. 
  • According to Section 74, the council has the power to make service rules and regulations regarding:
    • Fixing amount and nature security to be furnished.
    • Educational and other qualifications.
    • Regulations about granting leave and leave allowances.
    • Grant of pension and gratuities.
    • Establishing and maintaining provident funds.
    • Regulating conduct.
    • Conditions of service. 
  • Under Section 183, the council will grant the licence to the owner or occupier of premises to put up verandas, balconies, sun shades and other projects over the street. 
  • It will also give names and numbers to the new public streets and to parks, playgrounds, bus stands or new municipal property after the approval of the state government and can also alter their names (Section 189). 
  • Under Section 227, the Council has a duty to maintain all the wells, tanks and reservoirs that are not private property and fill them whenever necessary. 
  • Further, Section 229 empowers the council to construct public wash houses or places for washing clothes for the public and can ask for rent for the maintenance of such areas. 
  • Under Section 237, if a building seems unfit for human habitation to the Executive Authority, it may apply to the council, which will prohibit its use after giving the opportunity of being heard to the owner or occupier of the place. 
  • Under Section 306, the council has the power to make bye-laws on the following matters:
    • Matters expressly mentioned in the Act.
    • Duties of municipal officers and servants.
    • Use of public tanks, wells and other places of water supply.
    • Public bathing and washing and protection of the water supply system.
    • Supply of water for domestic use.
    • Maintenance and protection of the lighting system.
    • Maintenance and protection of the drainage system. 
    • Laying out streets.
    • Cleansing of earth closets, ash pits and cesspools. 
    • Protection of trees, grass, avenues etc.
    • Regulation of hotels, lodging houses, boarding houses etc.
    • Sanitary control and supervision of places within the municipality.
    • Control and supervision of slaughter houses. 
    • Inspection of public and private markets.
    • Regulations of burial and burial grounds. 
    • Prevention of dangerous diseases. 
    • Enforcement of compulsory vaccination.
    • Prevention of outbreaks of fire.

Duties of individual councillors

According to Section 20 of the Act, the individual councillors have the following duties:

  • They may call the attention of the Executive Authority to neglect happening in the execution of municipal work, any waste of municipal property, wants of any locality, and can suggest any improvements for the same. 
  • Every councillor will have the right to move resolutions and interpellate the Chairman on matters related with the administration of municipality framed by the Council. 
  • The councillors will have access to records of Council during office hours. These can be accessed after giving notice to the Executive Authority, provided that the Authority can forbid the access and furnish reasons for the same in writing. 

Committees constituted under Tamil Nadu District Municipalities Act, 1920

The Act provides for constitution of various committees like taxation appeals committee, wards committee, area sabha and joint committee. These are discussed below:

Taxation Appeals Committee 

Section 23A provides for the constitution of Taxation Appeals Committee and that such a committee will be constituted in every municipality. It will consist of the Chairman of Municipal Council as Chairman of the Taxation Appeals Committee and four councillors that are selected by the council. The business of the committee will be in accordance with the rules made by the State Government in this regard. 

Ward committee 

Criminal litigation

The municipal council has the power under Section 24C to constitute a ward committee for each ward within its territorial area. The committee will consist of councillors representing the wards in the municipality and members nominated by the persons registered in the electoral rolls of wards and by the council. According to Section 24D, the councillor representing the ward will be the Chairperson and will have to vacate the office as soon as he ceases to be a councillor. 

Section 24E provides that the functions and duties of the committee will be as prescribed and the duration will be co-extensive with the duration of Municipal Council. 

Area sabha

Section 24F provides that the Council will constitute an area sabha for each area in a ward in the municipality. Each ward will consist of not more than five area sabhas. Further, an area sabha will comprise the entire geographical territory in which persons who are registered in the electoral rolls of one or more polling booths are residing. 

The councillor of the ward will be the Chairman and Convener of the area sabha and the duration of sabha will be co-extensive with the duration of Council (Section 24G). 

Joint Committee

Section 26 of the Act deals with appointment of joint committees. The Council has the power to join with one or more local authorities and constitute a joint committee for any purpose in which they have joint interest or for which they are responsible jointly. The committee consists of people who are not the members of the local authorities but who possess special qualifications or interest in the committee. The number of persons in the committee will not exceed one-third of the total number of members of the committee. 

This constitution of the committee will be done through a regulation which will determine:

  • Number of members of the joint committee.
  • Number of members from the local authorities and outsiders.
  • Manner of election and appointment.
  • Manner of election and appointment of Chairman. 
  • Term of office of the members.
  • Powers to be exercised by the members.
  • Procedure to be followed in the committee. 

However, the regulation may be revoked if all the concerned local authorities assent to such variation or revocation. In case of difference of opinion between local authorities and provisions of the Act, it will be referred to the State Government and the decision of the government will be final. 

Powers of State Government under Tamil Nadu District Municipalities Act, 1920

The following are the powers of the state government:

  • According to Section 24B, the State Government will constitute a wards committee consisting of one or more wards within sucg territorial area of Municipality having population more than 3 lakhs. It further provides that each ward will consist of:
    • All councillors of Municipality representing respective wards within the area. 
    • If there is one ward, the councillor representing the municipality will be in the committee. 
    • If there are two or more wards, one of the councillors elected by the members of ward committee, will be the chairperson of that committee. 
    • Further, the chairman will vacate the office as soon as he ceases to be a councillor. The term of the committee will be co-extensive with the duration of the municipality. 
  • According to Section 34, the state government can:
    • Call for any document under the authority of the council or executive authority.
    • Require the council to furnish any plan, return, statement, account, or statics. 
    • Require the council or executive authority to provide information on any matter of the municipality. 
  • The state government also has the power to suspend or cancel resolutions as mentioned in Section 36. It can:
    • Suspend or cancel any resolution, order issued or permission granted. 
    • Prohibit the doing of any act, if such resolution, order, licence or permission has not been legally granted or is in excess of powers conferred under the Act or execution of which is likely to cause danger to human life, health or safety or lead to a riot. 
  • The state government under Section 38 of the Act also has the power to appoint officers to supervise the municipalities.
  • It can also undertake work or action, in default of a municipality, under Section 39 of the Act.
  • According to Section 40 of the Act, the state government can remove any chairman or vice-chairman, if he willfully omits or refuses to carry out any function or disobeys the provisions of the Act. 
  • Under Section 41, the state government also has the power to dissolve the council, if it persistently does not perform the duties and functions mentioned in the Act. 
  • Under Section 73A of the Act, the state government has the power to transfer officers and servants of municipalities. It can transfer any officer or servant of any municipality to the municipality or corporations in Chennai or to any other municipality or corporation. 
  • Further, the state government under Section 76A has the power to appoint a health officer, engineer or electrical engineer. 
  • Under Section 191, the State government has the power to make Rules for restrictions on buildings and sites to be used for the construction of buildings. The rules further provide that no insanitary site will be used for the construction of buildings and no such site will be used which is intended for public worship. 
  • Under Section 303, the state government has the power to make rules regarding:
    • Matters related to the provisions of the Act.
    • Conditions on which property may be acquired by the municipal council.
    • Working of provident funds.
    • Matters related to taxation and finance rules.
    • Preparation of plans and estimates for construction work under the Act.
    • Accounts are to be kept by the council.
    • Estimates of receipt and expenditure.
    • Registers of births and deaths.
    • Powers of auditors and officers permitted to hold inquiries, summon and examine witnesses etc.

Appointment and election of councillors

Section 43 of the Act deals with the election of municipal councillors. For this, the state government, after consulting the municipal council, divides the municipality into different wards and also determines the number of members to be elected. It further provides that only one member will be elected from each ward. 

According to Section 43A, if a person has been elected for more than one ward, he shall within seven days intimate the commissioner, the ward which he chooses to be a part of and serve. If he fails to do so, the commissioner will determine the same by lot. Section 43AA provides that for the first election of council that is to be held immediately after 14th July, 2006, the territorial area of the wards, number of wards and councillors will be the same as they existed on 14th July, 2006. The Commissioner of the Commission will be appointed by the Governor under Article 243K of the Constitution. 

Further, Section 43B of the Act empowers the Tamil Nadu State Election Commission with the power to.conduct, control, direct and supervise the elections to municipalities including third grade municipalities and town panchayats. Section 43BB makes it mandatory to grant holiday to the employees who are entitled to vote on the day of poll and  no wages would be deducted for this. If the employer fails to comply with the above provision, he will be punishable with a fine of Rs. 500. However, it is not applicable to the elector whose absence will cause substantial loss or danger of such substantial loss in the employment.

Section 44A of the Act bars the jurisdiction of a civil court from entertaining or adjudicating any question related to the issue of whether a person is entitled to be registered in the electoral roll in a municipality or inclusion or exclusion of any entry by any authority in the electoral roll. Section 44B provides that if a person makes false declaration in writing with respect to preparation, revision or correction of an electoral roll or inclusion or exclusion of any entry in or from the electoral roll, he will be punished with imprisonment upto a year or fine or both. 

Election Rules 

The Act empowers the State Government under Section 44C to make rules with respect to procedure regarding elections after consulting the Tamil Nadu Election Commission. These rules will also provide rules for the deposits to be made by the candidates and circumstances under which the deposit will be forfeited. It further provides that the deposit must not exceed three thousand rupees. 

In lieu of this, The Tamil Nadu Town Panchayats, Third Grade Municipalities and Corporations (Election) Rules, 2006 have been made and implemented in the state with respect to election of Municipalities including town panchayats and third grade municipalities. The rules provide for the powers and functions of the State Election Commission as:

  • It can delegate its powers to the officers.
  • The State election officer, district election officer, electoral registration officer, returning officer, assistant returning officer, presiding officer, polling officer and officer appointed officer will be responsible for conduct of elections and deemed to be deputed to State Election Commission from the commencement of preparation of electoral rolls to completion of elections.
  • The Commission can obtain information and particulars about casual vacancies that are required to be filled.
  • The Executive Officers and the Commissioners are under obligation to report such casual vacancy within one week to the State Election Commission. 

The rules further provide provisions for preparation of electoral rolls, nomination of candidates, deposits, withdrawal of candidature, registration of political parties, etc. 

Qualifications for the membership of the council

According to Section 48, the following are the qualifications of a person to be eligible for election of councillor:

  • His name must be included in the electoral roll of the municipality.
  • He must have completed twenty-five years of age. 
  • No officer of the government or village officer will be qualified for the election of councillor. 

Section 49 of the Act provides for the disqualification of candidates. The following persons are disqualified from the election of councillor:

  • A person who has been sentenced for more than six months for any offence other than related to political character. 
  • A person convicted for an offence which is punishable under the Civil Rights Act, 1955 will be disqualified for six years.
  • A person who is disqualified from being a councillor under Section 50 will be disqualified from contesting the elections of councillors. 
  • A person will also be disqualified if he is:
    • of unsound mind, deaf-mute or leper; or
    • bankrupt or insolvent.
  • Section 49A further provides that a person will be disqualified from being a Chairman or Vice-Chairman or Councillor of Third Grade Municipality or Town Panchayat if he is either a member of Legislative Assembly of State or a member of either house of Parliament. 

Further, Section 50 provides that a councillor will cease to hold his office if he is:

  • Convicted of an offence punishable under the Protection of Civil Rights Act, 1955.
  • Becomes unsound, deaf-mute or leper.
  • Becomes bankrupt or insolvent.
  • Acquires any interest in any subsisting contract made with the council, except the shareholder. 
  • Employed as a paid legal practitioner on behalf or against the council.
  • Does not belong to the scheduled caste or scheduled tribe but has been elected from the seat reserved for them.
  • Appointed as an officer or servant under the Act or as honorary magistrate. 
  • Accepts employment under any other councillors. 
  • Ceases to reside in the municipality.
  • Fails to pay arrears due to him.
  • Fails to attend meetings of the council for consecutive three months. 

Grounds for declaring any election void

Section 51A provides that any objection regarding the election under the Act will be given in the form of an election petition to the District Judge of the district in which the municipality is situated within 45 days from the date results were announced. The election petition consists of:

  • A concise statement of material facts by the petitioner.
  • Sufficient particulars.
  • Duly signed by the petitioner and verified. 

Section 51B further provides grounds for declaring the election void. These are:

  • The candidate was not qualified.
  • Any corrupt practice has been committed by the candidate.
  • Any nomination paper has been rejected improperly.
  • The result of the election has been affected by the improper acceptance of the nomination, a corrupt practice committed in the interest of the returned candidate by any other or improper acceptance or refusal of any vote. 

On the above-mentioned grounds, the election can be declared void. However, if the judge thinks the contrary and is of the opinion that the candidate took reasonable measures to prevent corrupt practices, then the district judge has to declare the election of the returned candidate as not void. 

Election offences and penalties 

Section Offence/penalty Punishment 
Section 56Infringing the secrecy of the election Imprisonment up to six months or a fine or both. 
Section 56APersonation at an election.Imprisonment not less than six months and not exceeding two years and a fine. 
Section 56B Promoting enmity between classes in connection with election. Imprisonment up to three years or a fine or both. 
Section 56CProhibition of public meetings on the day of the election or the day preceding it. Fine up to two hundred and fifty rupees. 
Section 56D Disturbances at election meetings.Fine which may extend up to two hundred and fifty rupees. 
Section 56FOfficers at election not to influence voting. Imprisonment up to six months or a fine or both. 
Section 56GProhibition of canvassing near or in the polling stations. Fine extending up to two hundred and fifty rupees. 
Section 56HDisorderly conduct in or near the polling stations. Imprisonment up to three months or a fine or both. 
Section 56IMisconduct at polling stations.Imprisonment up to three months or a fine or both.
Section 56J Illegal hiring or procuring conveyance at election. Fine up to two hundred and fifty rupees. 
Section 56KBreaches of official duty related to election. Fine extending to five hundred rupees. 
Section 56L Removal of ballot papers from the polling stations. Imprisonment extending up to one year or fine extending up to five hundred rupees or both. 
Section 56MOther offences Imprisonment up to two years or a fine or both, if he is a returning officer or assistant returning officer and imprisonment up to six months or a fine or both if he is another person. 

Requisition of property for election

Section 60A of the Act empowers the State Government to requisition any property or vehicle or vessel or animal for the purpose of election by an order made in writing. However, no property, vehicle, or vessel used by a candidate or his agent for the purpose of election, will be requisitioned. Section 60B further provides that if any premises have been requisitioned by the State Government, the Municipal Council will pay the owner of premises such compensation which will be determined considering the following factors:

  • Rent payable according to the provisions of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. 
  • If the person residing in the premises is compelled to change his residence or place of business, he will be paid the required expenditure. 

The State Government also has the power to obtain any information from any such authority with respect to possession of requisitioned property (Section 60C). Further, any person authorised by the State Government can enter such premises and inspect the property or vehicle to be requisitioned (Section 60D). Under Section 60E, it has been given that any person residing in the premises to be requisitioned can be evicted and if a woman who is not allowed to appear in public, is residing in the premises of such property, she must be given reasonable warning and facility to withdraw, and then the officer can remove the lock or break open any door for eviction.

At the time of release of property or vehicle from such requisition, the possession must be given to the person from whom it was taken and thus would discharge the government from all the liabilities with respect to such delivery and if such a person or his agent cannot be found, copy of notice of release from requisition must be affixed to conspicuous part of such premises (Section 60F). Section 60H further provides that if any person contravenes the above provision, he will be punished with imprisonment upto one year or fine or both. 

Powers of municipal authorities with respect to property, contracts, and establishments under the Act

Under Section 61 of the Act, all the public streets, sewers, drains, tunnels etc in a municipality will vest in the municipal council. According to Section 61A, if a particular public street has been withdrawn from the control of the municipal council and handed to the highways department of the state government, it is the duty of the council to order for:

  • Lighting, watering, and drainage of such streets.
  • Maintenance and repair of water supply mains, drains, and sewers alongside such streets.
  • Maintenance and repair of footways of such streets. 

Section 62 further provides that all the rubbish and filth collected by the municipal council will belong to it, and Section 63 gives the power to the board of revenue to transfer control of endowments to the municipal council. Further, the executive authority has to maintain an inventory of all the immovable property owned by the council as given under Section 64 of the Act. 

According to Section 68 of the Act, the council can delegate its power to the chairman or a committee of two or three members to enter into a contract on its behalf according to the amount mentioned therein. Section 69 provides that every contract made on behalf of the council must be in writing if the value of such contract exceeds one hundred rupees and must be signed by two municipal councillors. Section 71 provides that in a municipality which does not belong to Schedule IX of the Act, the council can sanction a post of secretary. It can also sanction a post of health officer and municipal engineer by special resolution and only if required by the state government. 

Taxes levied under Tamil Nadu District Municipalities Act, 1920

According to Section 78 of the Act, the following taxes may be levied by a municipal council:

  • Property tax
  • Profession tax
  • Tax on carriages and animals
  • Tax on carts
  • Tax on advertisements other than those published in the newspaper and broadcasted on radio or television.
  • A municipal council on any hill station can also levy tax on servants. 
  • A pilgrim tax can also be levied under Section 116 of the Act on people where the municipality is resorted to by the pilgrim and if an occasion of pilgrimage occurs at intervals in a year, tax will be levied for a specified period. But where the occasion of pilgrimage is often, the tax will be levied throughout the year. 

Further, Section 80 provides that whenever the council levies any new tax or a new rate, the same has to be published in the district gazette. Section 117 of the Act empowers the municipal council to exempt any person wholly or partly from the liability to pay tax with the sanction of the state government. However, the exemption from the liability will not solely be on the ground that the person is a member of the municipal council. Further, the commissioner under Section 117A has the power to assess a person trying to escape from the assessment of tax under the following circumstances:

  • Person escaped assessment in any half year or,
  • He has been assessed at a lower rate that he is to be assessed or,
  • He has not been duly assessed in case of property tax or the value of land or building concerned has not been determined properly. 

Further, Section 118 gives power to the municipal council to write off any tax which is irrevocable. According to Section 119, all the money received by the municipal council will be constituted in a fund named municipal fund and will be used and disposed of as per the provisions of the Act. 

Property tax

According to Section 81, property tax will be levied on all buildings and lands within the municipality and not exempted under the Act. A property tax comprises of:

  • Tax for general purpose.
  • Water and drainage tax.
  • Lighting tax.
  • Scavenging tax.
  • Railway tax. 

However, the following lands and buildings are exempted from the property tax as given under Section 83:

  • Places of public worship.
  • Choultries for the occupation for which no rent is charged.
  • Buildings for educational purposes.
  • Ancient monuments are protected under the Ancient Monuments Preservation Act, 1904. 
  • Charitable hospitals and dispensaries.
  • Burial and burning grounds.
  • Buildings and lands belonging to the Municipal Council.

Section 86 provides that this tax will be levied every half year and must be paid by the owner of the premise within thirty days after the commencement of the above-mentioned period. 

Tax on carriages and animal

Section 98 provides that the tax on carries and animals shall be levied half yearly by the municipal council on the carriages and animals within the municipality and also mentioned in Schedule IV. Section 99 further provides that every person who has possession of carriages or animals within the municipality will be liable to a full half-yearly tax if these are kept in the municipality for not less than sixty days in the half-year. If the aggregate period exceeds fifteen days but less than sixty days, a moiety of only half a year will be levied but if the period does not exceed fifteen days no tax will be levied. 

Section 100 gives certain exemptions from the tax. The tax on carriages and animals will not be levied on the following:

  • Carriages and animals belonging to the government and those used by the military.
  • Carriages and animals are kept for sale.
  • Carriages that are under repair during the whole half year.
  • Infirm and unfit animals. 

Tax on carts and advertisements

According to Section 105, tax will also be levied on the carts kept within the municipality. Section 107A deals with tax on advertisements other than those published in a newspaper or broadcasted on any radio or television. However, no such tax will be levied on any notice of:

  • A public meeting.
  • Election to any legislative body or council.
  • Candidature notice. 
  • Any sky sign which is exhibited on the window of any building.
  • Any sky sign which relates to the trade or business carried on within the land or building over which it is exhibited.
  • Any sky sign which relates to the business of railway administration. 

Tax on profession 

Chapter VI A of the deals with tax on profession and trade. According to Section 124 D, a municipal council may also levy tax on profession, trade, calling, and employment. Section 124 E provides for the liability of employers to deduct from the salary or wages of employees the tax payable by the person. In this regard, the employers have to file a return to the Executive Authority showing the salary paid to the employees and the taxes deducted (Section 124F). Further, the Executive Authority will accept the return if satisfied or if the employer fails to file the return, the Authority will assess the employer and determine the tax due and serve a notice in this regard to the employer (Section 124G). Apart from this, the Executive Authority can impose a penalty on the employer according to Section 124H. Further, any person aggrieved by the order of Executive Authority can file an appeal to the Taxation Appeals Committee whose decision will be final and binding. 

However, it will not be applicable to the following persons (Section 124J):

  • Members of the armed forces of the union.
  • Members of Central Reserve Police Force.
  • Physically disabled persons with total disability in hands and legs or totally dumb, blind or deaf.

Water supply, lighting and drainage

Chapter VII deals with water supply, lighting and drainage. Section 125 provides that all public water courses, reservoirs, tanks, fountains, wells etc existing at the time when the Act came into being or was made or erected at the cost of municipal council will be under the control of council. Section 126 further empowers the municipal council to direct the construction of such works which are necessary for the supply of water with the sanction of the state government. Section 128 prohibits the construction of any building, wall or structure over any municipal water mains. If done so, the council can direct to remove the building or structure and ask for expenses. 

Further, Section 129 imposes an obligation on the council to provide sufficient supply of water for domestic use. The Executive Authority under Section 131 on the application of owner or occupier of building, can supply water for domestic use and consumption to the premises where the supply of water is through pipe. However, the Authority cannot agree to supply water at the cost less than one hundred twenty rupees without the sanction of council. The Section further provides that the cost of making connection and meters will be borne by the owners or applicant and will be recoverable in the same manner as property tax. However, the supply of water for domestic consumption will not include:

  • Supply for any trade, business or manufacture.
  • Supply for garden or irrigation.
  • Supply for buildings.
  • Supply for fountains, public baths etc.
  • Supply for animals, washing vehicles etc. 

Section 134 of the Act gives the Executive Authority the power to cut off water supply and the expenses will be borne by the owner or occupier of the premises, under the following circumstances:

  • If the premises are unoccupied.
  • If the water bill or tax or any other charges with respect to making connection and hire of meters is not paid within fifteen days after such bill has been presented. 
  • If the owner or occupier negligently or willfully damages his meter or pipes or tap conveying water supply.
  • If the owner or occupier continues to use water contravening the by-laws made under the Act after receiving notice from the Executive Authority.
  • If any pipes, taps, works or fittings connected with Municipal water supply are found to be out of repair by the Executive Authority etc. 

Section 136 of the Act imposes a duty on the council to cause the public streets to be lighted and provide lamps and other works for this. 

Public and private drainage

Section 137 provides for maintenance of public drains by the municipal council. Further, Section 138 deals with private drains and provides that all the house drains, whether within or outside the premises to which they belong, will be under the control of municipal council but altered, repaired, and maintained at the cost of owner or occupier of the premises. 

Under Section 140, the Executive Authority has the power to close or limit the use of existing private drains. Section 141 of the Act gives power to the Executive Authority to drain premises in combination if the Authority is of the opinion that any group or block of premises situated within one hundred feet of municipal drain be drained more economically and advantageously in combination than separately. 

Section 151 of the Act prohibits a person from making any connection with any municipal cable, wire, pipe, drain or channel without the permission of the Executive Authority. Further, Section 152 provides that the municipal council will not undertake any work beyond the limits of the Municipality without the sanction of the state government.  It further provides that the council will exercise all the powers which it may exercise within the municipality with respect to execution of works beyond the limits of Municipality with the sanction of the state government. It will exercise all the powers over:

  • Any lake, tank or reservoir from which a supply is water for drinking, producing electricity or other purpose is derived and over all lands within one mile of the high water level of any such lake, tank or reservoir;
  • Any water course from which a supply of water for drinking, producing electricity or other purpose is derived within one mile above and half a mile below any point at which water is taken for the use;
  • Any lands used for sewage farms, sewage disposal tanks, filters and other works connected with the drainage of the Municipality. 

Scavenging 

Chapter VIII of the Act deals with scavenging. Section 153 provides that every municipal council must make arrangements for:

  • Sweeping and cleaning of streets.
  • Daily removal of filth and the carcasses of animals from private premises. 
  • Daily removal of rubbish from dustbins and private premises and provide-
    • Depots for deposits of filth and rubbish.
    • Covered vehicles or vessels for removal of filth.
    • Vehicles or other means for removal of carcasses of large animals and rubbish.
    • Dustbins for temporary deposit of rubbish.

Section 157 prohibits a person from:

  • Depositing the carcasses of animals, rubbish or filth in any street or verandah of any building or on any unoccupied ground alongside any street or on any public quarry, jetty or landing place or on the bank of a water course or tank; or
  • Depositing filth or carcasses of animals in any dustbin or vehicle not meant for removal of such filth or
  • Depositing rubbish in any vehicle or vessel meant for the removal of filth for the purpose of deodorising or disinfecting the filth. 

Section 158 prohibits the owner or occupier from keeping filth on the premises for more than twenty four hours. Further, Section 159 prohibits a owner or occupier of any premises from allowing the overflow of water or any filth out of the premises from any sink, drain, latrine or stable to any portion of a street except a drain or cesspool. According to Section 161, no person is allowed to put any rubbish or filth into any public drain not meant for rubbish or filth or any drain communicating with any such public drain. 

Maintenance of streets

Chapter IX of the Act deals with Streets. It provides provisions for public streets, private streets, encroachment etc. 

Public streets 

Section 162 provides provisions for the maintenance and repair of streets by the council and that improvements must be made for public health and safety. Section 162A provides that the municipal council will plant trees on the sides of public streets at the cost of municipal fund and make arrangements for the preservation of such trees. Under Section 163, the council has the power to:

  • Make new public streets.
  • Construct bridges.
  • Permanently close any street after consulting the state government.
  • Widen, open or improve any public street. 

Under Section 164, when a public street is closed permanently, the council may with the sanction of the State Government dispose of the site which is no longer required provided that the compensation will be made to the person who is injured by doing so. In determining the compensation, allowance will be made for any benefit accruing to the same premises or any adjacent premises belonging to the same owner for which the compensation is paid, is closed. Section 166 gives power to the council to prescribe building line and street alignment. It provides that the council will:

  • Prescribe for any public street a building line or a street alignment, or both;
  • Define a fresh line in substitution for any line so defined.

However, in either case, public notice of the proposal has to be given and special notice to be given at least one month before the meeting of council at which the matter is decided. The council will also consider all the objections to the said proposal which is made in writing and delivered at the municipal office within not less than three days before the day of such meeting. Further, Section 167 provides that a person will not construct any portion of any building within a street alignment as defined in Section 166. It further prohibits a person from erecting or adding to any building a street alignment and a building line defined under Section 166 without the permission of Executive Authority who can impose certain conditions which the council may decide. 

Section 171 of the Act provides that the council will cause the chief public streets to be watered and also provide water carts, animals and apparatus for the same. Section 172 gives power to the Executive Authority to order for temporary closing of any street for repair or to carry out any other work related to drainage, water-supply or lighting. However, the work must be completed with reasonable speed. 

Private streets

Section 175 imposes an obligation on the owner to make a street when disposing of any land as building sites in order to give access to the site or sites and connect it with existing public or private streets. Section 176 provides that if any person wants to make a new private street, a written application has to be sent to the municipal office with plans and sections and must provide the following particulars:

  • Level, direction and width of street.
  • Street alignment and building line.
  • Arrangements for levelling, paving, metalling, flagging, channelling, draining, conserving and lighting the street. 

The council will either sanction the application within 60 days or ask for further information. However, sanction may be refused on the following grounds:

  • If the proposed street is in conflict with any arrangements made for carrying out any general scheme for laying out the streets.
  • If the proposed street is not in conformity with the provisions of this Act or rules and by-laws.
  • It is not designed to connect at one end with a street which is already open. 

The Section further provides that a person will not make or lay out any new private street without the orders of council, and if any application is not disallowed within 120 days from the date of receipt it will be considered as sanctioned. 

Section 177 provides for alteration or demolition of streets which are made in contravention of Section 176. Section 178 gives power to the Executive Authority to order the owner or occupier of the buildings whose private street is not levelled, paved, metalled, flagged or channelled, to carry out the work which is necessary within the time mentioned in the notice. Section 178 further provides that such streets can be declared as public streets on the requisition of not less than three-fourths of the owner. 

Encroachment on streets

Section 180 provides that no person will build any wall or erect any fence or any other obstruction or make any encroachment over any street.  Further, Section 180A provides that public streets will be open to all and will be maintained by a municipal council. Section 181 prohibits placing of any door, wall, gate, bar or window without licence from the Executive Authority. It can also require the owner of such a gate, door, bar or window to alter it so that it does not project over the street. 

Section 182 deals with removal of encroachments situated over or against any street on the order of the Executive Authority. However, if the owner or occupier is able to prove a prescriptive title according to law of limitation or that it was erected with the due permission of municipal authority, the council will make reasonable compensation to every person suffering the damage by such removal or alteration. 

According to Section 184, the Executive Authority has to take certain precautions during the repair of streets. These are:

  • Fence the street and guard it.
  • Take precautions for the prevention of accidents by shoring up and protecting adjoining buildings.
  • Posts and chains to be fixed where work is under execution. 
  • The authority will have to cause lighting of drains and premises and also guard them at night while they are under construction.

Section 185 provides that no person will remove any bar, chain, post or shoring timber without loafer authority set up under section 184. Section 186 provides that no person is allowed to make a hole or cause any obstruction in any street without any permission from the Executive Authority.

Building regulations 

Chapter X deals with building regulations. Section 191 provides that the state government make rules regarding regulation or restriction of use of sites for building and regulation or restriction of building. The rules will further provide that:

  • No insanitary or dangerous site will be used for building.
  • No site will be used for construction of a building meant for public worship if it affects the religious feelings of others. 

Further, the state government can also make rules regarding:

  • Information and plans to be submitted together with applications for permission.
  • Height for buildings.
  • Level and width of foundation, level of lowest floor and stability of structure.
  • Number and height of storeys. 
  • Open space, ventilation etc. 

Further, the Tamil Nadu Municipalities building rules, 1972 provide rules for construction of buildings in the state. 

Regulations for building construction in hill stations

According to Section 217B of the Act, no person is allowed to carry on the following activities in a hill station without a licence granted by the state government:

  • Construction or reconstruction of any building.
  • Use any agricultural or non-agricultural land.
  • Carry out engineering, mining or other allied operations on such land. 

If the department of the central government, state government or local government proposes to carry out the above-mentioned activities, the same has to be informed in writing to the Committee for Architectural and Aesthetics Aspect and provide certain information and particulars to the committee at least three months before carrying out such activities. If there is any objection with respect the any of the activities, the officers of the central government will:

  • Make necessary modifications in the construction. 
  • Submit the proposal with objections to the state government for its approval. 

Licence for building on hill station 

Section 217C of the Act further provides that every application for the licence must be submitted to the Executive Authority along with necessary fees and particulars. The application will be further examined by the authority. The state government will constitute a committee called the Committee on Architectural and Aesthetics Aspects. This committee will examine the applications submitted to the Executive Authority and forward the same to the state government. While examining the applications, the committee must consider the following:

  • The application complies with the rules and regulations of the Act.
  • Construction is not detrimental to the scenic beauty and natural environment of the hill station.
  • Construction will harmonise with the landscape of the hill station.
  • The possibility of the construction must not be to:
    • Create unfavourable conditions for the natural environment of the hill station.
    • Leading to the concentration of the population in the area.
    • Lead to deforestation and soil erosion.
    • The construction must preserve the special characteristics of the hill station.
    • An open space must be left out in the building to provide for ventilation.
    • Minimum cubic area for rooms, height, and number of storeys must be taken into consideration.
    • The level and width of the foundation must be taken into consideration etc. 

Grant of licence 

Under Section 217D, the licence will be granted to the applicant if there is no harm or damage to the scenic beauty and natural environment of the hill station. It will be valid for one year from the date it was granted as given under Section 217F. However, Section 217E provides that such a licence can be cancelled or suspended at any time if it proves that:

  • Licence was obtained by fraud or misrepresentation.
  • The holder of the licence contravened the provisions of the Act.

Under Section 217J, the State government or the Executive Authority has the power to:

  • Stop construction or reconstruction of the building,
  • Stop the user of any building or land,
  • Alter or demolish any building,
  • Stop the user of agricultural land to carry out non-agricultural activities,
  • Stop activities like mining, engineering, and other allied operations,

by notice made in writing to the owner, occupier, or lessee of any land in the area. This power will be exercised only in cases where the state government is of the opinion that any provision of the Act has been violated. 

Licences and fees

Chapter XII deals with licences and fees. Section 244 exempts government and market committees from obtaining any licences and permissions. Section 245 provides for licences of those places in which animals are kept. 

Licence for slaughtering houses

According to Section 254, the council will provide places that can be used as slaughtering houses and ask for rent for the same. Application for a licence for such a place is to be submitted to the Executive Authority within thirty to ninety days before such place is used as a slaughtering house (Section 255). Further, Section 256 provides that the Execution Authority may allow animal slaughtering during occasions and festivals. 

Licence for trade and import of milk 

Section 258 of the Act prohibits a person from carrying on the trade or import of milk or dairy products within a municipality or using a place for the sale of milk or dairy products without a licence. Section 259 provides that any market within a municipality which is constructed, maintained or repaired by funds of the municipality will be a public market. The council under Section 260 has the power to levy the following fees in the public market:

  • Fees to expose goods for sale in such markets.
  • Fees for the use of shops, stalls, or stands in the market.
  • Fees on vehicles.
  • Fees on animals brought for sale at such places. 
  • Licence fees.

In order to construct a private market, the owner has to obtain a licence from the council within thirty to ninety before the opening of such a market (Section 262). Further, Section 264 provides that the council requires the owner, occupier, or farmer of the private market to:

  • Construct approaches, gates, passages, and drains in the market.
  • Roof and pave the floor with material to secure imperviousness.
  • Provide ventilation facilities.
  • Keep the place clean and proper.

Penalties under Tamil Nadu District Municipalities Act, 1920

Section Description Penalties 
Section 314Penalty for acting as councillor, chairman, or vice-chairman when disqualified. Fine not exceeding two hundred rupees for acting as a member of the council and one thousand rupees for acting as chairman or vice-chairman. 
Section 316Penalty for omission to take licence for vehicle or animal.  Fine not exceeding fifty rupees. 
Section 317Unlawful building. Fine which is different for different buildings and structures for a building the fine is up to five hundred rupees. 
Section 318Penalty for withdrawal of scavengers without notice. Fine not exceeding fifty rupees and imprisonment extending up to two months. 
Section 320Penalty for giving false information or no information. Fine not exceeding a hundred rupees. 

Duties of police officers under Tamil Nadu District Municipalities Act, 1920

According to Section 355, the police officers have the duty to:

  • Communicate any information pertaining to the commission of any offence under the Act to the Municipal officer.
  • Assist the Chairman or Executive Authority or Municipal officer to exercise their powers lawfully.

Under Section 356, the police officers also have the power to arrest such a person who they have a reason to believe has committed any offence and refuses to tell his name or address when asked. However, no person arrested shall be detained in custody:

  • After his true identity and address has been ascertained.
  • Without the order of the magistrate, not more than twenty-four hours from the hour of arrest. 

Conclusion

The Tamil Nadu District Municipalities Act, 1920 was enacted in the year 1920 with an aim to consolidate and amend the law relating to district municipalities in the State. It provides definitions of terms like building, building line, chairman, company etc used in the Act. It gives detailed provisions about the roles and responsibilities of municipalities in a district. It also provides for the constitution and manner of appointment of authorities essential to carry out the functions of the Act. 

The Act further provides offences and penalties under the Act. It also provides the duties of police officers. However, an insight provides that the fines and punishment provided under the Act are less and should have been more strict and stringent in order to maintain law and order within a municipality. If the fines and punishment are less, people will not realise their responsibility and continue to commit offences thus, it is necessary to have stringent laws. The Act is one such peculiar piece of legislation that can help bring stability within a municipality in a district that every state must aim to achieve. 

Frequently Asked Questions 

What do you mean by casual vacancy?

According to Section 3(7) of the Act, a casual vacancy means a vacancy that occurs due to efflux by time and as a result of which casual elections are held.

What is a ward committee?

A ward committee is a committee constituted by the state government under the Act within a territorial area of a municipality having a population of more than three lakhs. It consists of all the councillors of the municipality representing their wards within the territorial area of the wards committee as mentioned under Section 24B. The duration of such a committee will be coextensive with the duration of the municipality. 

How is a joint committee appointed?

According to Section 26, a joint committee is appointed by the council if required by the state government and consists of people who are not members of local authorities but possess special qualifications. The constitution of the committee is determined by a regulation which provides for:

  • the total number of members of the committee.
  • The manner in which the members will be elected or appointed.
  • Manner in which the chairman will be elected or appointed.
  • Term of office of members and chairman.
  • Powers of the committee.

Who prepares the annual administration report?

The Executive Authority will prepare the report which will be considered by the municipal council and forward the same to the state government. 

What are the provisions related to smallpox under the Act?

According to Section 300, the vaccination of smallpox is compulsory in every municipality. Further Section 301 provides that if in a house, a person, or inmate is suffering from smallpox, the head of the family is under obligation to inform the same to the Executive Authority without any delay and that inoculation of smallpox is prohibited according to Section 302. 

References


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R.C. Cooper v. Union of India : bank nationalisation case summary

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This article is written by Raunak Chaturvedi and further updated by Aadrika Malhotra. It talks about the case of R.C. Cooper v. Union of India in detail, with an explanation of crucial concepts and modifications that were set forth in the narrative of bank nationalisation after the case.

It has been published by Rachit Garg.

Introduction 

Almost fifty-four years ago, the nation was moved by the highly unanticipated Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969, announced by Indira Gandhi, the then Prime Minister, who nationalised the whole banking industry. Rustom Cavasjee Cooper v. Union of India (1970), also known as the Bank Nationalisation Case, has garnered massive attention in banking laws and certain provisions of the Constitution of India. R.C. Cooper, who was the director of the Central Bank of India, had several shares in the Bank of Baroda and he filed a petition in the Supreme Court of India in 1969. This was the point where several banks were being nationalised and R.C. Cooper challenged the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969, passed at that time. One of the several provisions consisted of Schedule II, which stated that when the government acquires the banks, the compensation passed thereto will be decided through an agreement. Let’s say that the agreement fails, then the compensation will be decided in front of a tribunal and after the result of the tribunal, the company will get the compensation in ten years from the date on which the agreement failed. The case was fought on this basic premise and raised the question of socialism before the Supreme Court.

Brief details of R.C. Cooper v. Union of India

Name of the case

Rustom Cavasjee Cooper v. Union of India 

Date of the judgement

10 February 1970   

Parties to the case

Petitioner

Rustom Cavasjee Cooper (R.C. Cooper)

Respondent

Union of India

Represented by

Petitioner

Mr. N.A. Palkhivala

Respondent

Attorney-General Niren De 

Equivalent citations

1970 AIR 564, 1970 SCR (3) 530, 1970 SCC (1) 248

Type of the case 

Writ Petition No. 222, 298 and 300 of 1968 filed before the Supreme Court under Article 32 of the Constitution of India, 1950 

Court

The Supreme Court of India

Referred

Articles 14, 19 and 31 of the Constitution of India, along with the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969

Bench

Justice J.C. Shah, Justice S.M. Sikri, Justice J.M. Shelat, Justice Vishishtha Bhargawa, Justice G.K. Mitter, Justice C.A. Vaidyialingam, Justice K.S. Hegde, Justice A.N. Grover, Justice A.N. Ray, Justice P.J. Reddy, and Justice I.D. Dua.

Author of the judgement 

The majority judgement was drafted by Justice J. C. Shah on behalf of the other judges and the minority opinion was drafted by Justice A. N. Ray.

What is bank nationalisation

There were no legal provisions till the year 1949 for the direction of banking businesses until the enactment of the Banking Regulation Act, 1949. The word “banking,” as defined in Section 5(b) of the Act, means any acceptance of money in the form of deposits from the public for the purposes of lending or investment that the public can receive on demand. This Act applied to several commercial banks and it prohibited the employment of management agents, regulation of voting rights, minimum paid-up capital, balance sheets, and asset maintenance. The Act was also amended in 1968 to gain social control over the banks, which directed certain changes in the board of directors. There was supposed to be a chairman leading the board, with fifty-one percent of the membership consisting of special knowledge regarding finance and related sectors. The Reserve Bank of India was ordered to give directions to other banks regarding the appointment of directors, proper management of the banking business, monetary stability, sound economic growth, and equitable allocation of resources for these banks. The Reserve Bank could initiate any action to remove personnel at the managerial level from any of these banks until and unless it was considered necessary for the interest of the depositors of the bank. These powers have enabled the Reserve Bank to reorganise the whole banking structure in India and regulate the banking business. Even the State Bank of India, with seven subsidiaries, was able to amalgamate fifty crores in deposits each by mid-1969.  

In 1969, fourteen banks were nationalised by the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 and a limit was posed for each bank for nationalisation. These banks did not include any foreign banks with deposits of less than fifty crores; rather, those banks were nationalised and controlled almost ninety-one percent of the total deposits. Before nationalisation, these banks were sole private entities and, thus, nationalisation was seen as a great effort to protect the public’s money. There was no interference of the government in the functioning of the bank officials; they used to pocket the money of the bank and the public with no welfare for the public in their minds through unfair means. However, even after the benefits, there were several difficulties that arose with the banks being nationalised. The fourteen banks that were nationalised included the Central Bank of India Ltd. (the petitioner in the present case), the Union Bank of India Ltd., the Bank of Baroda Ltd., the Dena Bank Ltd., the Bank of Maharashtra Ltd., the Canara Bank Ltd., the Punjab National Bank Ltd., the Syndicate Bank Ltd., the Indian Overseas Bank Ltd., the Indian Bank Ltd., the United Bank of India Ltd., the United Commercial Bank Ltd., the Allahabad Bank Ltd. and the Bank of India Ltd.

The need for this nationalisation arose because the private banks did not fulfil the criteria set by the government for the prediction of people’s interests. The Banking Regulation Act, 1949, failed to benefit the banking industry as a whole and reach the needs of small-scale businessmen. Another main aim of nationalising the banks was to save the economy and better serve the needs of national policies. This process allowed equal distribution and allocation of credits for all the sectors rather than focussing on one and initiating banking expansion. The case of R.C. Cooper is the landmark case that changed the whole banking industry in India and pointed out the defects of the ordinance as well.

Background of R.C. Cooper v. Union of India

The government passed the State Bank of India Act, 1955, with the aim of merging the seven subsidiaries of the State Bank into one, including the Imperial Bank, under Article 37 of Part IV of the Indian Constitution. The Directive Principles of State Policy (DPSP) are fundamental to the functioning of the rights and duties of a human being and it is the duty of the State to apply these rules to governance and law-making. The DPSP covers another vast term,’socialist’, which orders the government to follow these principles to govern the State. Since, back then, there were no banking facilities provided to the lesser-known parts of India, and nationalisation was the ultimate goal to achieve the establishment of banking facilities in these areas. Since all these areas were mostly rural, moneylenders used to exploit people by charging high rates of interest on loans. Still, after nationalisation was implemented, it became clearer that these people would benefit more from banks that charge a relatively lower rate of interest.

In July 1969, the then prime minister Indira Gandhi presented through radio an ordinance named the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969, hoping to change the course of the banking industry by nationalising the fourteen banks stated above that held the majority share of deposits. The most disturbing part of the Ordinance included Schedule II, which stated that compensation would be decided by an agreement and if no agreement is reached, the tribunal will be responsible for deciding the compensation, which will be rewarded after ten years of falling out of the agreement. 

Before petitions could challenge the constitutionality of this ordinance, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969, was passed with the object of looking after the process of acquisitions and transfers of undertakings in order to serve the government and the economy better. Section 6 read with Schedule 11 of the Act decided the compensation for the acquisition of undertakings per unit of these banks, which was to be deemed to be a single compensation. This compensation was supposed to be the sum total of the value of assets, which is less than the sum total of all liabilities and obligations. The compensation was to be determined by the tribunal with no agreements set in place and that compensation would be taken through securities until it matured over ten years.     

Facts of R.C. Cooper v. Union of India 

To understand the facts of the case, we need to understand a little bit of the history of India. The first Prime Minister of India, that is, Pandit Jawaharlal Nehru, believed in socialism as the best model of development suited for our country to progress. The type of socialism he believed in was termed Fabian Socialism. This meant that for the better progress of the nation and its citizens’ good and development, it was necessary to exercise State control over certain industries that were considered important for public welfare. Post-independence, many sectors that were instrumental in the development of the State were nationalised. For example, transport undertakings, the insurance sector and electricity were completely provided with a State monopoly. The oil and refineries sector was nationalised a bit later in the 1960s.

Coming to the present case, which is popularly known as the Bank Nationalisation case, the proposal to nationalise the banking sector was not very new to India. In fact, in 1948, the proposal to nationalise the banking sector had been actively debated by the All India Congress Committee (A.I.C.C.). The first Finance Minister of India, R.K. Shanmugham Shetty, was strongly in favour of nationalising the Imperial Bank of India, but Sardar Vallabhbhai Patel had stopped him from doing so due to certain political reasons. However, very soon, in the year 1955, the Imperial Bank of India was nationalised under the State Bank of India Act and 7 of its subsidiaries too were taken over by the Government. So, we may see from this point that partial nationalisation of the banking sector had already started. The role of the Reserve Bank of India, too, is very noteworthy in this process of nationalisation. The Reserve Bank gradually decreased the number of commercial banking institutions in India from 566 in 1951 to merely 89 by the end of 1969.

Moving forward with our discussion, there were certain leaders in the Government who were in opposition to this nationalisation of the banks. Morarji Desai, the then Finance Minister, was seriously against the nationalisation of 14 banks in India by Indira Gandhi while following the ideals of her father. Desai was also the Deputy Prime Minister at that time. Mr. Desai’s main argument was that the amount of compensation that was going to be paid to these banks, which amounted to Rs. 85 crores, could be simply used to accelerate the economy of the country. Another argument that Mr. Desai had put forward was that the credit could be diverted towards the social sectors simply by controlling the banks by amending the banking laws of the country.

The differences between the two became so severe that Morarji Desai was dismissed from the post of Finance Minister on 17th of July, 1969. The very next day, he voluntarily resigned from the post of Deputy Prime Minister of India. Amidst this, the then-acting President of India, Justice M. Hidyatullah, issued an Ordinance just two days before the monsoon session of Parliament was going to start. The name of the Ordinance was ‘Banking Companies (Acquisition and Transfer of Property) Ordinance of 1969’. 

Let us first understand what this Ordinance was all about. The features of the Ordinance can be listed as follows:

  • 14 banks in India were listed in the Ordinance that were going to be nationalised.
  • These 14 banks had been selected on the basis of the amount of deposits that they held. That is, all of these banks held deposits of more than 50 crores, which was taken as the criterion to choose them to be nationalised.
  • All the Directors of these 14 banks were deemed to vacate their offices after the nationalisation However, apart from the Directors, the rest of the staff was allowed to continue in their jobs under the Government of India.
  • The Second Schedule of the Ordinance was the most unconstitutional part. It talked about the compensation that was supposed to be paid to the banks and was being undertaken by the Government. The Ordinance mentioned two major ways of providing compensation to the aggrieved banks-
    • When an agreement was reached – When the amount to be paid as compensation was able to be decided through an agreement, the compensation would be decided according to the agreed terms. 
    • When no agreement could be reached – When no agreement was able to be reached, then, the disputed matter was supposed to be referred to a Tribunal, within three months from the date of the failure to reach an agreement. Whatever compensation amount was to be decided by the Tribunal, was to be awarded in the form of Government Securities. These Government Securities were not redeemable immediately, but 10 years after they were issued.

Once the Ordinance had been passed, after two days when the Parliament started its monsoon session, immediately the Indira Gandhi Government formulated the ‘Banking Companies (Acquisition and Transfer of Property) Act, 1969’ with certain modifications from the Ordinance except for the compensation structure, undertaking, management, and named banks.  

After the news of the promulgation of the Ordinance reached Mr. Cooper, who was not only the then Director of the Central Bank of India Ltd. but also held shares in the Union Bank of India Ltd., the Central Bank of India Ltd., the Bank of Baroda Ltd., and the Bank of India Ltd., he filed a Writ petition under Article 32 of the Constitution of India before the Supreme Court of India, stating that his fundamental rights had been violated by the promulgation of the Ordinance.

The petitioner filed the writ petition on July 21, 1969, under Article 32 of the Constitution of India, challenging the Ordinance and the Act on the basic claim that the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance and the Banking Companies (Acquisition and Transfer of Undertakings) Act together passed in 1969 violated the fundamental rights of the petitioner as mentioned under Articles 14, 19, and 31, which makes them invalid. However, after the hearing of the interim injunction on July 22, 1969, the Supreme Court ordered the government, through an injunction, not to remove the directors from the companies.

Issues raised in R.C. Cooper v. Union of India 

The following issues had been raised by Mr. Cooper through his advocate, Mr. Palkhiwala, which are as follows-

  • Whether a shareholder could file a Writ petition for the violation of his fundamental rights when the company in which he is a shareholder is acquired by the Government?
  • Whether the Ordinance in question had been properly made or not?
  • Whether the Act was within the jurisdiction of the Parliament to get formulated or not?
  • Whether the impugned Act was violative of Article 19(1)(g) and Article 31(2) of the Constitution of India or not?
  • Whether the method of ascertaining the compensation was valid or not? 
  • Whether Schedule II of the Ordinance was justified?  

Arguments submitted in R.C. Cooper v. Union of India

Petitioner 

The petitioner was represented by Mr. A. Palkhivala in the present case and challenged the validity of the Ordinance on the following grounds:

  • That the Ordinance passed under Article 123 of the Indian Constitution was invalid because the conditions that need to be fulfilled for the exercise of the article have not been fulfilled.
  • That the Act violates the guarantee of free trade mentioned under Article 301.
  • That the Act infringed upon the subjects of the State List under Entry 42, List III, therefore, it is outside the powers of the Parliament to enact such a provision.
  • That the Act violated the rights as me jintioned under Articles 14, 19(1)(f)(g), and 31(2) of the Indian Constitution.
  • That the retrospective action given to the Act 22 of 1969 would be invalid because there was no valid ordinance and the provisions that infringe on fundamental rights do not fall under the ambit of the parliament to make laws; therefore, Sections 11 and 26 are invalid.

The arguments in detail are as follows: 

  • The petitioner argued that the shareholder may not be the owner of a company but the petitions filed are not claiming any representation from the companies’ side as argued by the respondent. Here, the test for determining this lies in the question of whether the State has impaired the rights of the shareholders regardless of the rights of the company in the process. The court cannot rely on technicalities to decide whether the grant will be provided. 
  • Mr. Palkhivala further contended that the Act and the Ordinance do not have legal competency because they interfere with the guarantee of freedom of trade and are not made in the public interest. The President does not have the power to promulgate the Ordinance because the subject matter of the Act belongs to the State List. Moreover, the undertakings of the banks being shifted into new banks do not necessarily serve any public purpose and are a form of hostile discrimination against the petitioner, due to which the value of his investment in shares is reduced and so are his dividends, resulting in a great financial loss for him. The petitioner also argued that he lost his right to carry on his business and that he had lost all of his clients to the new banks without his consent.  
  • The petitioner argued that in imposing the Act, the Parliament has also violated the provisions of Part XIII of the Constitution of India. The Parliament has taken away the right to conduct business from all the banks that they have nationalised under the Act. Furthermore, the petitions under Article 32 are entertained in court by a citizen of the country and since the company is not a citizen, the petitioner can file a petition in the present case.  
  • To rebut the litigation made by the respondent, the petitioner argued that under Article 123 of the Constitution of India, the President does not have the sole decision-making power. (Barium Chemicals Ltd. and Anr. v. The Company Law Board and Ors. (1966) and Nakkuda Ali v. M. F. De S. Jayaratne (1951) The power is conditional and completely depends upon the existence of an immediate circumstance, whereas in the present case, the Ordinance was passed two days before the monsoon session of the Parliament, which makes it absolutely vague for the Ordinance and the Act to be passed by the President. 
  • When it came to the issue of the competency of the Parliament to pass the Act, the petitioner argued that the Act passed is void and should be repealed because the jurisdiction for the Center to make laws had been exceeded. The Seventh Schedule clearly mentions the subjects that are to be dealt with by the State Legislature in which the Parliament cannot interfere, one of which includes banking. The Central laws upon banking were to be made only under the contents as mentioned under Entry 45, List I and Section 5(b) of the Banking Regulation Act, 1949. The State List can make laws in all subjects as mentioned under List II and both the State and the Center can make laws based on the Concurrent List of subjects mentioned under List III.    
  • The petitioner argued that the Act violated Articles 19(1)(g) and 31(2) of the Indian Constitution, which deal with the acquisition and requisition of property. Mr. Palkhivala argued that the compensation provided by the Act to the banks was extremely draconian and not fair to the companies or the public. The Parliament may legislate on the acquisition of part of the business that relates to banking but not on any other business that was not incidental to the banking of that particular company because it falls within the ambit of List II. Any other commercial activities that a bank engages in are not controlled by the Parliament and the liabilities mentioned under the Act do not imply property. The classification is made on a wholly irrational basis that dismisses the great management as provided by the shareholders and directors. 

Respondent  

Criminal litigation
  • The Attorney General from the respondent’s side contended that the writ petitions filed are not maintainable because there is no direct violation of the fundamental rights of the petitioners mentioned under Articles 14 or 19 in the present case by the passing of the Ordinance and the Act. The petitioner is the shareholder, director, and holder of accounts in the banks listed by him, but he is not the owner of the property that was taken by the ‘new banks’, which makes him incompetent to file these petitions. 
  • A company is a legal person and the property of the company does not belong to the shareholders. A shareholder is someone who has an interest in the decisions and profit-making of the company; a director is merely someone who manages the management of the company; a creditor is not someone who owns the banks. This makes all these people ineligible to file petitions for the infringement of rights based solely on company property. 
  • The respondent further submitted that the petitioner can seek relief for his own rights and not for others. The guarantee of freedom of trade does not occur in Part II of the Constitution of India and so the petitioner does not have any rights to maintain the petitions in court. 
  • The respondent argued that Article 123 confers the power to the President to promulgate an ordinance on a subject matter if it is most definitely required when both houses of Parliament are not in session. The Attorney-General stated that the condition to be fulfilled for such an ordinance to be passed is completely subjective and the Parliament needs to specify this as stated in the case of Bhagat Singh v. The King Emperor (1931). The respondent relied upon the case of Lakhi Narayan Das and Ors. v. The Province of Bihar (1950) argued that the division of such functions with the President is a matter of high policy and that his actions will always be justified when it comes to matters where an immediate decision is required.
  • The respondent argued that, being under pressure to obtain a socialist society, it became essential for the Parliament to enact a law that is well within the ambit of its powers. To rebut the argument of acquisition of property as stated by the petitioner, the respondent focussed on the wide meaning of the term “banking.” Banking in Entry 45 means all types of businesses that banking institutions carry. The Charter of the Bank of Bengal lays down that banking business involves any activity that is carried on by a bank within its functionality or any commercial activity bankers engage in while doing business. There is no evidence that the named banks carried any non-banking business before or had any other assets. The Act simply takes the acquisition of property for the activities that relate to banking from the companies and allows them to move further with any non-banking business they wish to pursue. 
  • The respondent further contended that in the case of A.K. Gopalan v. State of Madras (1950), a person detained under the Preventive Detention Act, 1950, filed a writ of habeas corpus, where he claimed that the Act contravened the provisions of Articles 19, 21, and 22 of the Indian Constitution. The Court held that Article 22 deals exclusively with detention and the petitioner could not demand the right mentioned under Article 19 because the freedom of movement was restricted on reasonable grounds by the officers. Similarly, in the present case, the attorney general drew a parallel to the judgement and argued that the Act was not violative of Articles 19(1)(g) and fell well within the ambit of Article 31A. This view was also reaffirmed in the case of Ram Singh v. The State of Delhi and Anr. (1951), where it was also held that the substantive laws of the acquisition of property were not to be challenged because they imposed restrictions on that property. 

Ratio decidendi  in R.C. Cooper v. Union of India

The major findings of the Court in the present case are as follows- 

  1. The major contribution of this case was the overruling of the ‘Mutual Exclusivity Theory’ that had been practised for 20 years ever since the judgement of case A. K. Gopalan v. State of Madras was announced in 1950. The case stated that the extent of protection of guarantees such as the liberties of a person or their fundamental rights depends upon the form and object of the State action and not upon the freedoms guaranteed to the person. The Court in the present case held that, on the basis of technicalities, it can’t reject a petition that clearly shows that the fundamental rights of the citizens are being violated. Every fundamental right has different dimensions and just because a legislative action was also violating the rights of the company does not mean that the Court does not have the jurisdiction to protect the rights of the shareholder of the company as well. The Court also struck down the ‘Object’ test and laid down the ‘Effect’ test, which would now look into the effect of any particular legislative Act, rather than looking at the objective with which it had been formulated. Thus, if any Act of the Legislature, even at a remote stage, violated the fundamental rights of the citizens, then it was liable to be struck down. Here, the Court held that the present Act violates the rights of the petitioner, specifically Article 31(2), because there is no public purpose that is being fulfilled by the acquisition of the property.   
  2. As far as whether the Ordinance was promulgated properly or not, the Court said that since the Ordinance had already been converted into an Act, it was unnecessary for the Court to discuss the same. The same had become a question for academicians to ponder upon, but not for the present case. Talking about the validity of Schedule II of the Ordinance, the court held that the concept of compensation being provided after ten years is baseless and illogical. 
  3. As far as the arguments regarding the Parliament’s competence to acquire banking companies were concerned, the Court, very interestingly, rejected both the petitioner’s and the respondent’s arguments. The Court said that the term property included all the rights, liabilities, assets, etc. that were associated with the property. The power of the Parliament to acquire any banking company was an independent power of the Parliament and it required no separate legislation to be enacted first under List II and List III. The contention raised by Mr. Palhivala was rejected on straight grounds by the court regarding the competence for acquisition on two grounds: 
  • The petitioner has failed to establish that the named banks had any prior non-banking assets, as mentioned in his contentions. 
  • The acquisition of property does not fall within List II of the Seventh Schedule. 
  1. The Court declared the Act to be clearly violative of Article 31, as Article 31 talked about compensation for the acquired property. Articles 19 and 31 are not mutually exclusive and should be read separately because the former talks about the right to practise any trade or business and the latter talks about the acquisition of property. While the Act may not be violative of Article 19, it is violative of Article 31 because, according to the reasoning of the Court, the term ‘compensation’ meant complete indemnification to the person whose property was being acquired. The Act violates the provisions of this Article because it does not lay down a comprehensive breakdown of the compensations provided and deals with the matter with principles that are not relevant in this regard. The amounts that would be declared after applying these principles could not be deemed fair compensation. When the compensation for an undertaking is decided, the method presented should be fair and reasonable, giving the compensation for the amount of undertaking minus the liabilities, which is not the case in the Act. After applying the doctrine of severability to Sections 2, 4, 5, and 6, the Court held that these provisions are not severable and would be read together with the Act.  
  2. The Court, however, for the contention of Articles 19(1)(g), held that the Act was not violative of Article 19(1)(g), as the State had the complete right to partially or completely monopolise any business that it felt to. The Court held that the government can create a monopoly that may be either absolute or partial. When there is public welfare involved, any monopoly created by a government is valid and no director or shareholder can challenge the government on behalf of the company’s rights. The basic or essential provisions of law that the State carries out for the facilitation of business cannot be challenged on the grounds of Article 19(1)(g). The law that transforms the named banks cannot be challenged under this Article because there is no proof that determines that the Act was not for public welfare. The Court stated that the case of Mohammad Yasin v. The Town Area Committee, Jalalabad and Anr. (1950) held that Article 19(1)(g) has a restriction that includes that the State can make laws about the carrying of trade and business, which cannot be refuted by this Article. Any state monopoly that puts restrictions on trade and business would be considered reasonable and those laws cannot be tried by the Court. 
  3. However, the Court discovered that the Act was in clear violation of Article 14. This was held on the basis of the following reason: the concerned Act barred the 14 banks from carrying out banking activities within the country; however, other banks, including the foreign banks, had not been stopped from doing so. The Supreme Court, thus, held the Act to be ‘flagrantly practising discrimination’ and thus held it to be violative of Article 14. 

Justice A.N. Ray was the only Judge who gave the dissenting opinion. He made the following points-

  • The power under Article 123 given to the President for the passing of an Ordinance is subjective, though he is not answerable for the provisions he promulgated in the absence of the Parliament under Article 361(1). The only way in which the Ordinance passing power of the President could be challenged was on the basis of malafide and corrupt intentions. The fact that the Ordinance had been promulgated two days before the session of Parliament began indicated that the same had been passed legitimately, although in haste. There was considerable speculation in the country regarding the Government’s intention with regard to the nationalisation of banks during the few days immediately before the Ordinance. The reason is obvious that in matters of policy, just as Parliament is the master of its province, similarly, the President is the supreme and sole judge of his satisfaction on such policy matters on the advice of the Government.
  • He dismissed the petitions for several other reasons and declared that they were bound to fail. The legislation was valid under Entry 42 List III and Entry 45 List I and did not by any means trench upon the matters of the State List. A shareholder can’t approach the Court for the violation of his Rights, which, in the end, were associated with a company that, by virtue of being a non-citizen, did not possess the right to claim fundamental rights.
  • Article 19(1)(g) does not enter the domain of Article 31(2) because the former did not enter the concept of requisition or acquisition of property. Therefore, Article 31(2) cannot be questioned on the grounds of Article 19 because a reasonable restriction is inherent and criticising it on the grounds of other Articles again and again is completely repetitive. The compensation to be sought shall be decided by the State as well, because the law was passed for public welfare as a reasonable restriction. The Court cannot review the separate matters of State monopoly on the grounds of being unreasonable. Section 15 of the Act allowed the directors and shareholders to continue with the non-banking business they wanted to pursue. If the entire undertaking of a bank is taken, there is no way to divide the assets that are already with the bank. No acquisition would be complete if there was a line drawn between the divisibility of assets. 
  • Article 14 has not been violated by the Act because of intelligible differentia and the basic rationale that the Act cannot be nullified so that the directors can carry on the banking business. The clear classification is on the basis of the level of profits and the object was to control the deposit to save the economy. The Act already has enough guidelines that are set out in the preamble and is socialist with the object being sought.        

However, there were indeed two things upon which he agreed with the majority and they were –

  • That the impugned Act was not violative of Article 19(1)(g) of the Constitution of India, inhibiting the freedom to carry on any trade or business.
  • That the Parliament was competent enough to pass the impugned Act, related to the acquisition of banking. 

Critical analysis of R.C. Cooper v. Union of India

Many people confuse this case with going against the socialist ideals of the nation. However, it must be understood that, in reality, the Supreme Court upheld the socialist ideals of the Constitution by upholding the Government’s power to nationalise. However, it must also be remembered that the Court also increased the ambit of the fundamental rights of the citizens by ruling that it was not binding upon the Supreme Court to reject the claim for enforcement of a shareholder’s fundamental rights if, in the process of a violation of his rights, the rights of his company were also being violated. 

It was understood that if the shareholder’s rights were to be enforced by the Supreme Court, then in the process, it would mean that the Supreme Court was inevitably enforcing the rights of the company in which he was a shareholder, meaning that the fundamental rights were being enforced for a non-citizen. But the Court clearly stated that even if the enforcement of the fundamental rights of the shareholder would mean the enforcement of the rights of the company, it wouldn’t stop the Supreme Court from protecting the rights of the citizens. 

Another landmark point given by the Supreme Court was regarding the setting free of the Parliament from lengthy processes of making laws. The Court clearly mentioned that in order to make any law upon the nationalisation of any subject, it didn’t mean that the Parliament would have to make a separate law upon that subject and then move on to make the law regarding its nationalisation, as it expanded the interpretation of the term ‘property’ that was under Entry 42 of the State List. 

This case has been a landmark for protecting the rights of the citizens because now if any law is passed, it is in violation of the fundamental rights of the citizens, even though indirectly it would be struck down. It overruled the judgement of A.K. Gopalan v. State of Madras (1950) and made the effect test the primary requirement for administering the test of reasonable restrictions. Even though the case held that the Act was not in violation of Article 19, it held that it was indeed violative of Article 31(2), which established the precedent that was needed to limit and analyse the power of the Parliament to legislate in matters of property acquisition. The bench took into consideration several other cases that were necessary to be dealt with while deciding the rationale, like Kavalappara Kottarathil Kochuni & Others v. The State of Madras and Others (1960) and State of West Bengal v. Bela Bannarjee (1953). The compulsory acquisition of law is therefore validated by certain conditions, as held by several benches before the case was initiated in the Supreme Court in the present case. Matters relating to banking are dealt with in different lists with different aspects but the overall compensation and acquisition were decided fairly and clearly by the Court in this case. 

Even though the dissenting opinion was not in complete favour of the rationale behind the judgement, it did raise some valid points. The Ordinance passed by the President is valid under certain circumstances, though, as also pointed out in the majority judgement, it has to be validated by the Parliament and the President doesn’t have absolute authority over it. Another issue raised by the dissenting opinion was that it could not be figured out whether the Act was passed for the welfare of the public or not. While that is the case, it is pertinent to notice that the compensation provided by the Act was absurd and not clear in reasoning as to what was taken into account while calculating, which also poses a doubt behind the rationale of the Act.    

Further developments following R.C. Cooper v. Union of India 

The Bank Nationalisation case indeed served as a landmark judgement for guiding the Parliament as well as the Constitutional jurisprudence of the country for years to come. However, the aftermath of the judgement may be noted from the fact that the Parliament, in order to strengthen its position, made the 25th Constitutional (Amendment) Act, in which the following points were noted- 

  • The word ‘compensation’ in Article 31(2) was replaced by the word ‘amount’. This meant that the Government was now not liable to pay an ‘adequate’ amount to the person whose property was being acquired earlier.
  • Article 19(1)(g) was clearly detached from Article 31(2).
  • Article 31C, a new provision was added to the Constitution to remove all difficulties that-
  • Articles 14, 19 and 31 are not to be applied to any law enacted under the fulfilment of objectives laid down under Articles 39(b) and 39(c).
  • Any law giving effect to Articles 39(b) and 39(c) will be immunised from the court’s intervention. 

There were several changes made as per the judgement passed by the majority opinion in the  case:      

  • A new legislation, namely the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, was passed to regulate the acquisition and undertaking of banks, as discussed in the judgement. 
  • The lead counsel of the case from the petitioner’s side, N.A. Palkhivala, fought another landmark case, Kesavananda Bharati v. State of Kerala (1973) (basic structure doctrine case), that also dealt with the protection of fundamental rights. 
  • This case became the basis for Bennett Coleman v. Union of India (1972) which also upheld the view of the court that the fundamental rights of the people will be upheld with the fundamental rights of the company. 
  • The case also became the basis for another landmark case, Maneka Gandhi v. Union of India (1978), which also became the precedent to uphold the right to life and liberty and the mutually exclusive theory.  

Conclusion 

The case of R.C. Cooper v. Union of India (1969) is a landmark case in the regime of bank nationalisation and has become a precedent for several other landmark cases. The judgement might be confusing for some but a thorough understanding of the principles and rationale behind the decision should be enough to know that the Court protected both the ideals of socialism and the fundamental rights of the people in the case. The judgement expanded the scope and ambit of Article 31(2) of the Indian Constitution while also examining that of Article 19. The use of an effect test in the case led to the decision of fair compensation and acquisition of property in the industry of banking, which is the major profit-making business. The rights of shareholders and directors were also upheld while preserving the dignity and powers of the Parliament.    


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All you need to know about AI in neuroinformatics

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This article has been written by Sunita Dnyaneshwar Vaidya Karnik pursuing a Diploma in Business English Communication for International Professionals and Remote Workers course from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

Introduction

Neuroinformatics is a field that is growing very fast where two separate fields, neuroscience and informatics, are combined for studies. The development of nervous system function is studied using neuroscience data and knowledge bases, analytical tools and computational models. The experimental data is analysed and integrated for sharing. There are many theories about nervous system function advancement which are put forward for sharing and analysis There are many other fields that are related to neuroinformatics, which involves philosophy, also known as the computational theory of mind; psychology, which involves information processing theory; and computer science, which consists of bio-inspired computing as well as natural computing.

Neuroinformatics is seen as a branch of neurobiology as many aspects of the nervous system are studied; however, matter and energy are not involved. Reviews and original articles are published by Neuroinformatics, where integration, analysis, modelling and sharing of data models are prepared based on data structure and software tools. All areas of neuroscience research are covered. The coverage is done on the methodology and theory of ontologies, meta-analyses, modelling approaches and databases. Neuroinformatics is committed to tool development and data sharing, which are the most important aspects of neuroinformatics. The diverse data sets can be analysed and integrated with data sharing and tool development. Principles of data sharing and tools are important aspects that are  used by neuroinformatics to publish independent evaluations and tests.

AI and neuroinformatics 

The nervous system complexity and how we understand the same, there is a huge gap between the two which is bridged by Neuroinformatics. The quantum of data is collected, stored and analysed for our better understanding. The data geography of collected data has  recently changed due to technological advances in neuroimaging. This data, which was earlier collected through clinical compliance, trials and checks,  is now collected through electro-physiological recordings as well as High resolution brain reviews. This transferable data is being produced at a phenomenal rate. AI and machine literacy help to convert this data into meaningful interpretation, as AI algorithms can handle enormous, multifaceted datasets with a  large number of patterns that cannot be recognised by humans alone.

Given below are some ways in which we can employ artificial intelligence in neuroinformatics.

  1. Neuroimaging analysis: Techniques like electroencephalography (EEG), functional glamorous resonance imaging (fMRI), and prolixity tensor imaging (DTI) are some of the tools that are used to map the brain structure.
  2. Pattern recognition: Some abnormal data patterns emerge when the person is suffering from epilepsy or Alzheimer disease. AI plays a very important role in identifying abnormal patterns relating to these diseases as it relate to specific neural actions
  3. Data integration: There are a lot of sources that can be used for collecting data from different datasets, like brain imaging, clinical records and genetics. This data helps in structuring and integrating different datasets, which makes it easier to analyse information.
  4. Prophetic modeling: There are conditions like multiple sclerosis or internal health complaints that can be predicted from medical history. Machine literacy models help in predicting  internal health complaints.
  5. Drug discovery: In neurology, the recent trend is to use AI algorithms, where various models can be made using AI algorithms. Conditions like schizophrenia, depression and Parkinson’s disease can be identified by AI algorithms by analysing  vast quantities of natural and chemical data.
  6. BCI (Brain Computer Interface): Artificial intelligence is used to control and enhance the Brain Computer Interface. This helps people with motor disabilities and cerebral palsy to control external bias. AI can decode the neural signals with the help of BCI.

Challenges in AI-neuroinformatics integration

While the combination of AI and neuroinformatics holds tremendous prospects, it isn’t without  challenges.

  1. Data quality and quantity: When one handles data appropriation, there are many ethical concerns that must be addressed, as neuroinformatics data is quite sensitive, noisy and complex. Therefore, collecting high quality data and making AI models based on it is always a challenge.
  2. Interdisciplinary collaboration: There needs to be a lot of collaboration between neuroscientists, statisticians, computer scientists and subject matter experts. As there are differences in the methodologies and languages of the experts, bridging the gap between these fields is challenging.
  3. Complexity of brain:  AI can work with data and available knowledge; however, as the functioning of the brain is too complex and our understanding of the brain is too little, we are not equipped to capture the complications of it.
  4. Conceptions and overfitting: AI algorithms can be applied to various populations as they are robust, but applying the same to different neurological conditions is a significant challenge as AI models can overfit on specific data sets, which leads to poor conception of new data.
  5. Confirmation and interpretability: AI models generate results that must be interpreted and validated. One must understand the natural significance of findings driven by AI and overreliance on black box algorithms should be avoided.

AI in neuroinformatics operations

The far-reaching, groundbreaking results have been achieved with the integration of AI into neuroinformatics.

  1. Neurological opinion: AI algorithms have shown promising results in the early discovery of neurological diseases. Alzheimer’s complaints can be identified in early stages by AI deep literacy models, which helps in early intervention and treatment.
  2. Individualised treatment plans: The clinical and inheritable data can be produced by AI models and individualised treatment plans can be produced. Individual responses can vary significantly, and here, these plans can come in handy.
  3. Neurorehabilitation: Virtual reality and AI-powered robotics can help in neurorehabilitation, which helps individuals with neurological injuries. The recuperation is more effective if these technologies are used for the progress of these cases.
  4. Cognitive improvement: Cognitive training programmes that are driven by AI help in many ways to improve memory, attention and problem solving. These programmes are very helpful to individuals with cognitive issues as well as healthy individuals.
  5. BCI- Brain Computer interfaces: Individuals with palsy can communicate with the outside world with BCIs. Assistive technologies and prosthetic branches with  advanced AI algorithms help crack neural signals.
  6. Drug discovery and development: Medicine discovery is accelerated by AI by enhancing medicinal effectiveness and relating the same to medicinal campaigners, which in turn reduces time and cost associated with bringing out new neurological medicines.     
  7. Neuroethics: There are lot of ethical considerations that need to be looked at, like concurrence, data appropriation and brain related technologies and data. Ethical considerations are important in developing responsible AI results.

Future prospects and trends

There are several trends and prospects that are arising if we look at the future of AI:

  • Precision medicine: As treatments and interventions are tailored for individual patients, healthcare outcomes will definitely improve. In neurology, precision medicines are being developed through the integration of AI and neuroinformatics.
  • AI-driven Neuroprosthetics: A higher degree of mobility and independence is regained by individuals with advances in BCIs and AI-driven neuroprosthetics.
  • Improved understanding of the brain: Neuroscientific data can be analysed and interpreted by AI to understand the brain’s function and mechanisms. This knowledge is very important in the development of new treatments for neurological conditions.
  • Neurological health monitoring: Continuous monitoring of neurological healthcare can be done by wearable devices and smartphone apps that are equipped with AI algorithms. Conditions like epilepsy and migraines can be detected early with this.
  • Neuroinformatics for education: Students can improve their learning and cognitive abilities with AI-powered tools for education and cognitive enhancement. These tools will become more widespread in helping students with cognitive abilities and learning.
  • Neuro-robotics: A new hope is given to those with neurological injuries and conditions as the use of AI-driven robotics in assistive technologies is expected to grow.
  • AI-driven robotic rehabilitation: AI algorithms can analyse vast amounts of patient data and personalise rehabilitation plans, optimising the recovery process. Robotic devices equipped with AI can guide patients through targeted exercises, provide real-time feedback, and adjust difficulty levels to accelerate progress.
  • Enhanced mobility solutions: AI-driven robotic exoskeletons and wheelchairs are revolutionising mobility for individuals with limited motor function. These intelligent systems can adapt to users’ needs, providing stability, balance, and assistance while walking, standing, and navigating various environments.
  • AI in Neuroethics: As the technology develops, ethical considerations will come into play and developing ethical considerations will be a crucial area of focus.

Conclusion

The integration of AI into neuroinformatics is transforming our understanding of the brain and how we approach neurological disorders and cognitive enhancement. AI enables the processing of vast amounts of data, making sense of complex patterns, and accelerating drug discovery. While there are challenges to overcome, including data quality and interdisciplinary collaboration, the future prospects are highly promising.

The applications of AI in neuroinformatics are broad, from diagnosis and personalised treatment plans to neurorehabilitation and the development of BCIs. With precision medicine and the development of AI-driven neuroprosthetics on the horizon, the future of neuroinformatics looks bright. However, ethical considerations, particularly in data privacy and consent, must remain a central focus as the field continues to advance. The combination of AI and neuroinformatics is set to transform the lives of people affected by neurological conditions by increasing our understanding of the brain.

There is huge potential for improving our understanding of the brain and the future of neuroscience with the help of AI and neuroinformatics. The vast amount of neuroimaging data can be analysed more accurately and efficiently than before by scientists, as there is a lot of integration of AI technologies happening over time, and AI can assist in identifying anomalies in brain activity, identifying brain data patterns and correlating them, which gives insights into neurological disorders and brain function.

Advanced brain computer interfaces have made it possible to directly communicate between external devices and the brain with the help of AI. BCIs can help people with disabilities interact with the external environment with their thoughts by allowing them to control prosthetic limbs, which in turn has transformed the lives of individuals. BCIs are also more accessible and practical for a very wide range of applications and AI algorithms help in decoding neural signals and increasing the speed and accuracy of neural signals.

To summarise, there is huge promise for the future of AI in neuroinformatics as it increases the understanding of brain functions and develops innovative ways for communication by enhancing human cognition, advancing mankind’s understanding of the brain and improving the lives of patients with neurological conditions.

References

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Government contracts : all you need to know

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This article has been written by Muzzammil Hayat Mohammed Jaman Shaikh pursuing a Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution course from LawSikho.

This article has been edited and published by Shashwat Kaushik.

Introduction

The Indian Contract Act of 1872, defines the term “contract” under Section 2(h) as “an agreement enforceable by law.” In other words, we can say that a contract is anything that is an agreement and enforceable by law.

The contracts shall be between two or more parties or individuals, where the government (union or state) is one of the parties to the contract. The government plays an important role when entering into a contract with private individuals or entities. In the case of a government contract, it is the public resources or funds being utilised for the betterment of society, the development of the state, or adhering to international obligations.

As per the Indian Contract Act of 1872, contracts can be oral or written; however, if an oral contract is made, the parties should be able to prove its terms before the Court in case of disputes. The contract can be implied or expressed, as the case may be.

Government contracts are drafted and executed as per the “terms and conditions,” and prescribed formats are followed as laid down in Article 299 of the Indian Constitution. Even though government contracts can be very lucrative, they can also come with a lot of red tape and paperwork involved, which makes them very time-consuming. 

Constitutional provisions related to government contracts

Article 298 of the Constitution of India confers the power to the Union as well as the State to carry out trade, business or acquisitions, hold and dispose of property, and further make contracts for any purpose. Saying so, the Union and the state government would be liable for the disputes arising out of such contracts executed by the government.

Article 299 of the Constitution of India deals with government contracts and outlines how the contracts are made and the procedure for or format of the contracts. Such contracts made on behalf of the government, either by Union or state, must adhere to the below conditions:

  • The contract must be expressed by the President of the Union or by the Governor of the state.
  • The contract must be extended by the President or Governor, as the case may be
  • An authorised or directed person shall execute the contract on behalf of the President or Governor .
  • The contract must be executed in writing.

Elements of government contract

Transparency

The contract must be clear to both  parties in order to remove the ambiguity. The process of awarding government contracts is done through a properly defined procedure of tendering and awarding as per the guidelines, with some exceptional cases where expertise is required. The contracts should have a clear objective, and the same should be conveyed to the entities taking part in the process. The authorities should conduct awareness campaigns or meetings so that the proponents can clarify their concerns with regard to objects related to applications, documents, queries, and questions and express doubts (including those of third parties) where support is required.  

Economy

This is one of the crucial aspects of the contract where, before the proposal, the authorities, financial requirements or allocation of funds are available with properly defined objectives and goals. The government contracts must have the proper procedures in place along-with the timelines for achieving the goal. Governments need to ensure that optimum resources are used to ensure the proper utilisation of public funds.

Responsibility

This principle balances both entities for the accountability of the contract. Here, the concerned authorities of the state are held responsible for the disputes arising during the selection process. Similarly, the contractors or the proponents are held responsible for their actions leading to damages, acts or omissions and a necessary course of action will proceed, such as civil, criminal or disciplinary.

Accountability

In government contracts, clear guidelines are prepared elaborating the accountability. The guidelines will provide the details of the clauses referring to the resolution of the disputes amicably and further the actions to be followed in case of no resolutions. The mechanism for addressing such disputes between the government and proponents or entities needs to be clearly defined.

Contractual balances

The principle ensures that there is proper contractual balance or equality between the parties with respect to the rights, obligations and considerations as stated in the contract, and each has an equal say in representation. If an imbalance is observed, proper steps should be taken to restore it through a suitable mechanism.

Types of government contracts

The government contracts have no codified contracts, but the types of government contracts are classified based on their structure and application in various categories. Thus, government contracts are further classified on the basis of their services, financial parameters, time durations, etc.

Fixed price contracts

These are the contracts basically related to the supply of goods and services where the price is pre-determined in the contract and there is no variation with respect to quantity or time. Although, in some cases, there are clauses included for the variations, such as the cost of transportation, which might vary with changes in fuel prices. These contracts provide certainty for both parties.

Cost plus / cost reimbursement contracts

These types of contracts are variable, where the contractors are tied to a fixed budget, but it goes along with the work done. In such contracts, the contractor gets a fixed percentage along with the actual cost incurred for the execution. The contractor is guaranteed the payment of the actual cost as well as any additional payments made by him as additional fees.

Incentive contracts

These types of contracts are made to motivate the contractor for the work involved in the execution of the contract. The conditions of the contract elaborate the remuneration based on the conditions of the execution of the contract. These contracts provide the best results by the contractor and execution, with the least inefficiency from the contractor These contracts include fixed-price incentive contracts, cost plus award fee contracts, delivery incentives, performance incentives, multiple incentive contracts, and cost-plus incentive contracts.

Indefinite delivery / indefinite quantity contract

As the name suggests, such contracts do not have a time period for the delivery of material, as it is unknown when the requirement is there. The duration of such contracts is mentioned, but the delivery of contract services and goods is not fixed. Usually, such contracts are open blanket contracts for the delivery of goods within the stipulated duration. Example  “A” has to supply a part of the machinery for six months. Here, the duration is fixed, but the quantity of machinery part is not fixed, and when the supply is to be started is not mentioned

Time and material contract

In this type of contract, the contractor is supposed to complete the work using the materials specified in the contract and, with skilled manpower, execute it as per the agreed  upon time. Such contracts are less risky to the contractor as he is being paid for the time and material incurred. 

Labour hour contract

It is another form of Time and material contract in which the work needs to be completed within the stipulated time. The contractor is obligated to complete the work as agreed with the use of his manpower at the hourly labour rate and the cost of the project is calculated by the government. The efficiency of the manpower will not benefit such types of contracts   

Advantages and disadvantages of government contract

Advantages 

The advantages of government contracts are:

  1. Good pay: The government needs the work to be done correctly and thoroughly with good efficiency, so the rate offered for government contracts is lucrative, which is much better than what the government’s department workers are getting.
  2. Good reputation: Work done for the government adds value to the business. It helps in growing the business, which reflects the capability of the contractor, who has already qualified the government’s norms, which are more stringent.
  3. Good value: The contracts with the government are secure. and the payment for work is guaranteed. Also, any delay in the payment is added to the interest for that period.
  4. Long term: The government contracts are usually for a long term. Also, once the entity is a qualified contractor, the contractor also becomes eligible to be qualified on the contractor list for future contracts, and the process of qualification is eliminated. This makes it easy to bid on future contracts.

Disadvantages

The disadvantages of government contracts are:

  1. Rules and regulations: Usually, government contracts have too many rules and regulations, which make them too complicated. All the codes need to be followed, and a lot of paperwork needs to be retained, which is required for audit purposes, too.
  2. Stability: The government contacts are less stable and subject to government decisions, which may be political in nature. The work may be stopped with any change in government policy 
  3. Payment: The process of the release of payment for the work done is a very slow process, going through various scrutinies and leading to delays in the payment. The contractor has to keep his own funds for the operations of the project to avoid any default due to a shortage of workers or non-payment to his workers.

Conclusion 

Government contracts are similar to individual contracts in that the contracts follow a legal procedure and norms based on the principles of reasonableness and rationality. The government cannot enter into the contract unless it conforms to some standard or norm that is rational and non-discriminatory. Government contracts are always preferred by the contractors due to the guarantee of payments and well-defined rules and regulations regarding the contractual terms and conditions in writing.   

References

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