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Sheetal Aarey, 4th year Symbiosis student, on her experience of doing commercial contract drafting and negotiation course from LawSikho.com

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I am Sheetal Aery, and I study in Symbiosis Law School in the 4th year. Last year I did the commercial contract drafting and negotiation course while I was still in my 3rd year after learning about it from lawctopus. It is a self study course, and I liked the videos of experts as well as the reading material very much. I downloaded several templates of frequently needed contracts and these are really high quality templates that I can use to draft real life contracts.
After doing this course, I got a new perspective about contracts rather than the general understanding we get as law students when we read contract law in college. Understanding the commercial intent of various contracts is crucial to being able to draft a good contract that protects the economic interests of clients. Apart from drafting, I learn practical things like how to execute a contract, complicated stamp duty and jurisdiction related issues.
One very good thing is that while the course is of 3 months, I could give the exam later as per my convenience, and review the material for a long time even after the course was over. Immediately after the course I did an internship at Coca Cola, where a lot of my work was related to reviewing contracts. What I learned in the course was very useful. I could do my work confidently and my work was very much appreciated. In fact, the team gifted me a huge book on contracts as a token of appreciation so that I continue to learn more about contracts.
I am planning to do 3 corporate law internships in the coming 3 months. I know that my enhanced abilities and knowledge with respect to contract drafting, reviewing and negotiation will really help me to excel and impress would be employers.
Where I feel that this course can improve is that the exam was MCQ type and quite easy. Scoring A grade was very easy. Test should be more rigorous. Also, there were 3 drafting exercises. It would have been great if we could get some feedback on our drafting and some tips about how the drafting can improve.
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Revised Framework on Resolution of Stressed Assets dated February 12, 2018 of Reserve Bank of India

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conviction of politicians

This article is written by Nilesh Javker. The article discusses the Revised Framework on Resolution of Stressed Assets dated February 12, 2018, of Reserve Bank of India.

The Reserve Bank of India (RBI) vide its notification bearing ref. no. DBR.No.BP.BC.101/21.04.048/2017-18 dated February 12, 2018 (“Revised Framework“) brought into effect a new framework with a view to early identification and resolution of stressed assets (i.e. non-performing assets accounts) in harmonisation with the principles of Insolvency and Bankruptcy Code, 2016 (IBC).

The extant instructions on resolution of stressed assets such as Framework for Revitalising Distressed Assets, Corporate Debt Restructuring Scheme, Flexible Structuring of Existing Long Term Project Loans, Strategic Debt Restructuring Scheme (SDR), Change in Ownership outside SDR, and Scheme for Sustainable Structuring of Stressed Assets (S4A) stand withdrawn with immediate effect. Accordingly, the Joint Lenders’ Forum as an institutional mechanism for resolution of stressed accounts also stands discontinued. All accounts, including such accounts where any of the schemes have been invoked but not yet implemented, shall be governed by the Revised Framework.

Some important definitions under the Revised Framework

1. Default has been defined as non-payment of debt when whole or any part or installment of the amount of debt has become due and payable and is not repaid by the debtor or the corporate debtor, as the case may be. For revolving facilities like cash credit, default would also mean, without prejudice to the above, the outstanding balance remaining continuously in excess of the sanctioned limit or drawing power, whichever is lower, for more than 30 days.

2. Aggregate Exposure under the Revised Framework would include all fund based and non-fund based exposure with the lenders.

3. ‘Restructuring’ is defined as an act in which a lender, for economic or legal reasons relating to the borrower’s financial difficulty (An illustrative non-exhaustive list of indicators of financial difficulty are given in the Appendix to Annex-I of the Revised Framework), grants concessions to the borrower. Restructuring would normally involve modification of terms of the advances / securities, which may include, among others, alteration of repayment period / repayable amount / the amount of installments / rate of interest; roll over of credit facilities; sanction of additional credit facility; enhancement of existing credit limits; and, compromise settlements where time for payment of settlement amount exceeds three months.

4. ‘Specified Period’ means the period from the date of implementation of RP up to the date by which at least 20 percent of the outstanding principal debt as per the RP and interest capitalisation sanctioned as part of the restructuring, if any, is repaid. Provided that the Specified Period cannot end before one year from the commencement of the first payment of interest or principal (whichever is later) on the credit facility with longest period of moratorium under the terms of RP.

Early identification of stress through stringent reporting requirements

Applicability: All borrower entities having Aggregate Exposure (i.e. including fund based and non-fund based) of Rs. 50.00 million and above.

Reporting of Credit information

The lenders shall now report credit information, including classification of Special Mention Accounts to Central Repository of Information on Large Credits [CRILC] on monthly basis effective April 01, 2018.

Reporting of Default

For reporting of Default, the lenders shall now report to CRILC on a weekly basis, at the close of business on every Friday or the preceding working day if Friday happens to be a holiday.

Implementation of Resolution Plan (RP)

The Revised Framework, in order to prevent default of borrower entities turn into non-performing assets, has mandated the lenders to put in place Board-approved policies for resolution of stressed assets under this framework, including timelines of resolution as specified in Clause D of the Revised Framework.

The lenders are mandated to refer borrower entities for resolution under IBC if –

  1. The RP could not be implemented as per the timelines, then after the expiry of 15 days of such timelines; and
  2. If the borrower entity defaults during the Specified Period of RP, then within 15 days from the date of such default.

Such a resolution can be proposed either singly or jointly by the lenders which mean that even in case of default of one single lender; other lenders can join such lender for resolution of the stressed asset. This also substantiates cross default rights that are obtained by the lenders under their loan agreements.

The Revised Framework has described RP as any action / plans / reorganization including, any actions / plans / reorganization including, but not limited to, regularization of the account by payment of all over dues by the borrower entity, sale of the exposures to other entities / investors, change in ownership, or Restructuring.

Author’s Observations

The RP does not include option of conversion of debt into equity which hitherto was made available to the lenders under SDR and S4A. Does this mean under the Revised Framework, lenders will not be allowed to convert their debt into equity or the RBI does not envisage conversion of debt into equity as a viable option for Restructuring of stressed assets?

Default of Borrower Entities with Aggregate Exposure less than Rs. 100.00 Crore

Clause D of the Revised Framework prescribes timelines for reference dates of borrower entities having Aggregate Exposure at Rs. 2000.00 Crore and above for implementation of RP.

In respect of borrower entities with Aggregate Exposure of Rs. 100.00 Crore and above to less than Rs. 2000.00 Crore, RBI will announce reference dates for implementation of RP over a two year period.

Author’s Observations

The Revised Framework does not explain how the lenders should deal with accounts having Aggregate Exposure less than Rs. 100.00 Crore nor does it specify any RP for borrower entities having Aggregate Exposure of less than Rs. 100.00 Crore. But that does not exclude stressed assets of less than Rs. 100.00 Crore from Revised Framework. This does not seem to be the intention of the drafters of the Revised Framework. Does this mean that the lenders have the liberty to resolve the stressed assets of less than Rs. 100.00 Crore on their own including write off, one time settlement of such accounts or other recourse available to them under the extant laws?

 

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Call for Applications – Writing For A Change – Online internship-cum-certification programme

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The Law Blog (TLB), is pleased to announce two-month long Internship-cum-certificate Programme for law students and legal professionals from across the globe.

The internship will require legal writing, and therefore is recommended for law students only. However, students from other branches also may apply for the same and will be considered after following the due process.

NATURE OF THE PROGRAMME

As for the certificate programme, the title thereof is ‘Writing for a change’ which is an online certificate programme on Blogging for Social Development. The certificate programme will be focusing on the learner’s ability to blog effectively and use the online opportunities towards her/his professional development as well as contribute to the social development as a whole.

Towards the completion of the certificate programme, the interns will be provided with the course material on a regular basis on the basis of which they’ll be facing an online test and also perform required tasks.

As for the internship part, the interns are expected to submit at least one article (around 500-1000 words) per week on any topic relating to law, the deadline being Friday evening for each week. Regarding the topic of the article, anything relating to law will be acceptable.

Kindly note that the certificate programme under this programme is completely free of cost!

Further details will be provided to the applicants after they have been selected for the ‘Writing for Change’ Programme.

BENEFITS

  • Certification

Subject to successful completion and timely submission, the interns will be awarded e-certificates for the following:

  1. ‘Writer for change’
  2. Internship Certificate
  3. Letter of Recommendation
  • Recognition

While posting the article on the website, due credit will be given to the respective authors. Authors of respective articles are featured on the website along with their short bio.

  • An enriching experience

We assure the interns a highly enriching experience while interning with us. Along with working for spreading legal awareness, we’ll also work together on improving your writing skills, in a cooperative setup.

  • Critical appraisal

The write-ups of the interns will be critically evaluated and the interns will be provided with positive appraisal as well as suggestions to further improve their writing skills.

HOW TO APPLY

So, if you have finally decided to apply for the Internship-cum-certificate Programme, kindly click on the link below, and fill up the Google form therein. Thereafter, we’ll contact you shortly.

Application form here!

For any queries, drop a WhatsApp text message to +91 7895 194740. 

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Analyzing the aspect of Further Issue of Share Capital under the Companies Act

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Law Colleges in Madhya Pradesh
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In this article, Aditya Rajagopal analyses the aspect of Further Issue of Share capital under the Companies Act.

Introduction

In some situations, a company would consider it economically viable to increase its subscribed capital after its incorporation. This is because such a further issue would substantially increase its financial reserve and incentivize the shareholders of the company, thereby ensuring the healthy functioning of the company. Such a company which is desirous of increasing its subscribed capital by the further issue of shares is required to comply with the procedure laid down in section 62 of the Companies Act, 2013. This section encapsulates a scenario wherein the authorized capital of the company is not exhausted and the further allotment of shares is made out of the unsubscribed portion of the capital.[1] In this paper, I shall discuss the various dimensions of this section by analyzing the judicial pronouncements of the court over the years.

Scope

The scope of this project is to analyze the aspect of further issue of shares in relation to the provisions of the Companies Act, 1956 and Companies Act, 2013. I would specifically focus on the aspects relating to the pre-emptive rights of the existing shareholders, the duty of the directors in such further issue and the ambit of the right of renunciation available to the shareholders. While engaging in these aspects, I would analyze the effect or the impact of the amendments and changes introduced in the Companies Act, 2013. In addition, I would also point out various contentious situations which might arise when the company is engaging in a further issue of shares for which the Companies Act does not provide a solution or recourse and is silent regarding the same.

Research Questions

In accordance with the scope of this project, I would like to address the following questions

  1. Whether the new stock of shares can be given to an outsider without offering the existing shareholders?
  2. What is the extent of the shareholder’s interference when the Board of Directors have engaged in the further issue of shares?
  3. What are the duties of the director while engaging in the further issue of shares?

Chapters

In this section of the paper, I would strive to answer the research question as provided earlier and deal with additional aspects as well. While engaging in the same, I would trace the legislative history and analyze the judicial trend on the specific aspects of rights issue of shares.

Rights of the existing shareholders at the time of further issue of shares

The inherent right of the existing shareholders to the new shares of the company has extensive judicial backing in India and other jurisdictions as well. The earliest well recognized judicial pronouncement which laid down the same was the New York Court of Appeals decision of Stokes v. Continental Trust Co.[2] In this case, the court held that the firm which is a mere trustee for all the shareholders has no right to dispose of the new stock without offering it to the existing shareholders. The same principle has been recognized in other jurisdictions as well, such as the United Kingdom which explicitly mentions about the pre-emptive right of the existing shareholders in its Companies Act.[3]

In India, the companies act has always found mention regarding the presumptive right of the existing shareholders to the new shares of the company. Section 105C of the Companies Act, 1936 had explicit mention relating to the presumptive right of the existing shareholders. The Supreme Court while dealing with this provision in the landmark case of Nanalal Zaver v. Bombay Life Assurance Co. Ltd[4]  laid down that the company must give the first option to the existing shareholders before favouring anyone else. The Companies Act, 1956 and the Companies Act, 2013 also explicitly provides for a preemptive right of the shareholders to the new shares of the company. The Supreme Court also recently in the landmark case of Sahara India Real Estate Corporation v. SEBI[5] held that Section 81 postulates a preemptive right on the part of the existing shareholders to the new issue of shares. Thus, it is evident that a company which engages in the further issue of shares should offer it to its existing shareholders before favouring anyone else. This is a recognized principle in India and other jurisdictions as well.

This principle is in existence to ensure that the shareholder is not unfairly treated. If new shares are issued without offering them to the existing shareholders in proportion to their existing holding, then their share of control over the company would substantially reduce.[6] Further, the existence of pre-emptive rights acts as a serious check on the directors’ discretion to issue further shares.[7] In addition, not granting a pre-emptive right would result in an inequitable treatment of the existing shareholders. This is because the additional shares which are issued at a lower price would facilitate outsiders into the company in an extremely flexible manner but on the other hand, existing shareholders who paid a higher price to acquire shares would stand to lose unfairly.[8] Thus, the existence of pre-emptive rights ensures the well-being of the existing shareholders as there is no financial dilution.[9] However, this pre-emptive right is available only for a maximum of 30 days within which the existing shareholder must express his interest.[10]

The legislature has made some changes in relation to the aspect of the further issue of shares in the Companies Act, 2013. Under Companies Act, 1956 a company is obligated to follow the procedure prescribed in Section 81 (including preemptive rights of the existing shareholders) only if the company has been in existence for two years (or) at “any time after the expiry of one year of the allotment of shares”. Thus, a company could flout the well-laid out procedure prescribed in Section 81 of the Companies Act, 1956 if it allotted shares within two years of its formation. This would include a situation wherein a company could disregard the preemptive rights of the shareholders if it allotted shares within two years of its formation. The Legislature realizing the loophole has modified the section and it now obligates any company who issues further shares at “any time” to be within the ambit of Section 62 of the Companies Act, 2013. This, according to me is a great step to ensure complete compliance with the procedure prescribed in the act.

Further, unlike the erstwhile companies act of 1956, Section 62 of the Companies Act, 2013 applies to private companies as well. This change of scope in the Companies Act in relation to this aspect is a welcome move since the existence of pre-emptive rights of the existing shareholders would ensure that the membership is limited and that control remains within the framework of the existing shareholders. The scope of interference of the shareholders in the director’s discretion of further issue of shares will be dealt with in the subsequent section of the paper.

Scope of Interference of the shareholders in the Director’s decision of further issue of shares

Even though the existing shareholders possess a pre-emptive right to the new shares, the extent of their interference in the further issue of shares will be analyzed in this section of the paper. A shareholder can interfere in the director’s exercise of discretion only in special or exceptional situations. This aspect was considered by the court in the case of Sri Hari Rao v. Gopal Automotive Ltd.[11] In this case, the court held that there was sufficient evidence available for the director to engage in the further issue of shares.[12] Therefore, they held that they could not restrain the company from issuing further shares for the mere reason that the minority shareholder is unwilling to subscribe to the additional capital.[13]

This similar aspect was considered by the court in the case of Chandrakant Mulraj v. Tata Engineering and Locomotive Co Ltd.[14] In this case, the court laid down that the reduction in the market value of the shares is not a sufficient reason for restraining the company from the further issue of shares.[15] This is because such a measure was undertaken keeping in view the interests of the company. Thus, it is clear that the scope of interference of the shareholders in the director’s decision is extremely narrow and only in special or exceptional situations. The exceptional situations which warrant such interference will be dealt with in the next section of the paper which is in relation to the director’s duties while engaging in the further issue.

Fiduciary duty of the directors while issuing further shares

The Companies Act, 1936 had explicit mention regarding the power of the director to issue further shares of a company.[16] In the later statutes which followed the Companies Act, 1936 there was no explicit mention regarding the power of the directors to issue further shares. Nevertheless, it is the board of directors of a company who are vested with the intrinsic right to issue further shares.[17] The manner of exercise of such right has been a bone of contention in various situations. In India, such a situation was dealt with by the Supreme Court in the landmark case of Nanalal Zaver v. Bombay Life Assurance Co.Ltd.[18] In this case, the appellants contended that the director’s exercise of discretion in issuing further shares was male fide in nature as it was done to gain control of the company.[19] The Court, while dealing with this contention held that since the directors exercised their discretion in a bona fide manner for the best interests of the company, mere incidental benefits to the directors would not warrant interference in the further issue of shares.[20]

The same aspect relating to the manner of exercise of the director’s discretion was dealt by the Supreme Court in the case of Needle Industries (India Ltd) v. Needle Industries Newey (India) Holding Ltd.[21] In this case, the Court did not restrain the acts of the director since he not only acted in a bona fide manner for the benefit of the company but also acted without any motive to promote his own cause.[22] The Court also held that the exercise of director’s discretion would be for an improper motive if it is solely done for their own benefit.[23] Thus, it is apparent that the court added another standard (Proper Purpose) apart from the requirement of the director to act in a bona fide manner. The requirement of a proper purpose before the further issue of shares was first postulated in the landmark case of Hogg v. Cramphorn Ltd.[24] In this case, the court interfered in the further issue of shares even though they felt that he acted for the interests of the company, since he acted with the improper motive to control a greater share of the company.[25] The same principle was reiterated with greater force in the case of Clemens v. Clemens Bros Ltd.[26] In this case, the court held that the director was acting in breach of its fiduciary duty since the further issue was done for the sole motive to squeeze out the majority shareholders. The additional principle of proper purpose along with the bona fide requirement was thereafter applied extensively in India as well.

The landmark case which applied the said modified principle (proper purpose + bone fide requirement) was the Supreme Court decision of Dale and Carrington Invt. (P) Ltd and Anr v. P.K Prathappan and Ors.[27] In this case, the Court invalidated the director’s further issue since he was neither able to prove that such issue was for the benefit of the company nor was he able to prove that he was acting in a bona fide manner since his motive was to gain control of the company.[28] The same principle was enunciated by the Supreme Court in the subsequent case of Shri V.S Krishnan and Ors v. Westford Hi-Tech Hospital Ltd and Ors.[29] Thus, it is clear from the judicial pronouncements of the court that the standard for analyzing the manner of exercise of the director’s discretion has shifted from a mere bona fide requirement to a modified principle of bona fide + proper purpose. This, according to me is the right standard for scrutinizing the discretion of the director in the further issue of shares. This is because the Companies Act does not provide any guidance on the aspect of the director’s discretion in issuing further shares. Thus, by adopting the modified principle, the possibility of a director exercising his discretion in an irregular manner is minimized to the maximum extent possible.

Conclusion

In this paper, I have first analyzed on the aspect relating to the preemptive rights of the existing shareholders in the further issue of shares. In the next part of my paper, I have analyzed the extent of the shareholder’s interference in the further issue of the shares. After analyzing both these aspects, I have come to a conclusion that even though the existing shareholders have a preemptive right to the new stock of shares, the scope of such interference in the director’s discretion is limited. It is only in exceptional situations where the further issue of shares is restrained. On the aspect of the fiduciary duties of the director, even though there is no mention of the same in the companies act, judicial pronouncements of the court indicate that the director is required to act in a bona fide manner with a proper purpose. These are some of the aspects of the Companies Act regarding the aspect of further issue of shares under the Companies Act.

[1] A. Ramaiya, Guide to the Companies Act, 1164 (18th ed., 2014). Also, the change in authorized share capital shall take place as per Section 61 of the Companies Act, 2013.

[2] Stokes v. Continental Trust Co., 186 NY 285, 299 (1908, Court of Appeals, New York).

[3] S. 561, Companies Act 2006 (United Kingdom).

[4] Nanalal Zaver v. Bombay Life Assurance Co. Ltd, AIR 1950 SC 172.

[5] Sahara India Real Estate Corporation v. SEBI, (2013) 1 SCC 1.

[6] Gower and Davies, Principles of Modern Company Law, 632 (7th ed., 2003)

[7] Ibid.

[8] Ibid.

[9] Ibid.

[10] Sec. 62(a)(i), Companies Act, 2013.

[11] Sri Hari Rao v. Gopal Automotive Ltd, (1999) 96 Com Cases 493.

[12] Ibid at ¶29.

[13] Ibid.

[14] Chandrakant Mulraj v. Tata Engineering and Locomotive Co. Ltd, (1985) 58 Com Cases 320 (Bom).

[15] Ibid at ¶6,7,8.

[16] S.105(C), Companies Act, 1936.

[17] Supra 1 at 1167; Avtar Singh, Company Law, 231 (16th ed., 2015).

[18] Supra 4.

[19] Ibid at ¶2.

[20] Ibid at ¶25.

[21] Needle Industries (India) Ltd v. Needle Industries Newey (India) Holding Ltd, AIR 1981 SC 1298.

[22] Ibid at ¶116.

[23] Ibid at ¶111.

[24] Hogg v. Cramphorn Ltd, 3 All ER 420 (1966, Chancery Division).

[25] Ibid.

[26] Clemens v. Clemens Bros Ltd, 2 All ER 268 (1976, Chancery Division).

[27] Dale and Carrington Invt. (P) Ltd and Anr v. P.K Prathappan and Ors, AIR 2005 SC 1624.

[28] Ibid at ¶29.

[29] Shri V.S Krishnan and Ors v. Westford Hi-Tech Hospital Ltd and Ors, (2008) 3 SCC 363.

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Corporate Social Responsibility and Corporate Citizenship – Analyzing the difference

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Corporate Social Responsibility and Corporate Citizenship
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This article is written by Utkarsh Jhingan. The article discusses the difference between the two frequently used terms in business law jurisprudence, Corporate Social Responsibility and Corporate Citizenship.

Corporate Citizenship

In the 1980’s a new term entered the glossary to describe the business-society relationship. ‘Corporate Citizenship’ now appears frequently in the business and academic literature. Corporate citizenship is defined as the way a company exercises its rights, obligations, privileges and overall corporate responsibility within the neighbouring and global environment. There has been some disagreement about the terminology: some writers view corporate citizenship and corporate social responsibility as synonymous.[1] On the contrary, some writers argue that corporate citizenship focuses more on internal organizational values.[2] The advocates of corporate citizenship claim it can bridge the theory-practice divide that characterizes much of the research on corporate social responsibility.[3] Most of the corporations publicize about their efforts towards to corporate citizenship so that they can create a goodwill in the market.

What is the complication?

Attempts to distinguish between corporate citizen and CSR has ended up only defining corporate citizenship essentially having the same features of CSR i.e. economic, ethical, legal, philanthropic responsibilities.[4] Corporate citizenship can be divided into two, a good and bad citizen. Bad corporate citizens like tobacco companies, weapons manufacturers are excluded from socially responsible investment funds. There have been arguments that the refurbished academic focus on corporate citizenship is an opportunity to reposition the older ideas about CSR.[5] Corporate citizenship is limited and specific and its focus on local community welfare and philanthropy and it is necessary to envision global business citizenship to bring back the issues of duty and responsibility.[6]

The applicability of CSR in America and Europe had been questionable and there was a need to bring uniformity in the responsibilities of business. The notion of a global business citizen was particularly relevant for multinational corporations. Multinational corporations are both local and global actors whose rights and responsibilities across national boundaries implied an analysis of hyper norms.[7] The U.N. Global Compact where multinational corporations voluntarily commit to a set of principles in the areas of environment, labour and human rights values and principles which gives a human face to the global market and aspire to overcome imbalances between the economic, social, and political realms.[8]

Corporate Social Responsibility and Corporate Citizenship

The main elements of corporate citizenship are not very different from the concept of CSR i.e., legal requirements, societal obligations, voluntary actions, values and ethics are integrated along with a stakeholder view of the firm although environmental responsibility which the key theme of CSR and sustainability are missing. The issues of implementing a consistent set of universal hyper norms seem to be glossed in the literature.

A multinational corporation must be seen to be insightful to local cultures. At the same time it is required to implement a universal code of conduct, the assumption being that the company can adapt its hyper norms to suit local custom without violating them.[9] It is still not clear how this strategy will address the issue of environmental and social problems. A good corporate citizen is obliged to fulfil the obligations but it is not legally enforced. The major shortcoming of CSR, corporate citizenship is that there is an absence of any enforcement mechanism to meet the obligations. At a global level, the complexities of legal systems also enable multinational corporations to develop innovative and creative accounting practices that, while being perfectly legal, have uncertain outcome.

The problematic nature of citizenship, when applied to corporations, need to be looked into. The use of the term citizen to denote corporate identity is related to the legal notion of the corporation as a natural citizen. The rights of the corporation are guaranteed and protected but the problem is that the responsibilities remain unrestricted. The term corporate citizen extends the legal fiction of corporate personhood even further because a corporation cannot satisfy key cannons of citizenship such as voting or holding public office, which are inalienable rights held by individuals.[10] Corporate citizenship also does not provide a critical analysis of power dynamics between individuals, groups and corporations. Citizenship rights of corporations are limited to certain activities like the right to vote furthermore the economic power of corporations to influence electoral results through campaign contributions cannot be ignored.

There have been notions of corporate citizenship that bring in the legal fiction argument of the corporation in order to create a soul for the body corporate run the danger of conflating citizenship with personhood. A corporation cannot be a citizen in the same way a person can. A corporation can be considered a person as far as its legal status is concerned. The conflation of a corporation with an individual citizen obscures the gaps between individual citizen rights and corporate rights. There are concerns that corporate citizenship discourses could have the effect of reducing governmental scrutiny of corporate practices because they promote self-governance. Corporate strategies of responding to social and environmental concerns have led to array of codes of conduct on various issues which are not enforceable.

So to conclude rather than uncritically applying concepts of citizenship to the business firm, it is important to contest current notions of corporate citizenship. The limitations of applying superficial concept of citizenship to corporations attempt to develop a broader conceptualization of corporate citizenship based on notions of liberal citizenship in political science.[11] Corporate citizenship becomes relevant in an era dominated by neoliberal doctrine because, while corporations may not be the same as individual citizens, they are taking the roles and activities normally associated with the government.[12] When the state is not the sole guarantor of citizenship rights and corporations provide services that were previously the purview of governments then it becomes necessary to interrogate corporate roles in administering citizenship. Thus corporate citizenship is about administering citizenship rights for individuals rather than about whether the corporation is or can be a citizen.

References

[1] Swanson Diane and Niehoff Brian P. (2001), “Business Citizenship outside and inside organisations”.

[2] David Birch (2002), “Corporate Citizenship in Australia: Some Ups, Some Downs”.

[3] Subhabrata B. Banerjee, (2001), “ Corporate Social Responsibility : the good, the bad and the ugly”.

[4] ArchieB.Caroll (1998), “The Four Faces of Corporate Citizenship”.

[5] Dirk Matten. Andrew Crane (2005), “Corporate Citizenship: Toward an extended theoretical conceptualization”.

[6] Natasha Vijay Munsh (2004), “Conversations on Business Citizenship”.

[7] Wood and Logsdon (2001), “Global Business Citizenship and Voluntary Codes of Ethical Conduct”.

[8] Annan (2000), “Executive Summary and Conclusion, High Level Meeting in the Global Compact”.

[9] Natasha Vijay Munsh (2004), “Conversations on Business Citizenship”.

[10] Subhabrata B. Banerjee, (2001), “ Corporate Social Responsibility : The Good, The Bad and The Ugly”.

[11] Matten and Crane (2005), Corporate Citizenship: Toward an Extended Theoretical Conceptualization.

[12] Hertz (2001), “Better to  Shop than to Vote”.

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How to make the best use of Right to Information

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Use of Right to information
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In this article, Akanksha Singh of Meerut College discusses how to make the best use of Right to Information.

Introduction

Right to Information is a democratic function and a precondition to a good governance and it is a fundamental right under article 19 (1) of the constitution. It ensures that the people we put in power should be answerable and accountable to every citizen of the country.

“Where the society has chosen to accept democracy as its creedal faith, it is elementary that the citizen oath to know what their government is doing-Justice P N Bhagwati”.

Right to Information Act, 2005

  1. Right to Information (RTI) is an Act of the Parliament of India which motive is to establish a right to information for citizens and replace the former Freedom of Information Act, 2002.
  2. Any citizen of India may request information from a public authority (the Government body) and public authority is bound to reply immediately or within 30 days under the provision of the Act.
  3. For certain categories of information, it is mandatory for every public authority to computerize their records. So it will help the citizen to minimum recourse to request for information formally.
  4. On 15 June 2005, this law was passed by Parliament and enforced on 12 October 2005. RTI Act relax the Official Secret Act and various other special laws which restrict the disclosure of various information, Also the act codifies a fundamental right of the citizen.
  5. Right to Information is an integral part of freedom of speech and expression are given in Article 19(1)(a) of the constitution. It has been held to include the right to acquire information, and also it includes right to communicate through any available media whether print, electronic, audiovisual, etc.
  6. Besides Article 19(1)(a), there are other articles also which give a right to information under Indian constitution, they are:Article 311(2) and 22(1)
    1. Article 311(2) provides for a government servant to know why he is dismissed or removed and representation can be made against the order.
    2. Article 22(1) grounds of detention can be asked by a person.
  7. Transparency and accountability in administration and mandates timely response to citizen requests for government information. Prior to the act being passed by the Parliament, the RTI laws were successfully enacted by the state governments of:Tamil Nadu (1997)
    1. Goa (1997)
    2. Rajasthan (2000)
    3. Karnataka (2000)
    4. Delhi (2001)
    5. Maharashtra (2002)
    6. Madhya Pradesh (2003)
    7. Assam (2002)
    8. Jammu & Kashmir has its own Right to Information Act 2009.[1]

Salient features of Right to Information Act, 2005

  1. The term information includes any mode of information in any form of record:Documents
    1. Circular
    2. Press release
    3. Contract sample
    4. Electronic data, etc
  2. Any citizen may request information from the public authority which is required to rely immediately or within 30 days.
  3. Rights which are available to citizens are:Request any information (as defined)
    1. Take copies of documents
    2. Inspect documents
    3. Take certified sample of material work
    4. Obtain information in the form of printouts, floppies, tapes, videos, etc.
  4. RTI Act overrides the official secret act and other law in force as on 15 June 2005 to the extent of any inconsistency.
  5. Penalty for refusal to receive an application for information will is INR 250/- per day, which should not exceed INR 25000/- [2]

How RTI can prove to be useful?

In order for citizens to participate effectively in the democracy, they need information about government. Right to Information plays a very important role in providing information about numerous things.

Good Governance

RTI has played a vital in the governance of India. It is important for people to take a meaningful part in the affairs of the society. The people who paid taxes to finance public activities and voted for the formation of democratically elected Governments have legal rights to know as to what process has been followed by the government. It refers to the availability of information to the general public and provides clarity about the functions of government.

It is an important tool for social development and governance, it gives stringent punishment to guilty officials as well as awareness among the people for proper use of RTI. Right to Information helps in fulfilling these objects, and it is a natural corollary of good governance.

Good Governance basically has 4 elements:

  • Transparency
  • Accountability
  • Predictability, and
  • Participation

Links between the RTI and Good Governance

The act has an emphasis on good governance, the major elements have been identified, encouraging people’s participation in the development process, transparency, accountability and reduction in corruption.

Greater transparency

Public authority under section 4(1)(d) of the Act is required to provide reasons for its administration and a quasi-judicial decision to the affected person, to facilitate information a citizen has under section 2 (j) of the Act, the right to:

  • Taking notes, abstract or certified copies
  • Obtaining information in electronic form, if available.
  • Inspect of work and documents, and
  • Taking certified sample of material
Greater accountability

Every public authority is required to provide a reason for its administrative decision to the person who is affected under section 4 (i) (d) of the Act. The worldwide governance indicators report on 6 dimensions of governance for over 200 countries.

  • Government effectiveness
  • Political stability and absence of violence
  • Rule of law
  • Regulatory quality
  • Voice and accountability
  • Control on corruption [3]

RTI cases under good governance

There are many cases which have proved RTI is useful for Good Governance

Prabhu Dutt vs, Union of India & Ors

The Supreme Court held that the right to know news and information regarding administration of Government is included in the freedom of the press. [4]

SP Gupta vs. Union of India (AIR) 1982 SC (149)

In a country like India which is committed to a socialistic pattern of society, right to know becomes the necessity for poor, illiterate, and ignorant masses. [5]

Learn how to file RTI like an expert

Impact of RTI in rural area

The new legislation bought accountability, responsibility, and sensitivity to the development process in the rural area. The people of the rural area are less aware of knowing and exercising their rights which results in a high rate of corruptions. RTI can break the impact of corruption and provide people their share of interest which is assured them by Government.

An important feature that distinguishes the Right to Information from other rights is that it is rooted in struggle, justice, and concern for the survival of most disadvantaged rural area.

The act influences the rural people to come forward and take the information about the progress of various welfare scheme. RTI is creating a positive change in the backward area of:

  • Rajasthan
  • Uttar Pradesh
  • Bihar, Jharkhand
  • Madhya Pradesh
  • Karnataka
  • Assam, and
  • Maharashtra

In Devdungri village, Rajasthan, the first battle to fight corruption by collecting information from public authorities. Aruna Roy, an IAS officer who left her job for the betterment of the people who belong to the village and often cheated because of their illiteracy. Aruna Roy in 1987 along with Nikhil Dey and Shankar Singh founded the Mazdoor Kisan Shakti Sangathan (MKSS).

In 1994 MKSS entered into a new phase breaking new grounds in fighting corruption through the new methodology of jun sunwais (public hearing) this movement shook the foundation of traditional monopoly and corruption of the state bureaucracy because of this the RTI Act that made access to official records available which helped the organization ‘Jun Sunwais’.

RTI is useful for students

In the level or corruption and accountability, the Act has brought positive changes. Students appearing for any competitive or board examination if not convinced with their marks can demand their original sheets under RTI.

RTI for marksheet evaluation and checking answer sheets

RTI for students enables them to check their sheets and file a report if mistakes are found if the correction of the answer sheet. The Supreme Court of India has specifically ruled that students who want to inspect their answer sheet will be allowed to do so under the RTI Act. Before the existence of RTI Act, students were only allowed to apply for re-totaling but could not ask for the revaluation of their answer sheet.

RTI for students is useful in competitive exams which follow the OMR method of answering

RTI for examination which involved Optical Mark Recognition (OMR), the following information can be obtained:

  • A copy of OMR sheet
  • Marks for all sections, along with the marks received in each.
  • Cut-off marks for the category, and for all categories.
  • The answer key to compare with the OMR.

RTI is useful for students with regards to educational institution

RTI for students helps in obtaining information. Students may ask their queries, also about the degree and mark sheets which have been issued by the government.

Private universities do not fall under the purview of RTI so students can file the application to public information branch of the concerned state where the institution is established and request them to verify the mark sheet which is issued. [6]

Case where student filed RTI

Gayatri Vishwakarma vs, Union of India on 3 July 2017

In the above case, the petitioner has been given the admission by the University. After following the procedure and after completion of the course of four years, the University did not issue the mark sheet to the student. The student filed the RTI application then she came to know that the University has no recognition to conduct the courses, in which she had been given admission by the University. [7]

Useful for prisoners who seek information under RTI

A prisoner can seek information using their rights about the facilities being made available to them in jail. Nothing can stop a prisoner to seek information under the Right to Information Act. The aim of RTI is to ensure the transparency and accountability in the function of public authority.

An undertrial prisoner

Prisoner of Hyderabad Central who was under trial filed an application with Securities and Exchange Board of India (SEBI) under the Right to Information Act (RTI) for details of the complete list of stock exchanges in India with a copy of their procedural guideline, policy, manual, rules, and regulation, etc.

The applicant mentioned that he had no proper source of income and should be considered as a person below poverty line (BPL) and information should be provided to him free of cost. In the reply, the public information officer (PIO) of SEBI asked the applicant to submit a proof of being BPL  against which the applicant approached the First Appellate Authority (FAA) reiterating his stand.

City Civil Court and a District Court judge take notice of earlier judgments, the FAA ruled that the appellant, being prisoner of the jail, is entitled to free information under RTI if considered as the person below the poverty line. The PIO was asked by FAA to provide the information about stock market including study material, free of cost to appellant. There is no necessity to have a certificate regarding income from the competent authority to treat prisoner below the poverty line in case of an under trial. [8]

Tihar prisoners file RTIs to get information

The prisoners’ headquarters, which houses senior officials who carry out administrative work, get two query every day on an average. More than 70 applications were received by them in the month of December 2017, in January 2018 it was 59. Prisoners are exempt from paying RTI applications. Those who are seeking information at Tihar jail is no shortage of help for them.

Information which is asked by the Prisoners:

  • Why did we not get lemons this season?
  • Are we entitled to two glasses of milk every morning?
  • In how many days will I get released?
  • Why are we not provided mosquito repellent?

Useful in knowing the decision taken by the government/public funded organization

RTI grant citizens legal right to access information held by their government and know about the functions of government. RTI gives right to know the reason behind any decision which is taken by the government. Over the last 6 years, the RTI has been used rapidly by ordinary citizens to demand information from the government.

Useful to expose abuse if power/authority, arbitrary, decision making etc

Whenever there is corruption in any decision which is taken by the government, to prove such deviation it is important to get all the information and RTI gives the right to the citizen to receive the information regarding the decision taken by the government.

The citizen can ask for:

  • The copy of complete file related to the project.
  • Copy of bills
  • Copy of voucher
  • Copy of tender document, etc.

It helps citizens to know about the document which is created and maintained by the government while taking various decisions.

Including the right to seek, receive, and impart information it provides all citizens right to freedom and expression and a guarantee now considered to include an obligation of openness on the part of the government.

Useful to know how the public funds are being utilised

On 6 September 2011, Krishan Lal, a resident of Mumbai asked information from Public Information Officer (PIO) regarding whether Public Health Foundation of India (PHFI) is a public authority under RTI Act or not:

  • PHFI’s incorporation and registration documents, and legal status of PHFI.
  • Details of funds received by the government on various projects.
  • Details of capital expenses and funding pattern of meeting the capital expenses.
  • Details regarding the cost of purchase of land for these institutions and copy of registration or certification of land.
  • Details of consultancy assignment of various State Government or their agencies.
  • Details of students sponsored by the state government or government of India.

PHFI claimed that it was not covered under the provision of RTI Act so there was no scope for the complainant to use the appeal procedure mentioned in the RTI Act, and under section 18 of RTI Act, the bench treated the matter as a complaint.

It was recognized by the Supreme Court of India that the right to information is a fundamental right of every citizen of India under Article 19(1) of the Constitution of India. This fundamental right was codified by RTI Act that every citizen shall have the right to information, subject only to the provision of the RTI Act.

Section 2 (h) of RTI Act defines public authority

Anybody or institution of self-government constituted or established:

  • By or under the Constitution,
  • By or other law made by Parliament,
  • By or any other law made by State Legislature,
  • By the notification issued or order made by the appropriate government, which includes:Body owned, controlled or substantially financed;
    • Any non-government organization, directly or indirectly by funds provided by the appropriate government. [9]

Transparency and Accountability

“Improving Transparency and Accountability in government through effective implementation of the Right to Information Act” it is the centrally sponsored scheme which was launched in August 2010. It aims to contribute more transparent and accountable government and aimed to achieve the following output:

  1. RTI request is filed by the public. The component designed to achieve were:Awareness generation through mass media campaign
    1. Simplification of process for filing of RTI requests
    2. Appeals to central government authorities which includes a portal for the filing of RTI requests in GOI offices.
    3. Setting up of an institutional mechanism for collaborative working with CSOs and media.
    4. Consultation meeting of national RTI committee, RTI fellowship, etc.
  2. Speed disposal of RTI request an appeal, and improvement in quality:Online certificate course on RTI, knowledge management, etc.
    1. Setting up of RTI sells in central public authority make the process fast of receipt, monitoring, and disposal of RTI request/appeal
    2. Improvement in record management.

In the current scenario, RTI is bringing up the transparency and accountability in India. On an average, every year 5 to 8 million RTI queries are filed.

RTI includes the following

  • Adequate safeguards have been provided to officers autonomy and accountability can be balanced.
  • The penalty for those who use measures for personal inter.
  • Judiciary can restrict itself from crossing the boundaries.
  • Providing monitoring mechanism for ensuring transparency in the program.
  • Encouraging officers to take an honest decision in regard to the success.
  • Bringing media under regulation through positive values.
  • Defining standard operating procedure and code of conduct. [10]

RTI can challenge corruption and arbitrary action taken by public servant

RTI is a tool to fight against corruption. RTI empowers the people of India against administrative corruption, unresponsive attitude, and irregularities. Every citizen of India is empowered to question, review, audit, assess and examine the government decisions and acts to ensure that decisions are taken in public interest.

Though this corruption can be exposed and also bring light to those officials who are not doing their duties. Particularly in India the RTI has been seen as part of the anti-corruption. People can check any misappropriation and ask information about project and plans.

Information can be sought on the following

  • Demand for the information related to the progress made on any complaint filed by a citizen.
  • Demand for inspection of any social development work which is in progress or completed.
  • Demand for inspecting a government document, register, and records.
  • Demand for a sample of material used for construction, drains, and buildings.

Corruption and Human right violation

As per section 24 of the RTI Act, information pertaining to allegations of corruption and the human right violation is not exempt from disclosure and the information should specifically in relation to ongoing departmental victimization, which is a clear case of human rights violation and corruption. [11]

Case: Dr. Amitabh Kumar vs. Indo-Tibetan border police force, January 7, 2010

In the above case, it was held that it is the responsibility of any public authority to any correspondence let alone an RTI application even if the information is refused, providing information of such refusal. Officials will be liable to the penalty in accordance with section 20 (1) for obstructing any manner furnishing an information sought under the RTI Act. [12]

RTI is an instrument for stronger and vibrant democratic process in India

  • RTI help people in making an informed choice.
  • People have access to the decision-making process. For example: why a ration card is being unduly delayed
  • Governance has to be an official conscious of the fact they are liable for omissions during their tenure.
  • RTI is playing a critical role in systematic correction rather than limiting it to individual cases.
  • RTI Act is a step towards ensuring a stronger and vibrant process in India. [13]

Important judicial pronouncement with reference to RTI

Judiciary has given the various aspects in order to understand the effectiveness of the fundamental right:

  • Bennett Coleman v. Union of India

In the above case right to know was realized as a fundamental right for the very first time and consequently, the Supreme Court ruled that the right to freedom of speech and expression guaranteed by article 19 (1) (a) which includes the right to information.

  • State of UP v. Raj Narain

In the above case, Supreme Court held that right to receive information from electronic media was included in the freedom of speech.

  • People’s Union for Civil Liberties v. Union of India

In the above case, it was stated that the right to information was further elevated to the status of a human right which is necessary to make government accountable and transparent.

[14]

Object of the Act

The main object of the right to information act is:

  • To make the fundamental right to information more effective.
  • Set up system and mechanism which may help people to easy access.
  • Transparency and accountability in governance.
  • In public office minimize inefficiency and corruption.
  • It promotes people to participate in governance and decision making.

Who can make the decision under RTI Act?

A minister is required to deal with an application unless they have conferred decision making authority by direction.

Decision making is a part of dealing with an application with a range of matter related to an application which includes:

  • Process, resource, system, and structure to be appropriate to deal with an amendment application and access.
  • Reasonably practicable steps should be considered to attain the view of relevant third party, they would concern about the decision to release information. [15]

Governance of RTI

Two major bodies governed RTI in India:

  1. Central Information Commission (CIC): Chief information commissioner with their own public information officers directly under the President of India.
  2. State Information Commissions (SIC): State public information officers directly under the State Governor.

Conclusion

Every citizen has right to know about the decision taken by their government. Right to information codifies the fundamental right of the citizen and no public authority can deny to provide information. It make public officials accountable and liable, nothing can be concealed from. RTI is useful in various ways and provide transparency in the system of the country.

References

[1] Right to Information Act, 2005

https://en.wikipedia.org/wiki/Right_to_Information_Act,_2005(Date of visit is 19/02/18 and the time of visit the site is 3:05 PM IST)

[2] Salient features of RTI

http://www.legaldesire.com/right-to-information-act-2005/(Date of visit is 19/02/18 and the time of visit the site is 4:00 PM IST)

[3] Good governance

https://www.legalindia.com/wp-content/uploads/2013/03/RTI.pdf(Date of visit is 19/02/18 and the time of visit the site is 5:15 PM IST)

[4] Prabhu Dutt v. Union of India

https://indiankanoon.org/doc/671310/(Date of visit is 19/02/18 and the time of visit the site is 6:00 PM IST)

[5] SP Gupta v. Union of India

https://indiankanoon.org/doc/1294854/(Date of visit is 20/02/18 and the time of visit the site is 10:05 AM IST)

[6] RTI for students

http://blog.onlinerti.com/2016/12/27/how-can-students-benefit-from-rti/(Date of visit is 20/02/18 and the time of visit the site is 12:05 PM IST)

[7] Gayatri Vishwakarma v. Union of India

https://indiankanoon.org/doc/85482914/(Date of visit is 20/02/18 and the time of visit the site is 3:00 PM IST)

[8] RTI for prisoners.

http://www.rtifoundationofindia.com/information-be-provided-free-under-trial-prisoner-3000#.Wo5Ls1pubIU(Date of visit is 20/02/18 and the time of visit the site is 6:05 PM IST)

[9] RTI to know how funds are being used by government.

https://www.moneylife.in/article/rti-judgement-series-a-body-substantially-funded-controlled-by-govt-is-a-public-authority/34621.html(Date of visit is 22/02/18 and the time of visit the site is 10:15 AM IST)

[10] RTI ensures more transparency and accountability.

http://dopt.gov.in/schemes/improving-transparency-and-accountability-government-through-effective-implementation-right(Date of visit is 22/02/18 and the time of visit the site is 12:05 PM IST)

[11] Corruption and arbitrary action can be challenged by RTI.

http://ijldai.thelawbrigade.com/wp-content/uploads/2018/01/Aparajita.pdf(Date of visit is 22/02/18 and the time of visit the site is 3:00 PM IST)

[12] Case: DR. Amitabh Kumar v. Indo-tibetan border police force.

https://indiankanoon.org/doc/181521976/(Date of visit is 22/02/18 and the time of visit the site is 4:15 PM IST)

[13] An instrument for stronger and vibrant democratic process.

https://indiankanoon.org/doc/181521976/(Date of visit is 22/02/18 and the time of visit the site is 4:45 PM IST)

[14] Judicial Pronouncement relating to RTI.

http://docs.manupatra.in/newsline/articles/Upload/AC9CD2C7-B8AD-4C5A-B910-3751BFE5CB28.pdf(Date of visit is 22/02/18 and the time of visit the site is 5:20 PM IST)

[15] Who can make the decision under RTI.

https://www.oic.qld.gov.au/guidelines/for-government/access-and-amendment/processing-applications/who-can-make-decisions-under-the-rti-act-and-the-ip-act(Date of visit is 22/02/18 and the time of visit the site is 6:15 PM IST)

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Do lawyers make bad managers?

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Manager
Image Source - https://www.rjob.in/daily-walkin-jobs/integration-manager-payments-amazon-com/

This article is written by Aditya Shrivastava, content marketing executive at iPleaders.

A few days after I joined a reputed MNC in India, I realized my reporting manager wasn’t remotely close to what I’d expected. I thought I could do a better job at it than him.

This wasn’t because he was too strict or demanding. In fact, he became fond of me in a couple of weeks. My expectations didn’t match reality because he just didn’t know how to handle the projects at hand, the employees reporting to him or issues arising out of the project.

After speaking to a couple of friends in various organizations, I realized that this problem isn’t specific to my office only. There is a dearth of managerial skills in lawyers working in companies across the country. To be absolutely fair to them, they cannot be blamed for it. At law school, while aiming to graduate with a degree in law, management is not a subject that gains any importance; it is an acquired skill. However, the magnitude of this incapability is far-reaching.

As per fortune.com, according to the National Association for Legal Professionals Foundation, in 2010, firms with 251 to 500 attorneys lost 19% of their associates, with the top reason for departure listed vaguely by firms as “work quality standards were not met.” Poor management is one of the key factors that most lawyers working in a company complain about. While the companies are hell-bent on providing world-class customer experience, there is little or no attention paid to issues employees are facing. The case worsens, especially when in a compliance or consultancy company, legal work is generally put at the backend.

In management advice books, David Maister provides some thought-provoking pieces on the management of the global services firms. I would like to quote what he has to say about lawyers turned managers, “The ways of thinking and behaving that help lawyers excel in their profession may be the very things that limit what they can achieve as firms. Management challenges occur not in spite of lawyers’ intelligence, but because of them.”

What he says stands true. Lawyers are a very self-oriented species. They only know how to manage their own work. Most of the lawyers listen to their clients only to the extent they are able to extract relevant information from them. The minute the information turns into a rant or a sad-tale, they are likely to turn a deaf ear. However, this is a problem the minute they step inside a company. Most companies do not function like law firms. The quest for autonomy combined with high level of skepticism can make a lawyer a disastrous manager.

A lawyer may be exceptionally brilliant at what he does but he might make a terrible manager. Here are some reasons why :

1#  Misuse Of The Newly Found Freedom

A company’s work environment is quite different from a litigation firm. In a typical litigation law firm, the day starts with attending court proceedings. After a whole day full of astriction, lawyers return to their desks and bury themselves in huge files, drafts, research, and clients. There is never a fixed time to return home. However, a company generally expects all their employees to enter the office by 9 and leave by 6, unless the workload says otherwise.

The leaves you are entitled to in a company are in the hands the HR Manager. But allowing those leaves is solely at your reporting managers discretion. While everyone in my previous office used to enter the office at 9 and leave by 6, irrespective of whether the work for that day has been done or not, our manager used to walk in around 02:00 pm, check his emails and leave. His major concern was client retention, which he assured by delegating all of his responsibility to the team. He worked from home on most days. The repercussions of such laid-back attitude were that the company lost one major project. In addition, as his focus was on client retention, the company has not been able to get hold of any new client.

A cultural shock from a tough-on-deadlines and strict work culture in a law firm to a relatively relaxed company (not all companies are relaxed) is likely to affect the work quality of a lawyer recruited by the company as a legal manager.

2# Professional Detachment And Dispassionate

Lawyers are professionals who are known to be low on socializing skills and team bonding. Ask any lawyer: Is a certain position you hold more important than relationships? Most of them would pick the former. Being low on social skills and intimacy is one of the biggest challenges a lawyer can face as a manager. A great business strategy backed by law revolves around being a team player. All the employees, whether big or small roles, need to be understood, appreciated, criticised if needed, involved and motivated. Lawyers are generally so focussed on the result that they turn a blind eye towards such crucial aspects. It doesn’t matter if they are dealing with the clients or the employees. If it comes to legally assisting a company’s business they can be pretty clinical in their approach. Their approach is based on checking on performances, scorecards, incentives and other metrics.

If you ever ask a junior lawyer if he was coached well while he was assisting a senior, he would often say, that he learnt by doing the work himself. Unlike doctors, lawyers are mostly self-trained and therefore believe in the same when they switch to the companies. Rather than coaching or mentoring, they provide solutions like shadowing, which is a corporate terminology for seeing your colleagues and learning by yourself. This leads to the freshers facing issues in adapting to the work, without any guidance and subsequently quitting.

3# Low-Trust Work Culture

Lawyers are extremely low on the trust factor. Termed as “professional skeptics,” a lawyer is trained to be suspicious. It is also because that helps them have an eye for detail and they don’t miss out on anything. Needless to say, after reading numerous case laws and subjects like criminology, it becomes difficult for lawyers to trust anyone easily. This is one major quality for a lawyer to possess because it may eventually lead to victory in a case.

However, this particular quality turns problematic when they cannot trust their own employees. Generally, in a low-trust environment, no one relies on anyone. This leads to a huge communication gap in a team, and it becomes more susceptible to fall out. Often large team building and maintaining uniform quality standards come out as a major challenge in such cases.

#4 Challenges To Collective Decision Making

The very essence of legal work culture is constant competition and contesting others. Most lawyers are trained to disprove another’s idea by coming up with a better idea. A lawyer is on a constant quest to fetch something better in terms of research, contentions or even a plan of action.

When such a group of individuals is put together in the same room, imagine the fallout that is bound to happen.

In a typical office meeting, we used to face endless theoretical explanations, countless rhetorical, pompous saber-rattling and were often in the middle of nowhere. The worst part about it was that our boss was equally involved in these debates, and did not act as a moderator. Coming up to conclusions in such a case becomes troublesome because the decision-making process becomes time-consuming and less effective.

If you have ever worked in a corporate set-up with an ineffective manager, you would probably agree with all that is written above. If your manager was good, you might differ. However, classic business strategies by stereotypical legal managers can only go to the extent of meeting targets. When it comes to employee satisfaction or retention, they suffer massively. This chaos requires a cultural revolution. It is at this point when a company should take steps to ensure that proper business administration techniques,  training material through online courses, and tools are provided to lawyers, who are being inducted into the company.

After all, a lawyer’s tactics should be a boon for the company.

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An overview of parliamentary motions

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socialist

In this article, Nawlendu Bhushan of Campus Law Centre discusses parliamentary motions.

Introduction

Any decision by the Parliament, be it on a legislative proposal or a policy, is taken after due consideration and voting. Also, the legislature expresses its opinion or seeks the attention of the government on matters of public importance. A group of orders is needed to facilitate discussion and decision-making involved in the Parliamentary processes. Robert’s Rules of Order is one of such orders. In India, parliamentary procedures are influenced by these rules. Both the houses of our Parliament have separate Rules for Procedures and Conduct of Business in the respective house. In the parlance of these Rules for Procedures, this article explains motions, its types and the features of the different type of motions.

What is a parliamentary motion?

The proper way for an individual to propose that the group take a certain action is by making a motion. [1] In the parliamentary parlance, a motion means any formal proposal made to the House by a member for the purpose of eliciting a decision of the House. It is phrased in such a way that if adopted it will purport to express the judgment or will of the House. Any matter of importance can be the subject matter of a motion. The mover of the motion frames it in a way in which he/she wishes it to be ultimately passed by the house and on which a vote of the House can conveniently be taken. [2]

Motions bring new business to the House. It consists ofnumerous other proposals to take procedural steps or carry out other actions relating to a pending proposal (such as postponing it to another time) or to the assembly itself (such as taking a recess).[3]

Kinds of motions in a standard parliamentary procedures

Main Motions have for their object the bringing of questions or propositions before the assembly for consideration. Only one main motion can be considered at a given time by the assembly.

Subsidiary Motions have for their object the modification or disposition of the main motion being considered. It is in order to propose them while the main motion is still before the assembly, and to vote upon them before voting upon the main motion.

Privileged Motions have not connection whatsoever with the main motion before the assembly, but are motions of such importance that they are entitled to immediate consideration. The main business before the house may be temporarily set aside to address a privileged motion.

Incidental Motions arise “incidentally” out of the business of the assembly, and have very common characteristics.

General rules for parliamentary motions

As per Rules of Procedure and Conduct of Business of the Houses:-

  • No discussion on a matter of general public importance can take place except on a motion made with the consent of the Speaker/Chairman as the case may be.
  • Notice of motion must be given in writing addressed to the Secretary-General.
  • There are certain parameters for the admissibility of the motion.
  • The Chairman/Speaker decides the admissibility of the motions as per the parameters.
  • Motions on matters pending before tribunals or commissions are not admitted.
  • The Chairman/Speaker allots time for discussion on the matter raised in the motion.
  • On the allotted day the Chairman/Speaker may put every question necessary to determine the decision of the House on the original question.
  • The Speaker/Chairman may prescribe a time limit for speeches on the motion.

Types of motions in Indian Parliament

There are various types of motions which are as under:-

  • Privilege Motion
  • Censure Motion
  • Call-Attention Motion
  • Adjournment Motion
  • No-Day-Yet-Named Motion
  • Cut Motions
  • No Confidence Motion
  • Confidence Motion

Privilege motion

The Constitution grants certain powers, privileges and immunities to the Parliament, its members and committees. Such powers and privileges are regulated as per laws made by the House. [4]

According to Erskine May,  “Parliamentary privilege is the sum of certain rights enjoyed by each House collectively… and by members of each House individually, without which they could not discharge their functions, and which exceed those possessed by other bodies or individuals.”Breach of privilege is punishable under the Law of the Parliament.

A privilege motion is introduced by the opposition against a minister in case the minister has misled the House by providing false information. Its purpose is to censure the concerned minister.

A privilege motion can be moved against a non-member as well as a member.

Censure motion

Censure motion is moved by the opposition against a specific policy of the government or against a minister or against the whole council of ministers. It can be moved only in the lower house of the parliament. The motion should be specific and self-explanatory so as to record the reasons of the censure precisely and briefly.

No leave of the House is required to move a censure motion. If it is passed, the Council of Minister is bound to seek the confidence of the Lok Sabha as early as possible.

Call attention motion   

A member may, with the previous permission of the Speaker, call the attention of a Minister to any matter of urgent public importance by moving a motion. The Minister may make a brief statement or ask for time to make a statement at a later hour or date. The number of call-attention motion is restricted to two motions by one member in a single sitting.

Adjournment motion

A motion for an adjournment of the business of the House for the purpose of discussing a definite matter of urgent public importance may be made with the consent of the Speaker. The Adjournment motion if admitted leads to setting aside the normal business of the House for discussing the matter mentioned in the motion.the motion shall be restricted to a specific matter of recent occurrence involving the responsibility of the Government of India.

No Day Yet Named motion

If the Speaker admits notice of a motion and no date is fixed for the discussion of such motion, it is called No-Day-Yet-Named motion. The Speaker may, after considering the state of business in the House and in consultation with the Leader of the House or on the recommendation of the Business Advisory Committee allot a day or days or part of a day for the discussion of any such motion.

Cut motions

Motions can be moved to reduce demand for grants. Such motions are called cut motions.  If a cut motion is adopted by Parliament and the government does not have the numbers, it is obliged to resign. There are three types of cut motions:-

Disapproval of Policy Cut is moved to reduce the amount of the demand to INR 1/-’ representing disapproval of the policy underlying the demand. A member giving notice of such a motion has to indicate in precise terms the particulars of the policy which the member proposes to discuss. The discussion shall be confined to the specific point or points mentioned in the notice and it shall be open to members to advocate an alternative

policy;

Economy Cut motion is moved to reduce the amount of the demand by a specified amount representing the economy that can be effected. Such specified amount may be either a lump sum reduction in the demand or omission or reduction of an item in the demand. The notice to move this motion indicates briefly and precisely the particular matter on which discussion is sought to be raised and speeches are confined to the discussion as to how economy can be effected;

Token Cut motion is moved to reduce the amount of the demand by INR 100/- in order to ventilate a specific grievance which is within the sphere of the responsibility of the Government of India. The discussion on this motion is confined to the particular grievance specified in the motion.

No Confidence motion

This motion is introduced in the Lok Sabha by the opposition. It is a motion expressing want of confidence in the Council of Ministers. No-confidence motions are subject to following restrictions, namely:—

(a) leave to make the motion shall be asked for by the member when called by the Speaker;

(b) the member asking for leave shall, that day give to the Secretary-General a written notice of the motion which such member proposes to move.

If the Speaker is of opinion that the motion is in order, he shall read the motion to the House and request those members who are in favour of leave being granted to rise in their places. At least fifty members are required to rise if the leave is to be granted. The motion has to be taken up within 10 days from the date on which leave is asked for. After the discussion, the Speaker puts every question necessary to determine the decision of the House on the motion. A Government can be dismissed by passing a direct vote on a no-confidence motion.

Confidence motion

It is also called “trust vote”. Confidence motions have evolved as a counter by the government when it wants to demonstrate its majority. There is no special provision in the rules for a confidence motion — such a motion is moved as an ordinary motion. In recent times, when no party has had a clear majority, the president has appointed a prime minister who he believed had the majority support. This person is expected to prove his majority through a confidence motion.[5]

If both, the motion for no-confidence and a motion for confidence are tabled, the speaker is to give precedence to government business and take the motion of confidence.

If the prime minister loses a motion of confidence, he is obliged to resign, and the president should try to identify another person who enjoys the confidence of the Lok Sabha. Preparing for competition examinations? You can visit the video here for learning all the motions in one go.

References

[1]http://octsa.ua.edu/uploads/1/6/6/9/16699238/basics-of-parliamentary-procedures.pdf

[2]http://www.netapedia.in/blog/?p=86

[3]http://www.gkplanet.in/2017/06/types-of-motions-in-indian-parliament-proceedings-pdf.html

[4]Art 105, 194

[5]http://www.prsindia.org/media/articles-by-prs-team/rules-of-confidence-685/

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What makes a great lawyer?

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Top Law Colleges in Indore
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In this article, Akanksha Singh of Meerut College discusses “How to become a great lawyer”.

Following are some skills, abilities, habits, attitude, which one possesses being a Lawyer or advocate – A Good Lawyer or Advocate – A Great Lawyer or Advocate.

Skills of a good lawyer

Good Communication Skills

Lawyer or advocates must possess excellent communication skills, both oral and written. To argue with more persuasiveness before the Hon’ble Judge(s) in a Court of Law, speaking with fluency efficiently and effectively is a skill that can be learned and developed during the time in pursuance of the graduation while indulging in extra-curricular activities like, Moot Court(s), Youth Parliament(s) and various competitions.

As if the activities built the communication skills of an individual in writing by researching on various topics and oral by presenting that conducted research before the Judge or even to the public at large.

Judgment

It is the skill to make, draw or reach the logical and logical conclusions from the limited information provided and received. Anticipate and spot the possible event(s) and happening(s), analyze the positive and negative areas of the case to prepare the same in such a manner that is beneficial and in the favour and taken into consideration the interest of the client. 

Analytical Skills

Being involved and as a part of the legal industry, a lawyer or Advocate must possess a distinctive attribute of analytical skills as if to crystallize the information received either, half or wrong. A lawyer or Advocate must be able to analyze the events by using the critical method of analyzing. 

Research Skills

Another most crucial skill needed to be a good lawyer or Advocate is the ability to research as quick as lightning, also, to be ready, the research and approach towards the same must be valid and efficient taken into consideration the legal strategies which satisfy and safeguards the interest of the clients.

Perseverance

Perseverance is the skill on the one side and attitude on the other. I want to confess perseverance is the nature and attitude which develops the capability to deal and perform the activities and task(s) assigned productively and constructively with the numerous and variety-full events which in further embodies distractions.

Creativity

Few of the eminent Jurist(s) and Attorneys not only be perseverant but logical and analytical also have the traits of creativity. In order to reach a possible best conclusion it is not always to take the paths of the precedents or the obviousness, one must be creative and possess the ability to think out of the box.

Logical Thinking Ability

It has to be logical enough to draw and make out the conclusions, following the approach of justifiableness and reasonableness.

Even though the other counsel is your opponent, but it should not be minded and must not be considered and regarded as the enemy of the client or the lawyer or advocate itself.

A fair amount of good relations must be formed with the opposite counsel, but that ties must not be affecting or disregard the interest of the client.

Public Speaking Skills

Well-spoken and be expressive being an essential skill that a great lawyer or Advocate possesses. A critical element(s) like public speaking and addressing a Court of Law, a lawyer or Advocate must be flawless and magnificent;

Public speaking is a skill which can be developed by acknowledging the fact that one correctly and genuinely want(s) to work upon his this skill.

Writing Skills

Excellent writing skills assists and aids in making the position of the client and case, the marriage and fusion of both speaking and writing skills are invincible. In order to become a great lawyer or Advocate, tremendous writing skills are needed which are useful and beneficial while preparing the case arguments, briefs and other legal documents.

Leadership Skills

No individual lacking leadership quality in itself can become a lawyer or Advocate. A lawyer or Advocate must be accompanied by managerial skills (manage the people one is working within a manner which is peaceful and responsive) and leadership skills, and thus leadership skills are necessary for a lawyer or advocate to be successful.

Listening Skills

To be a great lawyer or advocate one must have and possess the quality and skill to listen to each, and every individual tend(s) to speak before him, develop the ability to listen to others patiently and carefully.

In practical, this skill helps the lawyer or Advocate and their practice in every possible manner so as to cross-examine the witness, or to the finding of the opposite counsel and facilitate in an effective rebuttal.

Decision Making Skills

Based on the understanding of the event with full reasonableness and in a logistic manner, a lawyer or Advocate can make out and draw conclusions based upon the information provided to him and his past experience(s).

Decision-making skills are the ability to take decisions out of situations and events after analyzing them, and another person can judge the lawyer or advocate through his ability to make decisions that may in future events bring stability and upgrade the personality of his client and perform accordingly with the needs of the client taking into consideration its interest.

Enquiring Skills

A good lawyer or Advocate must have the capacity and ability to understand the topics in its deepest sense and essence form, in lightning speed to understand the numerous things simultaneously, the client, case, remedy, and justice he wishes to seek, or likewise.

Not only enquiring but, inquiring and analyzing the appropriate provisions are pointed out and implied in a particular case, so this is done, in a smoother way as if a lawyer or Advocate acquires the skill of enquiring. 

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Comprehension Skills

Understanding of minute details of the topics of Law is taken into consideration while doing study and practice of law, as to understand, organize the information gathered in a comprehensive manner.

So, as to develop this skill, one must indulge in the practice of client competition(s) and Moot Court (s) while studying in the Law College.

Firmness

Firmness, being a very important and crucial trait as if it tests the consistency and regularities in a good lawyer or advocate to pursue a case. It is the ability and skill demanded by this career from a lawyer or advocate to be consistent and stick loyally towards the client and his case in a Court of Law before the Hon’ble Judges.

Characteristics of a good lawyer

Client Care

Professionalism and courtesy, these two are the qualities and traits of those lawyers or advocates who know that their clients are to be treated with.

Client’s care must be taken as a primary concern by a lawyer or advocate and must be taken into consideration and acknowledged in a fact that client is the only person who is going to arrange for you and your family’s bread and butter and therefore, must be treated with utmost respect and sincerity.

Understanding the Client’s Business

Understanding and analyzing the business of the client, which helps its Attorney to act and perform in accordance with its business sector and industry, in a manner which suits the need of its client and benefit them.

As if a lawyer or Advocate is well versed with his client’s business, then only the favourable outcome is guaranteed out of its lawyer or Advocate’s conduct while acting and performing on behalf of its clients.

Business Development

The lawyer or Advocate who understands and acknowledges the client care and its business will definitely be good at Business Development; it will eventually increase his working pace by building new business relations and tie-ups.

Leadership

It is generally noticed that in a small practice, usually Leadership skills are needed neither, the management skills are needed at peak or god level.

Whereas on the other hand, large firm’s leadership skills play a very crucial and important role while determining the skill-set and thought process of the lawyer or Advocate so as to be a leader of a follower. 

Project Management

Lawyer or advocates engaged in the cross-border transaction(s) or case(s), project management skills are crucial, to do, perform and manage the project(s) indulged in. Coordination is a very primary and generic factor that helps in facilitating the management of a project between different nations indulging in the lawyer or advocates practising in a variety of field(s) and industries at different paces.

Responsiveness

The lawyer or Advocate must deal with all the situation(s) and event(s) with the utmost responsive manner. Timely research, planning, execution, present on the date of the hearing, all these activities performed by a lawyer or Advocate reflects the responsive behaviour.

This type of skill and quality is appreciated not only by the client(s) but the Hon’ble Judge(s) as well. This trait, skill, and quality also appreciates in value of a particular lawyer or advocate and increase its demand at the marketplace.

Emotional Balance

Apart from professionalism and ethics, a lawyer or Advocate must possess a balance of emotional trait, and this should be a part of his personality. So as to ensure the performance made by him in a Court of Law, he could be able to attach the variety of events in the case of his client so as to drive and explain the happenings of the event(s) to the Hon’ble judges.

It is very much important to have an emotional balance, which will help in the client’s case as a whole.

Organized

Although, it is said to be a lawyer or Advocate’s desk should be a messy one; but on the other side, it is demanded in the character of a lawyer or advocate to be and stay organized. He should always be well versed with the cases he indulged in, the case files, the main theme, and the subject matter of the case he pursued.

It is another attitude pursued by a lawyer or Advocate, to be and stay organized, keeping a routine check over all his belongings in a stipulated time, regularly.

Patience

It’s a saying; A Good Listener is a Good Speaker, that’s why, a lawyer or Advocate must be patient enough to listen to the client, the opposing counsel, the Hon’ble Judge(s), the members of the jury, and the people involved in a particular case. As this is a skill that a good lawyer or Advocate must be well versed with, and it should be a part of his personality.

Code of conduct for lawyers or advocates in India

Code of Professional Ethics in the Legal Industry is the sum of adopted key principles for the lawyer or advocates and their code of conduct. These principles are of obligatory nature and lawyers or advocates must act and perform in its accordance.

Some of the general provisions are discussed below:

Independence

Lawyer or Advocate, being an individual and independent personality, he should not be driven by third-party influence or even his personal interest harms his client’s interest and shall act in a manner that serves his client(s) need in the best possible manner or degrade his standing at the Bar.

Confidence

Confidence, need time to be built, it is one part of the client to have and moreover on his lawyer or advocate to build confidence, and this should only be done and visible if the lawyer or Advocate maintains the dignity, integrity, and honour of this Noble profession.

Personal Advertising

Law, is a noble profession and thou shalt never solicit; this is the learning my mentor gave me. It is the profession of utmost respect, treating every man equal and providing services to the underprivileged and indigenous people, which is our duty as a lawyer or advocate towards the society and it is a matter of honour and great pleasure. 

And some other code of conduct or the specified duties that a lawyer or Advocate must not forget, and must act, perform in accordance and in compliance with the general principles of professional and work ethics of the Bar:

A. Duties towards the Court

  1. A lawyer or Advocate should be straight forward, and his arguments should be pointed clear and precise.
  2. A lawyer or Advocate should have a sense of honour and pleasing manners in his arguments.
  3. A lawyer or Advocate must be tactful in presenting the matter.
  4. A lawyer or Advocate should not mislead the Court.
  5. A lawyer or Advocate should not influence the decision of the Court by any illegal or improper means.
  6. A lawyer or Advocate shall appear in the Court at all times only in the prescribed dress. He shall not wear a band or the gown in the public place(s) other than a Court.
  7. A lawyer or Advocate shall consider when presenting the case and while otherwise acting before a Court, conduct himself with dignity and self-respect.
  8. A lawyer or Advocate shall not enter an appearance, plead or practice in any way before a Court, Tribunal or Authority on behalf of kith and kin.
  9. A lawyer or Advocate should not criticize the judiciary with malice.
  10. A lawyer or Advocate should not act or plead in any matter in which he has some pecuniary interest. 

B. Duties towards the Client

  1. A lawyer or Advocate shall fearlessly uphold the interest of his client by all fair and honourable means without regard to unpleasant consequences to himself or any other.
  2. A lawyer or Advocate shall fairly and reasonably submit the case on behalf of his client.
  3. A lawyer or Advocate shall pay attention which he is capable of giving to the case he is dealing with.
  4. A lawyer or Advocate shall not act on the instructions of any person other than his client or his authorized agent.
  5. A lawyer or Advocate shall not ordinarily withdraw from engagements ones accepted, without sufficient cause and unless reasonable and sufficient notice given to a client.
  6. A lawyer or Advocate shall not do anything whereby abuses or takes advantage of the confidence reposed in him by his client.
  7. A lawyer or Advocate shall not accept a fee less than the fee taxable under the rules when the client is able to pay the same.
  8. A lawyer shall not adjust the fee payable to him by his client against his own personal liberty to the client where liability does not arise in the course of his employment as an Advocate.
  9. A lawyer or Advocate shall keep the accounts of its client’s money entrusted to him.
  10. A lawyer or Advocate shall not disclose communications made to them in the course of their professional engagement(s) even after the case is over.

C. Duties towards Opponent

  1. A lawyer or Advocate shall not communicate or negotiate upon the subject matter of controversy with any party represented by an Advocate except through that Advocate.
  2. A lawyer or Advocate shall not mislead an opponent, or put him on the wrong way regarding any point in the case.
  3. A lawyer or Advocate shall do his best to carry out all legitimate promises made to the opposite party even though not reduced to writing.

D. Duties towards the Society

  1. A lawyer or Advocate shall establish Legal Aid Societies for the purpose of rendering legal assistance to poor, underprivileged and indigenous person(s).
  2. A lawyer or Advocate shall help the people, local bodies such as Panchayat in villages to function on sound lines, so that the people may discharge their functions in an enlightened and responsible manner.
  3. A lawyer or Advocate shall provide legal education to the illiterate and working people by informing them for the rights and legal provisions in simple language.
  4. A lawyer or Advocate shall work with social welfare committees to promote social order in which Political, Economic and Social Justice will be assured to all.

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Prasar Bharati (Broadcasting Corporation of India) Act, 1990 – An overview

1
Prasar Bharati
Image Source http://news.statetimes.in/a-surya-prakash-re-appointed-prasar-bharati-chief/

In this Article Sudarshna Thapa of Law College Dehradun, Uttaranchal University gives an overview of the Prasar Bharati Act.

Introduction

Media is a mediator of information between the citizens and the State. It is the fourth-pillar of our democracy which has a responsibility in shaping the public opinion. A vibrant and a free media is to be necessary for a healthy democracy. As media has the nature of questioning and criticism, so it has a vital role in the whole countries. This means that, for any country which has aspired to democratic norms of governance, should have a free and fair press.

A step towards liberalizing Media

Prasar Bharati is India’s largest public broadcasting agency. It consists of Doordarshan television network and All India Radio. Earlier, both were media units of the Ministry Of Information and Technology. During the emergency time as well as other times, Doordarshan was used for government propaganda. Thus, the Prasar Bharati Act, 1990 was established. The main motive of the Act is to provide freedom to electronic media i.e. the All India Radio and Doordarshan.

History of Prasar Bharati Act, 1990

After 50 years of Independence, in the year 1997 was a year in which measures to free the broadcast media from the control of Government has taken. It was the first time where revolutionary changes are bringing in the field.

  • During the Emergency period, Indira Gandhi buried the Chanda Committee Report[1]. She openly questioned the need for credibility for the Government media. She widely misused the AIR for political propaganda.
  • In 1977, initial steps were taken by Janata Government and to suggest a remedy for this, B.G. Varghese Committee was appointed. In 1978, a report was submitted by this committee where it was recommended that there should be an independent National Broadcasting Trust (Akash Bharati) responsible for both Akashvani and Doordarshan.
  • In 1979, a bill was introduced by L.K. Advani in the Parliament. He was Information and Broadcasting Minister at that time. This bill proposed the “Autonomous Corporation” for both AIR and Doordarshan which was known as Prasar Bharati. The bill lapsed and Congress Government did not re-introduce the bill of its previous government.
  • In 1982, P.C. Joshi Committee was appointed whose main aim was to prepare a software plan for Doordarshan. According to this committee, Ministry of Information and Broadcasting should be recognized. They also said that Railway Board should be created in which only professional experienced person should get the entry.
  • In 1989, Prasar Bharati Bill was introduced by the National Front Government. Bill borrowed some contents from the previous bill and also added some new changes. V.P. Singh Government moved this bill and was passed in Lok Sabha in August 1990.
  • In 1992, Vardan Committee was set up by P.V. Narasimha Rao. The committee was under K.A. Vardan, the additional secretary of Information and Broadcasting Ministry. According to this committee, the second channel of Doordarshan should be leased out in 4 metros and some FM stations should also be leased out.
  • The new policies of Narasimha Rao Government are to allowed private and foreign broadcasters to engage in limited operations in India.
  • Later K.P. Singh Deo, Information and Broadcasting Minister said that the invasion of the foreign media would be responded with an indigenous programming strategy. He made repeated statements that Government was serious about implementing the Prasar Bharati Act, but not want to grant autonomy to Akashvani and Doordarshan.
  • Finally, Prasar Bharati came into force in 1997 which is established under the “Prasar Bharati Act” and came into existence on 23rd November 1997.

Doordarshan and All India Radio

Doordarshan was founded in 1959. Its motto is “Satyam Shivam Sundaram”. In 1960, the terrestrial broadcast was started in Delhi and it was extended to metropolitan cities. Doordarshan was started as a part of All India Radio until it was separated from it in 1976.

All India Radio is the largest radio network in the world. It is a National Public Radio Broadcaster in India which was launched on 1st March 1930. It is officially known as Akashvani with its motto “Bahujana Hitaya Bahujana Sukhaya”.

Both played the role of National and Public Service Broadcaster and served as the voice of the Government and the people. For true Public Service and National Broadcaster, it was decided by the Hon’ble President to convert it into Prasar Bharati.

Grievance Redressal Mechanism

AIR (Prasar Bharati) works at three levels:

  1. Concerned Station Level
  2. Zonal Headquarter Level
  3. Central Headquarter Level

The citizens can approach any concerned officer at any of the three level from the following:

  • Information Facilitation Counter (IFC): It may be approached for getting the information and necessary help as per the matter. The grievance redressal system is approached to Director of Public Grievance at central level or Grievance officer at local station/office level.
  • Major/Policy/ Planning issues: These are at central level and anyone can contact or send grievance or complaint to the Director General, Akashvani Bhavan, Parliament Street.[2]
  • Contact for particular grievance matters:

Any specific grievance matter of the central level can be redressed by approaching any of the following officers at the O/o DG: AIR, Akashvani Bhavan, New Delhi.

For an particular grievance matter one may contact below:

  1. Programme: Addl. Director General (Programme Planning and Development),

Directorate General, All India Radio, Room No.106, Akashvani Bhavan, Parliament Street, New Delhi-110 001. Tele : 011-23421391,Fax : 011-23421632, Email: [email protected]

  1. Engineering: Addl. Director General Engineering (Development), Directorate General:All India Radio, Room No.107, Akashvani Bhavan, Parliament Street, New Delhi-110001. Tele : 011-23421464, Fax : 011-23421967, E-mail: [email protected]
  2. News: Addl. Director General (News), News Services Division, Room No.211, NBH, All India Radio, Parliament Street, New Delhi-110001. TeleFAX : 011-23421209, Email: [email protected]
  3. Administration: Dy. Director General (Admin.), Room No. 146, 1st Floor, Akashvani Bhavan, Parliament Street, New Delhi-110001. Tele : 011-23421110, Fax : 011-23421110.
  4. Civil Construction Wing (Civil and Electrical Works): Addl. Director General Engineering / Chief Engineer (Civil), Civil Construction Wing, Soochna Bhawan, Lodhi Road, New Delhi-110003. Tele :011-24367360, Fax : 011-24367360,E-mail:[email protected]

Time Frame

  • Issue of interim reply to the petitioner: 1-2 week
  • Issuance of formal reply to the petitioner: 4-8 weeks
  • Forwarding of petition to the concerned authority: 2 weeks
  • Referred cases will be disposed finally by the concerned Ministry/ Department/ State and time limit for informing the position of the outcome: 3 months
  • ‘Sexual Harassment of Women at workplace’ cases will be referred to the Complaint Committee: 3 months
  • Grievance Redressal: within 3 months, and other issues: As per usual time frame.

Prasar Bharati (Broadcasting Corporation of India) Act, 1990

This Act extends to the whole of India. The Act provides for the establishment of a Broadcasting Corporation. The Act defines composition, powers and functions of the corporation. It grants autonomy to the All India Radio and Doordarshan which were previously under the control of the government. Section 3 of the Act deals with the establishment and composition of the corporation. The corporation is a body corporate having perpetual succession and a common seal with the headquarters in New Delhi.

Structure of the Prasar Bharati Board

The Act specifies General Superintendence, direction and management of affairs of the corporation. Prasar Bharati Board does all such acts and exercises all those powers which may be done by the corporation.

The Board shall consist:

  • Chairman
  • One Executive member
  • One member (Finance)
  • One member (Personnel)
  • Six Part-time members
  • Director-General (Akashvani), ex officio
  • Director-General (Doordarshan), ex officio
  • One representative of the Union Ministry of Information and Broadcasting (India), to be nominated by that ministry and
  • Two representatives of the employees of the corporation

The President of India appoints Chairman and other member except for ex-officio members, a nominated member and the elected members. There shall be not less than six meetings every year but three months shall not intervene between one meeting and the next meeting.

Functions and Objectives of Corporation

The main motive of the corporation is to educate, inform and entertain the public. By conducting and organizing public broadcasting services to people, it has become easy to provide the information to the people in an easy manner. It also ensures the balanced development of broadcasting on radio and television.

The following objects are namely:

  • To provide the autonomy to Akashvani and Doordarshan, so that to ensure the function in a fair, objective and creative manner.
  • To uphold the unity and integrity of the country.
  • To maintain the democratic and social values which are enshrined in the constitution.
  • To look after the safeguarding of the citizen’s right to be informed freely, truthfully and objectively.
  • To spread literacy, agriculture, rural development, health, family welfare, environment, science and technology.
  • To encourage healthy competition and spirit of sportsmanship by providing adequate coverage to sports and games.
  • To promote cultures and languages of the various regions by broadcasting many programmes.
  • To provide special needs of the youth always organize special programmes.
  • To remove the problems of women, pay special attention to the upliftment of the women.
  • To take special steps for the protection of the children, the aged, the blind, the handicapped and other vulnerable section.
  • To protect the rights of working classes and advancing their welfare.
  • To provide the suitable programmes for the needs of the minorities and tribal communities.
  • To promote national integration that will maintain the community language of the nation.
  • To promote research and development activities of radio broadcast and television broadcast technology.

Parliamentary Committee

According to section 13, it shall consist of twenty-two members of Parliament, out of which fifteen from the House of the People shall be elected by the members and seven from the Council of States shall be elected by the members. The committee shall function according to the rules made by the speaker of the House of the People.

Powers of Central Government

According to the Act, the government has the following powers are:

  • From time to time when the government may think fit may issue the directions to the corporation for the unity, sovereignty and integrity of India.
  • The Central Government require the corporation to furnish the information which government may consider.
  • At the time of any difficulty arises, the central government may by order publish in the official gazette and make the procedure to remove the difficulties.
  • The Central Government has also the power to make the rules. The rules may be considered in relation to:
  • The salaries and allowances and condition of service in respect of leave and pension.
  • Allowances payable to the chairman and part-time members.
  • Control, restrictions and conditions for which corporation may appoint officers and other employees.
  • Conditions and restrictions which a Recruitment Board may establish.
  • Qualifications, other conditions and period of the office of the members of the Recruitment Board.
  • Terms and condition of the service of the officers.
  • Form and manner in which the annual statement of record shall be prepared.

Significance of Prasar Bharati

There are two significance of Prasar Bharati:

  • India’s Public Service Broadcaster
  • National Broadcaster

Public and Private Service Broadcaster

Private Broadcasters cannot fulfill the objectives of Public Service Broadcasting. The main motive of Private Broadcaster is to sell products of their advertisers. They depend upon the revenue from their advertisers. Commercial broadcasting will not meet the needs of public service broadcasting because commercial broadcasting assumes the audience as consumers and not as citizens.

National Broadcaster

National Broadcaster Prasar Bharati is the largest technical coverage. The Prasar Bharati services are available in all the corner of the country. In remote and border areas it reaches 99.3% and 91.42% in geographical areas. A strong National Broadcaster is a symbol of national pride for the entire nation. A National Broadcaster is the one which has a great strategic significance in emergency situations like natural calamities, war etc.

Freedom of expression is guaranteed as a fundamental right of the citizen in our constitution. And we all know that Prasar Bharati is a means of expression and a most important part of our democratic set-up. All media’s are enjoying full freedom of expressions like Print media and electronic media too. As it is well known that, Print media and electronic media are owned by big corporate sectors and now these companies are enjoying the freedom of expression. So we can’t imagine that public broadcaster suffers from every kind of restrictions that put it under the effective control of the government.

To control the growth of Prasar Bharati was in the interest of the private sector since Prasar Bharati came into being on 15th September 1997 with the formal Prasar Bharati Act notification and it commands an unstoppable reach.However, it has not been able to function as the medium of the people. It has practically no freedom except to sing the praise of the government of the day. It is not surprising that it has not risen in public esteem.

Autonomy for Prasar Bharati: Sam Pitroda Committee recommendations

Sam Pitroda Committee has taken minimal action to strengthen the Prasar Bharati in February 2014. Certain recommendations have been made by Sam Pitroda Committee for the autonomy of Prasar Bharati:

  • Effective Freedom

To give the effective freedom to the Prasar Bharati, amend the Prasar Bharati Act, 1990.

  • Manpower

In order to frame rules and regulations and to hire manpower without the approval of the Government, Prasar Bharati should be given the power.

  • Genuine Public Broadcaster

Prasar Bharati should become a “Genuine Public Broadcaster” as against a “Government Broadcaster”.

  • Direct -To-Home(DTH)

To make the Direct-To-Home (DTH) signals in a primary mode.

  • Allocation of Funds

To increase the allocation of funds in order to content generation to 50% of the total expenditure within a period of 5-7 years.

  • Technology Front

To meet the obligations of the public service broadcasting, satellite and digital cables TV operations should be expanded.

  • Social Media

To define the social media strategy of Prasar Bahrain.

  • Review of Channels

To review all the channels, Doordarshan and All India Radio and their sub-optimal utilization of the resources should be phased out.

  • Prasar Bahrain Connect (PBC)

To set up PBC as the third arm of the public service broadcaster, Doordarshan and All India Radio.

  • To create best broadcasting service

It should be best broadcasting service in the world using next-generation opportunities, strategies, technologies and etc.

Manpower Audit after the recommendation

After the recommendation of Sam Pitroda Committee, Prasar Bharati has prepared a tender to start the manpower audit of the organization in January 2018. The Broadcaster has allowed an RFP (Request for Proposal) by Broadcast Engineering Consultants India Ltd (BECIL). To carry out the audit, a private agency would be finalized soon.

Multiple Manpower Challenges: There are two multiple manpower problems which Prasar Bharati has been facing:

  1. Several employees have not seen promotions in a long time.
  2. The last recruitment program took place in 1996.

World’s largest Public Broadcaster

According to the report of Sam Pitroda Committee, 2014, Prasar Bharati had 33,800 employees and a sanctioned strength of 48,022. On the other hand, BBC had 16,858 staff and public broadcasters of Japan and China had 10,000 each.

Number of channels in Doordarshan

Doordarshan operates 23 television channels and Direct-To-Home (DTH) platform DD Free Dish.

Number of radio stations in All India Radio

AIR operates 420 total radio stations which include FM Channels, local radio stations, Vividh Bharati Stations and five community radio stations.

Prasar Bharati signs MOU to set up cooperation in the Broadcasting Sector

Recently in 2017, Prasar Bharati signed MOU with Morocco’s Societe Nationale de Radiodiffusion et de Television for the cooperation of broadcasting sector. The MOU was signed during the fifth India Morocco Joint Commission Meeting (JCM) in Rabat, Morocco’s capital. The MOU was signed by Kheya Bhattacharya,Ambassador of India, on behalf of Prasar Bharati and Faycal Laraichi, Chief Executive Officer of SNRT.

Case Laws

  • Union of India v. Board of Control for Cricket in India and Ors. [3]

The Supreme Court held that Prasar Bharati cannot engage in free transmission of the signals of live sporting or cricketing events, received from content right holders/owners, to cable operators.

  • Union of India v. Cricket Association of Bengal [4]

Supreme Court held that broadcasting should be under the control of public and should be operated by the public statutory corporation.This implicit in Article 19(1)(a) where the corporations, whose constitution and composition must be in such order to ensure their impartiality in political, economic and social matters and other public issues.

The right of free and expression includes the right to receive the information. It is necessary that citizens have the benefit of the plurality of views and must have opinions on the all public issues. There must be a diversity of opinions, views, ideas and ideology among the citizens. Private Broadcasting is more prejudicial to the right of free speech of the citizens than the government controlled media.

  • BCCI-Nimbus Prasar Bharati Case [5]

According to the Court, the objects and purpose of the Sports Act are to provide access to the largest number of the viewer through sports broadcasting channels with Prasar Bharati. Court also said that it should be essentially directed towards those citizens who do not have access to cable television and only access to terrestrial and DTH networks of Prasar Bharati. Court also pointed out the virtue of Section 12(3)(c) of the Prasar Bharati Act.

Today’s Broadcasting Scenario

Today, collaboration with western channels has become an accepted practice in India. India is a country where there are number of cultures, religions and languages. The National Broadcaster has a vital role in the national security, integrity and unity. It can’t be expected from Private Commercial Broadcaster for the national integration. In February 2007 when the coverage given by the private broadcasters to the 36th national games held at Guwahati, Assam shows their real attitude. Because of this, it provoked the I&B Minister to ask in a television interview, “Why you not shown National games, Are you not Indian citizens, only Prasar Bharati Shown it”.

In a democratic country like India, the basic objective of National or Public Service Broadcaster is to strengthen the democratic process by providing information, promoting debate and discussions on all the main issues.

List of relevant websites

Prasar Bharati:http://prasarbharati.gov.in

All India Radio-Organization:www.allindiaradio.org

All India Radio-News Services Division:http://www.newsonair.com and, www.newonair.nic.in

Doordarshan: http://www.ddindia.gov.in

Ministry of Information and Broadcasting: http://mib.nic.in

References

[1] A.K. Chanda Committee was formed under the Broadcasting and Information media to evaluate work of different media under the ministry of Information and Broadcasting.

[2]New Delhi- 110001 (Telephone: 011-23421300, FAX: 011-23421956, e-mail: [email protected]), or, Chief Vigilance Officer(CVO), Prasar Bharati, Prasar Bharati Secretariat, PTI Building, Parliament Street, New Delhi-110 001

[3]http://supremecourtofindia.nic.in/supremecourt/2015/4418/4418_2015_Judgement_22-Aug-2017.pdf

[4] AIR 1995 1236, 1995 SCC (2) 161 https://indiankanoon.org/doc/539407/

[5] Check the judgment here

http://www.livelaw.in/delhi-high-court-rules-favour-bcci-nimbus-prasar-bharati-case/

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