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Legality of breach of duty with case laws and examples

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This article is written by Kratvi Kawdia. This article provides a detailed analysis of breach of duty, including its ingredients, liability, burden of proof, and case laws.

It has been published by Rachit Garg.

Introduction            

Negligence and breach of duty are linked, as the former results from the latter. If there is a breach of duty, then it amounts to negligence. When a defendant breaches a legal duty, causing inconvenience to the plaintiff, the act is considered negligent. Suppose a plaintiff has to make a case for negligence against the defendant. In that case, the plaintiff has to show that the defendant owed a duty to the plaintiff, which he violated, and because of such a violation, the plaintiff had to suffer. The violation is recognised as a breach of duty, which is an essential component in proving the existence of negligence. To resolve the existence of negligence, the first question before the court is to decide whether the defendant owed any duty or responsibility toward the plaintiff. If the answer is affirmative, then the burden shifts to the plaintiff to prove that; a) the defendant omitted to commit the responsibility and; b) the plaintiff suffered because of the omission on the defendant’s part. 

A breach of duty is not restricted to professionals or persons who are bound by written or oral contracts. Everyone in society must exercise reasonable care towards others and their property. It is the duty of the person engaged in dangerous activity or activity that poses an unreasonable risk to other people. The test to identify a breach of duty is subjective and objective. The fact that the defendant’s actions were intentional or not is subjective, and the fact that the actions were done reasonably or not is objective. 

The article covers the meaning of breach of duty, the ingredients of proving the breach of duty, along with the burden of proof. Further, the article extends to the provisions, case laws, and liability of the breach of duty too, 

What is breach of duty

Breach of duty has not been defined anywhere. However, it means that due care was not observed in the given situation. It occurs when the duty of care is expected but not followed. Breach of duty is considered an important ingredient in proving cases of negligence. A breach is said to have occurred when the conduct of a person does not meet the level of a standard of care. A reasonable person is used as the legal standard to weigh and measure the level of duty and care that was required in the given situation. 

Examples:

  1. When a car crashed in an accident because the driver was texting & driving/ drinking & driving.
  2. When the owner rents out the property without informing the tenant about the loose wiring, broken stairs and damaged ceiling.
  3. When the hotel manager provides a room with bed bug issues.
  4. When a restaurant fails to put a warning board where the floor is slippery.
  5. When a doctor conducts treatment in non-accordance with the symptoms of the patient.

The Hon’ble Court defines the breach of duty through the case of Blyth v. Birmingham Waterworks Co. (1856). The Hon’ble Court of Birmingham observed that when an existing duty owed by one person is not committed towards the required person, then it amounts to a breach of duty. In simple words, when the person who is accountable to act in a certain manner and fulfil the obligations does not behave responsibly, the duty is breached. 

Essentials of breach of duty       

There is no set of particular essentials for a breach of duty. What amounts to reasonably in the eyes of a prudent person is considered the duty of that other person. Breach of duty takes place when the standard of care is not met. The standard may also vary from one situation to another and from one person to another. 

The question of deciding the standard of care is usually left to the court. A court then decided the standard of care as per the apprehension of a prudent and reasonable man. To verify, courts should check that, if given the same situation, what would be the reaction of a prudent person? A judge considers that the objective of checking the ‘standard of care’ is to analyse what a reasonable man would have done in a similar situation. After figuring out the standard of care, the judge may observe the case accordingly.

However, after analysing several case studies and case laws, the following may be considered the essentials of a breach of duty:

  1. Reasonable 

It is not that the greatest possible care and responsibility is expected from the defendant. Even the law considers what a reasonable man could have done in the given situation.

  1. Risk 

Further, if the duty is to be committed against the public, then the law assumes that the defendant should have taken the risk but has completed the duty. However, the risk also shouldn’t be unreasonable, and there should be a balance between the need for the risk and the reasonability of the risk.

Example: The ambulance must drive as fast as possible and provide the best medical treatment to the patient. However, the ambulance driver cannot hit a car while performing his duty. Driving speedily is a risk, but driving speedily while not harming anyone is a balance. A court strives to find such balance in breach of duty cases. 

  1. Service offered & consideration 

Sometimes, the court decides the responsibility of the defendant by measuring what services were offered by the defendant and how much sum was paid by the plaintiff to the defendant for such services. 

  1. The magnitude of the risk 

The amount of care that is expected in one situation may differ in another. The risk involved and the care expected are based on facts and circumstances. There is no straight jacket formula to calculate the duty of a person, but it is usually calculated as being directly proportional to the risk involved. 

Example: Some people are engaged in dangerous tasks and operations. Therefore, they require extra precautions for themselves, but the same is not necessary for a person who is doing a corporate job. 

Provisions related to breach of duty

Breach of duty has not been defined directly in Indian legislation. The Indian Contract Act of 1872 discusses breach of contract and its compensation but not breach of duty. However, in dire emergencies, the courts, in deciding cases of breach of duty, refer to Sections 73 and 74 of the Indian Contract Act of 1872.

  1. Section 73 : compensation for loss or damage caused by a breach of contract

When a party breaches a contract, then the other party suffering from the breach is entitled to receive compensation for any loss or damage caused to him. Such a breach should not have occurred under contract. A breach of contract is also looked upon as a breach of duty by one person towards another. Therefore, when a person breaches a reasonable duty towards the concerned person, he/ she shall be entitled to be held liable under Section 73 of the Act.

  1. Section 74 : compensation for breach of contract where penalty stipulated for

When a contract has been breached, and the liability for such breach is already mentioned in the contract then the plaintiff need not prove the existence of actual damage or loss. The section is an unusual exception to the general ingredients of breach of duty. When the plaintiff suffers any loss from the breach of duty of the respondent, then the plaintiff will be awarded the compensation as per the contract without having the burden to prove the existence of loss. 

Discharge by breach

Section 37 lays down the general principle that parties to a contract must perform or offer to perform their respective promises unless such performance is dispensed with or excused under the provisions of law. Therefore, when a party fails to perform a contract that is not excused or dispensed with, it is called a breach of contract.

A breach may be classified as:

  1. Anticipatory breach
  2. Actual breach

Anticipatory breach

It occurs prior to the date of performance, when the promisor repudiates the contract. The term anticipatory breach is not used in Indian law; it is a concept of English law. Section 39 talks about anticipatory breach of contract. It provides that when a party to a contract has refused to perform or disabled himself from performing his promise, the other party may put an end to the contract unless he has signified his acquiescence in its continuance.

In the event of an anticipatory breach, the other party has two options available:

  1. Rescind the contract immediately
  2. Wait for the appointed day of performance

Consequences if contract is rescinded immediately

  1. It gives you the right to sue immediately without waiting for the date of performance. 

In Hochester v. De La Tour, court held that if the contract is rescinded immediately, the aggrieved party can bring an action prior to the actual date of performance. 

  1. The damage will be calculated at the market rate on the day on which the party rescinds. It will not be calculated at the rate prevalent on the date of performance.
  2. In the event that the injured party opts to rescind the contract immediately, the party need not perform the remaining part of contract. The injured party is liable for compensation under Section 73 for breach of contract and additionally under Section 75 for non-fulfillment of contract.

Consequences if contract is kept alive:

  1. Both parties are bound to perform. In the event that one party performs, the other party is bound to accept the performance.
  2. The promisee cannot sue for damages for breach of contract.
  3. The promisee waits at his own risk since the contract would be alive and all the defences that are available to the promisor can be used in court.
  4. If at the date of performance, the contract is not performed, the damages will be calculated at the market rate prevalent on the date of performance.

Liability on breach of duty          

The burden is on the plaintiff to prove the breach of duty. Firstly, the plaintiff must prove that it was the duty of the defendant to act in a certain manner and to fulfil his obligations. Secondly, the plaintiff has to prove that the defendant has not fulfilled his obligation towards the plaintiff. The violation on the part of the defendant is because he neglected to exercise reasonable care and apprehension towards the plaintiff.

Rebuttals of defendant

  1. There is a possibility that the defendant can avoid the onus of breach of duty. The defendant can be saved if he can prove that he was not negligent on his part. The maxim ‘Res Ipsa Loquitur’ can disprove the negligence of the defendant. In an event conducted under the surveillance of the defendant and his servant, where the defendant has to look over everything and if something does not go as planned. If things don’t go as planned, even though the defendant was performing his part perfectly, then this maxim will apply and the burden will be shifted to the defendant from the plaintiff. 

Usually, it is the plaintiff who has to prove certain things, but with the application of this maxim, the defendant will have to prove that while performing his duty he did not act negligently.

  1. Further, the defendant can also escape by stating that certain things were not under his control. Whatever seemed negligent was beyond the control of the defendant. 
  2. The liability of the defendant does not exist when the unfortunate event is highly unforeseeable. In the case of Ryan v. Young (1974), the defendant was not held liable when because of his servant, the plaintiff was injured. Here, while the servant of the defendant was driving a lorry, he collapsed and died. This caused an unfortunate and unforeseen event because of which the lorry hit another one in which the plaintiff was travelling. Due to this accident, the plaintiff was injured. However, the Court did not hold the defendant responsible as it was an act of god that was unpredictable in lay man’s eye. 

Case laws    

  1. Hadley v. Baxendale

In this case, the plaintiff carried on a mill business. The mill was stopped due to the breakage of the crankshaft. The defendants delayed delivering the shaft on time, due to which the plaintiff suffered a loss. 

It was held by the court that whenever two parties enter into a contract and one of them breaks the contract, the damages that the other parties incur in respect of such  breach should arise in the usual course of things. It was further held by the court that if special damages are required, then in that case the fact of the special loss must be brought to the court’s knowledge and that of the other party.

  1. Dunlop Pneumatic Tyre Co. v. New Garage and Motor Company Ltd.

  In this case, it was held that the court will have to check if the payment stipulated is a penalty or liquidated damages. The mere party’s contention regarding the payment is not conclusive. If the sum stipulated is in the nature of liquidated damages, then the whole sum is recoverable, but if it is in the nature of a penalty, the court will grant reasonable compensation calculated according to the provisions of the law.

  1. Maharashtra State Electricity Distribution Company Limited v. Datar Switchgear Limited & Ors (2018)

In this case, the Hon’ble Supreme Court stated the ingredients of a breach of duty. It was held that a breach of duty will take place when the duty to take reasonable steps to mitigate the loss is not fulfilled and is accompanied by the duty to refrain from resorting to unnecessary means that would aggravate the loss. 

  1. Municipal Corporation of Delhi v. Subhagwati (1996)      

In this case, a clock tower in the centre of Chandni Chowk, Delhi, collapsed and fell. Due to this collusion, several people died and were injured. The Hon’ble Supreme Court held that since the structure was 80 years old and the tower’s life was only 40- 45 years, it was the duty of the Municipal Corporation of Delhi to rectify and take charge of it. The Municipal Corporation of Delhi was held liable for the breach of duty on their part. 

  1. Municipal Corporation of Delhi v. Sushila Devi (1999)

In this case, the Hon’ble Supreme Court held that the Municipal Corporation of Delhi was liable when a branch of a tree fell, causing the death of a pedestrian walking on that road.  

  1. Ramesh Kumar Nayak v. Union of India (1994)

In the case, the Hon’ble Orissa Court held that it was the duty of the postal authorities to maintain the compound of the post office. Since the compound was not maintained, the plaintiff suffered from certain injuries. The Court observed that it was the duty of the postal authorities to look after the devastating condition of the plaintiff and to rectify it as soon as possible. The postal authorities were directed to pay compensation for the damage caused. 

Conclusion 

Breach of duty is an inevitable ingredient and component of negligence, which is a tort in civil law. Whenever there is a breach of duty, it directly amounts to negligence. The core principle of breach of duty revolves around the burden of the plaintiff to prove that the defendant owed a responsibility towards the plaintiff and that responsibility has been violated. The violation of responsibility is a breach of duty. The legality of breach of duty is equal to the legality of negligence under the torts in civil law. Further, it is expected from the plaintiff to address that because of the breach of duty part of the defendant, the plaintiff has incurred som+e losses or suffered some injuries. Although it is the plaintiff who has the burden to prove, the defendant has his share of defences along with the Res Ipsa Loquitur. 

Frequently Asked Questions (FAQs) 

  1. Is it difficult to prove a breach of duty?

Proving a breach of duty may be hard for the victim. It is quite difficult for the plaintiff to link the damage/ injury to the breach of duty on the part of the defendant.

  1. How do you prove a breach of duty?

To prove the breach of duty, the plaintiff needs to prove that the defendant owed a responsibility towards the plaintiff and that responsibility has been violated. The violation of responsibility is a breach of duty. 

References 

  1. https://www.nishithdesai.com/fileadmin/user_upload/pdfs/Research_Papers/Law_of_Damages_in_India.pdf
  2. https://www.rosenbaumnylaw.com/resources/what-is-breach-of-duty/
  3. https://www.researchgate.net/publication/350824149_Establishing_Breach_of_Duty_of_Care_in_Negligence_Claims_Issues_and_Practical_Considerations
  4. https://www.forbes.com/advisor/legal/personal-injury/breach-of-duty/
  5. https://www.griffithslawpc.com/resources/elements-of-a-breach-of-contract-claim/
  6. https://www.hasnerlaw.com/atlanta-personal-injury-resources/what-is-breach-of-duty/
  7. https://aishwaryasandeep.com/2021/09/15/essentials-of-negligence/

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All you need to know about children’s rights in digital environment 

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This article has been written by Kathi Thriveni, pursuing a Diploma in Technology Law, Fintech Regulations and Technology Contracts from LawSikho and edited by Shashwat Kaushik.This article provides perspectives on children’s rights in the digital environment.

It has been published by Rachit Garg.

Introduction

The Internet is one of the best and most popular inventions so far. In the world of technology, the internet is both ‘a boon and a bane’; if used right, it is bright; if misused, it is a dark night.

The Internet’s dependence on the planet has grown over time and for better or worse, it has become an intrinsic element of our regime. While the internet can enhance and enable children’s way-in into self-expression opportunities, distance, high-quality academic learning and better scope for social interactions, the digital environment poses some serious threats due to increased exposure, threatening children’s safety and rights. Be it how many measures parents take and supervise, besides the innocence of the younger kids on the risks associated with internet usage, on a daily basis, children are subjected to attacks on the internet and become victims of various cyber-crimes.

Definitions

In the relevant context, we need to look at the definitions of  the child and digital environment to analyse the implications on children and their rights in the digital environment. The United Nations Convention on the Rights of the Child defines a ‘child’ as a person under the age of 18 years old.

The term ‘digital environment’ is to be understood as more than just the internet. It includes connected digital technologies and services (like the internet, online gaming, the world wide web, mobile networks, applications, etc.) that provide access to and services for the digital environment, have a recording mechanism and leave behind digital footprints. 

Children’s rights in the digital environment

In the context of the digital environment, the article will focus on the following areas of rights for children:

Right to life 

The scope of opportunities on digital platforms play a significant role in a child’s development when it comes to their life and survival in vulnerable situations on digital platforms, which include content of violent nature, sexual abuse and exploitation, incitement to life-threating activities by online perpetrators, etc. Exposure to such content and attacks could leave the child in a bad mental state and affect their well-being. 

Right to health and well-being 

Online platforms can facilitate access to health services and wellness information, opening up significant opportunities for disadvantaged children in vulnerable situations and in remote locations.

Thus, by all appropriate measures, children must be protected from risks to their right to life, survival and development.

Right to access to information

The children on digital platforms are provided with opportunities to help them generate awareness of different social, cultural, sexual, religious and political identities and foster sociocultural cohesion and exchange. The digital environment helps children with disabilities form initial social relationships with their peers and boosts their self-confidence.

Right to education and participation

The digital environment promotes the right to participation and play, essential for their overall self-development. Online platforms are now an affordable medium and offer a plethora of options for children to learn and prosper. The available platforms are very accommodating for their participation at all levels and enable the capacity of self-expression to acquire competencies. 

Through research, it is known that children of all ages report that they experienced interest and relaxation by engaging with a wide range of digital products and services of their choice and thus the necessary support must be provided while ensuring that the necessary steps have been taken to prevent the barriers encroaching upon the participation of the children.  

Right to privacy

The children’s right to freedom of thought can be exercised to its fullest only when their ‘Privacy’ is protected and respected, as it is important to – safeguard their dignity, for their safety and for the exercise of their other basic rights.

Right to data protection

Out of innocence, children are not much aware of their right to privacy on digital platforms and become targets of unregulated agencies, which collect personal data in the name of fun questionnaires and get to know their physical whereabouts based on online activity, etc. Children’s data collected by law agencies should never be shared with anyone except with the free and willful consent of the children and parents.  

Right to be forgotten

The right to privacy implies a corresponding right to be forgotten, i.e., to have data erased that is held about the child and asking the child/parent for their free consent  with a provision to withdraw at any time before collecting the information exhibits decency and respect towards the child’s right to privacy.

The right to be safeguarded from exploitation and abuse

While the digital environment may open up all these opportunities for self-development and provide a voice, they also make children susceptible to violence online or may be instigated and influenced to harm others or themselves.

Children should be protected from all forms of exploitation prejudicial to their welfare in the digital environment. Exploitation may occur in many forms, such as economic exploitation, including sexual exploitation and abuse, the sale, trafficking and abduction of children and the recruitment of children to participate in criminal activities, etc.

Children hold the right to be protected under the International Human Rights Conventions like the United Nations Convention on the Rights of the Child and the European Convention on Human Rights.

The right to freedom of expression 

While imposing lawful restrictions, it is to be ensured that the children’s right to freedom of expression is not affected. Research shows children find it comfortable to express themselves online, so it is the legal duty of the state to protect the online platforms, which helps in aiding children’s growth and well-being while still allowing them to enjoy their right to expression in the digital environment rather than prevent them from making a presence on digital platforms.

The right to freedom of expression is above the rules/regulations by educational institutions or any other law agencies; thus, any restrictions on this freedom stand illegitimate unless such policies are required by the law of the land and are strictly necessary for national security or public order purposes.

Right to be heard

When it comes to cyber-crimes the children will be exploited and abused by anonymous users by penetrating through the protective shield provided by their parents. The children on digital platforms are lured into revenge porn, sexting, etc.; their humiliation can go public, profoundly impacting their mental health and well-being.

The legal onus is on the state authorities and policymakers to recognise the children’s right to expression in both international and domestic laws, safeguard them from abuse and try to make digital platforms a safe place rather than preventing them from accessing them. Children have a right to freedom of expression; however, considering these attacks, they shouldn’t be deprived of their rights but instead accommodate them to present their views and provide them with the right to be heard in all matters affecting them.   

Latest trends

The Council of Europe has made and is making efforts to protect the right to privacy of children, with a special focus on the right to data protection, especially in the educational setting. This has further intensified as a result of a declaration by the Consultative Committee of the Convention in the context of addressing the challenges faced in an educational setting and issuing Guidelines on Children’s Data Protection. The Council of Europe has released a handbook for policymakers regarding children’s rights in the digital environment. 

Suggestions

A few principles, as listed below broadly, that, if applied consistently, would optimally reduce the need to prevent children from having access to the digital environment and would protect them and their rights in digital space: 

  • Ensuring the equitable enjoyment of the rights of children online.
  • Awareness sessions for children on their digital rights and risks.
  • Abiding by and respecting free and willful consent.
  • Making sure that children are given the right to be heard. 
  • Providing Access to Justice – to lodge complaints/grievances.

Conclusion

The digital environment was not designed solely for children; yet, it plays a significant role in their lives in various forms, as discussed. Each day, they might have to face a new challenge and it becomes an impossible task to keep them protected, either for their parents or for the state. However, by using digital literacy among parents/guardians and guardians as well as children, by instilling good online practises, by reminding the children about the safety measures they need to follow while making an online presence, and by raising awareness among unwanted online social behaviour patterns, we can ensure that the children are not falling into any potential dangers online. 

The dynamic concept of “best interests of children” should be the primary consideration and the necessary safeguards should be provided without necessitating the curtailing of children’s rights on digital platforms.

References


Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

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Annulment v. divorce in India

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Divorce
Image source: https://rb.gy/efeyvl

This article has been written by Harshita Varshney and updated by Ishani Samajpati. The article aims at elaborating on the legal and procedural differences between the annulment of marriage and divorce in India. It also highlights the provisions of both divorce and annulment of marriage under different personal laws in India, with decisions by various courts, including the Apex Court. Furthermore, it also discusses the annulment of marriage at the option of one party. Finally, it examines the fate of the children born in both annulment of marriage and divorce.

It has been published by Rachit Garg.

Introduction

The perception of marriage differs among people due to the diversity of their religion. Vedas have observed Hindu Marriage as an indissoluble union till eternity. It is defined as a union of bones with bones, flesh with flesh and skin with skin, the husband and wife become as if they were one person. Under Muslim Law, marriage is treated as a civil contract where an offer is proposed and accepted by the parties in the presence of each other.

Due to the diversity of religion in India Marriage is treated as part of the personal law of the parties and the people are allowed to perform marriage as per their personal laws.

However, with the advancement of time and social awareness, various legislations have been passed by the government to make the present-day separation procedure in India more progressive with respect to gender affairs and related sensitive issues. Prima facie the two terms namely annulment and divorce may look similar as both of them deal with termination of marriage but they hold two different meanings.

Marriage has been considered one of the most important and probably the oldest social institutions in civilised human society since ancient times. It is commonly known as the union between a man and a woman sanctioned by society and protected by the law. It is also considered a foundation for creating a family. 

The Hindu shastras view marriage not only as a holy sacrament but also as sacrosanct. Several rituals establish an irrevocable bond between a husband and wife. On the other hand, marriage is considered a contract in Islam and Christianity. Over time, society has accepted various types of marriage, including same-sex marriage, and there are attempts around the world to legalise it.

In contrast, both annulment and divorce lead to the end of the institution of marriage. The Oxford Dictionary of Sociology defines ‘divorce’ as “the formal legal dissolution of a legally constituted marriage” and ‘annulment’ as “the act of stating officially that something, usually a marriage, is not legally recognised.” Hence, it can be inferred that while both of them end the marriage, there are some procedural and legal differences between them. Apart from that, Indian marriage laws also contain provisions for annulment of marriage at the option of one party.

Grounds for annulment of marriage under different personal laws

Even though there are different personal laws governing the annulment of marriage, the grounds for getting an annulment  under different personal laws are mostly similar, except under the Muslim personal laws. For example, a marriage while having one or more living spouses (polygamy) is not an offence under Muslim law, while even a second marriage while having a living spouse is void ab initio for all other faiths. Similar is the case with bigamy. 

The following grounds under different personal laws are applicable for marriages that are void ab intio. Even if the parties do not obtain a decree of annulment from the court, it is still void. It implies that obtaining a decree from the court is discretionary for the parties. The general grounds for annulment of marriage under different personal laws are as follows:

Living spouse

Except for a Muslim marriage, if either party has a living spouse at the time of marriage, such marriage is void. The earlier marital tie still continues even though there is no relationship between husband and wife.

The provisions for annulment of marriage on this ground are present in all marriage enactments, which are as follows:

Bigamy

Bigamy is the offence of marrying another person while being lawfully married to another. It is an offence under Section 494 of the Indian Penal Code. The exceptions are when the previous marriage has been declared void by a court or the spouse has been unheard for a continuous period of seven years and the whereabouts of the spouse are not known by anyone who would have known had he or she been alive in the meantime under Section 108 of the Indian Evidence Act, 1872.

However, it must be noted in this connection that the present government has recently brought a massive overhaul to the criminal justice system of India. Bharatiya Nyaya Sanhita, 2023 which seeks to replace the IPC, deals with the offence of bigamy under Section 81. Under this new Bill, concealment of a previous marriage while contracting the new marriage is also punishable with ten years of imprisonment and a fine.

Prohibited degrees of relationship or sapinda

If the parties to the marriage are within a degree of a prohibited relationship or are sapindas to each other, the marriage is void. However, if a custom permits this type of marriage, it is not void.

The provisions for this ground are as follows:

  • Foreign Marriage Act, 1969 – Section 4(d);
  • Hindu Marriage Act, 1955 – Section 5(iv) and (v), degrees of prohibited relationship and sapinda respectively
  • Indian Christian Marriage Act, 1872 – Section 88
  • Parsi Marriage and Divorce Act, 1936 – Section 3(a)
  • Special Marriage Act, 1954 – Section 4(d) read with Section 24(1)(i);

Defective wedding formalities 

Some personal laws include this ground. For example, Section 4 of the Indian Christian Marriage Act, 1872, lays down that marriages solemnised otherwise than in accordance with Section 5 shall be void. However, Section 77 of the Act lists down the irregularities for which marriages solemnised under the provisions of Sections 4 and 5 shall not be void. These include statements regarding consent or dwelling, notice of marriage, the certificate or its translation, the time and place of marriage, and the registration of marriage.

Similarly, Section 7 of the Hindu Marriage Act, 1955 states that a marriage may be solemnised under Hindu rites and ceremonies. If rites and ceremonies include saptapadi, i.e., taking seven steps by bridegroom and bride together, the marriage will be binding only after completing the seventh step. Before that, it is defective, and the marriage can be revoked.

Other grounds

  • Marriage before attaining the marriageable age, such as marriage of a minor, is void.
  • A decree of nullity can be obtained if either of the spouses is impotent.
  • If either party had lunacy or unsoundness of mind at the time of marriage, the marriage shall be void. Section 4(b) of the Foreign Marriage Act, 1969 further states that a marriage can only be solemnised if neither party is lunatic nor suffering from unsoundness of mind.

The party alleging the mental disorder of the spouse should prove it on his or her own. The party must establish that the mental illness suffered by the spouse is to such an extent that it is impossible to lead a normal married life. The Supreme Court of India clearly elaborated this in R. Lakshmi Narayan v. Santhi (2001).

Grounds for annulment in Muslim personal laws

Some of the essentials of annulment of Muslim marriage are as follows:

Capacity to marry 

Every male who has attained the age of puberty and is of sound mind is competent to contract a marriage. The general presumption is that after attaining 15 years of age makes one competent for marriage. A male who is not of sound mind or has not attained the age of puberty can contract marriage with the supervision of his guardian. Consent of contract to marriage of girls differs in different schools of Muslim law. The general law is that a girl who has attained the age of majority (18 years) has the capacity to contract her marriage without a wali (guardian)

However, under the Prohibition of Child Marriage Act, 2006, the  Madras High Court in the case of M Mohamed Abbas v. Chief Secretary, Government of Tamil Nadu (2015)  held that preventing marriages of Muslim girls under the age of 18 years is not depriving them of their enjoyment of religious rights but to empower and grant equal status to the girl child.

Intersect and inter-religion marriages

Muslim law does not prohibit anyone from performing an intersect marriage, and hence it is a valid marriage. However, the concept of void and null marriages comes into play in the case of inter-religion marriages. Mulla’s Principles of Muslim Law states that in Shia personal law, marriage between a Shia and a non-Muslim is void. On the other hand, the marriage of a Sunni male with a kitabia female is valid. The term kitabia implies believer, meaning a person who believes in the Holy book. Kitabia does not include fire worshippers or idol worshippers. Hence, marriage with a Shia male with any Christian or Jew woman is valid, but not the same with a Hindu, Sikh, Jain, or Buddhist woman. 

A Sunni Muslim female is not allowed to marry any non-Muslim under any conditions, and the marriage under Muslim law is void ab initio. Though there are some differences of opinion between scholars in this regard.

On the other hand, marriage between a Hanafi male and a fire-worshipper or idol-worshipper female is considered irregular. 

Void inter-religious marriages are validated through a civil marriage if it is solemnised under the Special Marriage Act, 1954, and the succession of the children born in the wedding is governed by the Indian Succession Act, 1925.

Marriage within degrees of prohibited relationship 

In Muslim law, the prohibited relationship refers to those degrees of relations under which two persons are not allowed to marry, and even if they do,  the marriage is either considered batil or fasid. Quranic verses have laid down the degrees of prohibited relationships clearly. The degrees of prohibited relationships in Muslim law are: 

  • Consanguinity; 
  • Affinity;
  • Fosterage; and,
  • Unlawful conjugation

Marriage within the first three categories is considered batil and void ab initio while the last criteria render a marriage fasid. Two expressions are used to define prohibited relationships: how highsoever and how lowsoever. It means such ascendants and descendants, to any degree, fall under the category of prohibited relationships.

Consanguinity 

Consanguinity, according to the Oxford Dictionary of Sociology, is  “a kin relationship based on descent from a common (male or female) ancestor.” Muslim law prohibits relationships on the male side. Prohibited relationships on consanguinity are the same among Shias and Sunnis. A Muslim male is absolutely prohibited from marrying these relations, and marrying within such degrees makes the marriage void ab initio:

  • The mother or grandmother of the male Muslim how highsoever;
  • The daughter or granddaughter how lowsoever;
  • Full, consanguine, or uterine sister;
  • Niece or grandniece how lowsoever; and,
  • Aunt or grandaunt how highsoever, both from father’s and mother’s side.
Affinity 

Affinity is those relationships that are created after marriage between two persons. Except for the Shafi’i school, all other schools of Shias and Sunnis deem the existence of the relationship of affinity not only during when the marriage is valid but also after when it is invalid. Even though the marriage is not consummated, the degree of prohibition on the ground of affinity arises once the valid marriage is contracted. However, no relationships based on affinity are created in batil marriages. 

Prohibited relationships on the ground of affinity are as follows:

  • Wife’s mother or grandmother how highsoever;
  • Father’s wife or father’s father’s wife how highsoever;
  • Wife’s daughter or granddaughter how lowsoever; and,
  • Son’s wife or son’s son’s wife how lowsoever.

Prohibited relationship with wife’s daughter or granddaughter how lowsoever only arises if the marriage has been consummated.

Fosterage 

Thoughts of Shias and Sunnis vary on prohibited relationships on the basis of the degree of fosterage. According to Shias, the foster relationship only arises if the foster mother nourishes the child and breastfeeds. 

However, Sunnis permit marriage with a certain degree of foster relationships:

  • The child’s father with the mother of the child’s foster mother;
  • With the foster mother’s daughter;
  • Foster mother with foster child’s brother;
  • Marriage with the foster mother of an uncle or aunt.
Unlawful conjugation

While marriages with degrees of prohibited relationships based on consanguinity, affinity, and fosterage are absolute grounds for making a marriage null and void, while unlawful conjugation is a relative ground. It means it is a moral ground and renders a marriage void or irregular.

According to Mullah, a man cannot marry two wives who are related by consanguinity, affinity, or fosterage. Thus, a person cannot marry two full, consanguine, or uterine sisters or an aunt and niece. The rule of unlawful conjugation is only applicable when the said marriage on whose basis the relationship of unlawful conjugation is declared is subsisting. If there is divorce from the marriage, the prohibition on the basis of unlawful conjugation does not apply.

Under Sunni schools, such marriages are irregular; however, in Shia law, these marriages are absolutely void.

According to Fatwa-i-alamgiri, the source of Islamic laws in India, children born in such marriages are valid.

Other relative criteria

These criteria are not obligatory but are of recommendatory and moral nature. These are also relative because the validity of marriage under these criteria varies in various schools of Islam. These grounds are as follows:

  • Marriage with a woman undergoing iddat is not void but irregular, as laid down in Md Hayat v. Md Nawaz 1935 Lah 622. This judgement is still used by Indian courts to decide the validity of marriage. The Delhi High Court, in Md. Muzibur Rahman v. Husna Begum (2017), also held the same. However, in Shia schools, such marriage is void.
  • Marriages violating the doctrine of equality might be rendered irregular or void. There are certain differences as to what defines equality. For example, according to Hanfi law, the social status of both families must be equal. On the other hand, according to Shias, only two conditions are necessary. The man must be a practising Muslim and should have the financial capacity to maintain his wife. However, in modern times, no Indian court shall annul such marriages based on equality of social status. The only equality the courts may examine is equality in terms of physical capacity. If either of the parties is impotent, the other party has the right to annulment of marriage. In such a case, the right to annulment of marriage belongs to the party himself or herself, and not to the wali.
  • A person who is on pilgrimage, should not marry, and such a marriage will be rendered void, according to Ithana Ashari and Safii schools. 
  • Remarriage with a woman whom the man divorced with triple talaq is void unless that woman remarries another man. After the consummation of the marriage, once the man divorces her, the remarriage can take place.  
  • However, polygamy is not a ground for annulment of Muslim marriages. A man can marry up to four wives and it is subject to the Muslim Personal Law (Shariat) Act, 1937. However, in Khursheed Ahmad Khan v. State Of U.P. and Ors (2015), the Supreme Court reaffirmed that “Polygamy was not an integral part of religion (Islam) and monogamy was a reform within the power of the State under Article 25.”

Grounds for annulment of marriage at the option of either party

The marriages which can be annulled at the option of either party are known as voidable marriages. These marriages are entered into illegally and are allowable if not objected to, but the court can annul the marriage once a petition is filed. The decree of annulment can be obtained at the option of the injured party, and before passing the decree, the marriage is binding.

The grounds for annulment at the option of either party are as follows:

  • If the respondent was impotent at the time of marriage and is the same during the institution of the annulment proceeding, it is a ground for the petitioner to get an annulment. Section 12(1)(a) of the Hindu Marriage Act, 1955, Section 19 of the Divorce Act, 1869, and Section 30 of the Parsi Marriage and Divorce Act, 1936 are examples of this ground.
  • An annulment of marriage can be sought on grounds of fraud, coercion, undue influence, or misrepresentation under Section 19 of the Divorce Act, 1869,   Section 12(1)(c) of the Hindu Marriage Act, 1955; and Section 25(iii) of the Special Marriage Act, 1954.

There is a limitation period for presenting the petition for annulment. The petition for annulment should be presented within one year after the marriage or when the fraud has been discovered, as the case may be, held by the Madras High Court in V. Raja v. Bhuvaneswari (1997).

  • Under the provisions of Section 12(1)(b) read with Section 5(ii) of the Hindu Marriage Act, a marriage can be annulled on the ground that the respondent was a lunatic or person of unsound mind at the time of marriage. Similar is the case in Mohammedan law, discussed in the later part of this article in more details.
  • Pre-marital pregnancy by a third party is a ground for annulment. But the petitioner must satisfy that, at the time of marriage, he was ignorant of this fact. The conditions regarding limitation and ratification of the exercise of marital rights are also strictly applicable.

The provisions for this under different personal laws are as follows:

  • Section 12(1)(d) of the Hindu Marriage Act, 1955;
  • Section 25(ii) of the Special Marriage Act, 1954;

Such provisions in these Acts are similar to Section 12(f) of the Matrimonial Causes Act, 1973.

Section 112 of the Indian Evidence Act, 1872 states that the burden of proof in this case is on the petitioner. It applies when a child is born during a valid marriage or within 280 days of the dissolution of the marriage if the wife remains unmarried. This Section is based on the maxim pater est quem nuptiae demonstrant (he is the father to whom marriage indicates). Hence, to get an annulment under this ground, the petitioner has to prove a “non-access” element.  The Supreme Court, in the case of Dukhtar Jahan v. Mohammed Farooq (1987) stated that ”courts have always desisted from lightly or hastily rendering a verdict and that too, on the basis of slender materials, which will have the effect of branding a child as a bastard and its mother an unchaste woman.”

A suit for annulment of marriage may be converted to a suit for dissolution of marriage, depending on the facts and circumstances of the case, as in the case of Pawan Kumar v. Smt. Mukesh Kumari (2001).

  • Wilful refusal of the respondent to consummate the marriage is a voidable marriage and a ground for annulment under Section 25(i) of the Special Marriage Act, 1954.
  • Venereal disease in communicable form is also a ground for avoiding marriage,

Fasid marriage

Fasid marriage, in Muslim law, is also known as irregular marriage. It means there are some relative impediments to marriage that can be removed to render the marriage valid. It is not similar to voidable marriage in other Indian laws. A voidable marriage is valid until one party wants annulment and it has the same legal effects of void marriage after annulment. However, fasid marriage is a marriage that is neither valid nor void. For example, if a person marries his wife’s sister, the marriage is considered void on the basis of unlawful conjugation. If he pronounces talaq on the first wife, the impediment is removed and the marriage becomes valid.

Similarly, if a Sunni male marries an idol or fire worshipper, the marriage is not valid under Muslim law until the wife converts to Islam. 

Fasid marriage does not have any legal effect before consummation, and the husband can terminate immediately by saying talaq. If consummation takes place, the wife is entitled to dower and should perform idaat after the divorce or death of the husband. The children born in fasid marriages are legitimate and have rights to inherit properties from both sides. 

A marriage in Muslim law is considered fasid on the following grounds:

  • A marriage contracted without witnesses. However, no witness is necessary for Shia marriage.
  • Marriage with women undergoing iddat;
  • Marriage with idol or fire worshipper without conversion;
  • Marriage with the fifth wife;
  • Unlawful conjugation.

Fasid marriages are not recognised in the Ithna Ashari school of Shia. Hence, a marriage with any of the last four conditions is rendered void. 

Annulment of marriage

An annulment means an official announcement which ends the existence of the marriage. It is a process in which the marriage is declared as null and void due to some reasonable causes and these causes include that the legal requirements were not met at the time of marriage. When certain legal requirements are not met at the time of the marriage then the marriage is not considered as a valid marriage. The annulment of such marriage is passed by the authorities which never existed in the eye of law because of the absence of certain legal requirements which are important to make a marriage valid. When a petition for annulment of marriage is made by one party the court has to decide whether a valid marriage took place between the parties or not. When the decree of annulment is passed by the Court then the further duties or obligations towards each other also ends with the non-existence of the marriage.

Provisions of annulment under different personal laws

The provisions regarding the annulment of marriage have been dealt with in various personal laws. Those laws are discussed below:

The Hindu Marriage Act, 1955

The provision related to the annulment of marriage has been dealt with under the head “Nullity of Marriage and Divorce”. Among Hindus, marriage is regarded as the sacred bond between the two individuals. The old Hindu laws of marriage have been wholly transformed by the Hindu Marriage Act, 1955 to remove all the social defects introduced by the old laws. The new legislation has not only introduced some major changes but also tried to customise it so as to remove the social disparity. As per Hindu law, marriage can be of three types: Valid Marriage, Void Marriage and Voidable marriage.

Section 5 of the Hindu Marriage Act, 1955 (hereinafter HMA) provides for the conditions for a valid Hindu marriage. The conditions provided by the law for the valid Hindu marriage are:

  • First of all, both parties must be Hindu. It has been clearly pointed out by Section 5 that “a marriage may be solemnized between any two Hindus”. Even if one party to a marriage is a non-Hindu then also their marriage would not be subjected to this law.
  • According to Section 5(i), any party to a marriage should not have a spouse living at the time of the marriage. This provision barred bigamous or polygamous act.
  • As per Section 5(ii), the following conditions should be kept in mind by the parties at the time of marriage:
    • Any of the party to a marriage should not be incapable of giving a valid consent due to the unsoundness of mind;
    • If both the parties to a marriage are capable of giving a valid consent but any of them should not suffer from such a mental disorder, which is unfit for marriage and the procreation of a child;
    • Any of the party to a marriage should not have been subject to recurrent attacks of insanity.
  • As per Section 5(iii), at the time of marriage, the bridegroom must have completed the age of twenty-one years and the bride must have completed the age of eighteen years;
  • According to the custom or usage of the parties, their relationship must not fall within the degrees of a prohibited relationship if it so then it must be allowed by their custom and usage as provided by Section 5(iv);
  • Section 5(v) provides that the parties should not be sapindas of each other. But if the customs or usage governing the parties to marriage allows then such marriage will be a valid marriage.

So, these were the conditions which should be fulfilled for a valid marriage under the Hindu law.

Void and voidable marriages

The concept of nullity of marriage was first introduced by the Hindu Marriage Act, 1955. When at the time of a marriage, the conditions specified under Section 5 are not fulfilled then such marriage is not regarded as the valid marriage. Section 11 of the Act provides that any marriage, solemnized after the commencement of this act, would be declared as void if it contravenes clause (i), (iv) and (v) of Section 5 if a petition has been moved by any of the parties to a marriage. Simply, a marriage should not infringe these conditions:

  • Any party to a marriage should not have a spouse living at the time of the marriage;
  • Their relationship must not fall within the degrees of a prohibited relationship if it so then it must be allowed by their custom and usage; and
  • The parties should not be sapindas of each other. But if the customs or usage governing the parties to marriage allows then such marriage will be a valid marriage.

If any of these three conditions would exist, the marriage would automatically become void under this section. The decree of nullity may be passed by the court at the petition moved by either party of the marriage. Any marriage violating any of these conditions would be void ipso jure. There is no need to ask from the court for the declaration of nullity of their marriage. It becomes null and void by the mere operation of law. However, the parties may file a petition for procuring the decree of nullity. It is left on the parties to a marriage to treat their marriage void without asking for a formal declaration from the court.

On the other hand, voidable marriages continue to exist until the parties to a marriage approach the court for the annulment of their marriage. It is left on the parties whether they want to file a petition in the court for the annulment of their marriage. Section 12 of the HMA talks about voidable marriages. It says that any marriage solemnized, before or after the enforcement of this act shall be a voidable marriage, or maybe declared as null by a decree of annulment on the basis of following grounds:

  • That the marriage has not been consummated by the parties of a marriage due to the inability of the respondent; or
  • That the marriage is in violation of the conditions specified under Section 5(ii) and those conditions are:
    • Any of the party to a marriage should not be incapable of giving a valid consent due to the unsoundness of mind;
    • If both the parties to a marriage are capable of giving a valid consent but any of them should not suffer from such a mental disorder, which is unfit for marriage and the procreation of a child;
    • Any of the party to a marriage should not have been subject to recurrent attacks of insanity;
  • That the consent of the petitioner was obtained by fraud or force for the ceremony of a marriage or any material situation connected with the respondent; or
  • That the respondent was pregnant by some person other than the petitioner at the time of solemnization of marriage.

Sub-section 2 of this section has also laid down some conditions which are necessary to be observed before filing a petition for obtaining the decree of annulment. It says that if the petitioner is filing a petition for a decree of annulment on the ground that the consent of his/her was obtained by fraud or force then the petition would not be entertained by the court if:

  • the petition is after one year or more when the force had ceased to work or the fraud had been discovered as the case may be;
  • the petitioner has decided or gives his or her consent to live with another party even after the force had ceased to work or the fraud had been discovered as the case may be.

Another condition imposed by sub-section 2 of this section is that if the petitioner is filing a petition for a decree of annulment on the ground that the respondent was made pregnant by some other person and not the petitioner, then the petition would not be entertained by the court if:

  • The petitioner was not aware of the alleged facts at the time of the marriage;
  • In the case of a marriage which was solemnized before the commencement of this Act then the proceedings have been instituted within one year of such commencement and in the case of marriage solemnized after the commencement of this act then the proceedings have been instituted within one year of the date of the marriage;
  • Since the disclosure of the mentioned grounds by the petitioner, the marital intercourse with the consent of the petitioner has not taken place between them.

Therefore, the main distinction between the void and voidable marriage is that the void marriage is void ab initio which means it is null from the very beginning. Whereas, a voidable marriage is annulled by the court on the petition moved by the party of a marriage.

Special Marriage Act, 1954

The Special Marriage Act, 1954 governs the inter-caste or the inter-religion marriages in India. This act applies to the marriages of Hindus, Muslims, Christians, Sikhs, Jains, and Buddhists. The provisions of this legislation apply not only to Indian citizens who belong to different castes and religions but also to Indian nationals who live abroad. Section 25 of the act deals with voidable marriages. According to it, any marriage, solemnized after the commencement of this act, shall be voidable and may be declared by a decree of annulment, if:

  1. If the respondent has refused to consume the marriage;
  2. If at the time of marriage, the respondent was pregnant by some person, other than the petitioner;
  3. If the consent of either party was not the free consent, which means it has been obtained by fraud, coercion and misrepresentation, as defined under the Indian Contract Act, 1872.

It is also provided that the court should not grant the decree of nullity in the case specified under clause (ii), related to pregnancy unless it is satisfied:

  • That the petitioner was not aware of the alleged facts at the time of the marriage;
  • That the proceedings were initiated in the court within a year from the date of the marriage; and
  • That since the petitioner has discovered the grounds of a decree for nullity of marriage, the petitioner has not given the consent for the marital intercourse.

Further, it is provided that the court should not grant the decree of nullity in the case specified under clause (iii), related to consent unless it is satisfied that,

  • If the proceedings have not been initiated within one year of the after the consent was obtained either coercively or through fraud as the case may be;
  • If the petitioner has with his or her free consent lived with the other party to the marriage as husband and wife after the coercion had ceased or, as the case may be, the fraud had been discovered.

Parsi Marriage and Divorce Act, 1936

This law governs the marriage and divorce of the Parsi community. People have regarded The Parsi Marriage as a contract made through a religious ceremony of Ashirvad which is necessary for its validity. ‘Ashirvad’ literally means blessings. A prayer or divine exhortation to the parties to observe their marital obligations with faith. Section 30 in the Parsi Marriage and Divorce Act, 1936 talks about the suits for the nullity of the marriage. According to it, if in any case, the consummation of marriage becomes impossible due to the natural causes then it may be declared as null or void, at the instance of any party to a marriage.

Indian Divorce Act (for Christians), 1869

The Indian Divorce Act, 1869 is one of the important codified personal laws in India which governs the Christian community. The provisions of the act define the power of the court and describe the relief granted by courts to the parties of the marriage such as the dissolution of marriage, nullity of their marriage or judicial separation.

Under Section 18 of the Indian Divorce Act, 1869, any husband or wife can move to the District Court or to the High Court by filing a petition that his or her marriage may be declared as null and void.

Section 19 of the act provides for the grounds for passing such a decree of nullity of the marriage. According to it, a decree for nullity of marriage may be passed on any of the following grounds:

  1. The impotency or lunacy of the respondent at the time of solemnization of marriage and as well as the at the time of institution of the proceeding;
  2. That the parties to a marriage are bounded by the prohibited degrees of consanguinity (whether natural or legal) or affinity;
  3. That either party to a marriage was a lunatic or idiot at the time of the marriage;
  4. That at the time of marriage, the previous marriage of either party was in force or the former husband or wife of either party was living at the time of new marriage.

It is also provided that under this act, the High Court has jurisdiction to pass a decree of nullity of marriage if the consent of the parties to a marriage was obtained by fraud or force and this power of the High Court should not be affected by any provision of Section 19 of this act.

Annulment of marriage in Muslim law

There is no specific codified law on annulling marriages in Muslim personal law since the concept of annulment of marriages is not recognised. However, schools of Muslims recognise three types of marriages, which include: i) valid marriages, or sahih, ii) void marriages, or batil and iii) irregular marriages, or fasid. The last two categories of marriages can be annulled, even though batil marriages are void ab initio. The Ithari Ashari school does not recognise irregular marriage (fasid) and their marriage can either be valid or void.

Batil marriage

Batil marriage has no legal effect and is void ab initio. It is called marriage because the parties have undergone the necessary formalities of marriage. However, it does not grant the status of husband and wife or the legitimacy of children born in this wedlock, nor does it create a marital bond between the two through the marriage.

Since batil marriage is void ab initio, the parties, including the wife, are free to marry others and are not held guilty. A marriage that does not follow the valid requirements of marriages under Muslim personal law, is termed a void marriage.

No declaration or decree for annulment is required to nullify the marriage. However, an interested person may file a suit for a declaration under Section 9 of the Code of Civil Procedure, 1973 read with Section 34 of the Specific Relief Act, 1963.

Foreign Marriage Act, 1969

The Foreign Marriage Act, 1969 recognises marriages between Indian citizens in foreign countries and marriages between an Indian citizen and a foreigner. Section 4 of the Act states that at least one of the parties to the marriage should be Indian. It also states the following conditions, which, if not followed, should be held void:

  • No party to the marriage has any living spouse;
  • No party is an idiot or a lunatic;
  • The bridegroom and bride have completed twenty-one  and eighteen years, respectively, at the time of marriage;
  • They are not within degrees of prohibited relationships. Though the Act does not define the term, Section 2(a) states that it has the same meaning as under the Special Marriage Act, 1954. 

A petition for annulment for both void and voidable marriages under this Act can only be presented if the marriage was solemnised under this Act.

Section 18 of the Act states that any kind of matrimonial reliefs under this Act should be governed by the provisions of  Chapters IV, V, VI and VII of the Special Marriage Act, 1954. For obtaining a decree of annulment for an avoidable marriage, Section 18(3)(b) states that a court is not authorised to make a decree for annulment if:

  • The parties are domiciled in India during presenting the petition for annulment in court;
  • If the petitioner for the decree of annulment is the wife, before presenting the petition in court, she has been residing in India for a period of three years. She should be an “ordinary resident”, which means she has been residing in her own will without any professional, educational, or other obligations.

Clause (c) under Section 18(3) of the Act provides the conditions for granting a decree of annulment. The situations where a court shall not grant a decree for annulment of a void marriage are as follows:

  • During presentating the petition for annulment, one of the parties is domiciled in India. It means any petition for annulment of void marriage can only be filed under this Act if both parties to marriage have domiciles outside India.
  • Marriage of the parties seeking annulment should be solemnised under this Act and the petitioner is in India while filing the petition. Therefore, the petitioner should not reside outside India while filing the petition for annulment under this Act.

Divorce under Muslim personal laws

A marriage under Muslim personal laws can be dissolved in  the following ways:

  • Talaq, i.e., divorce by the husband at his will;
  • Mutual consent of both the parties to marriage, khula, and mubara’at; or,
  •  Divorce by judicial decree.

Talaq

In Muslim law, when the husband at his own will divorces the wife, it is known as talaq. A Muslim husband who is of sound mind and has attained the age of puberty can divorce his wife through talaq.

The three modes of talaq are as follows:

  • Talaq-e-ahasan: A Muslim husband can divorce his wife through talaq-e-ahasan. It consists of a single pronouncement during the period of tuhr (when the wife is not having her menstrual cycle) that the husband should abstain from sexual intercourse. The wife is then left to observe her iddat period. 

Talaq-e-ahasan is revocable, and the husband can revoke the divorce before the iddat period of the woman is over. Once the iddat is over, the divorce becomes irrevocable.

  • Talaq-e-hasan: To divorce the wife through talaq-e-hasan, the husband must pronounce talaq thrice over three successive periods of tuhrs. No sexual intercourse must take place during this period.

It can be revoked before the third pronouncement of divorce. Once the third pronouncement is made, the divorce becomes irrevocable, irrespective of the iddat period.

  • Talaq-ul-Biddat or Talaq-ul-Bain: It provides the Muslim man divorce from his wife instantly. It becomes effective as soon as pronouncements are made. It is a disapproved form of divorce and the divorce obtained by talaq-ul-biddat or talaq-ul-bain is irrevocable. 

It consists of three pronouncements of talaq made during a single tuhr. It is also known as triple talaq and was held unconstitutional by the Apex Court in the case of  Shayara Bano v. Union of India and Ors. (2017).

Talaq-e-tafweez

It is a delegated form of divorce and the only type of divorce that enables Muslim women to get a divorce. Ordinarily, the husband himself gives talaq to his wife. But in some cases, he delegates the power to divorce to his wife or other third parties. The authority of delegation may be absolute or conditional and may be given for a temporary or permanent period. In such a case, the wife may repudiate the marriage, and it will have the same effect as the husband pronouncing talaq.

However, the wife may not have the unrestricted liberty to divorce herself. It depends on the delegation of the husband. If the delegation is bilateral, the wife cannot divorce herself alone at her own will. In the case of Monjila Bibi v. Noor Hossain (1992),  it was held that the wife can only divorce unconditionally if the husband delegates unilaterally. Since, in this case, the personal law does not prohibit divorce, the wife can divorce herself at her own will.

Khula and Mubara’at

While talaq provides the husband with the means to divorce his wife, marriage under Muslim personal law can also be divorced by an agreement between husband and wife. It can be affected in two ways: khula and mubara’at.

Khula is a form of divorce where the wife initiates the divorce and the proceedings starts with her consent. She agrees to give consideration to the husband in return for her release from the marriage. She may also relieve her husband from paying the mahr as consideration. If no consideration is paid by the wife, the husband can claim it.

In mubara’at, both the husband and wife want to end the marriage and can do so by mutual consent. Both parties initiate the divorce.

Divorce by judicial decree

Section 2 of the  Dissolution of Muslim Marriages Act, 1939 provides the wife with certain grounds to get a divorce through a court decree. Some of the grounds are the husband missing for four years, negligence on the part of the husband or failure to pay maintenance, a sentence of imprisonment to the husband, impotency, failure to perform marital obligations, maltreating the wife, etc.

Divorce under the Foreign Marriage Act, 1969

There is no provision for divorce under the Foreign Marriage Act, 1969, even though it contains provisions for annulment. Divorce under this Act is governed by Chapter VI of the Special Marriage Act, of 1954. The grounds for divorce are given under Section 27 of the Act.

Irretrievable breakdown of marriage

The Law Commission of India, in 1978, in its Seventy-First Report, dealt with the concept of irretrievable breakdown of marriage. It opined that this should be a ground for divorce under the Hindu Marriage Act, 1955, and the Special Marriage Act, 1954. Over the years, the position of courts has evolved as to whether or not to include this as a ground for divorce. The ground for the irretrievable breakdown of marriage first arose in the case of Dr. N.G. Dastane v. Mrs. S. Dastane (1975) where the parties fought for a long period and their marital bond was so severed that nothing could heal it. The case emphasised including the said ground as a separate ground for divorce. But various courts differed on this point.

For example, in Harendra Nath Burman v. Smt. Suprova Burman and Anr. (1989), the Calcutta High Court observed that the mere breakdown of marital bonds, however irretrievable, is not a ground for divorce as yet in any Indian matrimonial laws. The Supreme Court in Smt. Saroj Rani v. Sudarshan Kumar Chadha (1984), observed that conjugal rights in India are not created merely by any statute. It is inherent in the institution of marriage. On the other hand, the Apex Court, in cases such as Ms. Jordan Diengdeh v. S.S. Chopra (1985) and Smt. Sneh Prabha v. Ravinder Kumar (1995) considered and granted a divorce on the ground.

The Supreme Court in the case of Naveen Kohli v. Neelu Kohli (2006) recommended the Union of India to consider an amendment of the Hindu Marriage Act, 1955 to incorporate this ground for divorce. 

In 2009, the Law Commission of India, again in its 217th Report recommended to include irretrievable breakdown of marriage as a ground for divorce under the provisions of divorce laws.

Very recently, the Supreme Court, in the case of Mansi Khatri v. Gaurav Khatri (2023) granted a divorce on this ground through its power under Article 142 of the Constitution of India.

Provisions for divorce by mutual consent in Indian laws

The provisions for divorce by mutual consent under various Indian laws are as follows:

Hindu Marriage Act, 1955 

Originally, there was no provision for divorce by mutual consent under this Act. The Marriage Laws (Amendment) Act, 1976, was inserted under Section 13B of the Hindu Marriage Act, 1955. It is applicable for both marriages solemnised before or after the Amendment. The grounds for divorce under this are as follows:

  • The spouses have been living separately for one year or more;
  • They are not able to live together;
  • They have mutually agreed to end the marriage.

After presenting the petition in court, there is a waiting period of six months. If the petition is not withdrawn within six to eighteen months, the court, after making an enquiry regarding the solemnisation of marriage and the averments in the petition, shall grant a decree of divorce.

Recently, in the case of Shilpa Sailesh v. Varun Sreenivasan (2023), a Constitution bench in the Supreme Court of India held that under the special powers of Article 142, the Supreme Court can waive the mandatory waiting period under Section 13B.

Christian

Similar to the Hindu Marriage Act, 1955, there was no provision for divorce by mutual consent under the earlier Indian Divorce Act, 1869. Through the Indian Divorce (Amendment) Act, 2001, such provision was inserted under Section 10A and the Act came to be known as the Divorce Act, 1869. The only difference is that here the parties shall live separately for a period of two years while in other statutes, it is one year.

Parsi 

The provision for mutual divorce under the Parsi Marriage and Divorce Act, 1936 was inserted through the 1988 Amendment under Section 32B.

Special Marriage Act, 1954

The provisions for divorce under mutual consent under the Special Marriage Act, 1954 are given under Section 28.

Foreign Marriage Act, 1969

According to Section 18 of the Act, the divorce procedures under this Act shall be governed by the provisions of the Special Marriage Act, 1954. Divorce by mutual consent under this Act is governed by Section 28 of the Special Marriage Act, 1954.

Fate of children in annulment and divorce

While the annulment is the cancellation of marriage, and divorce severs the marital tie between husband and wife, the children, if any, born in the marriage suffer to a great extent. So, all the Indian laws have considered the fate of the children in such cases and contain provisions to protect them. The laws provide that where a decree of annulment has been granted.

According to the legal provisions, when a decree of nullity is granted by the court, annulling the marriage between parties in a void or voidable marriage, any child born or conceived before the decree is made or who is a legitimate child of the parties (not born outside marital relation), shall be deemed to be their legitimate child even if the marriage is annulled. The child possesses the same rights as a legitimate child born in a valid marriage. Such a child would also have inheritance rights to the parents’ self-acquired property. However, property rights are not applicable if the child is illegitimate. 

The provisions under personal laws are as follows:

  • Section 16 of the Hindu Marriage Act, 1955;
  • Section 26 of the Special Marriage Act, 1954;
  • Section 21 of the Divorce Act, 1869 states that children begotten or conceived before the decree of annulment are entitled to inherit parents’ properties as legitimate children in the following cases:
  • Marriages were annulled on the ground of bigamy but the marriage was contracted in good faith with the belief that the spouse was dead;
  • Marriages annulled on the ground of insanity

On the other hand, in the case of divorce, the major issue concerning the child is custody. No dispute arises on the question regarding the inheritance rights of the child. The custody of the child is governed by the custody laws of the respective faiths. Generally, in the case of a minor child, both parents have equal rights. If there is no mutual agreement on the part of the child’s parents, the family court decides the custody of the child. It is a complicated procedure and may affect the child negatively. In the case of Sheoli Hati v. Somnath Das (2019), the Supreme Court held that while deciding custody of a child, the “welfare of the child is of paramount consideration.” There are both secular and religious laws governing the custody of the child: 

  • The Guardians and Wards Act, 1890 is a secular law that governs the custody and guardianship of all Indian children, irrespective of their religion.
  • Under Section 26 of the Hindu Marriage Act, 1955, the court can pass interim orders and also add provisions in the decree regarding the “custody, maintenance and education of minor children, consistently with their wishes.” After passing the decree, if any petition under this Section is filed in court, it may pass orders regarding custody. This Section also authorises the court to revoke or modify any order relating to the same.
  • The Hindu Minority and Guardianship Act, 1956 is a supplemental Act to the Guardians and Wards Act, 1890 governing the custody of Hindu children.
  • Under Muslim personal law, the father is the natural guardian of the child, but custody remains with the mother until the age of seven for a boy, and for a girl, it is before she reaches the age of puberty.
  • Section 49 of the Parsi Marriage and Divorce Act, 1936 governs the custody of Parsi children.
  • Section 41 of the Divorce Act, 1869 empowers the court to pass orders regarding Christian children.
  • Section 38 of the Special Marriage Act, 1954 governs custody of both the children of parents whose marriages were registered under this Act and also under the Foreign Marriage Act, 1969.

However, it must be noted that the statutory laws regarding custody of the child are also applicable for illegitimate children and also children of annulled marriages if any such disputes arise. The dispute over the custody of the child is more common in divorce proceedings.

Remarriage of divorced persons vs annulled marriage

There are no particular legal provisions on the remarriage of persons in annulled marriages. From the existing legal provisions, it can be inferred that if a marriage is annulled for being a void marriage, the marriage is prohibited by the statutes. Even if the parties remarry each other after the annulment, it will still be a void marriage and will not get any legal status. However, in cases of voidable marriages, where the marriage was annulled at the request of the injured party, they may get married at their own choice. On the other hand, since the decree of annulment invalidates the marriage, the parties may remarry immediately since the previous marriage did not exist in the eyes of the law. So once the marriage is annulled, the marriage does not exist anymore. The parties, after getting a decree of annulment, may remarry a third person.

The laws have provisions on whether divorced persons may get remarried: Normally, the parties have to wait to get the decree of divorce and there might be some time limitations. For example, divorced persons may remarry once the decree of divorce is granted by the court and there is no appeal against it, under Section 15 of the Hindu Marriage Act, 1955.

Provisions of divorce under different personal laws

A divorce is a legal procedure where a valid marriage is dissolved by the court. The provisions providing the grounds for divorce under different personal laws are as follows:

The Hindu Marriage Act, 1955

Prior to the enactment of the Hindu Marriage Act, 1955 there wasn’t any concept of Divorce as, under the Hindu Law, the marriage was considered as an indissoluble union of the Husband and wife. But the present legislation has introduced various important and dynamic changes in the law of marriage and divorce. It has clearly laid down under what circumstances one can seek a divorce from the other party and such circumstances have been laid down under Section 13 of the Act. It has laid down the grounds which are available to both husband and wife. According to it, any marriage solemnised whether before or after the enactment of this act may be dissolved, on a petition filed by either the husband or the wife on the following grounds that he/she:

  • Had performed sexual intercourse with any person other than his or her spouse after the solemnization of the marriage; or
  • Has treated the petitioner with cruelty after the solemnization of the marriage; or
  • Has deserted the petitioner for a continuous period of not less than two years before initiating the petition for divorce;
  • Has converted himself into another religion; or
  • Has been incurable of unsound mind, or has been suffering continuously or intermittently from mental disorder of such a kind and to such an extent that the petitioner cannot reasonably be expected to live with the respondent; or
  • Has been suffering from a communicable disease; or
  • Has renounced the world by entering into a religious order; or
  • Has not been heard of as being alive for a period of seven years or more by those persons who would naturally have heard of the respondent if the respondent had been alive; or

The parties to a marriage can also file a petition for the dissolution of their marriage on the ground that:

  • There has been no resumption of cohabitation between the parties for a period of one year or more after the passing of a decree for judicial separation in a proceeding to which they were parties; or
  • The decree for restitution of conjugal rights has been passed and such decree has not been complied with within one year of the passing of the decree.

Special Marriage Act, 1954

Section 27 of the Act has provided the grounds for divorce. According to it, the petition for divorce may be presented by husband or wife on the ground that:

  1. The respondent had performed sexual intercourse with any person other than his or her spouse after the solemnization of the marriage;
  2. The respondent has deserted the petitioner for a continuous period of not less than two years before initiating the petition for divorce;
  3. The respondent has been facing a sentence of imprisonment for seven years or more for an offence as defined in the Indian Penal Code, 1860;
  4. Since the solemnization of marriage, the defendant has treated the petitioner with cruelty; or has been incurable of unsound mind, or has been suffering continuously or intermittently from mental disorder of such a kind and to such an extent that the petitioner cannot reasonably be expected to live with the respondent;
  5. The respondent has been suffering from venereal disease, a communicable disease;
  6. The respondent has been suffering from a disease, leprosy, which has not been transferred from the petitioner; and
  7. The respondent has not been heard of as being alive for a period of seven years or more by those persons who would naturally have heard of the respondent if the respondent had been alive.

Parsi Marriage and Divorce Act, 1936

Section 32 of the Parsi Marriage and Divorce Act, 1936 has laid down the grounds for the divorce. According to it, any party to a marriage can sue another party on the basis of one or two of the following grounds:

  • That the marriage was not consummated within the one year of marriage due to the willful refusal on the part of the defendant;
  • That from the date of marriage and up to the time when the suit for divorce was initiated, the defendant was of unsound mind;
  • That the defendant was pregnant at the time of marriage by some person other than the plaintiff;
  • That since the solemnization of marriage, the defendant has committed adultery or fornication or bigamy or rape or an unnatural offence;
  • That since the solemnization of marriage, the defendant has voluntarily caused grievous hurt to the plaintiff or has infected the plaintiff with a venereal disease or, where the defendant is the husband and he has compelled his wife to submit herself to prostitution;
  • That the defendant has been facing a sentence of imprisonment for seven years or more for an offence as defined in the Indian Penal Code, 1860;
  • That the defendant has deserted the plaintiff for at least two years;
  • That the parties have not consummated their marriage for one year or more since the order for awarding separate maintenance for the plaintiff by the defendant has been passed by a magistrate;
  • That the defendant is no more belongs to the Parsi religion by conversion to another religion.

Indian Divorce Act (for Christians), 1869

The Indian Divorce Act, 1869 is one of the important codified personal laws in India which governs the Christian community. Section 10 of part III of the Indian Divorce Act, 1869 has laid down the grounds for the dissolution of a marriage. According to it, any husband can move to the District Court or to the High Court by filing a petition and praying for dissolving his marriage on the grounds that since the solemnization of the marriage, his wife has been guilty of adultery.

Similarly, any wife may pray to the District Court or to the High Court by filing a petition for dissolving her marriage on the grounds:

  • That her husband has renounced the Christian religion and has adopted another religion;
  • That her husband has gone through a form of marriage with another woman;
  • That her husband has been guilty of incestuous adultery, or of bigamy with adultery, or marriage with another woman with adultery, or of rape, sodomy or bestiality;
  • That her husband has deserted her for two years or more without reasonable excuse.

The Indian Divorce Act, 1869, governing the divorce and other matrimonial causes of the Christian community was based on the English law of divorce and this is suggested by Section 7 of the act which says that the court should act according to the principles of English Divorce Court. These provisions regarding the divorce, contain discriminatory laws to get a divorce from a wife the husband has to prove that his wife has committed adultery. However, for a wife to get divorced from her husband has to prove an additional matrimonial offence like bigamy.

Therefore, a need to reform the present discriminatory law was felt and the same was held by the Supreme Court in the case of Ms. Jordan Diengdeh vs S.S. Chopra (1985). The constitutional validity of Section 10 was challenged in the case of Mary Sonia Zachariah vs Union Of India (Uoi) And Ors. (1995), in which the Supreme Court asked the union to amend the law within six months.

This gave a new law Section 10A, with the heading ‘dissolution of marriage by mutual consent’ which was introduced by the Indian Divorce (Amendment) Act, 2001. According to Section 10A(1), a petition for dissolution of marriage can be moved by both parties to the district court on the grounds:

  • That both the parties were living separately for two or more years;
  • That they are unable to live together;
  • That they have mutually agreed to dissolve their marriage.

Sub-section 2 of this section says that if six months after the date of institution of proceedings and after the eighteen days of the said date, the petition is not withdrawn by the parties then the court should pass the decree of dissolution of marriage to be dissolved with effect from the date of the decree, after being satisfied by hearing both the parties that a marriage has been solemnized and that the averments in the petition are true.

How an annulment is different from divorce

Annulment is a procedure in which a marriage is declared as null and void. These marriages are good in law until avoided by one party at whose option it is voidable. Divorce is altogether a different concept. In a divorce, the petitioner prays to end the marital bond owing to certain events which may be overlapping with some of those under which makes a marriage voidable. Prima facie these two terms may look similar as both of them deal with termination of marriage but they hold two different meanings.

Effect of annulment is that there was no marriage between the parties after the decree of nullity is passed by the court. Whereas in case of divorce, the petitioner seeks only to break the bond. Petitioner does not challenge the marriage itself. While praying for the decree of annulment, the petitioner challenges the validity of the marriage. The main differences between the two concepts are:

  • The main aim of annulment is to declare a marriage void which was never valid. However, the party prays for divorce to end a valid marriage.
  • After the annulment, the status of the party becomes single or unmarried and after divorce, the parties become divorced.
  • After the annulment of marriage, no duties or obligations are aroused but after the divorce, a situation to pay alimony may arise as it depends on the case.

Conclusion

Annulment is a process in which the marriage is declared as null and void due to some reasonable causes and these causes include that the legal requirements were not met at the time of marriage. When certain legal requirements are not met at the time of the marriage then the marriage is not considered as a valid marriage. A divorce is a legal procedure where a valid marriage is dissolved by the court. These two terms deal with two different legal concepts. In the case of divorce, the petitioner seeks only to break the bond. Petitioner does not challenge the marriage itself. While praying for the decree of annulment, the petitioner challenges the validity of the marriage.

References


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Career development and well-being of employees : a pathway to success

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This article has been written by Saileena Bose and edited by Shashwat Kaushik.

Introduction

“Well-being is a priority… No, wait! career is a priority! No…, I don’t know what to prioritise. One earns me bread and the other is the foundation on which I strive to earn my bread.” – A typical thought bubble runs through almost every employee’s mind at some point or another.

The nature of the trade-off considered in its context is as archaic as the lingo of the preceding struggle of thoughts! In fact, happiness cannot be prioritised over career advancement or vice versa. They are not incompatible in any way, but rather complementary. If one is present, the other will follow. And still, we hang in limbo as to which to prioritise. We do prioritise one over the other from time to time, for example, due to contractual obligations, commitments, agreements, deadlines, personal reasons, and so on. But how far should that be taken? For how long? When should I switch gears? Is it a strategic approach for companies to facilitate both aspects for their employees within the organisation? 

Let’s try to find answers to these questions in this article. To begin with, we need to break the concepts down to their fundamentals. Let’s dive in, then! 

Understanding career development 

Concept of career development in current scenario 

We are in a VUCA (volatility, uncertainty, complexity, and ambiguity) world more than ever before. With cloud computing, IOT, AI and now quantum computing, humanity has yet to see as many disruptions over generations. In today’s rapidly changing and competitive work environment, the significance of career development and employee well-being cannot be overstated. Organisations that prioritise the growth and 

The well-being of their employees is better positioned to thrive in the face of evolving market dynamics.

Elements of career development 

Career development goes beyond simply climbing the corporate ladder or earning promotions. It encompasses a holistic approach to continuous learning, skill enhancement, and personal growth. 

A symbiotic relationship can best resemble the interplay between individual career growth and organisational success. When employees are empowered to achieve their professional goals, they bring fresh perspectives, valuable expertise, and a sense of ownership to their roles. This, in turn, drives innovation, collaboration, and organisational excellence. 

Strategies for employee career development 

In this section and forward, we will find answers to some questions that we asked at the opening of this article. Prioritising the well-being of employees is no longer a mere option but a strategic imperative. 

Here, we’ll discuss some of the strategic ways in which organisations can facilitate employee career development: 

Training and development opportunities 

When an organisation invests in employees’ learning and development programmes, it supports their skill enhancement and career growth. Providing access to workshops, seminars, online courses, and mentoring programmes and encouraging employees to pursue certifications and acquire new knowledge and competencies relevant to their roles are some of the ways to facilitate the same. 

Career pathing and succession planning 

Providing employees with a clear understanding of potential career paths within the organisation is a great strategic move. This way, channelling the employee’s competencies to organisational growth and their personal development gets streamlined. It’s important to outline the skills, experiences, and competencies required for each level or role. This enables employees to set goals, identify development areas, and take proactive steps towards advancing their careers. 

Performance management and feedback 

Establishing effective performance management systems that provide regular feedback, goal-setting, and performance evaluations enables employees to track their progress, identify areas for improvement, and align their efforts with organisational objectives. Performance discussions can also serve as a platform to discuss career aspirations and create development plans. 

Facilitating networking and relationship building 

Through networking events, conferences, or industry-specific gatherings, the organisation can facilitate connections between employees and industry professionals. Encouraging employees to actively participate in professional associations or online communities can help expand their networks and stay updated on industry trends. 

Apart from the above mentioned strategies, mentoring and coaching are critical to employees’ career growth.

Employee well-being and work-life balance 

Employee well-being is a crucial aspect of a thriving and productive workforce. Improved morale, productivity, and motivation; a strong employee value proposition; and increased employee loyalty and retention are some of the rewards of promoting employee well being. 

According to a 2019 Charted Institute of Personnel and Development (CIPD) survey, illness, mental health and stress were the biggest contributors to absenteeism at workplaces in the UK. 

Organisations that create supportive work environments, promote work-life balance, and prioritise mental and physical health support experience higher employee satisfaction, reduced turnover rates, and increased productivity. The success of employees and the success of the organisation are intertwined. Several factors contribute to an employee’s well-being, including their mind, body, psychology, finance and social well being. 

Some of the ways the organisation can strike a work-life balance for the employees are by providing flexible work arrangements such as remote work, flexible hours, compressed workweeks, or parental leave options. By supporting employees in achieving a harmonious balance, organisations can reduce stress, enhance job satisfaction, and improve overall well-being. 

Mental and physical health support 

Awareness and solidarity can go a long way towards supporting employees struggling with any number of personal issues. At American Express, the company created a new campaign in honour of Mental Health Awareness Month: “Here for You. Here for Each Other.” What inspiration can an organisation draw from this initiative? 

  • Recognise the importance of mental health and provide resources and support to employees. 
  • Offer access to confidential counselling services, employee assistance programmes (EAPs), or mental health initiatives such as stress management workshops or mindfulness training. 
  • Encourage open conversations about mental health and promote a stigma-free environment where employees feel comfortable seeking help when needed. 

Buffer, Facebook, Accenture, and Johnson & Johnson are some of the companies that have pioneered the idea of ‘A cause for good above objectives for profit.’ 

Work environment and culture 

Fostering a supportive and inclusive work environment where employees feel valued, respected, and included will establish a sense of safety in the minds of the employees. Promoting diversity and equality and addressing any instances of discrimination or harassment promptly and effectively will make them feel protected and acknowledged. Encouraging team

Building activities and staff volunteering activities will help boost the belongingness factor in the organisation. A supportive work environment fosters a sense of belonging, enhances psychological well-being, and promotes overall job satisfaction. 

Is a trade-off worth making 

You are an ambitious, high-achieving employee of your organisation. You have consistently given ground-breaking solutions to your organisation through your intelligence and hard work. You have been duly recognised for the same all along. Now, just imagine that you have a new manager. He suddenly starts demanding extra work hours, stops recognising your efforts and your talents and rebukes you. You cannot give time to your family. You feel stressed and upset. Will you continue working in that organisation? Let’s intensify this. He further indulges in Quid Pro Quo as a condition for appraisal, promotion, etc. You are done! You will leave the organisation immediately. So, you just traded your career development for your well-being. And this is an example of a very worthy trade-off. For an organisation, thus, the trade-off between career development and employee well-being is not an either-or situation but rather a balance that it should strive to achieve. It is crucial to recognise that career development and employee well-being are not mutually exclusive but interconnected factors that influence each other and contribute to a company’s profit, growth and goodwill. 

When organisations prioritise career development, employees are provided with growth opportunities, skill enhancement, and a clear path for advancement. This fosters a sense of purpose, motivation, and personal fulfilment, positively impacting their overall well-being. Career development can contribute to job satisfaction, increased engagement, and higher productivity levels. 

On the other hand, neglecting employee well-being in the pursuit of career development can lead to burnout, stress, and decreased job satisfaction. Employees may experience diminished mental and physical health, reduced motivation, and lower productivity levels. This can ultimately hinder career growth and negatively impact organisational success in the long run. 

Indian legal perspectives 

Employee well-being and career development are not only important from a human-centric perspective but are also supported by various legal frameworks in India. These frameworks aim to safeguard employee rights, ensure a safe and inclusive work environment, and promote holistic growth. Here are some key legal perspectives relevant to employee well-being and career development in India: 

  1. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013: This Act mandates organisations to establish internal complaints committees to address and prevent sexual harassment at the workplace. It emphasises the importance of providing a safe and respectful environment for all employees, particularly women. Compliance with this act is crucial for promoting employee well-being and ensuring a harassment-free workplace. 
  2. Indian labour codes (codes on wages, industrial relations, occupational safety, health and working conditions): The Indian labour codes, encompassing multiple labour laws, provide legal provisions to safeguard employee rights, including those related to well-being and career development. The codes focus on aspects such as fair wages, working conditions, social security, and occupational health and safety. Compliance with these codes ensures the overall well-being of employees and their protection from exploitation. 
  3. The Maternity Benefits Act, 1961: This Act ensures the well-being of women employees by granting maternity benefits such as paid leave, medical allowances, and nursing breaks. It promotes a healthy work-life balance for working mothers and protects their rights during and after childbirth. Adhering to this act demonstrates an organization’s commitment to supporting the well-being of its female workforce. 
  4. The Employees Provident Fund and Miscellaneous Provisions Act, 1952: This Act mandates employers to contribute to the Employees’ Provident Fund (EPF), which serves as a retirement savings scheme for employees. By contributing to the EPF, organisations contribute to the financial well-being and long-term security of their employees. 
  5. National Skill Development Corporation (NSDC) Initiatives: The NSDC, established by the Indian government, focuses on skill development and promoting career growth. It collaborates with various sectors and industries to provide skill training programmes, apprenticeships, and certifications. Organisations can leverage these initiatives to support employees’ career development by aligning training programmes with industry requirements. 
  6. Employment contracts and non-discrimination laws: Employment contracts in India often include clauses related to career development, promotion criteria, and growth opportunities. These contracts provide a legal framework for employees to seek redress in cases of unfair treatment or denial of career advancement opportunities. Additionally, non-discrimination laws protect employees from bias based on factors such as gender, religion, caste, or disability, ensuring equal opportunities for career development. 

Organisations need to be aware of these legal perspectives and comply with the relevant laws and regulations. By doing so, they create a framework that promotes employee well-being, supports career development, and fosters a fair and inclusive work environment. Consulting legal experts and staying updated with changes in labour laws is crucial to ensuring adherence and protecting the rights of both employees and employers. 

Conclusion

At the end of this article, we have understood how employee career development is dependent on their well being and vice versa. As long as an organisation has to work with humans, these two aspects are as important as both the wings of an aircraft for flying. We are moving into an era where AI is becoming a co-pilot for many business activities, resulting in reduced human requirements. Nevertheless, humans from an organisation cannot be alienated altogether and thus, the need for career-growth and well-being will never be out of question.

References 

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All you need to know about pension funds 

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This article has been written by Sakshi Garg, pursuing a Diploma in International Business Law from LawSikho and edited by Shashwat Kaushik.

It has been published by Rachit Garg.

Introduction

Longevity risk is the possibility that people live longer than expected, leading to higher costs for insurance companies and pension funds. This risk arises because more and more people are living longer, and this can cause these companies and funds to pay out more money than they planned for. The types of plans most affected by this risk are those that promise lifetime benefits, like pension plans and annuities. In summary, longevity risk is about the uncertainty of people living longer than predicted, which can create financial challenges for insurance companies and pension funds. This is due to the increasing number of people reaching retirement age and the longer life expectancies of policyholders and pensioners. Plans that guarantee lifetime benefits are most vulnerable to this risk.

Managing longevity risk in pension funds is a crucial aspect of ensuring the financial sustainability of retirement plans. Longevity risk refers to the uncertainty surrounding the lifespan of individuals and the potential for retirees to live longer than expected, resulting in increased pension payments and financial strain on the pension fund. To effectively manage longevity risk, pension funds employ various strategies and techniques. 

Historical context of pension funds in India

The history of the Indian pension system dates back to the dependent period of British-India. In 1881, the Royal Commission on Civil Establishments first awarded pension benefits to government employees. The Government of India Acts of 1919 and 1935 made further provisions.

The right to a pension in India is provided in Article 366(17) of the Indian Constitution, and this right has been upheld by the Supreme Court of India. In March 1997, there were 34.29 million individuals in India (10.92 percent of the 1991 labour force of 314 million) who were covered under any formal social security system. The combined government employees of the Central, State and Union territories covered 11.14 million (32.5 percent of the total), while the remaining were salaried employees in the private sector.

Government employees in India are provided with three types of retirement benefits. The first is gratuity, governed by the Payment of Gratuity Act 1972. This Act applies to both the public and private sectors.

The second is the Defined Contribution (DC) scheme. Each government employee contributes at a rate of 6.0 percent of wages to the Government Provident Fund (GPF), with no matching contributions from the government

The third and most significant retirement benefit is the Defined Benefit (DB) non-contributory (for the employees), unfunded, indexed pension scheme. There are also disability and survivor benefits. The maximum replacement rate is 50 percent of the average wage for the last ten months of service. There is also a maximum ceiling on the absolute amount of pension of 50 percent of the highest pay in the government.

How does pension funds work in India

In simple terms, India, like other developing countries, doesn’t have a universal social security system to provide financial stability to the elderly population. The high levels of poverty and unemployment make it all the more challenging to implement a state pension arrangement funded by payroll taxes for those who are closer to old age.

Instead, India follows a pension policy where both employers and employees contribute to the pension fund. However, this system only covers workers in the organised sector, leaving out the wide majority of people working in the unorganised sector without access to formal support for their old age.

Despite its limitations, India has a long history of pension and old age income support systems. It started during Colonial rule when pensions were first provided to government employees in 1881. Over time, these schemes were expanded to cover retirement benefits for all public sector workers. After gaining independence, many provident funds were started to include private sector workers in the pension system.

Today, the most popular retirement schemes in India are provident fund, gratuity and pension schemes. The first two schemes give only lump sum benefits at the retirement stage, but the last pension scheme makes payments on the monthly annuity. These schemes have certain common features  that are important to understand. Those are mandatory, occupation based earnings related and these schemes are also helpful in disability and death because of insurance coverage. In case the worker becomes disabled and passes away in this situation, under this scheme, his/her family will get financial support and benefits.  

The current state of pension funds In India

In the pension sector, there were some major changes that took place because of important reforms in the financial sector of India in the past few years.

Introduction to the National Pension System (NPS)

The NPS is a government-backed voluntary contribution retirement savings scheme launched in 2004. It’s a very popular scheme; anyone can join this scheme in India and save money for their retirement. The NPS gives you two options for investing your money : In stocks or In Bonds

Expansion of pension fund managers

 Initially, there were only a few companies managing the money in the National Pension System (NPS). These companies are called pension fund managers, but the government made some changes and allowed more companies to become PFMs.

Atal Pension Yojana (APY)

The Atal Pension Yojana is a government sponsored pension scheme targeted at the unorganised sector and aimed at providing pensions to individuals based on their contributions.

The government decided to allow more money from foreign sources to be invested in the pension sector. This change means that pensions can now get more investment from international sources. While other parts of the financial sector in India have seen organised and carefully planned reforms, the changes in the pension sector have been less systematic and more disorganised. The main reason behind this irregular change in pension funds is that it is complicated and interconnected with various points like fiscal and tax policies, labour markets, health and the insurance sector. This complicated aspect makes the pension reforms more challenging and time-consuming.

Fiscal and tax policies: Government fiscal and tax policies affected by pension funds These policies determine how much individuals get tax benefits on their contributions to pension schemes and how pension funds are taxed on their income. 

Labour markets: The state plays a significant role in pension funds. When people have stable employment, they are more likely to contribute regularly to their pension funds. 

Health and insurance sector: The health and insurance sectors are linked to pension funds because health and insurance needs are essential considerations during retirement. Rising health expenses can put pressure on pensioners’ finance, impacting their withdrawal pattern from pension funds

Due to this complication, pension reforms have not been given a high priority compared to other financial sector reforms. The government first likes to smooth other areas before fully clearing the complexities of pension funds. This approach, although expected, can sometimes delay the overall reform process.

The interconnections of the pension system with other sectors make the reform process diligent and lengthy, and they can potentially disrupt or delay the pace of the overall financial sector reform.

Analysis of pension fund regime in India

Most individuals are outside the pension scope in India. Unorganised sector workers have no structured social security system. The Insurance Regulatory and Development Authority has submitted a report on October 31, 2001, to the Government of India, making some timely recommendations for pension reforms in the unorganised sector. Some of reforms suggested below:

  1. There should be some public awareness programmes conducted so people are aware of the pension scheme in a better way and use those schemes for their benefits.
  2. Contributions for pension plans and the selection of schemes can be done in various ways and through different organisations, such as banks, asset management companies, post offices, NGOs, and other groups with common interests.
  3. The integrated provider will be responsible for keeping records of the contributions made by the customers.
  4. The contributions’ fund management can be handled either within the integrated provider organisation or through a specialised approved organisation.
  5. It’s more important to continue pension regulation updates and should check that they are relevant and effectively fulfilling the needs of retirees.

Need for pension reforms in India

Global comparison: India ranked 41 out of 44 countries in the Mercer CFS Global Pension Index. The MCGPI is a comprehensive study of 44 global pension systems, accounting for 65 percent of the world’s population.

The index ranks countries on three criteria:

  1. Adequacy: What benefits are future retirees likely to receive?
  2. Sustainability: Can the existing systems continue to deliver, notwithstanding the demographic and financial challenges?
  3. Integrity: Are the private pension plans regulated in a manner that encourages long-term community confidence?

A large portion of the Indian population, particularly those in the unorganised sector, remains uncovered by any pension scheme. This lack of coverage leads to financial insecurity for the elderly.

At least 85 percent of current workers in India are not members of any pension scheme, and in their old age, they are likely to remain uncovered or draw only social pension. Even for those covered under pension schemes, the amount received is often meagre and insufficient for sustenance. The variation in benefits based on programmes, occupations, and sectors leads to inequities within the pension system. Of all the elderly, 57 percent receive no income support from public expenditure, and 26 percent collect social pensions as part of poverty alleviation. The pension sector currently places a significant burden on the government’s fiscal plan. Reforms should aim to create a sustainable pension system that is financially viable in the long term, balancing the needs of retirees with the fiscal constraints of the government. The system for old age income support entailed 11.5 percent of public expenditure, and sub-national governments bear more than 60 percent.

The current system of tax exemptions on post-retirement benefits is not effectively targeting those in need. Reforms should ensure that the benefits reach the intended recipients, rather than primarily benefiting the high-income group.

Some key approaches used in the industry

Actuarial modelling

In this approach, we use statistical and mathematical techniques to determine the future mortality rate and estimate the life expectancy of pension plan participants. Actuarial modelling uses statistical models to manage financial uncertainty by making accurate predictions about future happenings corporations use actuarial modelling.

Risk pooling  

The purpose of the pension fund process is to collect money from people and invest it together. This process helps to reduce the impact of uncertainty about how long individuals will live, which is called longevity risk. Through this process of putting everyone’s money into a pool, the funds can handle the situation when some people live longer than expected. When a diverse group of people participate, the extra costs to support longer living people set up with the people who pass away untimely. In this way, the risk is divided among many individuals, making it easier for the pension fund to manage and plan for everyone’s retirement needs.

Some pension funds use insurance policies and annuity contracts to save themselves from the risk of people living longer than expected. They transfer their risk to the insurance company. They enter into an agreement. According to this agreement, pension funds pay a certain amount to insurance companies, but in return, insurance pays the retirees a regular income for as long as they live. In this way, pension funds don’t have to worry about paying back benefits if the individuals live longer than the estimated time because the insurance company will be responsible for payback.

Contract drafting

Smart investment with pension funds is the perfect way to deal with the risk of people living longer. They try to earn money from their investments to cover the increasing cost of paying people who are living longer. They do this by deciding where to invest their money and by selecting investments that have the potential to earn higher returns. By making this right investment decision, pension funds make sure that they have sufficient money to pay back pensions not only now to individuals but in the future, when people are living longer.

Regular monitoring and rebalancing

Pension funds regularly check how much money they have and how much risk they will face if people live longer. If the amount of money that they need to pay increases because people are living longer, the pension fund may have to change its strategy. They can adjust how they invest their money, how much money people contribute to the funds, and how much they pay back as pensions. All these changes in strategies help pension funds stay financially strong and make sure that they can pay their obligations to retirees.                  

Risk transfer through derivatives

A special agreement strategy is used by some pension funds, like longevity swaps and longevity options, to shift the risk to other organisations, like banks. These agreements act as a form of insurance for the pension fund, helping them and saving them from insufficient funds if the individuals live longer than estimated. Under these contracts, the impact of longer lifespans on their finances is reduced.                                                     

Asset-liability management (ALM)

Line up the investment strategies of pension funds with their payback liabilities, which is called asset-liability management. For managing the risk of people living longer, pension funds use ALM techniques in which the timing and amount invested match the time and amount of pension payments they need to make. Through this planning, they make sure that they have sufficient money available to pay their pension in the future. This helps the pension funds reduce the impact of people living longer than expected.                                                        

Progress of pension-sector in India

Since the introduction of NPS and, more recently, APY, the pension sector has expanded in India. The total number of subscribers has increased over three-fold from 1.5 crore in March 2017 to over 5.2 crore by March 2022. In terms of numbers, as could be expected, it is dominated by APY. The total number of APY subscribers (including its earlier version, NPS Lite) increased over four-fold from 93 lakh to 405 lakh . APY subscribers account for over 78 percent of the pension subscriber base .

The pension assets under management have increased over four-fold from Rs. 1,75,000 crore to Rs. 7,37,000 crore during this 5-year period. The bulk of the assets are held by NPS, which rose from Rs. 1,70,000 crore to Rs. 7,11,000 crore, accounting for 96 percent of total assets; the balance percent is contributed by APY. NPS in the private sector, which includes corporate and all citizen models, accounts for 16 percent of total assets. Thus, while pension numbers are driven by APY, pension assets are led by NPS.

Disaggregated APY subscriber data shows improvement in gender mix, with female subscriber share rising from 37.6 percent in March 2017 to 44 percent by March 2022; age mix is also rising in favour of the younger cohort in the age group of 18-25, from a share of 32 percent in March 2017 to 44 percent by March 2022. However, the bulk, or about 77 percent, of APY accounts were for a pension amount of Rs. 1,000 per month, followed by 15 percent for Rs. 5,000, with the remaining 8 percent in-between. The overwhelming share of Rs. 1,000 pension in APY could be due to several factors, the predominant cause being economic, with the target population being low-income households where day to day consumption expenditure takes precedence over savings.

A survey by PFRDA on the socio-economic characteristics of NPS subscribers (all citizen models) for the 5-year period 2016-17 to 2020-21 showed that 24 percent were female subscribers, with the balance of 76 percent being male subscribers. This is in contrast to a better gender balance in the case of APY. The majority of the enrolments were from the age groups of 26- 35 years (33 percent) and 36-45 years (31 percent). Most of the subscribers were highly educated: over 81 percent of the subscribers were graduates or with higher qualifications.

Most of the subscribers were from a relatively high-income group: two-thirds of the enrolments were from the income groups of Rs 5-10 lakh (36 percent) and Rs 10-25 lakh (30 percent). Among various states, enrollment from Maharashtra was the highest, accounting for 17 percent.

Going forward, NPS (private sector) is poised to expand rapidly as an increasing number of corporate employees and relatively better off households, for example, the self-employed and professionals such as doctors, lawyers and small business owners, see the merits of joining NPS. There is potential for NPS in rural areas for larger farmers and traders and those with lumpy income, as NPS does not require a standard monthly contribution.

The rate of returns in various NPS schemes since inception in the range 9.0-12.7 percent has been very competitive vis-à-vis alternate saving instruments. In the last five years, the range has been 8.1-13.3 percent. As could be expected, the equity-oriented NPS scheme has clocked an annual return of 13.3 percent. An ultra-conservative government-securities-oriented NPS scheme has posted an annual return of over 8 percent. APY has also posted a high average annual return of 8.8 percent in the last 5 years, with the annual return since inception being 9.4 percent (Table-3).

The coverage of the population in pension under these two schemes (NPS and APY) during the 5- year period 2016-17 to 2021-22, has increased from 1.2 percent to 3.7 percent as a share of the total population, and assets as a proportion of GDP have increased from 1.2 percent to 3.2 percent (Table-4). This will suggest that the pension-sector, though it started late, is progressing much faster than the nominal growth of the economy as well as the population. Impressive as these numbers are, they pale in comparison with development in a number of other countries. For example, almost everybody in OECD countries has access to a pension in some form or another, which doubles as old-age social security benefits.

The future outlook on pension funds in India

Here are some key aspects of the future outlook on pension funds in India:

  1. Rising demand: The demand for pension products and schemes is increasing with the growth of the elderly population. Good pension schemes provide life support and play a very important role in the financial security of an elderly person’s life.
  2. Expanding coverage: There should be some pension scheme provided to individuals in the informal sector to cover broader retirement security.
  3. Technology adoption: Pension funds should connect to advanced technology, improve efficiency, and provide more personalised retirement plans to individuals.
  4. Financial literacy: Financial literacy among the public will be a priority to encourage individuals to participate in pension schemes and make informed retirement planning decisions.
  5. Investment diversification: Pension funds might consider investing in many types of plans to get more returns and reduce the chance of losses. With this planning, they can manage their fund and risk.
  6. Regular reforms: Regular reforms are essential to face the challenges , ensure consumer protection and also manage the funds according to the economic changes.
  7. Public-private partnerships: Public and private partnerships help individuals provide better investment plans and schemes with better returns, which provide attractive benefits to retries.

Conclusion

In conclusion, it is very important that people living longer than expected stay financially sound under the pension scheme. People are living longer than expected so it’s becoming a challenge for the insurance company and pension funds. To face this challenge, the insurance company must devise some good strategies to handle this risk effectively. 

To deal with the risk of people living longer, pension funds can do a few things and make some strategies. They can use insurance to transfer some of their risk and manage their assets and  liabilities accordingly. They have to use technology to better reach people, including those in the informal sector. It’s also important to make sure that the individuals understand their plans too. These approaches will help shape the future of pension funds in India, make them more secure and provide more benefits according to their needs

 References


Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

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Examination of a witness : human rights perspective

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Human rights

This article has been written by Anindita Bhowmik, pursuing a Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting from LawSikho and edited by Shashwat Kaushik.

It has been published by Rachit Garg.

Introduction

The examination of witnesses forms a crucial part of the legal system in India, playing a pivotal role in both criminal and civil proceedings. Witnesses, often referred to as the “eyes and ears of justice,” provide critical evidence that can determine the outcome of a case. However, the process of witness examination and the rights of witnesses in India are complex issues that intertwine with human rights and legal protections. This article delves into these aspects, focusing on the legal provisions, landmark cases, and the Witness Protection Scheme, 2018.

Rights of witnesses in India

According to the website eitherview.com, more than 60% of the acquittals in the Indian criminal legal system are a result of witnesses turning hostile. A hostile witness is a witness who testifies against the party who called them to testify with the testimony intending to support their side of the case presented within the court. Threats to life, monetary benefits induced by coercion or compulsion, violence, and threats to near and dear family numbers are a few reasons why this happens. In reality, the myriad of reasons for this could be quite vast. 

It is crucial for a witness who is unfamiliar with the criminal justice system or uncomfortable with the police environment be well versed with some basic rights that he/she possesses as a witness in India:-

  1. When a person is arrested or detained for examination by the police, he/she has the right to contact a familiar legal aid professional or a lawyer to be briefed about rights, procedures and charges. 
  2. The person has the right to disagree and provide statements that are officially recorded by the police during the examination without the presence of his/her lawyer or legal aid.
  3. For witnesses of the female gender, the person has the right to be examined by the police at the safety of their own residences without being forced to attend an examination in the police station. This, of course, needs to be facilitated by the legal aid provider. The same is also applicable to underage witnesses below 15 years of age of both the male and female genders in India.

Rights of child witnesses

As per the Protection of Children  from  Sexual Offences Act, 2012 in India, the guidelines for interviewing children as witnesses are as follows:

  • The statement of the child must be in a language that the child understands and interprets. If needed, a translator or interpreter should be provided.
  • The child should not come into contact with the accused at any point during the investigation.
  • The child should not be detained in a police station for the night for any reason.
  • The identity of the child should be protected from public media unless otherwise directed by the court in interest of the child.
  • The statement of the child must be recorded in presence of parents of the child or any person that the child trusts. This can also be a person from the Child Welfare Commission in exceptional circumstances.
  • The statement or testimony of the child must be recorded within thirty days of the court taking cognizance of the offence. The trial should be completed as far as possible within one year of the court taking cognizance of the offence.
  • The court needs to ensure that the child is not called repeatedly to testify in court. Additionally, during cross-examination aggressive questioning or character assassination of the child should not be permitted and the dignity of the child should be maintained at all times during the trial.
  • The child or his/her parents or guardians have the right to legal counsel of their choice for any offence committed. If they are unable to afford legal counsel, the National Legal Services Authority (NALSA) should provide a lawyer to them free of charge.

Other basic rights for adult witnesses

Similar to the case of child witness testimony, an adult can also testify in the language of their choice or with the help of an interpreter, avoid  face encounters with the accused as a basic right and  remain silent when encountering public media during the pendency of the case in court.

Additionally, according to Section 195-C of the Indian Penal Code (IPC), a person who threatens the witness to turn hostile can be punished with imprisonment for up-to 7 years, fined or both if the witness complains about the same to the police.

However, in spite of all this, the conviction rate in India is unfortunately quite low. In cases related to terrorism, it has been repeatedly observed that witnesses are more likely to face harm than receive protection from the administrative system. This is also true when the accused is a political figure or a person of high respect and command in society. Even in cases that may not be of the nature stated earlier, the witnesses face way too many hassles during the investigation and trial and are not always treated with the respect and dignity they deserve. Hence, there was a need for an explicit Witness Protection Scheme by the authorities addressing the guidelines for witness protection in any situation that the witness may face.

Examination of witnesses and witness hostility

The Indian Evidence Act, 1872, and the Code of Criminal Procedure, 1973 (Cr.P.C.), provide the legal framework for the examination of witnesses in India. The trial procedure  includes chief examination, cross-examination, and re-examination. In simple terms, the trial typically includes stages wherein the prosecution specifies its evidence, and the defence can cross-examine the credibility of the evidence presented by asking questions to the witnesses either on the same date or on a different date. Similarly, the defence can present evidence favouring their side of the case and the same can be cross-examined by the prosecution for credibility and relevance to the acquisition put up in the given case. The magistrate can themselves cross-examine the witnesses if need be in certain cases where a police report wasn’t filed against the accused.

The Indian Evidence Act, 1872, lays down the rules for leading questions, hostile witnesses, and expert witnesses, ensuring that the examination process is fair and just. A hostile witness testifies against the party calling them with untruthful, evasive or contradictory statements presented in court as opposed to the statements earlier made by the same person in the context of the case. The opposite party’s lawyer may declare the witness a hostile witness to get permission from the court to ask leading questions, which aren’t allowed in general circumstances. The purpose of doing so is to clarify information, expose inconsistencies, and ultimately weaken the witness’s credibility in the eyes of the honourable judge deciding on the matter.

In the Zahira Habibullah Sheikh & Anr. vs. State of Gujarat & Ors. (2006) case, the Supreme Court has ruled that if a witness is unable to fulfil their duty in court in providing accurate information, the trial becomes ineffective and corrupted. The same cannot be considered a fair trial anymore. There are various reasons that incite a witness to do so; negligence due to unfamiliarity with court systems, corrupt collusion or even circumstances beyond their control. Hence, the protection of witnesses is a serious matter. It is the responsibility of the state entities to take this seriously.

The Honourable Supreme Court, in the case of Swaran Singh vs. State of Punjab (2000), expressed deep concern about the harassment and inconveniences that witnesses typically had to face while testifying. They travel from far and wide only to find the case adjourned. It has become a common tactic for unscrupulous lawyers to seek adjournments repeatedly, causing financial as well as emotional loss to the witness and their families. Witnesses are not only threatened but also abducted, harmed or bribed. They have no protection. When a court adjourns a case without a valid cause, it unknowingly contributes to the miscarriage of justice. Witnesses are not treated with respect in court and are usually pushed aside by the court staff. They wait for hours, only to find out that the matter has been adjourned. They have no place to sit or even get a glass of water. When they do appear in court, they endure prolonged examinations and cross-examinations leaving them in a helpless situation. Because of all this, more and more people are unwilling to become witnesses, which hampers fair trials and ultimately the administration of justice.  

Criminal litigation

In the case of Dayanand B. Nayak vs. Ketan K. Tirodkar and Anr. (2003), the Bombay High Court provided police protection to Ketan Tirodkar, a former journalist, because he had received threats after filing a police complaint that revealed a series of illegal activities carried out by police in collaboration with the underworld. However, the public prosecutor opposed granting police protection, claiming that Tirodkar himself had involvement with the underworld.

In the rape case against the self proclaimed spiritual leader “Bapu Asaram,” a key witness had been given police protection by court orders. This came after another witness in the case was tragically shot dead. The bench of justices A.R. Dave and A.K. Goel had instructed the trial courts to take the necessary measures to provide witness protection in cases of threats.

With the landmark case of Mahender Chawla & Ors. vs. Union of India and Ors. (2018), the court formally introduced the Witness Protection Scheme in India. The court stated in their judgement that the current justice system in India takes witnesses for granted. They are summoned to court without consideration for their financial and personal circumstances. They are often made to appear in court long after the alleged crime, making it difficult for them to recall important details. One of the main reasons why witnesses turn hostile is the lack of proper protection provided by the state.

The court interpreted Article 21 of the Constitution, stating that if witnesses are unable to testify in court due to threats or pressure, it is a clear violation of their right to life. The right to life includes the right to live in a society free from crime and fear, and witnesses have the right to testify without fear or pressure in court.

Witness Protection Scheme, 2018

Recognising the challenges faced by witnesses, the National Legal Services Authority (NALSA) and the Bureau of Police Research and Development (BPR&D) drafted the Witness Protection Scheme, 2018. This scheme was approved by the Supreme Court in the case of Mahendra Chawla and Ors. v. Union of India and Ors. (2016) and provides a comprehensive framework for the protection of witnesses based on threat perception.

It is important to note that the level of protection provided to the witness can differ on a case to case basis under this scheme. The same totally depends on the threat perception level identified by the threat analysis report.

The threat analysis report is prepared and submitted by a competent authority investigating the case. The report is expected to detail the specifics of the seriousness and credibility of the threat with respect to damage to reputation and property and damage to the life and wellbeing of the witness and his/her family members, as well as the people making the threat having the intent, motive and resources to implement the threat.

The definition of a witness has also been made clear as a person who possesses information or documents about any offence.

All the threats received by any witness need to be classified into any one of the below stated categories as per the report given:

  1. Category A: When the threat extends to life of witness or his/her family members during pendency of the trial or as an aftermath.
  2. Category B: Where the threat extends to safety, reputation or property of the witness or his family members during investigation or trial or as an aftermath.
  3. Category C: Where the threat is moderate or extends to harassment or intimidation of witness or his family members, reputation/property during the investigation, trial or thereafter.

An application for witness protection must be moved by the witness, his/her family, the appointed legal counsel, the jail superintendent in charge, the investigating officer, the station house officer or  the sub divisional police officer concerned. This application must be filed under the standing committee consisting of the district and session judge as the chairperson, the head of police in the district as a member and the public prosecutor as a member. 

As and when the application is received, any member of the standing committee can pass the order for the preparation of the threat analysis report by the assistant commissioner of police or deputy superintendent of police in charge. The threat analysis report should ideally be prepared within five days of receiving such an order. The suggestive protection measures should also be included in the threat analysis report.

The various types of protection measures included can be:-

  • Monitoring of mail and telephone calls by the police.
  • An arrangement made with the telephone company to assign the witness an unlisted telephone number.
  • Installation of security cameras across the witnesses homes.
  • Close protection and regular patrolling by the witness house.
  • Temporary change of residence.
  • Police escort on the date of the hearing.
  • Holding in-camera trials.
  • Usage of specially designed vulnerable witness court rooms, which have special arrangements like live video links, one way mirrors and screens apart from separate passages for witnesses and accused, with the option to modify the image of the face of the witness and the audio feed voice of the witness so that he or she is not identifiable.
  • Identity protection, by virtue of which during court hearings the identity of the witness wouldn’t be revealed and the statements provided remain as material on record, with confidentiality obligations binding the police not to ever reveal the identity of the witness anywhere, even after the statement is provided and case is disposed of.

The responsibility to protect the witnesses is entrusted either to a dedicated state police cell or a central police cell that is responsible for acting on the orders passed by the standing committee. However, if an order is passed for the change of identity/temporary relocation, the responsibility of execution of the same lies with the department of home of the concerned state.

The standing committee deciding on the witness protection application is also bound by the act to conduct the hearings on the application in confidentiality. Also, they need to be provided with regular reports by the executing authority in cases where the protection mechanisms need to be stepped up. If the witness disagrees at any point with the orders passed, he/she can file for a review with another application before the designated standing committee.

Given that the Witness Protection Act tries to enforce the principles of transparency, human rights of witnesses and fairness in trials and court procedures, after seventy years of a constitutionally driven criminal justice system, the below statistics are a reality as well as frightening:

  1. Criminal cases take an average of five to fifteen years to reach completion.
  2. Convictions are as low as four percent (4%)  in mass crimes and about thirty three percent (33%) in individual crimes.
  3. In over seventy percent (70%) of cases, the witnesses turn hostile.

These statistics indicate the failure of the state to provide witnesses with adequate security cover even after the existence of the Witness Protection Act for almost five years now.

Recommendations for enhancements to the Indian witness protection scheme

Witness protection in India is hence a much needed concept but unfortunately not a well implemented concept within the criminal justice system. Internationally, many countries have identified and accepted similar challenges in their witness protection schemes, especially when they are related to organised crimes. The report titled “Good Practices for the Protection of Witnesses in Criminal Proceedings Involving Organised Crime”, published by the United Nations Office on Drugs and Crime ( UNODC ) in 2008, provides references to amendments made in witness protection schemes over time internationally across different countries of the world to strengthen administrative cooperation targeted for witness protection. 

A few of the noted amendments are listed below as references to be considered as recommendations for enhancements to the Indian witness protection scheme:-

Germany

Witness protection programmes have been in place in Germany since the mid-1980s.They were first used in Hamburg in connection with crimes related to motorcycle gangs. In the following years, they were systematically implemented by other German states and the Federal Criminal Police Office.

In 1998, the Witness Protection Act was introduced in Germany. This formalised the new witness protection wings of the police at the federal and state levels. 

Police personnel within this wing are specifically trained to handle unique challenges associated with protecting witnesses, like psychological support, risk assessment, relocation strategies and identity change procedures.

The files on protected witnesses are maintained separately by the protection units and not included in the main investigation files, preventing access to these even by specific state agencies.

These specialised wings are also granted a degree of operational autonomy, with the protection of witnesses as the primary focus without being influenced by the ongoing investigation. 

The purpose is to focus on the efficiency of these specialised units, which can develop streamlined processes and controls leading to quicker response times and more efficient operations for a secure approach to ensuring the safety and well being of witnesses, especially in high risk cases.

South Africa

Before 1996, witness protection in South Africa was governed by Section 185A of the Criminal Procedure Act of 1977.This provision was repressive and used to coerce witnesses into giving evidence.

In 2000, South Africa introduced a new law on witness protection, promulgating the old law in place for the same. 

The new law provided for the establishment of a national office for witness protection, which operates under the authority of the Ministry of Justice and Constitutional Development. It is headed by a national director at the country level and has branch offices in South Africa’s nine provinces.

The director has the power to decide on admission to the programme based on recommendations from the branch office and other relevant law enforcement agencies. 

The Act defines the types of crimes for which the witnesses may request protection, the procedure to be followed and the persons eligible to apply. This list is not exclusive, as the director has discretionary powers to approve protection for witnesses in respect of any other proceedings if the safety of the witness warrants it.

The Act defines offences and severe penalties for any unauthorised disclosure or publication of information regarding persons admitted to the programme or officials of the office of witness protection. 

The act also facilitates international collaboration, wherein the minister of justice and constitutional development can enter into agreements with other countries and international organisations regarding the conditions and criteria for relocating foreign witnesses to South Africa or admission to the witness protection programme.

The report also introduces the role of additional members of society beyond the witness, the family member of the witness, competent authority, police and witness protection cell.

These are listed below:-

  • A justice collaborator:

A justice collaborator is an individual who has participated in offences connected with criminal organisations and possesses crucial knowledge about the organisation’s structure, operations, activities and links with other groups. Their motivation to cooperate is generally not based on moral grounds. 

Many of them cooperate with the expectation of receiving immunity or at least a reduced prison sentence and physical protection for themselves and their families. Such an individual is especially important in testifying for organised crimes.  

Special measures are often required to protect the lives of justice collaborators. These measures could include separation from the general prison population if the justice collaborator is imprisoned, change of identity within prison and outside, financial support and re-settlement options and default admission of family members to the witness protection scheme.

  • A witness assistant:

Witness assistance differs from witness protection, with the goal being to ensure the support and mental well-being of the witness rather than physical protection. 

A witness assister  is expected to alleviate the anxiety that an individual might face while testifying in a trial. He/She is therefore expected to support the witness during trial participation.

An important duty is also the identification of a vulnerable witness. The vulnerable witness could be any adult, or child or physically impaired  individual who needs special consideration during their interaction with the criminal justice process.

The goal of witness assistance is to prevent secondary victimisation or revictimization of the witness in the trial process. This refers to victimisation not from the criminal act but due to response of institutional individuals to the victim.

  • An informer:

While witnesses provide testimony in court based on their observations and experiences, an informant provides intelligence or information to law enforcement agencies, often covertly. Given the risks they face due to their cooperation, countries like Australia, Austria, Canada, Latvia, the Netherlands, Norway and the United Kingdom have legislation in place to directly admit informants to witness protection programmes.

Police officers who use informers as sources keep their names and identities confidential. In general, informants may be provided with physical protection due to the nature of their job. But once they become witnesses, it is important to dissociate their relationship from the investigation and intelligence agencies to ensure a clear distinction between their roles as an informer and as a witness in the Indian justice system.

The introduction of the stated roles and codification of the expectations of each role towards witness protection has the ability to transform the witness protection system in India drastically. From a human rights perspective, these roles emphasise the importance of balancing the rights of the individuals involved in the criminal justice process, irrespective of whether they are witnesses, an informer or witness assisters, with the broader goal of ensuring justice and public safety. 

The practice of using a justice collaborator can raise ethical concerns as it may be perceived as rewarding criminals with impunity for their crimes. But the objective is not complete impunity but a sentence reduction granted only at the end of full cooperation in the trial process.

Conclusion

While significant differences exist among the legal traditions, political environment, stage of development, society and culture, and levels and types of criminality in the various countries, the witness protection programme within the Indian judicial system needs to incorporate a deeper understanding of the societal and cultural context. 

The success of witness protection operations, as seen in the jurisdictions of other countries, is an outcome of a clear legal policy for designing a methodology and carrying out operations. 

Close coordination with judicial and other government authorities engaged in law enforcement and intelligence, prison administration, public housing and health and social security services is essential for the accountability and transparency that this programme necessitates for effective implementation.

References


Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

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Vicarious liability under Negotiable Instruments Act, 1881

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This article has been written by Taru Agarwal, pursuing a Diploma in International Contract Negotiation, Drafting and Enforcement from LawSikho and edited by Shashwat Kaushik.

It has been published by Rachit Garg.

Introduction

Section 138 of the Negotiable Instruments Act, 1881 (NI Act) enacts the principle of criminal liability in cases of dishonour of a cheque due to insufficiency of funds for the discharge of any debt or liability. According to the provisions of the NI Act, the offence of cheque bounce is punishable with imprisonment extending up to two years and a fine extending up to twice the amount of the cheque. The object of imposing criminal liability in such cases is to ensure the credibility of business transactions and the efficacy of banking operations.

Most large business transactions involve large entities like companies or partnership firms. Since companies or firms are not natural persons, they can not be subject to criminal liability directly under Section 138 of the NI Act. In order to ensure these entities fall within the ambit of the NI Act, Section 141 of the NI Act was enacted, which extended criminal liability to the officers associated with the company or firm vicariously.

Scope of Section 141 of NI Act

Section 141 of the NI Act specifically deals with the offence of dishonour of cheques by companies and is divided into two clauses. Clause 1 imposes vicarious liability on any person for the commission of the offence if, at the time of the offence, such person could be held responsible for or was in charge of the conduct of the business of the company along with the company, unless such person can prove that he had no knowledge or had taken all steps in his power to prevent the commission of the offence. The second proviso to clause 1 exempts nominated directors of a company and persons in employment in the Central Government or State Government from the provisions of clause 1. Clause 2 additionally provides that any director, manager, secretary, partner or other officer of the company or firm with whose consent or connivance, or due to whose neglect, such offence was committed shall be vicariously prosecuted along with the company or firm.

A company or firm does not enter into business transactions directly but instead is represented by various people working for the company or firm. These people become the face of the company or firm, instilling confidence in business transactions as well as loans from the banks. When a company or a firm enters into contractual relationships on the basis of postdated checks, the goodwill of the company represented by the people working for the company or firm becomes relevant. Thus, if there is a default in honouring checks, a complaint is filed against the company or firm along with the persons responsible for the business of the company or firm on a daily basis.

The principle of criminal vicarious liability under Section 141 of the NI Act is taken from the general principle of tort. The concept of vicarious liability is based on the Latin maxim Qui facit per alium facit per se, according to which a person is liable for the actions of the other person due to the nature of the relationship between the two persons on the basis of the law of agency. In the case of companies and firms, the relationship is that of a juristic person and natural persons who are responsible for the business of the company or the firm.

Principles laid down in various judicial pronouncements

Since Section 141 of the NI Act provides for vicarious liability that is imposed on directors or partners on behalf of the company or firm through a legal fiction, it becomes imperative that the provisions and requirements of Section 141 of the NI Act are strictly complied with. While the general principles of liability under Section 141 of the NI Act remain the same, the nitty-gritty have been explored, elaborated and clarified by various courts over time.

Company as co-accused

An important aspect of prosecution under Section 141 of the NI Act is whether the company or the firm is to be mandatorily prosecuted along with the directors, partners or other persons as well. In Anil Gupta vs. Star India (P) Ltd & Anr. (2014), the Supreme Court held that the proceedings under Section 141 of the NI Act are initiated against the persons on the basis of legal fiction. Hence, the accused persons under Section 141 of the NI Act can be held liable as co-accused vicariously only if the company or firm has been accused of the offence as a principal accused. Thus, if the complaint does not disclose any commission of offence by the company or the firm or if the complaint is quashed by the company or the firm, the other persons accused of the offence cannot be held liable or convicted of any offence under Section 141 of the NI Act.

Requirement of specific allegations in complaint

Further, through various judicial pronouncements, a major principle that emerges is that a complaint under Section 141 of the NI Act must contain specific allegations mentioning the role played by the person concerned in the transaction. In S.M.S. Pharmaceuticals Ltd. vs. Neeta Bhalla and Anr. (2007), the Supreme Court held that it is necessary to specifically allege allegations against the director of the company in the complaint, mentioning the role played by the director when the offence was committed. If such allegations are not stated, then it cannot be said that the requirements of Section 141 of the NI Act have been satisfied.

Director in-charge of a company

Another major holding by the Supreme Court in the S.M.S. Pharmaceuticals case was that a person does not become liable under Section 141 of the NI Act solely on the ground of such person being a director of the company, as “a director in a company cannot be deemed to be in charge of and responsible to the company for the conduct of its business”. A director can be held liable for the offence of cheque dishonour under Section 141 of the NI Act only if it can be shown that, at the time of the commission of the offence, he was the person in charge of and responsible for the conduct of the business of the company and this must be specifically averred as a fact by the complainant. The Court held that if such a standard of responsibility or conduct cannot be attributed to the director, then he can not be deemed liable in such cases. The Court further observed that in the case of a “Managing” or “Joint Managing” Director, an inference may be drawn against such a person by virtue of the position held by them. The Court held that such a position itself entails that the director would be in charge and responsible for the conduct of the company’s business. Thus, if the complaint is against a managing director or a joint managing director, then such a person will become liable under Section 141 of the NI Act.

But the courts have repeatedly held that any and every person in the role of a director in a drawee company must not be blindly prosecuted under the NI Act. In another landmark judgement of K.K. Ahuja vs. V.K. Vora and Anr. (2009), the Supreme Court took notice of the various precedents to hold that if the accused is a Managing Director or a Joint Managing Director of the company, then no specific averments are necessary to be made as the prefix “Managing” in itself is enough to deduce that such a person was in charge of and is responsible to the company for the conduct of the business of the company. Even in cases where the accused is any other director or officer of the company who signed the cheque, there is no need to make specific averments in the complaint since the signing of the cheque on behalf of the company is enough to deduce that such a person was aware that he was acting on behalf of the company. This in turn would give rise to the culpability of such a director or officer in accordance with clause 2 of Section 141 of the NI Act. But the Court ruled that if the accused person is a director, secretary or manager of the company who, by very nature, is not involved in the day-to-day functions of the business of the company or firm, then in order to fasten liability on such persons, the complaint must have specific allegations alleging the involvement of the accused persons in the commission of the offence of dishonour of cheque. The complaint in such cases must explicitly state how the accused persons were responsible for the offence by either showing that such an act was committed with their consent or knowledge or that such an act could not have happened without the negligence of such persons in order to bring the case under clause 1 or clause 2 of Section 141 of the NI Act. In the case of all other officers of the company, they can only be made liable under clause 1 of Section 141 of the NI Act by making specific averments in the complaint stating their position and duties in the company, showing some knowledge or awareness, and the role played by them in the day-to-day functioning of the company, coupled by special averments to show how such accused persons were involved in the offence of dishonouring the cheque, be it through explicit consent, connivance or negligence. This proposition was recently upheld by the Apex Court in the case Dilip Hariramani vs. Bank of Baroda (2022), where the Supreme Court held that no vicarious liability under Section 141 of the NI Act fastened upon a partner of a firm merely because he was the partner of the firm or stood guarantor to the loan taken by the firm. The Court held that in such cases, the partner would be subject to civil liability under the Partnership Act but not criminal liability under the NI Act.

Quashing of complaint under Section 141

Another aspect of prosecution under Section 141 of the NI Act is that of quashing the complaint under Section 482 of the Code of Criminal Procedure. Recently, in S.P. Mani and Mohan Dairy vs Dr. Snehalatha Elangovan (2022), the Supreme Court reiterated that the High Court must not quash cheque bounce cases in a mechanical manner. Instead, the power to quash such a case must be exercised only on the basis of the existence of some unimpeachable and incontrovertible evidence after considering the complaint as a whole. The Court held that before quashing a complaint, the High Court must satisfy itself from the facts in hand that, at the time of the issuance of the cheques in question, the director or partner of a company or firm was not responsible for the issuance of the cheques in question.

Inter-play between NI Act and IBC

While dealing with penal liability under Section 141 of the NI Act, the Supreme Court came across another issue as to whether natural persons, such as the director or partner, continue to be liable under the NI Act even if the company or firm is discharged of liability due to insolvency under the Insolvency and Bankruptcy Code, 2016 (IBC).

This issue was considered by the Supreme Court in the case of P. Mohanraj vs. M/S Shah Brothers Ispat Pvt. Ltd. (2021), where the Supreme Court held that though the proceedings under the NI Act fall within the ambit of the IBC, the benefit of the protection during the moratorium period would only extend to the company, and natural persons that may be accused under Section 141 of the NI Act, such as the directors of the company, would continue to be held liable if they are involved in the day-to-day operations of the company. The Court noted that though the company is a separate legal entity from its shareholders, extending the shield provided by the IBC to natural persons would open a floodgate for the management or directors of the company to exploit the company for personal gain. In line with this observation, various recent judicial pronouncements have held that directors of a company must be held accountable for their actions carried out in their capacity as office bearers of the company.

Conclusion

From the various judicial pronouncements, it is clear that in cases of dishonour of a cheque, the criminal liability imposed on the directors and partners of the company or firm has been interpreted in a strict manner to include all those persons who are responsible for the business and conduct of the business or firm but one does not become subject to penal liability under Section 141 of the NI Act merely by being the director or partner in the company or firm. There must be some nexus between the accused person and the conduct of the business of the company or firm. This nexus may be evident from the nature of the position held by the accused, such as in the case of the managing director or joint managing director, or it must be specifically averred in the complaint by placing material on record to prove the prima facie involvement of the accused person at the time of the commission of the offence in the business of the company or firm.

References


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Trade secret protection and anti-takeover provisions

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This article has been written by Mridul Tewari, pursuing a Diploma in M&A, Institutional Finance and Investment Laws (PE and VC transactions) from LawSikho and edited by Shashwat Kaushik.

It has been published by Rachit Garg.

Introduction 

Intellectual property today is an important part of almost all types of businesses. People rely on one or another type of intellectual property for the furtherance of their business and scientific interests. Copyrights, patents, trademarks, plant varieties, industrial designs, geographical indicators, integrated circuits and trade secrets are among the various kinds of intellectual property. People owning such intellectual property also need to ensure that their intellectual property is safeguarded and is not misused by someone else.

What are trade secrets

A trade secret is any information about a business or organisation that is kept confidential and is not in the public domain. Sometimes, it may also happen that most of the people working in a particular business are not aware of such trade secrets and they are only known to a select few people in that business organisation.

For something to be a trade secret, it should adhere to the following:

  • Commercial or economic value: Such information or knowledge should have a commercial or economic value.
  • Known only to a select few: Such information or knowledge must only be known to a select few people.
  • Its secrecy is ensured: People having such information or knowledge should have taken measures to ensure its secrecy.

Any kind of knowledge, information, business technique or business process, formula or any method of doing business, manufacturing process, etc. can be considered a trade secret as long as it has economic or commercial value, is known only to a select few people and measures are taken by people knowing it to protect its secrecy.

Protection of trade secrets

Special emphasis is laid on maintaining the secrecy of trade secrets and their protection, as trade secrets set a business apart from its competitors and give it an edge over them. Some examples of well known trade secrets are Google’s search algorithm, Coca-Cola’s syrup formula, McDonald’s Big Mac Special Sauce, and KFC’s chicken recipe, among others. These well-known trade secrets are among the main reasons for the growth and success of these companies. Thus, the protection of trade secrets is of utmost importance for any business.

Unlike other forms of intellectual property, trade secrets are not registered anywhere and are protected until they are kept a secret, are not known to someone else or are acquired by someone else. 

Hostile takeovers

A company or business that gets acquired by some outsider or other company without the knowledge, consent or approval of its senior management and directors is termed a hostile takeover. The company that acquires is known as the acquirer and the company that acquires is known as the target company. All such takeovers that are done without the approval of the senior management and board of the target company and are against their wishes are hostile takeovers.

A few instances of hostile takeovers are listed in the table below:

Indian instancesForeign instances
Adani Group’s takeover of NDTV in 2022.Emami’s takeover of Zandu in 2008.Elon Musk’s takeover of Twitter in 2022.Sanofi-Aventis’s takeover of Genzyme Corporation in 2011.Oracle’s takeover of PeopleSoft in 2004.

Rationale behind hostile takeovers

There could be a multitude of reasons behind hostile takeovers, some of which are listed below:

  • A belief on part of the acquirer that the target company is undervalued and by taking it over, they could benefit in the future, or
  • It could also be a part of the strategy of the acquirer who wants to make changes in the management and operations of the target company, or
  • It could also be because the acquirer wants to know about the trade secrets of the target company, such as its method of doing business, manufacturing process,technology or some other secret knowledge.

Anti-takeover provisions

The trade secrets of any business are at risk of being revealed to acquirers and outsiders in the event of a hostile takeover. To prevent outsiders from taking over the management of their business and to protect their well kept trade secrets, target companies make use of certain defence tactics. Anti-takeover provisions are defence tactics that are used by target companies to prevent their hostile takeovers.

Some commonly used anti-takeover provisions by target companies to prevent their hostile takeover are Staggered Boards, Poison pills, White knights, Pacman techniques, etc. Some of them are discussed below.

Staggered Board Technique

The staggered board technique, also called “classified board,” is when the directors on the board of the target company are given different terms or are classified into “classes”. All the directors do not retire at the same time and only a few directors of a “class” retire while the rest continue. If the target uses this defence tactic, then it would not be possible for the acquirer to get control over the board of the target in a single meeting, and the acquirer would thus be unsuccessful in taking over the target company.

Poison Pill Technique

The poison pill, as is evident from its name, is a technique that makes the target unattractive to be acquired and the acquirer would not want to “take the poison pill”. This technique gets implemented after the acquirer has acquired the shares of the target company above a given threshold. This threshold is also known as the trigger event. After this threshold limit is breached by the acquirer, the existing shareholders of the target company purchase additional shares of it at a discounted price, i.e., less than the market price, due to which the ownership of the acquirer in the target company dilutes. This makes the hostile takeover more complex and unattractive for the acquirer. This tactic, due to its nature, is also called the shareholder rights plan.

The implementation of the poison pill also gives the target company an opportunity to negotiate with the acquirer and both of them may negotiate for a much better price as well as conditions favourable to them.

White Knight

White Knight refers to a person who comes for someone’s rescue. In relation to hostile takeovers, it refers to another friendly acquirer who rescues the target company from a hostile takeover. The White Knight co-operates with the board of the target company, negotiates better terms and prices, is in alignment with the interests of the target and is more favoured by the target’s board and owners. This technique is more of a strategic merger than an acquisition, used to save the target from hostile takeover with the aid of a friendly acquirer. Thus, through such a friendly acquisition, the interests of the stakeholders are protected and business operations also run smoothly. This technique is suitable for small corporations and startups, where they seek the help of a friendly company.

Pacman Technique

This defence technique derives its name from a popular Japanese video game known as “Pacman”, in which the objective was to eat up all the bubbles in the maze and also avoid getting eaten up by the ghosts. The Pacman technique is quite similar to the game, where the target company, while avoiding its holistic takeover by the acquirer, also makes an attempt to acquire the acquirer company. Using this technique, the target company becomes aggressive, which puts the acquirer in a vulnerable situation, forcing the acquirer to become defensive.

When the Pacman technique is employed and the acquirer company becomes defensive, it may negotiate with the target company for better terms or it may drop the idea of acquisition altogether. The Pacman technique is not used very commonly as it may require a lot of finances to make a bid for the acquirer’s acquisition. Also, this technique is more suitable for big corporations that have financial backing.

The list of these anti-takeover provisions is not exhaustive and there may be many other anti-takeover provisions depending on the jurisdiction, applicable laws and common practices. But, whatever anti-takeover provision is employed, it helps in the protection of the target company, its interests as well as those of its stakeholders and most importantly, its intellectual property and trade secrets. 

Provisions in India

India is an emerging market economy where a lot of businesses operate across various industries and there are chances of hostile takeovers. The anti-takeover protections in Indian law are listed below:

There is also a provision in the Companies Act, 2013 for the appointment of independent directors. Independent directors are directors who are not whole-time directors and keep a check on the proper governance of the company. They may oversee any hostile takeover attempt and may use preventive measures.

Apart from the above mentioned provisions in Indian law, a company may also use any other defence strategy that suits its interests and prevents a hostile takeover. 

Provisions in the US

The US is a federation, where the Congress (the federal legislative body) and the state legislatures make their own laws. In the US, there are different laws pertaining to anti-takeovers both at the federal and state levels.

  • The Williams Act is a federal law that deals with public corporations. It is enacted to regulate tender offers and disclosure requirements during the acquisition of public corporations. It ensures that shareholders of such corporations are provided with all the material information during acquisitions. This may help prevent hostile takeovers. 
  • The General Corporation Law of Delaware State is a state level law of Delaware State in the US. It has provisions in it that allow corporations to adopt anti-takeover defence tactics in the case of hostile takeovers. 
  • The US Securities and Exchange Commission, which regulates the securities markets in the US, has the Securities Exchange Act of 1934, which deals with various takeover related issues and anti-takeover measures.

Case law related to anti-takeover measures also forms an important source of how the anti-takeover measures are interpreted by the US courts, and the US Securities and Exchange Commission also comes up with various rules regarding anti-takeovers from time to time.

Convergence and challenges: navigating the crossroads

Synergy between trade secret protection and anti-takeover provisions: Although seemingly distinct, trade secret protection and anti-takeover measures often intersect. This section explores the synergies between these two corporate strategies, highlighting how the preservation of proprietary information contributes to a company’s ability to resist hostile takeovers.

Global perspectives: Trade secrets and anti-takeover provisions are subject to diverse legal frameworks across jurisdictions. This section provides a comparative analysis of global approaches, exploring how cultural, legal, and economic factors shape the implementation of these strategies on the international stage.

Emerging trends: The landscape of trade secret protection and anti-takeover provisions is continually evolving. This section identifies emerging trends, including the impact of artificial intelligence on trade secrets, the role of environmental, social, and governance (ESG) factors in anti-takeover decisions, and the influence of international regulatory developments.

Conclusion

Anti-takeover measures thus play a very important role whenever the target company wants to prevent its hostile takeover. Hostile takeover is never beneficial for the interest of any company as it leads to a change in its management and operations, the long term goals of the business are not fulfilled and there is always a risk of the trade secrets of the company being exposed to the public and outsiders. Thus, it is very important for the management of any company to be aware of different anti-takeover provisions and to know when to employ them. 

Also, if countries want businesses to grow and investments to flow in, they should ensure that there is fair competition among the various players in the market. They should also enact laws with adequate provisions dealing with takeovers and hostile takeover protection mechanisms.

References


Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

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All about surgical assistance and surgical assistance agreements

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This article has been written by Mir Rohima Khatun and edited by Shashwat Kaushik.

Introduction 

In modern healthcare, the role of surgical assistance has become increasingly important, shaping the way surgeries are conducted and redefining the possibilities of medical interventions. This article serves as a comprehensive guide, delving into the complexity of surgical assistance, from traditional human support structures to modern technological innovations.

Surgical procedures, once reliant primarily on the skill of surgeons and their human support teams, have undergone a remarkable transformation. Today, the realm of surgical assistance encompasses a diverse array of tools and methodologies aimed at enhancing precision, minimising invasiveness, and ultimately improving patient outcomes.

Meaning of surgical assistance

Surgical assistance refers to the support and aid provided to surgeons during medical procedures to enhance the precision, efficiency, and overall success of surgeries. This assistance can take various forms, ranging from traditional human support roles to advanced technological tools and systems. Here are some key aspects of surgical assistance:

  • Human support teams- Traditionally, surgical procedures involve a team of healthcare professionals working together. This team typically includes surgeons, surgical assistants, nurses, anesthesiologists, and other specialists. Each member has a specific role in ensuring the smooth progress of the surgery.
  • Technological advancements- Recent decades have seen significant advancements in technology that have transformed surgical assistance. Some notable examples include:
    • Robotics- Surgical robots, such as the da Vinci Surgical System, are designed to assist surgeons with increased precision and dexterity. These systems allow for minimally invasive procedures, reducing patient recovery time and improving outcomes.
    • Artificial intelligence (AI)- AI is utilised in surgical planning and decision-making. Machine learning algorithms analyse medical data, such as imaging scans, to assist surgeons in creating personalised treatment plans, identifying optimal pathways, and predicting potential complications.
  • Minimally invasive techniques- Surgical assistance often involves techniques that minimise the invasiveness of procedures. This includes laparoscopic and endoscopic procedures, where surgeons make small incisions and use specialised tools to perform surgery, reducing trauma to the patient’s body.

Evolution of surgical assistance

Traditionally, surgical procedures heavily relied on the skills of surgeons and their support teams. However, with the advent of technology, surgical assistance has evolved to encompass a wide array of tools and systems designed to enhance precision, efficiency, and overall outcomes.

Robotics in the operating room: Robotic surgical systems have revolutionised the field by providing surgeons with enhanced dexterity and precision. These systems, such as the da Vinci Surgical System, enable minimally invasive procedures, reducing patient recovery time and minimising scarring.

Augmented Reality (AR) and Virtual Reality (VR): Surgical assistance now extends beyond physical tools to incorporate AR and VR technologies. Surgeons can use AR to overlay digital information onto the patient’s anatomy during surgery, aiding in navigation and decision-making. VR, on the other hand, offers immersive training environments for surgeons to enhance their skills before entering the operating room.

Artificial intelligence (AI) in surgical planning: AI plays a crucial role in preoperative planning. Machine learning algorithms analyse medical imaging data to assist surgeons in identifying optimal surgical pathways, potential complications, and personalised treatment plans. This not only improves surgical precision but also contributes to more individualised patient care.

Benefits of surgical assistance

Benefits of surgical assistance include:

Precision and accuracy: Surgical assistance technologies, particularly robotics, enhance a surgeon’s ability to perform intricate and precise movements, reducing the risk of errors and complications.

Minimally invasive procedures: Many surgical assistance tools enable minimally invasive procedures, leading to smaller incisions, reduced pain, shorter hospital stays, and faster recovery times for patients.

Improved training and skill development: Virtual reality simulations and AI-driven training modules provide surgeons with opportunities for continuous learning and skill development, ultimately raising the standard of care across the medical field.

Who is a surgical assistant

A highly qualified healthcare practitioner known as a surgical assistant supports the surgeon during surgical procedures. A surgical assistant’s main responsibility is to support the surgeon in making sure the surgery is carried out properly, efficiently, and safely. Various activities, such as setting up the operating room, sanitising the tools, placing the patient, and providing the surgeon with the instruments they’ll need throughout the procedure, can fall under this category.

In addition to directing the flow of supplies and equipment during the process, surgical assistants may be in charge of keeping an eye on the patient’s vital signs, guaranteeing that the surgical site is kept sterile, and monitoring the patient’s vital signs. Closing the incision site and other postoperative activities may occasionally fall under the purview of surgical assistants.

What does a surgical assistant do

The primary duties of the surgical assistant involve assisting the surgeons and nurses throughout the procedure, but they also include additional assistance before and after. The surgical assistant plays a crucial role in keeping an operating room functioning at its best, with responsibilities that include:

  • Obtaining crucial information from the patient’s medical history during pre-surgery interviews and identifying any areas of concern that need further investigation.
  • Prior to surgery, explain to patients what will happen throughout the medical procedure.
  • Getting ready for surgery in an operating theatre means making sure all equipment is available and that the space is sanitised and clean.
  • During surgery, keep an eye on the patient’s vital signs on electronic monitors and, when necessary, report any changes to the surgeon or nurses.
  • During surgery, limit bleeding by binding, dressing, and applying pressure as necessary.
  • Conducting follow-up visits with patients who have undergone surgery to look for any warning indications that require additional evaluation.

What is a Surgical Assistance Agreement

A surgical assistance agreement is a legal contract between a surgeon and an assistant that outlines their respective roles and responsibilities during a surgical procedure. The significance of a surgical assistance agreement lies in its ability to ensure clear communication, establish expectations, and provide legal protection for both parties.

Clear communication

By defining the specific tasks and responsibilities of each party, a surgical assistance agreement can help avoid misunderstandings or confusion during a surgical procedure. This can be especially important in complex or high-stress surgical situations where clear communication is critical to the success of the procedure.

Establishing expectations

A surgical assistance agreement can also help establish expectations for the level of performance and professionalism required from both the surgeon and the assistant. This can help ensure that both parties are fully prepared and equipped to perform their duties to the best of their abilities.

Legal protection

A surgical assistance agreement can provide legal protection for both the surgeon and the assistant in the event of any disputes or malpractice claims. By clearly outlining the roles and responsibilities of each party, the agreement can help establish liability in case of any adverse outcomes or complications during the procedure.

Overall, a surgical assistance agreement is an important document that can help promote clear communication, establish expectations, and provide legal protection for both the surgeon and the assistant during a surgical procedure.

Increased patient safety

By clarifying the responsibilities of each party, a surgical assistance agreement can help improve patient safety. The agreement ensures that all necessary tasks are performed and that there is no overlap or gap in responsibilities.

Enhanced efficiency

A surgical assistance agreement can also help improve the efficiency of the surgical team. By outlining the roles and responsibilities of each party, the agreement can help to streamline the surgical process, reduce errors, and minimise the risk of complications.

Essential clauses of a Surgical Assistance Agreement

Description of services

The exact services that the surgical assistant will offer are described in this clause. This could entail helping with pre-operative planning, offering assistance during the procedure, and helping with recovery.

Duties and responsibilities

This clause defines the duties and responsibilities of both the surgeon and the assistant. This may include the surgeon’s responsibility for making surgical decisions and the assistant’s responsibility for providing assistance as directed by the surgeon.

Compensation

This clause outlines the compensation that the assistant will receive for their services. It specifies the hourly rate or flat fee that the assistant will be paid, as well as any additional costs or expenses that the assistant may incur during the procedure.

Roles and responsibilities: This clause should clearly define the roles and responsibilities of the surgeon and the assistant during the surgery. This can include tasks such as preparing the patient for surgery, assisting with surgical instruments, and monitoring the patient during the surgery.

Termination of the agreement

This clause should outline the circumstances under which the agreement can be terminated by either party. This can include circumstances such as the completion of the surgery, a breach of the agreement, or a mutual decision to terminate the agreement.

Independent contractor

An independent contractor clause in a surgical assistant agreement is important because it specifies the connection between the surgical assistant and the employer. It makes it clear that the surgical assistant is an independent contractor rather than an employee of the employer. The Independent Contractor provision normally specifies the terms and circumstances of the contract as well as the range of the surgical assistant’s responsibilities. This can contain the method of payment, the duration of the contract, and any nondisclosure or non-compete clauses.

Indemnification

Each party’s obligations with regard to indemnification are described in this section. It outlines the terms under which the surgeon will indemnify the assistant and describes the extent to which the assistant will be accountable for any losses or damages sustained during the procedure.

Non-compete

A non-competition clause in a surgical assistant contract forbids the assistant from working with companies that compete with the surgeon or healthcare facility for a predetermined period of time after the contract expires. The surgeon’s or hospital’s financial interests, including their clientele, trade secrets, and sensitive information, are protected by a non-compete clause in a surgical assistant contract.

Confidentiality

The assistant is required to abide by the confidentiality obligations set forth in this article. It forbids the assistant from revealing any private information without the surgeon’s previous written approval regarding the patient, the procedure, or the assistant.

Intellectual property

The purpose of the intellectual property (IP) clause in a surgical assistance agreement is to safeguard the surgeon’s and surgical assistant’s priceless intellectual property rights.

New procedures, approaches, or even surgical instruments may be created or improved during a surgical procedure. These innovations can be regarded as intellectual property and may have great commercial worth. Therefore, it’s essential to have a clear agreement in place that outlines the ownership and usage rights of any intellectual property developed during the surgical procedure.

Governing law

The agreement should specify the governing law that applies to the agreement and any disputes that may arise under it.

Conclusion

The key terms and conditions of the surgical assistant agreement, including the duties of the assistant, the pay or compensation provided, the length of the agreement, and any other significant information regarding the working relationship between the surgeon and the assistant, would likely be summarised in the article’s conclusion. The process for resolving disputes, ending the contract, or any other legal concerns may be described in the conclusion. Before signing, it is crucial to carefully read over and comprehend every section of the agreement because it is a legally binding contract between the parties.

References

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All you need to know about data privacy protection in a digital era

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This article has been written by Palaniyappan Mohan and edited by Shashwat Kaushik.

Introduction

We are in the digital era, and with immense technological advancements, every aspect of one’s life cannot cross the line without entering the digital world. Right from purchasing groceries and any sort of product to watching movies, booking tickets, availing services, money-based transactions, searching for for jobs and the non-exhaustive lists go on, every such activity has been carried out over the internet and by means of tech-based devices. 

Tracing back, every activity was carried out by an individual by physically visiting a place and manually carrying out the same. Even one’s own personal information was shared manually with his/her consent and the same was recorded in a register in that particular organisation. A few examples include:

  • a patient record was kept in the hospital register,
  • employee details was maintained in their offices, and 
  • citizen records were kept and maintained in the local government departments, etc.

The person or organisation who misuses such information is easily traceable, and such offenders could be brought before the law and punished. But in the digital era that we are in, it is a very hectic task and in some cases, it becomes impossible to trace the person or organisation that has misused the information. 

The huge concern of today is how to safeguard one’s personal/private information from such misuse. All information about an individual is stored in the form of data on digital devices such as computers, smartphones and computer networks. The big question placed in front of every individual is how to protect one’s personal/private information from being accessed and misused by unknown offenders and how to prevent such mishaps.

Privacy is the right of every individual to be free from any intrusions or to be left alone. But once such information is shared through any online portal, one’s privacy is lost in the ocean. 

Why is privacy important

  • Every company’s marketing strategy has changed in the digital world. In order to expand their market, sell their products or services, generate more revenue and establish their presence, they want data. Data like consumer behaviour, buying patterns, sites a person frequently visits and many other pieces of information. 
  • Hackers and cybercriminals want to know the bank details of the individual to steal money and personal information to create fake accounts and commit fraud by impersonation.
  • Every country’s government wants to know the data of their citizens for their surveillance to maintain law and order.

Privacy protection is a major concern in today’s digital world for every individual. Let us see some of the major issues revolving around privacy protection and some basic ways to protect the data.

Issues revolving around data protection : Indian perspective

Awareness about the latest technology or even existing technology is the key aspect of safeguarding computers or any tech devices from being hacked and preventing the data from being misused by criminals. It is vital to know detailed information about its operation, uses and results. Without knowing how tech-based devices operate and their potential vulnerabilities, every individual started using such devices. Almost every household has several smart devices in their hands and even the children have started using them. They are highly prone to hackers and cybercriminals. While the development of technology has its own advantages, it also has its disadvantages. 

Issues in present legislation which governs data protection

“Ignorantia juris non-excusat” the maxim, which essentially means ignorance of the law is no excuse. The people of any country should be aware of their laws, without which they cannot rightly enforce their remedy. 

Now let us see the governing legislation and some of the appropriate provisions that deal with privacy protection. 

There are no specific data protection laws in India; the bill concerning data protection, the Digital Personal Data Protection Bill 2022, is still pending. At present, the statute that governs data protection is the  Information Technology Act of 2000. Some of the important provisions under the Act are Section 43, which provides for the penalty and compensation if any person who unauthorisedly accesses, misuses or causes damage to the data of another person Further, failure to protect data by a corporate body is governed under Section-43A and the penalty is provided under Section -72A of the Act. 

Also, the  Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 stipulate certain procedures that are to be followed by corporate bodies or individuals for collecting, securely storing, processing and utilising an individual’s personal/private data.

But do the present legislation and the rules framed thereunder cover all aspects of the privacy protection framework? That is a big question. 

Another important aspect is that for any law to be effective, it is vital to have an enforcement body and the mechanism for it to regulate and implement the law to provide an appropriate remedy to the aggrieved person. 

A report (from EconomicTimes), obtained under the Right to Information application, shows that more than 21 lakh cases have been reported in the National Cyber Crime Reporting Portal between January 2022 and May 2023. Still, only in 2% of cases has a first information report been filed by the concerned jurisdictional police officers. Most of the cases, such as online and social media crime, financial fraud, ransomware and hacking, are due to a lack of data protection. The major issues cited were that there were not sufficient police personnel to handle them, a lack of technical knowledge to conduct inquiries, and no sufficient hardware and software to handle such a huge number of cases.   

In the absence of effective laws to address the evolution of tech-related crimes and effective regulatory mechanisms, privacy protection is a huge task for the country to deal with. Despite the right to privacy being declared a fundamental right by the Hon’ble Supreme Court in the famous Justice K.S. Puttaswamy (Retd) vs. Union of India (2018), is it possible for every individual to approach the Hon’ble Courts at every instance for enforcing their remedy. 

With high hopes that appropriate laws will be passed sooner to address the major issues of privacy protection, here are some of the preliminary procedures that can be useful in ensuring the protection of data.

How do we protect our data proactively

Some ways to protect our data are:

Set-up different combinations of passwords

An initial step towards data protection is setting up a different set of unique and complex passwords. Avoid reusing the previous passwords and reliable password manager software can be used to generate complex passwords and manage them. Most of the online platforms offer multi-factor (two step) authentication for access, one of which is the password you created and the other is the one-time password/key that the platforms send to your email id/telephone number, which can also be a handy tool for data protection.

Check and safeguard your browsing activity

A browser extension can be a useful tool to block advertising companies from collecting your data. Some tools do provide for malware prevention in the browser and a privacy badger extension is also available for browsers such as Google Chrome, Mozilla Firefox and Opera, which specifically blocks browser trackers.

Give limited access to the applications/softwares

Grant permission to access your device’s tools, like a camera and GPS and to add contacts only to the application that may require it. A few examples, such as location access, are required for applications like maps and food delivery apps but not for those that facilitate photo editing; similarly, contact access is required for applications that are used to make phone calls but not for those that deliver food or book tickets, and so on and so forth. Therefore, one has to be cautious when granting access to the applications and this can prevent your data from being potentially exploited.

Do not use save details option

It is better to not save your personal data in the browsers, which help you to autofill the same in subsequent transactions, such as  the name, age, address and contact details being auto-filled once you click the auto-fill tab in the browser. It may take a few minutes of time and effort to fill in the details, but it can protect you from any potential harm that may be caused by saving the data in the browser.

Install reliable anti-virus software and use secure wi-fi networks

Reliable anti-virus software can help create an additional layer of security and Windows Defender secures the computer from virus attacks in the Microsoft 10 operating systems. Hypertext Transfer Protocol Secure (Https) extensions can prevent your devices from being tracked by means of an IP (Internet Protocol) address and Virtual Private Networks (VPN) tools also help to add a second layer of security to your devices.

Check regularly for software updates

Every operating system on devices, be it a computer or any smart device, provides for regular software updates. Do not ignore them because they contain a few developments in their operating system that protect the devices from bugs and existing technical glitches.

Enable data encryption

Encryption is nothing but a tool that converts the information into a set of codes that are unreadable, thereby safeguarding the data while transmitting and storing it on another person’s device. Using a data encryption tool can also be useful in protecting data from being unauthorisedly accessed during its transmission and storage.

The above are a few sets of procedures that can help protect your personal information. The list is not exhaustive and it will develop on par with the evolution of technology.

Legal frameworks and regulations

Governments around the world are recognising the importance of privacy in the digital age and implementing legal frameworks and regulations to safeguard individuals. From the General Data Protection Regulation (GDPR) in Europe to the California Consumer Privacy Act (CCPA) in the United States, these regulations aim to give individuals more control over their personal data. However, the effectiveness of such regulations and their enforcement remain a subject of debate.

The role of big tech

 As major players in the digital landscape, big tech companies play a significant role in shaping privacy standards. The collection and monetization of user data by these entities raise ethical questions and concerns about the extent of user consent. Examining the practices of these companies and advocating for transparent data policies are essential steps in addressing privacy in the digital era.

The future of privacy protection

Looking ahead, the future of privacy protection will likely be shaped by emerging technologies such as artificial intelligence and the Internet of Things. These developments present both opportunities and challenges, necessitating the continuous adaptation of privacy measures. Ethical considerations and responsible innovation will be crucial in establishing a framework that prioritises privacy in the evolving digital landscape.

Conclusion

Privacy protection in the digital era is all about preventing one’s personal/private information, which is in the form of data in the digital world, from being misused by companies and also by criminals. Inculcation of due awareness among the public about the ways and means to safeguard their data, having adequate laws to address privacy issues and also necessary enforcement mechanisms to provide relief to the aggrieved person. 

References

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