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Legal frameworks for international data transfers

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This article has been written by Krishnapal Verma pursuing a Diploma in International Data Protection and Privacy Laws from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

Introduction

Ever since the dawn of mankind & during all the ages of its existence, we human beings have been plagued by the strong instinctive desire to acquire knowledge. In fact, it is this thirst for knowledge and curiosity to delve deeper into the labyrinth of understanding the ‘cause, effect and consequences’ of things around us, which can be majorly, if not entirely, considered as one of the most dominant reasons responsible for our evolution. Right from the Neolithic age where men invented ‘fire’, learning and using it for their survival and sustenance, or the Age of Civilisation of Mesopotamia or the Babylonian period, where men built structures of unparalleled feats and grandeur, or the Indus Valley era, whose remarkable advancements in construction, agriculture, technology, science, etc., astound and rival even the achievements of present times, till the current 21st century of artificial intelligence (AI) and machine learning (ML), we have enhanced our existence and capabilities and continue to progress from ordinary human beings to superhuman beings. This innate nature of gathering facts, processing and interpreting the information derived from the analysis of the facts and then applying the derived information for achieving our objectives and interests—all of this could not have been feasible but for the presence of the all-pervading most vital factor—data.

What is data

In the modern times of space travel and AI robotic engineering, for some, data is the most powerful asset and for others, more lethal and disastrous than any other Weapons of Mass Destruction (WMD). Data is a potential tool for bettering human lives, surpassing scientific barriers, nurturing and encouraging holistic growth, improving emergency and health care or it can be a covetous arsenal for world supremacy and dominance. Data is not and never has been either good or bad. It always changes and adapts based on the hands that possess it. What data can be just useful for one may be quite useless for another or it could be an invaluable accessory of wielding power and leverage for a third person. The real value and role of data lie in its application. It is merely a tool in the hands of its possessor to be utilised for achieving the purpose of the one who possesses it at that point in time. Whatever the arguments be about the pros and cons of data, which are of course debatable issues, yet it is a unanimous fact that data is supreme and perhaps much more valuable than gold. Data in its generic sense refers and means to include raw information of any kind consisting of facts and/or figures providing information of the state of things to which it refers or the information of which can be gauged, implied or assessed in conjunction with other variables. For e.g., an information supplied that ‘Air is comprised of oxygen and hydrogen’ is data. Further scientific analysis or processing can be done on this raw data along with other components to prove the composition ratio of both oxygen and hydrogen. Thus, that which is called data may be standalone information or information which is colluded and/or processed in conjunction with some other information. It is also explained as a ‘collection of discrete or continuous values that convey information, describing the quantity, quality, fact, statistics, other basic units of meaning, or simply sequences of symbols that may be further interpreted formally’. From the above reading, it can be understood that data in itself is a very potent and vast source of power that needs to be efficiently tapped and regulated with proper legal framework and safeguards so as to ensure that the very panacea of societal advancement and transformation does not become a bane of distress and exploitation.

Need for data privacy

The relevance and need for a robust legal framework for data regulation becomes much greater and indispensable when such data is concerned with and related to the personal data and information of people, especially in the present era of globalisation and the dark web, where any form of personal data can be misused and exploited to the disadvantage and detriment of the privacy of the person/s to whom it affects directly and substantially. We are living in the digital age where personal data, which is collected and processed digitally and online, is unfathomable. The commercial and trade activities of companies collecting and processing personal data for their commercial purposes have surpassed the limitations of demographic jurisdictions and are operating worldwide across borders. Every second, huge volumes of Big data are being collected and processed by various companies in pursuit of their economic activities and such data is also exchanged and transferred internationally across borders as part of their economic enterprise. With such voluminous international exchange and transfers of personal data, it becomes imminent that such transactions be regulated and approved by robust supervisory safeguards through a resilient legal framework so that the privacy and fundamental rights of the people are not violated. Data privacy & protection laws provide the much-needed solution and ground framework for regulating and monitoring the realm of personal data transfers.

In this article, we shall analyse the existing legal framework of international data transfer from the perspective of EU-GDPR specifically.

Brief background of GDPR

The General Data Protection Regulation (GDPR) 2016 (GDPR) is a legislation passed by the European Parliament for all its member states i.e member states of the European Union (EU) and member states of the European Economic Area (EEA), with the objective of protecting the privacy rights of natural persons in relation to the processing of their personal data and also to ensure and regulate the unrestricted and free movement of personal data within the Union. The Charter of Fundamental Rights of the European Union Art. (8) as well as the Treaty on the Functioning of the European Union (TFEU) Art. (16) actively recognises and protects the personal data or privacy rights of natural persons. These two legislations have regarded the personal data rights of people as their fundamental rights and thus guarantee them protection from unauthorised, illegal or arbitrary processing of their personal data. However, under this special legislation of GDPR, the right of people to their personal data is not an absolute right. It regards that though personal data privacy is an absolute right, yet the processing of such personal data is not an absolute right. The GDPR maintains that processing of personal data should serve mankind, i.e, under the rights of privacy, processing of personal data, which is otherwise essential for achieving the essential socio-economic justice objectives and progress of society in general, should not be unnecessarily restricted or stifled, which otherwise would destabilise the very functioning of trade and commerce and resultantly the society suffers. The GDPR, while it steadfastly upholds and protects the fundamental privacy rights of natural persons with respect to their personal data and its processing, it equitably balances it, on the principle of proportionality, with other societal economic freedoms like internal and international commerce, business and market requirements, which are also indispensable for the all-round wellbeing and progress of natural persons. Thus the GDPR is a dedicated legislation to secure a consistent and high level of protection for natural persons in relation to their personal data, to provide ample safeguards and remedy against the illegal and unauthorised or misuse of their personal data, to prescribe the necessary rules and conditions of the processing of personal data by economic and business undertakings, to eliminate and remove any unnecessary obstacles in the free flow transfer and processing of such personal data, laying down the obligations and duties for those processing such data, as well as laying down stringent rules for effective monitoring and ensuring compliance with such rules by all stakeholders and imposing sanctions or other penalties in case of infringement of these rules by the member states.

Concept of Personal Data as per GDPR

Article 4(1) of the GDPR defines ‘Personal Data’. From this definition, it can be understood that, Personal Data means any information relating to a natural person who is the data subject, and which information identifies or by using which information such a person is identified or identifiable, directly indirectly or in reference, by the use of certain identifiers like – name, address, id number, social security number, online location data, IP address, fingerprint, biometrics, face recognition, genetics, cookies, radio frequency identification tags etc., or with one or more such factors which are specific to the physical, mental, physiological, genetic or socio, economic or cultural identity of such person and through the use of which data the natural person is identifiable or identified and thus which relates to such a person. Thus if such personal data is processed by any natural or legal person, be it a company, public authority, non profit organisation, any agency or undertaking where the purpose of such processing is in relation to in furtherance of any commercial activity or which is processed by automated means or which forms a part of the filing system of such economic enterprise, then GDPR applies to such processing. In cases of processing for purposes of crime, taxation, law, judicial, and/or national security, defence and the like, the Union or member state law will govern and GDPR shall cease to apply.

However, if any processing of personal data is done by a natural person in the course of purely household, private, domestic or personal use and not for any economic activity, then such processing is not covered by GDPR; eg., personal correspondence, keeping of addresses, social network and online activity are such activities exempted from GDPR. A simple analysis of such an exemption would be that:

  • The processing is done by the natural person in a private capacity.
  • It is done in the context and environment of social interaction or non-business interpersonal relationships.
  • The processing is not done for any economic or business purpose.

However, prudently speaking, it appears that even such a kind of processing by a natural person is also susceptible to be breached or misused by some third party, as for example, when it is posted on the internet and hence can pose serious privacy risks. Therefore, this exemption provision of GDPR is a debatable issue and needs to be reconsidered or more clarified by the European Council.

Data privacy under GDPR

The GDPR provides for two important concepts of data: data protection & data privacy. Data protection relates to the compliance aspect of data and the safeguards that businesses should implement to protect the personal data of data subjects from any unauthorised access, to ensure that their fundamental rights and freedom are not endangered and that any data leaks in their system do not expose the data subjects to serious socio-economic loss, material non-material damage or physical vulnerabilities from third-party attacks. On the other hand, data privacy empowers them with their right to the custody and ownership of their data and to decide for themselves who can use their data and for what purposes. Data privacy grants them the authority to be in control of their data and its intended use. Ever-growing international economy, out-of-scale technological advancement and rapid globalisation, and increasing social and economic integration of the world market have led to an unprecedented increase in cross-border transfer and sharing of personal data. Both private and public agencies are transferring and processing personal data in an insatiable manner to maximise their commerce and businesses or to perform their international obligations and cooperation. More and more natural persons are freely making available large amounts of personal data publicly and globally. Much of this public data is in the open online domain and on the internet in cloud storage. Transfer and exchange of such data has become a necessity for expansion of world trade and international relations. Such rampant outflows of personal data have not only increased the risks to personal data privacy but have also maximised the challenges for its protection—both for the data subject and the controller. Such flow of cross-border transfers of big data also raises concerns for the safety and unauthorised misuse of such data if it is not regulated by a strong and internationally recognised legal framework ensuring the adequate protection and safeguards to the privacy of personal data without undermining the financial and commercial necessity of its international usage.

International data transfers under GDPR

The GDPR lays down an elaborate and efficient set of regulations for such cross-border and international transfers of personal data. In GDPR, two types of cross-border transfers are discussed. First, from one member state to another member state, i.e., within the European Union; and the other being from the EU to any other third country. With respect to the first type of transfers, the present regulation applies in its entirety; it is the second type of international transfer that special provisions are laid down to regulate them. Such second types of transfers are referred to as ‘restricted transfers,’ which shall be permitted subject to the following compliances. (recital 101)

The Legal Framework for International Transfer of Personal Data is provided in Chapter – V (Arts. 44 – 50) of GDPR, which are discussed concisely in the following paragraphs.

Broadly summarised, there are four (4) main criterias or situational conditions under which personal data can be transferred from the EU to a non-EU third country. They are:-

  • Transfers which are based on Adequacy Decisions (recital 103)
  • Transfers which are subject to Appropriate Safeguards (recital 108)
  • Transfers which are made under Binding Corporate Rules (recital 110)
  • Transfers that are allowed in derogation of the above clauses. (recitals 111-115)

Article 44

It mandates that for any type of processing of personal data by a third country, which includes any organisation, body or natural or legal entity, the earlier provisions of this regulation and the provisions of this chapter shall have to be complied with. Even if such data is transferred from such a third country to any other third country, then also the performance of all these provisions has to be complied with, though not directly but in spirit. It can be seen that inevitably, whether the transfer is effected within Union states or the non-Union countries, the application and compliance of the GDPR or some of its specific provisions is a sine qua non necessity. And for such third countries, added safeguards of compliance and precautionary measures have to be undertaken to ensure the privacy and protection of personal data, as will be seen in the following paragraphs.

Article 45

Under this specific regulation, international data transfer is permitted only if the

The European Commission (EC) has assessed and decided that such a third country has ‘adequate level of protection’ and ensures such adequate protection to the privacy of personal data. Thus only after such authorisation can an international transfer be allowed to be made. The EC shall make such an assessment after considering various factors with respect to the third country, which are laid below. 

  • The rule of law; respect for human rights; legislation of such country governing public security, defence, national security, criminal and case law; access of public authorities to personal data, implementation of data protection and privacy laws, their security measures, including provisions for extra territorial transfers, data subject’s rights, effective administrative and judicial redressal mechanisms for data subjects, etc.
  • The existence and effective functioning of independent one or more supervisory authorities to ensure the proper enforcement and compliance with data protection rules, to assist and guide the data subjects in exercise and enforcement of their rights and to cooperate with the member states of the Union.
  • The international commitments, legally binding international agreements or obligations arising under any international conventions/instruments/pacts/treaties of such third countries with the member states in any sector and more particularly in relation to personal data protection areas.

Thus, after an assessment on such varied factors, if satisfied, the EC may authorise the international transfer of personal data to such a third country and shall be ensuring the compliance of this regulation by reviewing these above factors at prescribed periodic intervals and keeping monitoring the third country for any deviations or non-compliance of the GDPR, and if it finds that such a third country is derogating or non-complying with the regulations or not providing the adequate level of protection to personal data of data subjects, then the EC may also revoke, repeal or suspend its decision, as it happened in the Schrems II judgement.

Article 46

Through this specific provision, the GDPR allows the transfer of personal data to non-EU entities only if appropriate safeguards are provided and adhered to by the controller or processor for such transfer and that enforceable data subject rights and effective legal remedies are ensured to the data subjects through these safeguards.

The safeguards referred to above are listed below.

  1. Legally binding and enforceable instruments between the public authorities or bodies ensuring data subjects rights and data protection provisions.
  2. Binding corporate rules enacted as per the provision of Article 45 of GDPR, adhering and complying with all the necessary safeguards.
  3. Standard data protection contractual clauses (SCC) adopted by the Commission or adopted by the supervisory authority and then approved by the Commission.
  4. Code of conduct mechanism made and approved as per the requirements laid down in Article 40 ensuring the commitments of the controller or processor of such a third country to apply appropriate data protection safeguards.
  5. Data protection certificate mechanism adhered to by the third country controller or processor as per Article 42 of the GDPR. 
  6. Contractual clauses between the controller or processor inter se or the controller, processor and the recipient entity of such a third country, which clauses are in alignment with the SCC of the EU.

Article 47

This article lays down comprehensive measures and standards for group of undertakings and enterprises that are engaged in a joint economic activity to formulate and enforce legally Binding Corporate Rules (BCR) which prescribe the road map of that undertaking to ensure data protection and privacy of data subjects in processing of their personal data, as well as ensuring enforceable rights and redressal options to them. Such BCR are not only binding on the undertaking concerned but also on their employees. However, such BCR has to be approved first by the competent supervisory authority of the member state concerned. The BCR referred to shall have provisions for matters like the structure and contact details of the undertaking and its members, principles of data processing, their purpose and categories of data to be processed, data subject rights, remedies, accountability and liability provisions, controller and processor liabilities and responsibilities, breach of data measures, SCC compliances, data GRC measures, etc.

A deeper reading of this provision shows that BCR is a mechanism wherein the EU ensures that while it is committed to protect and uphold the fundamental rights to privacy of its people, it is also committed to ensuring sustained economic and trade development in the international sphere. Hence the mechanism of BCR is a way to bring about a neutrality or balance in the objectives of the EU so as to protect personal data privacy rights and also not to stifle the economic market with unreasonable laws.

Article 48

The GDPR also explicitly lays down that if there is any decree, judgement or decision of any court of law or administrative body of such third country requiring the controller or processor of a EU member state to disclose or provide access to any personal data, then it shall not be recognised or considered unless there is a legally binding international agreement or treaty between the EU member state and such a third country, where under provision for such mutual transfer of data is provided for, such as a Legal Assistance treaty or any other reciprocal provision. This provision is without prejudice to any other arrangement that may be existing between the two countries that requires them to share personal data or have reciprocal rights.

Article 49

In GDPR of all the provisions in the present chapter relating to international transfer of personal data, the provision as laid down in Article 49 is the widest in scope and undoubtedly, most enabling of all the above provisions for fostering cross-border personal data transfer. These are the derogations or exemptions that a natural or legal person, i.e., the controller, engaged in an economic activity, can avail of in case it wants to make a restricted transfer to any third country and where the other provisions of this chapter are unavailable to it. It is not mandatory to show compliance with all of these derogations. It is sufficient if any one of these exemptions is shown to exist and apply for such a transfer of personal data. A proper analysis of the said article also shows that it is not necessary for the controller to be a member state of the EU. It can be a controller of the non-EU third country also.

These exemptions/derogations are:-

  1. The data subject explicitly consents to such transfer after being specifically informed of the possible risks to his data privacy in the absence of adequate safeguards or protection in such a third country.
  2. The restricted transfer is necessary for performance of any contractual obligation between the data subject and the controller or is necessitated because of any pre-contractual measure that needs to be taken and the data subject has requested it.
  3. The transfer is necessary for the conclusion or performance of any contract made between the controller and a third natural or legal person, not being the data subject, but which benefits or is in the interests of the data subject.
  4. The transfer is necessary for important reasons of public interest. Such a public interest must, however, be recognised as such under EU law or the member state law of the controller. Here it can be seen that since the GDPR has specifically mentioned that where clause (d) is being used for transfer, then the controller can only be from the EU or its member state and not from any third country. Whereas from the interpretations of clauses (a –c), it can be seen that in such case scenarios the controller can be from either of the countries.
  5. The transfer is necessary to establish, exercise or defend any legal claim by the controller.
  6. The transfer is necessary to protect the vital interests of the data subject or some other person, but only if the data subject is physically or legally incapable of giving consent to such a transfer.
  7. The data transfer is made from a public registry of the EU or member state, intended to provide information to the public. It should be open for consultation by the public in general or by anyone who can specifically show a legitimate interest in that data contained in such a public register. Such a transfer must not involve the entirety of the personal data or the entire categories of personal data contained in such public registry.
  8. Further, when such a public register is open for consultation by person/s who demonstrate legitimate interest in data contained in such a register, then the data can only be transferred if such person/s requests for a transfer or they are the recipients of such a restricted transfer.

It is also clarified in this article that the restricted transfer as provided in the above clauses (a-g) can only be made if: such transfer is occasional and not repetitive; it concerns only a limited number of data subjects; the controller has legitimate interests in making such a transfer and those interests do not override the interests, rights and freedom of the data subjects; and the controller has assessed the circumstances surrounding the transfer and provided suitable safeguards for protection of personal data. It is also specified that the conditions as enumerated in this paragraph and those laid down in clauses (a-c) shall not apply to activities carried on by public authorities or bodies in exercise of their public powers, such as law enforcement, taxation, national defence, health, etc., which are sovereign activities of the state.

Art.50

This article provides for international mutual assistance and cooperation mechanisms to be developed and fostered among different extraterritorial supervisory authorities for the purpose of effective enforcement of data protection legislations worldwide by investigative assistance and information exchange, discussion with relevant stakeholders, etc.

Conclusion

The legal framework for data protection and privacy as provided in EU-GDPR is highly robust and ensures exhaustive safeguards and protective measures, including effective supervision, compliance and complaint redressal mechanisms for the data subjects. At the same time, the EU is conscious of the need for international economic development and growth and the necessity to encourage international trade, commerce and business rather than stifle or obstruct the economic progress with unconscionable laws and regulations. Through GDPR, the EU has created a legal framework that acts as a bridge between the rising threat of personal data breaches and the vulnerability of natural persons around the world in case of misuse of their personal data, by ensuring them adequate protection of their rights and freedom and, on the other hand, by regulating the free flow and transfer of such personal data, which is a necessity for trade and business. Thus, the GDPR grants legitimacy and provides a comprehensive framework of compliances, guidelines and checklists to be adhered to by the economic undertakings for the use of such personal data of natural persons and thus advance their business interests. The legal framework of cross-border or international transfer and exchange of personal data creates the necessary balance that is required. Although, just like any other regulation or law that requires it to be constantly reviewed and amended from time to time, so as to be adaptable to evolving situations and circumstances, the GDPR is also monitored and reviewed by all stakeholders, like the European Data Protection Board (EDPB), NGOs, academicians, the business community, etc., so that it becomes more and more resilient in its objective of personal data protection and privacy of natural persons around the world and also encourages ethical and legal free flow of data.

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Revenue management strategies in the hotel industry

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This article has been written by Soma Chaudhury pursuing a Remote Freelancing and Profile Building Program from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

Introduction

A trick question to start with; “What is the most perishable item in a hotel”? 

You will be surprised with the answer; it is ‘the room’.

A room that is not sold for the day/night is a loss of revenue that can never be recovered.

The above mentioned statement is the precise cause towards understanding why revenue management strategy is a key to improving and expanding the hotel industry.

What is revenue management

Revenue management, a concept initially defined by Robert Cross in the 1970s, centres around the idea of “selling the right room to the right client at the right moment for the right price.” In the case of the hotel industry, where demand changes periodically, strategy is crucial for revenue and ensuring a return on the capital investments.

Understanding the core principles

Revenue management involves predicting customer demand patterns and then adjusting pricing and availability strategies accordingly. By analysing historical data, market trends, and competitor behaviour, hotels can gain insights into how demand might change overtime. This information allows them to optimise pricing structures to capture the highest possible revenue from each available room.

Key strategies and techniques

  • Dynamic pricing: This involves adjusting room rates in real-time based on factors such as current demand, competitor pricing, and remaining availability. By increasing prices during periods of high demand and lowering them during slower periods, hotels can maximise overall revenue.
  • Market segmentation: This strategy involves dividing the market into distinct segments based on factors such as customer demographics, booking behaviour, and price sensitivity. By tailoring pricing and offers to each segment, hotels can attract a wider range of guests and increase occupancy rates.
  • Forecasting and demand management: Accurately forecasting future demand is essential for effective revenue management. By using historical data and statistical models, hotels can predict upcoming demand patterns and adjust their strategies accordingly.
  • Channel management: This involves managing the distribution of rooms through various channels, such as online travel agencies, direct bookings, and corporate travel partners. By optimising the mix of channels, hotels can reach a wider audience and maximise occupancy rates.
  • Inventory control: This strategy involves managing the number of rooms available for sale at different price points. By carefully controlling inventory, hotels can ensure that they are not selling rooms too cheaply or leaving them unsold.
  • Upselling and cross-selling: This involves offering guests additional products or services, such as room upgrades, spa treatments, or dining packages. By encouraging guests to spend more during their stay, hotels can increase overall revenue.

The evolving landscape of revenue management

As technology advances and the hospitality industry evolves, the practice of revenue management continues to adapt. The integration of artificial intelligence and machine learning is enabling hotels to analyse vast amounts of data and make more accurate predictions about future demand. Additionally, the rise of mobile bookings and social media has created new opportunities for hotels to connect with potential guests and personalise their offers.

In conclusion, revenue management is a dynamic and essential strategy for hotels seeking profitability and to remain competitive in a constantly changing market. By leveraging data-driven insights, advanced technologies, and a deep understanding of customer behaviour, hotels can optimise their pricing availability strategies to achieve sustainable success.

But along with that, what is important is to see that the guests appreciate the value-added services and lengthen their stay or come back as repeat customers. One of the techniques to ensure that is to offer the regular guests loyalty discounts.

Efficient management of inventory also helps in cutting the expenses incurred by the hotels in their maintenance and providing the customer with the luxury and comfort that come with the price.  

To elaborate on the same, the number of staff a hotel hires varies depending on the occupancy of rooms. For peak seasons, a hotel may hire temporary staff on a contractual basis.

Understanding hotel revenue management

To do so, one must know the main sources of revenue generation.

They are the following:

  • Rooms
  • Food and Beverage services
  • Room Service
  • Mini bar
  • Charging for the use of spaces and other banquet services during events like weddings, conferences, and exhibitions
  • Charging for amenities like salons, spas, gyms, or parking facilities.

The collection and recording of the revenue from these various sources leads to data generation. Analysis of this data helps us to understand the market demands across timelines.

This, in turn, helps to determine the asking price of the rooms, which varies with supply and demand.

Rooms are assigned through different distribution modes, like; online travel bookings, group bookings, direct bookings, or corporate bookings, etc.

Direct bookings will always generate more revenue as the hotels save on commissions given to other distribution channels.

Achieving optimum tariffs

It is important to understand that price strategizing is a dynamic process and it alters with

  • The revenue generated in the past.
  • The current demand
  • Future forecasting

 The pricing process is continuous and involves acute observation and continuous monitoring and evaluation. The optimum tariff of a hotel is also variable depending on the following factors:.

  • Booking Windows
  • Room availability
  • Service level
  • Market conditions
  • Target market trends
  • Market segment mix
  • Competitor Pricing

 Some of the data that are used to determine if the revenue is being managed with the best practices are the following: 

Average daily rate or ADR.

It is calculated by dividing the total room revenue by the number of rooms sold. 

Occupancy rate: It is the percentage of rooms occupied over a period of time; it could be a day or month. It helps in calculating the best pricing strategies to attract clients.

Revenue per available room, also known as RevPAR, is calculated by multiplying the ADR by the occupancy rate. It gives an overview of the financial performance.

One can get a more detailed and accurate picture with Revpor, revenue per occupied room.

Since rooms are not the only source of revenue in a hotel, GOPPAR (gross operating profit per available room) includes other areas of the hotel that generate revenue. 

With this tool, it is easier to pinpoint the areas that need improvement.

Understanding, analysing and comparing the data makes it easier to forecast the demand, which in turn helps to determine the peak season and off-peak seasons and aid in pricing. They also help to make precise overbooking strategies as there are indeed a certain amount of cancellations. It also helps to forecast the length of stay which in turn helps to optimise future bookings.

Forecasting involves analysing occupancy data from the past and calculating  the following

  • Percentage of no-shows
  • Percentage of walk-ins
  • Percentage of stayovers.

There are different types of forecasting done by front office management for different purposes,

  • A daily forecast to facilitate room allocation
  • A ten day forecast that is shared with all departments to ensure staff availability.
  • A three day forecast is made to pinpoint any significant change happening in the ten day forecast.

Forecasting also helps to determine budget requirements.

To envision the number of guests in a hotel for a certain period, the following analytical reports are essential:

  • Time series analysis
  • Regression analysis
  • Market research
  • Competitive analysis
  • Social media analysis

The tools that help in gathering these vast amounts of data and also help in their analysis are the following:

Property Management Systems (PMS)

It manages the administrative side of hotel operations like front desk operations, reservations, management of channel distribution, housekeeping, occupancy management and payment processing. The first PMS were introduced in the 70s, today, PMS software has shifted from pen and paper to software that are cloud based. Some of the latest PMS  are

  • Mews
  • Hotlogix
  • Hoteltime
  • Oracle Hospitality

Central Reservation System

It is used to manage reservations, occupancy rates, and distribution of inventory from a centralised control. A few of them are listed below:

  • Amadeus
  • Pegasus
  • GuestCentric

CRM Software: It’s a tool that helps analyse data on customer behaviour and preference to create customised marketing and pricing strategies.

CRM softwares vary and selecting the one that suits your business is the tricky part.

The most common ones that are used in hotels are:

  • Zoho
  • Keep
  • Microsoft Dynamics

Revenue management software that is used in hotels includes the following:

  • Atomizer
  • RoomPriceGenie
  • BEONx
  • IDeaS

Business intelligence software is used in hotels to obtain quick and accurate information from varied sources to make timely decisions.

This software varies with the type of hotel:

  • For branded hotels and for budget hotels, Actabl comes with a high recommendation.
  • For luxury hotels, Lighthouse is quite popular.

Recent developments in revenue management

In recent times, some more innovative tools and techniques have revolutionised revenue management. Below are listed a few of them.

Segmenting the market

For better understanding, the market is divided into smaller sections to pinpoint the needs of the guests, enhance their stay experience, and price the rooms with precision. It also helps to seize upselling prospects by adding value to the service provided, like a virtual concierge or a tour of the luxury property, ensuring that guests are informed of the amenities and services they can choose to partake in.  Segmenting market strategy helps to analyse different kinds of travel, like

  • Business or transient travel
  • Group travel
  • Corporate managed travel
  • Leisure travel
  • Weddings and other event participants.

Media visibility

It always helps to be visible to the target market, and this can be achieved by:

  • Creating a Google business profile
  • Using geo-local services
  • Managing hotel branding
  • Publishing hotel directory listing
  • Responding to reviews by guests.
  • Advertising on Social media

Hotel listings help to get noticed by the world and promote group events, corporate and transient business.

Social media marketing

Today, social media is the key to connecting with customers across various platforms. Being high up on the different search engines increases occupancy rates and increases revenue generation. Therefore, hotel websites need to be mobile friendly, search engine optimising strategies need to be applied and must have on page and off page SEO strategies must be implemented.

Collaborating with local businesses to reduce expenses incurred for the service provided to the guests.

In the early eighties, most starred hotels had an in-house laundry since laundry service is provided to guests in all starred hotels. It involved heavy machinery, ample space and staff for 24 hours. Today that has changed. Hotels tie up with local laundry businesses for the same. They save on capital investments,  repair and maintenance of heavy machinery, and staff remuneration.

It’s these practical and effective changes in operations that ensure better revenue management.

Knowing your competitor

The demand generators and fluctuations in the market are usually similar. Identifying them can provide key insight into the analysis of travel patterns. Thus, keeping a close eye on competitor pricing helps to fine-tune your own pricing. It also helps to grow new perspectives about the market.

What elements impact hotels revenue management

Some key factors that make the revenue management process effective are:

Demand forecasting:

  • Precise forecasting: Entering data for past booking patterns, seasonal trends, special events, and market demand is critical to determining future demand and implementing appropriate pricing strategies.
  • This leveraging of advanced analytics tools and techniques to analyse data such as market data, competitor data and consumer behaviour can identify trends and make sound decisions.

Pricing strategies:

  • Dynamic pricing: Using flexible pricing models to adjust room rates according to real-time demand, occupancy, and competitor pricing are ways to maximise revenue.
  • Segmentation: This helps hotels to price and offer promotion specifically for this customer.
  • Value proposition: Clearly communicate the value of the hotel offering the amenities to justify pricing decisions to attract the target market.

Inventory management:

  • Room availability: Ensuring that enough rooms are available to accommodate guests while also avoiding overbooking and underselling.
  • Channel management: Sharing room stock across different distribution channels like OTAs, direct bookings, and global distribution systems (GDS) to maximise reach.
  • Length of stay restrictions: Requesting a minimum or maximum amount of time guests can stay for Bull and Bull and maximizing income during high seasons

Distribution channel management:

  • Online Travel Agencies (OTAs): Collaborating with OTAs to broaden market reach and draw in new customers while keeping an eye on commission expenses.
  • Direct bookings: Promoting direct bookings on the hotel website or reservation system to reduce dependence on third-party channels and drive profitability.
  • Point source: Linking the hotel website with search engines to compare prices and availability across different channels to improve visibility and drive traffic to the hotel website.

Market segmentation:

  • Customer profiling: exploring the needs, references, and booking behaviour of different customer segments, including leisure travellers, business travellers, and group bookings.
  • Focused marketing: Creating targeted campaigns and promotions to reach specific customer groups and capture revenue opportunities.
  • Loyalty programs: Offering incentives to customers for repeat business through loyalty programs.

Competitive analysis:

  • Market monitoring: Monitors competitors’ pricing, promotions, and offerings and adjusts their own accordingly to stay ahead of the market and maintain a competitive advantage.
  • Benchmarking Performance: compare hotel against industry benchmarks and competitors.
  • Example: Rate parity: The practice of keeping prices consistent across all distribution channels to avoid discrepancies and protect brand integrity.

Conclusion

They say, ‘Success in hospitality is a blend of art and science, and revenue management is its heartbeat.’

Revenue management strategies in the hotel business need to be made with precision but on time. The window of opportunities, though recurring, is short-lived.

Knowing the current strategies and finding how it balances out with your future revenue management goals and objectives, also having a grasp on the locale of a hotel, is a must, as you need to know the local attractions and events.

Understanding if you are managing your revenue in a proactive manner or if you are more reactive to it is essential. Customising your group pricing and optimising the same involves knowing how balanced your market mix is.

Knowing your demand generators and identifying the change in demand or variance in rate helps you take quick action and prevents missed rate opportunities. Reviewing RFps to prioritise those that were ideal for your hotel is a better strategy than reading long RFps.

Keeping in mind the above factors is key to generating and maintaining an efficient revenue management system.

References

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Special Purpose Acquisition Companies (SPAC)

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This article has been written by Abhinandan Sah pursuing an Executive Certificate Course in Corporate Governance for Directors and CXOs from Skill Arbitrage and edited by Shashwat Kaushik.

This article has been published by Shashwat Kaushik.

Introduction

SPAC (Special Purpose Acquisition Companies) is a company with no business; it is specially formed for the acquisition of another company through an IPO. SPAC (Special Purpose Acquisition Companies) are structured as trusts with a face value of $10/- per share. The Companies Act does not approve SPAC directly but SEBI has issued guidelines only for foreign companies. It means an Indian company can list on foreign exchange boards through SPAC easily; however, its not available for listing on any exchange in Bharat.

Background

In an IPO, companies need to disclose all their financial operations, processes, compliance and many undertakings from the directors and promoters. Public disclosure of their business, while in the case of special purpose acquisition companies since there is no business at all, all this disclosure mechanism is not there in the process.

Also in the traditional IPO route, once the IPO is public for subscribers, if there is any volatility in the market at that time due to some temporary reasons, it leads to undersubscription of the IPOs. Oil, gas, and petroleum space sectors are such sectors that can be affected due to some temporary reasons; in this situation, IPOs can be undersubscribed.

When it comes to undersubscription it is very hard for companies since the overall process of an IPO is very hard. So SPAC is easier than an IPO.

How does Special Purpose Acquisition Companies (SPAC) work

  • IPO process: A Special Purpose Acquisition Company (SPAC) issues a standard price of $10 per share.
  • Funds are first kept in a trust account.
  • Acquisition/merger: After raising the fund, the Special Purpose Acquisition Companies (SPAC) has a time frame of 18-24 months for identifying and merging with the target company, resulting in a private company becoming public company
  • Shareholder approval: Both the company which is getting merged and SPAC shareholders should arrange for shareholders meeting where merger is approved by majority shareholders with special majority

Advantages of Special Purpose Acquisition Companies (SPAC)

  • Lower risk for companies: As informed above, the IPO route is very tedious; supposed the company has done all formalities and at the end, if there is a subscription, then the whole process needs to be done again if the company wants to raise funds from the public.
  • SPAC sponsors: Since Special Purpose Acquisition Companies are formed by experienced people in the market who have themselves established themselves as credible persons, in this case the threat of undersubscription is overruled.

Eligibility for Special Purpose Acquisition Companies (SPAC)

  • Special Purpose  Acquisition Company  issuer shall  be eligible  to raise capital  through an initial public  offer of specified securities on the recognised  stock exchange(s) only if:
    •  the target business combination has not been identified prior to the IPO, and
    • The Special Purpose Acquisition Companies (SPAC) have the provisions for redemption and liquidation in line with these Regulations.
  • A sponsor of the SPAC issuer shall have a good track record in SPAC  transactions  or business  combinations or fund management  or merchant banking activities, and the same shall be disclosed in the offer document.
  • For the purpose of these regulations, sponsor shall mean a person sponsoring the formation of the SPAC and shall include persons holding any specified securities of the SPAC prior to the !PO.
  • An issuer shall not be eligible to list securities under these regulations if the issuer or any of its sponsors is:
    •  debarred from accessing the capital market; or
    • a wilful defaulter; or
    • a fugitive economic offender.

IPO process for SPAC

The provisions relating to the appointment of the lead manager, in-principle approval from recognised stock exchange(s) and filing of an offer document provided for initial public offers under Part A of Chapter III “shall mutatis mutandis” apply to an initial public offer by a SPAC issuer.

International Financial Services Centres Authority (IFSCA)  may consider the proposed  listing of a Special Purpose Acquisition Companies (SPAC) issuer on a recognised stock exchange on a case-by-case basis.

Risks and considerations

Challenges and Considerations Surrounding Special Purpose Acquisition Companies (SPACs)

  • Conflicts of Interest: A potential risk with SPACs lies in the possibility that the interests of the SPAC’s sponsors or management team may not align with those of the public investors. This misalignment could lead to decisions that benefit the sponsors at the expense of the investors.
  • Uncertain Performance: The historical performance of SPACs is mixed. While some SPACs have achieved successful mergers and generated significant returns for investors, others have failed to find suitable target companies or have experienced poor post-merger performance. This variability makes it difficult to predict the success of any particular SPAC.
  • Market Dependence: Because SPACs themselves do not have underlying operating businesses, their performance can be heavily influenced by overall market conditions. Economic downturns, market volatility, or sector-specific challenges can all negatively impact the value of SPAC shares and the ability of the SPAC to complete a successful merger.
  • Dilution Risk: When a SPAC merges with a target company, existing SPAC shareholders often experience dilution of their ownership stake due to the issuance of new shares to the target company’s owners. This dilution can reduce the potential upside for SPAC investors.
  • Time Constraints: SPACs typically have a limited timeframe (often two years) to identify and complete a merger. This time pressure can lead to rushed or less-than-optimal deals, potentially resulting in lower returns for investors.
  • Regulatory and Legal Risks: SPACs are subject to various regulatory and legal requirements, and changes in these regulations or legal challenges could impact their operations and attractiveness to investors.

Overall, while SPACs can offer potential benefits to both investors and target companies, they also come with a unique set of risks and challenges. Investors considering investing in a SPAC should carefully evaluate these factors and conduct thorough due diligence on the SPAC’s management team, target industry, and potential merger candidates.

Regulatory and legal aspects

Oversight:

  • The U.S. Securities and Exchange Commission (SEC) plays a crucial role in overseeing the activities of Special Purpose Acquisition Companies (SPACs).
  • This oversight involves monitoring SPACs to ensure they adhere to relevant regulations and guidelines.
  • The SEC’s involvement aims to protect investors and maintain market integrity.

Disclosure Requirements:

  • SPACs are subject to stringent disclosure requirements, particularly concerning the intended use of funds raised through their initial public offerings (IPOs).
  • These requirements mandate that SPACs provide clear and comprehensive information about their target industries, potential acquisition targets, and the risks associated with their investment strategies.
  • Adhering to these disclosure requirements ensures transparency and enables investors to make informed decisions.

Popularity and Growth:

  • Data sources indicate a significant surge in the popularity of SPACs around the fiscal year 2020.
  • This increased interest can be attributed to various factors, including the potential for faster access to public markets for private companies and the perceived efficiency of the SPAC model in facilitating mergers and acquisitions.
  • However, the rapid growth of the SPAC market has also raised concerns about potential risks and the need for enhanced regulatory scrutiny.

Special Purpose Acquisition Companies (SPAC) activity in Bharat

In Bharat, the SPAC market is still emerging compared to the U.S., but there have been notable developments and interest in this space. Some companies that go public on US exchanges through SPAc are listed below:

ReNew Power

SPAC Merger: ReNew Power, one of India’s largest renewable energy companies, went public in 2021 through a merger with RMG Acquisition Corporation II, a U.S.-based SPAC. resulted ReNew Power listing on the Nasdaq, which was the first successful listing of any Indian Company through SPAC route.

Videocon d2h

In 2015, Videocon d2h, a prominent Direct to Home (DTH) television provider in India, opted for a merger with Silver Eagle Acquisition Corp., a Special Purpose Acquisition Company (SPAC) based in the United States. This strategic move facilitated Videocon d2h’s listing on the Nasdaq stock exchange, granting the company enhanced access to capital and increased visibility in the global market.

The merger with Silver Eagle Acquisition Corp. marked a significant turning point for Videocon d2h, propelling its growth trajectory and paving the way for further expansion. Subsequently, Videocon d2h engaged in another merger, this time with Dish TV, a major player in the Indian DTH market. The consolidation of these two industry giants resulted in the formation of the largest DTH provider in India, commanding a substantial market share and establishing a dominant presence in the country’s television broadcasting landscape.

Eros International

SPAC Merger: Eros International decides to merge with a SPAC, 3iQ Corp. to form ErosSTX Global Corporation in 2020. This merger enhanced the capabilities of both and was a significant deal in the entertainment industry.

Key differences in regular IPO and SPAC

AspectTraditional IPOSpecial Purpose Acquisition (SPAC)
DefinitionA traditional IPO is when a company offers its shares to the public for the first time to raise capital.A SPAC is a shell company formed to raise capital through an IPO with the sole purpose of acquiring or merging with an existing private company.
ProcessThe company going public must undergo a lengthy process, including financial disclosures, regulatory approvals, and roadshows.The SPAC goes public first, raising funds without identifying a target. Once public, the SPAC has 18-24 months to find a target company to merge with.
RegulationRegulated by SEBI.SPACs are not authorised yet. Currently, they are mostly considered for overseas listings.
Time FrameTraditional IPOs take months, sometimes years.The SPAC itself can go public quickly. After that, it have 18-24 months to identify target and merge.
Risk Exposure for InvestorsInvestors buy into a company with a known business and financial history, so there is less risk.Investors are investing in a company where they are mostly not knowing the exact business, adding more risk.
Valuation CertaintyThe valuation is set through a pricing process set by SEBI.The valuation of the target company is typically pre-negotiated with the SPAC sponsors.
Investor TypeIt attracts a wide range of institutional and retail investors, especially in Indian capital markets.SPACs often attract institutional investors, hedge funds, and high-net-worth individuals. Retail investor participation increases after the merger.
Costs and FeesHigh costs due to underwriting fees, compliance, and marketing (roadshows).SPAC sponsors usually take a significant stake and might charge additional fees. This could reduce value for post-merger shareholders.
Control and GovernanceIPO investors buy shares and gain control as shareholders with existing management.After the merger, the acquired company takes over the management.
Market SentimentMarket sentiment at the time of the IPO plays a significant role in pricing and success.SPACs can bypass short-term market volatility in pricing.
TransparencyHigh transparency, as the company must disclose detailed financials, business models, risks, and projections before going public.Lower initial transparency since SPACs do not have operations.
Examples in IndiaZomato, Paytm, LIC, and many other companies have followed the traditional IPO route in India.Indian companies like ReNew Power and Videocon d2h have used U.S.-based SPACs to go public on foreign exchanges, but SPACs are still rare in India.

Timeline of Special Purpose Acquisition Companies (SPAC)

Here’s a timeline for a SPAC (Special Purpose Acquisition Company) to be listed and complete its business combination (merger or acquisition):

Formation of the SPAC

Time frame: 1-3 months

  • Sponsors (founders) create the SPAC, composed of experienced investors and industry professionals.
  • First, they file the necessary documents for the formation of the company’s.
  • Prepare the S-1 registration statement for filing with the Securities and Exchange Commission (SEC) (in the U.S.) or the appropriate regulatory body if it’s an international listing (for Indian companies, this could involve international exchanges like Nasdaq or NYSE). 

Initial public offering (IPO) of the SPAC

Time frame: 1-3 months

  • After the formation of the companies, SPAC filed for an IPO at a standard price, often $10 per share.
  • Marketing includes a minimum as they have no operation and it is limited to institutional investors as the retail investor may not be interested due to the large risk involved in it.
  • SPAC is listed after successful completion of the IPO.
  • Funds raised from the IPO are held in a trust account, which can not be used until the target and merger are completed.

Target search period (De-SPAC Process)

Time Frame: 18-24 months

  • The SPAC management is given 18-24 months to find a suitable private company that is to be acquired; a period allotted for this is known as the target search period.
  • After identifying the target company, detailed due diligence is conducted to assess financials and legal issues to fit in the process.
  • Negotiation: this process is basically pre-decided but it may vary due to some current changes, including the valuation of the target.
  •  If a target company is not found within the timeline, the SPAC is dissolved and all funds returned to the investors.

Announcing the business combination

Time frame: 1-2 months after identifying the target

  • This is the most critical area where investors can have ambiguity since the business combination is the combination that will make the resulting company a success or fail.
  • Once the combination is set, the merger agreement is prepared and filed with regulatory bodies for approval
  • In the US, companies need to file a Form S-4 or other relevant forms containing information about the merger, including the business of the target company, financial statements, and the terms of the transaction.

Shareholder vote

Time frame: 1-2 months after the announcement

  • SPAC shareholders and target companies must vote to approve the merger or acquisition.
  •  If shareholders approve through special votes, the deal will move forward; in case of denial, SPAC continues to search for a new target (if time allows) or is forced to return the capital to investors.
  • Investors also have the option to redeem their shares for a pro-rata share of the trust account if they do not find a combination favourable for them.

Closing the business combination

Time frame: 1-3 months after shareholder approval

  • Upon successfully completing financial and legal provisions, the private company becomes public.
  • The SPAC’s ticker symbol is changed as per the new combined company.
  • So a new company starts trading with a new ticker and symbol while SPAC ceases to exist.

Post-merger operations

Time Frame: Ongoing

  • The management team of the target company takes over operations; former SPAC holders becomes shareholders and company operates normally as a public company for their day-to-day operations

Conclusion

Special Purpose Acquisition Companies (SPACs) are useful methods for raising funds when the promoters are decided about the targets. In this method, it is the easiest way for a company to get public who have any threat that their IPO may be undersubscribed due to some local instances.

Amidst the current global uncertainties, with conflicts arising in different regions such as the Russia-Ukraine war and the tensions in the Middle East, businesses involved in export, oil, gas, and other petroleum products are facing potential challenges. The fear of under-subscription looms large due to these geopolitical tensions. However, the SPAC (Special Purpose Acquisition Company) route emerges as a potential solution to mitigate such risks and prevent losses. This mechanism can be particularly beneficial for organizations operating in these sectors. Furthermore, insurance companies that provide coverage to marine companies can also directly benefit from this system.

Nevertheless, it is crucial to ensure that the entire SPAC system is robust and free from any loopholes. The integrity of the system must be maintained to prevent any misuse or exploitation that could lead to the loss of investor funds.

References

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Drafting obligations clauses: an overview

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This article has been written by Prachi Kumari pursuing a Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution course from LawSikho

This article has been edited and published by Shashwat Kaushik.

Introduction

In any contract, an obligation clause is a very integral part of it. An obligation clause is a legal obligation in a contract which sets out the legal duty upon parties involved in a contract that they themselves agreed on a contract to perform. It makes a party involved in a contract abide by agreed-upon-specified terms and conditions.

Obligation clauses differ from contract to contract according to the subject matter of the contract and parties involved in a contract’s intentions of usage of contract. The obligations are legally binding on parties related to various aspects according to the contract of subject matter. It protects the interests of the parties.

Contractual obligation clause 

A contractual obligation is a legal clause that, in any given contract, all individuals or any institution guarantee accountability and performance. This also ensures the responsibilities for delivering or performing the obligations and failure to do so raises the legal consequences .   

Contractual obligations act as formal promises by the parties which bind the involved parties to their commitments, ensuring they fulfil their end of bargain.

The parties should understand the contract obligations in a sense which they meant to be. Any ambiguity or vagueness related to contractual obligations can arise in disputes and can make a contract invalidate in the eyes of law which means it can make a contract not legally enforceable.    

Types of contractual obligations clause

In the obligations clause, the following are common types of obligations that can be mentioned while drafting the business contracts of the obligation clause but this is not an exhaustive list of types of obligations clauses, and this differs from contract to contract according to the subject matter of contact and intention of parties involved:

  • Payment obligations- Businesses have obligations of payment for goods and services rendered, like payment for raw materials and payment for rented business premises.    
  • Quality and performance standards- Businesses that promise quality and product performance standards are obligated to provide quality and performance standards.
  • Confidentiality-  In some contracts, the company wants to maintain the confidentiality of products in  order to maintain its trade secret and parties’ private information. It can either be included in the obligation clause itself or in a situation where parties want to give more emphasis on this clause, then the confidentiality clause can be drafted independently in the contract. Confidentiality obligation clauses can also include non-disclosure obligation clauses or if parties want, they can make  separate non-disclosure obligation clauses. 
  • Indemnity and liability- Businesses are liable  to indemnify the other party to compensate where they  agreed on contract to compensate losses in cases of breach of contract or other specified situations.
  • Responsibilities- In obligation clauses, it is important to clarify the responsibilities of each party involved in contract and those obligations are binding in nature on them and obligation clauses make the contract enforceable in law.

Points to remember while drafting obligation clause

Following are the points that need to be remembered while drafting an obligation clause:

  • Clarity and precision- Ensure the obligation clauses are drafted with clarity and precision to avoid the ambiguity and vagueness and misinterpretation of the clause helps to avoid the disputes arising out of it.
  • Tailored approach- Ensures the obligation clause should be drafted as a tailored approach to reflect specific needs, objectives and circumstances of parties involved in the contract.
  • Legal review- It is advisable to take legal review and guidance when drafting  obligation clauses because it can provide legal insights, identify potential risks and ensure  compliance with required legal requirements.

Consequences of breach of contractual obligations

  • Specific performance: Is a consequence in case of breach of contract’s obligations clause where a party compels the breaching party (the party who breached the contract) to fulfil their obligations as specified in a contract.
  • Rescission and restitution: Recession involves cancelling the contract and returning the parties to their pre-contract position and restitution aims to restore any benefits or payments provided under the contract.
  • Liquidated damages: In some contracts, the parties may include a provision specifying the predetermined amount of damages to be paid in case of breach known as liquidated damages. 

Some examples of obligation clause

The following are some examples of obligation clauses that, while drafting, are necessary to mention in specific agreements and contracts:

Rental agreement

While drafting the obligation clause of the rental agreement, it should contain the following specifications and obligations, such as:

Specific duties and responsibilities 

This obligation clause of a rental agreement should specify that both parties involved have their specific duties and responsibilities, like keeping the property of rental property in good condition and providing basic amenities during the rental period within the rental property, and these are paid by the tenant during their tenancy, etc.    

Rent payment Details  

In this obligation clause of the rental agreement, it is mentioned that both parties agreed on rent payment details, i.e., fixed amount of rent, mode of payment, date of payment, installment system of payment (if parties wish) and fines in case of late payment of rent.

Compliance with Rules and Regulations 

The rental agreement should contain specific rules and regulations, i.e., subletting, operating business activities, and making changes to premises without the permission of the landlord. Tenants are obligated to comply with rules and regulations.

Respect for neighbours and property 

It is important mentioned in the obligation clause of the rental agreement to make the tenants obligated to respectful behaviour towards neighbours and maintaining a peaceful environment and to tenants are obligated to not indulge in any activities that may cause damage to rental property.

Partnership contracts

While drafting the obligation clause of the partnership contract, it is important to mention the following obligations, such as:

Obligations to partners give their contributions 

 In the obligation clause of the partnership contract, it is important to disclose that the parties are obligated to give contributions for everything that they are promised to perform during the partnership.

Obligation not to engage in unfair competition with his own firm

In the obligation clause of a contract, it is important to mention that partners are obligated not to engage in unfair competition with their own firms.

Obligation not to convert money or property of partnership for his own use   

In the obligation clause of a partnership contract, it is important to mention that partners are obligated not to convert money or property of the partnership for their own use.

Obligation to pay for damages caused by his fault  

In the obligation clause of a partnership contract, it is important to mention that partners are obligated to pay for damages caused by his fault.

As mentioned above, examples of obligations can be mentioned in the obligation clause of a partnership contract and rental agreement. Obligations in the obligations clause of a contract are different from the subject matter of the contract or the parties intentions from the contract. 

Conclusion

In any contract, obligation clauses are an integral part of it. Obligation clauses are determined and ensure accountability and performance of parties involved in a contract. Obligation is a legal duty conferred by contract to be contract legally enforceable. To draft the obligation clause, it needs to be drafted with clarity and precision, a tailored approach and legal review. Consequences of breach of contractual obligation clause can lead to recession or restitution of contract. Parties may need to perform specific performances as parties are compelled to perform or may have to liquidate damages. Obligation clauses are drafted obligation clauses according to the nature of contract or agreement, i.e., the rental agreement obligation clause consists of specific duties and responsibilities of tenant and landlord, rent payment details, compliance with rules and regulations, respect for neighbours and rented property, etc. The partnership contract obligations clause are for partners related obligations, such as they can’t engage in unfair competition with his own firm, not convert money or property of the firm to their own use and pay damages for his own fault, etc.

References  

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IP licensing essentials: an understanding

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This article was written by Rudra Mahendra Lad, pursuing the Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution, from LawSikho, and edited by Koushik Chittella.

This article has been published by Shashwat Kaushik.

Introduction

Intellectual property rights consider the protection of ideas of intellectual minds. The rights license the work of creative minds and protect them. This article will discuss the contracts for intellectual property licensing and many other related matters. First of all, let’s know what intellectual rights are; they protect the mind behind innovation, inventions, symbols, drama, artistic & literary work, and many more. The main objective of intellectual property is to protect innovative work and create its licenses for further permission of usage. An explicit recognition will be given to the producers who curate the inventive work.

Importance of IP management

There must be a strategy to benefit from IP licenses. The management of IP is more necessary to spread the wide web of IP licenses and create revenue from it. Additionally, IP licenses are also surrounded by risks, infringements, and violations of rights. The effective management of intellectual property is also crucial for fostering innovation and maintaining a competitive edge in today’s fast-paced world. Proper IP management ensures that creators and inventors are duly recognised and compensated for their work, thereby encouraging the continuous development of new ideas and technologies. It also protects against infringement, ensuring that businesses can safeguard their unique products, services, and processes from unauthorised use. Furthermore, well-managed IP assets can be leveraged for strategic business growth, including licensing opportunities, partnerships, and attracting investment. So, the licensing agreements must align in a customised way with business motives, new opportunities in the market, and technology.

Categories of IP

There are various categories of intellectual property rights; they are:

  • Trademarks: They are governed by the Trademarks Act, 1999. It protects the slogans, names, and symbols. Trademarks make the product more identical so that the product becomes unique from others. 
  • Copyrights: They are governed by the Copyright Act, 1957. It includes musical, artistic, literary, books, drama, films, etc. A copyright holder can give a license to present the work & perform it in public.
  • Designs: They are governed by the Designs Act, 2000. Design encompasses the features of shape, pattern, configuration, ornament, or composition of colors or lines, which can be applied in either three-dimensional or two-dimensional forms, or both. These features are created using various processes, whether manual, chemical, mechanical, uniquely different, or combined. The final design is intended to appeal to or be judged solely by the eye.
  • Patents: They are governed by the Patents Act, 1970. A patent is a type of intellectual property right that protects the right of the owner of an invention to exclude others from making, using, or selling it for a limited period in exchange for publishing the disclosure of the invention. In most countries, patent rights fall under private law, and the patent holder must sue someone infringing the right to enforce their intellectual property.
  • Geographical Indications: It is governed by the Geographical Indications of Goods (Registration and Protection) Act, 1999. It refers to the goods produced from specific places and their protection.
  • Trade Secrets: There is no separate law for trade secrets in India. It secures business secrets to provide a competitive edge, such as ideas, structures, practices, etc. The owners of the IP rights are keen to enable monetisation of the rights so that the owners of the rights will get the reach of their innovative content. This gives major reach to the license owner as a licensor; contracts come into the picture to formulate the rights and the obligations of the licensee about which right the IP licensor is permitting the licensee to use, limitations, and the extent of usage.

Each category of intellectual property rights plays a crucial role in monetising the rights after licensing the right and being used by the licensor to the licensee, the IPR Agreement, is comprised of strong clauses to protect the parameters of IPR such as the grant of a license, financial terms, royalties, duration and termination, quality control, intellectual property ownership, confidentialities, warranties and representations, indemnity, and liability, dispute resolution.

Franchising Agreement

The franchisor’s business model is given to the franchisee to use as per the standards of the franchisor. This is another way to distribute the licensing to another party. The franchisor ensures the manpower, skills, product, method of production, outlet direction, and other relevant aspects driven by the franchisor are considered while licensing it. Such as there are joint venture Agreements for common business purposes and are known for the perfect collaboration of the business that can be of ownership and service or both with the same range with two parties Marchande licensing is another form of IP Licensing that allows the use of the mark of the owner by avenuing the right to use to the licensee and to enhance the product quality. These are also the same in the chain but have different characteristics adhering to their business line.

Overview of licensing agreement

A licensing agreement refers to the permission granted by the licensor to the licensee about the IPR and their detailed obligations, which the licensee needs to keep in mind and follow accordingly. Here are key points that have to be included in a licensing agreement:

  • Parties Involved: The agreement should contain the details and contact information of the licensor and licensee. It must be confirmed that the ability or legal quality to enter into the contract means the legal capability, as the aspects of legal capability should be fulfilled to enter into a valid contract.
  • The type of licensing agreement has to be included. The various types of licensing agreements include:
    • Exclusive: Here in this, the licensee has the right to use IP, not Licensor.
    • Non-exclusive agreements: Licensors can enjoy rights and also grant them to others.
    • Sole Agreement: The licensee and licensor have rights to use IP, but the licensor cannot grant the right to others.
  • Financial Terms: The methods of payment of royalties, first payments, audits, and guarantees should be included in the agreement.
  • Term or Duration: Here, the term and renewal of the duration of the license ownership must be mentioned in the agreement.
  • Quality Control: In this, the licensor can ensure the quality standards of the products for which IP rights are mentioned. The licensor can also expect to confirm the compliance of the process that the licensee is practicing. Also, clauses like dispute resolution, miscellaneous, intellectual property right protection, warranties, etc.

Common difficulties in IP Licensing

The common difficulties in IP licensing include:

  1. Management of licensees and their businesses: When the business model is different, then it becomes difficult to circumvent the rights of the licensor as per his convenience.
  2. Anticipating the actual value of intellectual property: It’s difficult to identify the equivalent price of the right as per the market value. 
  3. Negotiations while making the payments: The payments, royalties, and compensations can be contemplated points while negotiating and agreeing on the same page by both parties. 
  4. Resolving Mechanisms if a dispute arises: In the licensing agreement, the points of royalty, payments, IP use, and compliance issues can arise, so therefore, it is possible to raise the intricacies regarding the scope of work.
  5. Taking care and finding out the violation of licenses: Identifying the breach of contract is difficult, especially in faraway jurisdictions where nobody can apprehend a search regarding the breach.

Case Studies 

Following are some of the case studies regarding IP licensing:

  • Tech License of IBM & Microsoft: In the 1980s, Microsoft established itself as a leading expert in operating systems. IBM, which did not develop its own operating systems, sought Microsoft’s expertise. Consequently, IBM and Microsoft formed an exclusive partnership, and Microsoft provided an enhanced operating system under license for IBM’s use. This collaboration significantly contributed to the rapid growth and success of both brands
  • Spotify & Music Labels Copyright Licensing: Spotify made contracts with different music streams to play their music on the Spotify Platform; the non-exclusive license has been made, which means various streams can license the music as well as Spotify so. Spotify paid royalties based on the songs streamed. This gave the outcome of royalty fees, a platform for artists and singers, and revenue generation as well.
  • Disney & Merchandise Magic, the trademark licensing: Disney has created the licenses of the characters of Disney such as Jimny Cricket, Sebastian, Genie, & Mickey Mouse. Disney made nonexclusive licenses between merchandise producers and paid royalties on the sales outcome of these Disney characters.

Conclusion

The compliance of contract and intellectual property rights is a demonstration of the energetic relationship between legalities and business laws. Geographical indications, copyright, and trade secrets have global revenue in the range of 50, 60, and 70 USD billion. Globally, royalty payments for patent licensing exceed USD 35 billion. In a world propelled by innovations and technologies, navigating the complexities of protecting intellectual property is crucial. Therefore, the licensing agreement emerges as a fundamental aspect in this landscape. Each type of right requires a unique type of licensing. The licensing agreements with upfront payments, royalties, and audit mechanisms play a crucial role in the relationship between the licensor and the licensee. Intellectual property licensing is the bridge between the business market and innovation. The IPR field is lucrative for a legal representative to leverage their knowledge into this career and render effective licensing, dispute resolution, and compliance services to the people. The licenses provide a wide way to transform creativity in brilliant minds and expand it.

References

  1. https://blog.ipleaders.in/ip-licensing-agreements/
  2. https://ipindia.gov.in/
  3. How IBM changed their licensing model and what it means for you as a customer | SoftwareOne Blog
  4. Spotify and Licensing: What’s the whole deal about? (theipmatters.com)
  5. Disney’s Intellectual Property Rights in Licensing and Merchandising: A Magical Business Strategy #PrityKhastgir #WRC23 #MagicalBusinessStrategy | LinkedIn
  6. https://www.icsi.edu/media/webmodules/FINAL_IPR&LP_BOOK_10022020.pdf
  7. https://pestalozzilaw.com/media/publications/documents/A_Look_to_the_Future_of_International_IP_Arbitration.pdf
  8. https://www.lawyersclubindia.com/articles/A-critical-evaluation-of-the-Patent-Amendment-Act-2005-5574.asp
  9. https://www.casemine.com/act/in/5a979e024a93263ca60b77c4
  10. https://blog.ipleaders.in/an-overview-of-the-copyright-act-1957/
  11. https://blog.ipleaders.in/design-act-2000/
  12. https://www.indiacode.nic.in/handle/123456789/1981?sam_handle=123456789/1362
  13. https://blog.ipleaders.in/laws-protection-trade-secrets-india/
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Drafting partnership agreements: legal structure and best practices

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This article has been written by Anchal.

This article has been edited and published by Shashwat Kaushik.

Introduction

This article explains the intricacies of drafting a partnership agreement & delves into the essential components of a partnership agreement. In the absence of a formal agreement, conflicts may arise, jeopardising the business operations. It demarcates the roles and responsibilities of each partner involved in a particular business, along with the shares of profit they will receive. It provides a clear framework for decision-making, profit-sharing, conflict resolution and dissolution of partnerships.

What is a partnership agreement    

A partnership agreement is an agreement between two or more individuals to run a business together, as it will set the rules by which the internal business of a partnership is to be conducted. For an agreement to be valid, it must fulfil the basic requirements of a valid contract under the Indian Contract Act of 1872.

Before moving forward, let’s take a quick glance over, “What are a partnership, partner, firm and firm name in legal terms?”

Key elements of a partnership agreement:

  • Partner roles and responsibilities: The agreement should clearly define the roles and responsibilities of each partner, outlining their individual contributions to the business. This includes specifying the tasks each partner will undertake, the areas of expertise they will bring to the table and the level of involvement they will have in the day-to-day operations.
  • Profit and loss sharing: A crucial aspect of any partnership is the distribution of profits and losses. The agreement should specify how profits will be shared among the partners, taking into account factors such as initial capital contributions, individual efforts, and the level of responsibility each partner assumes. Similarly, the agreement should outline how losses will be apportioned, ensuring a fair and equitable distribution of financial burdens.
  • Decision-making processes: The agreement should establish clear procedures for making important business decisions. This includes specifying how decisions will be made (e.g., by majority vote, consensus, or based on specific areas of expertise), who will have the authority to make certain decisions, and how disagreements will be resolved.
  • Dispute resolution: It is inevitable that conflicts and disagreements will arise within a partnership. The agreement should include provisions for resolving disputes in a constructive and amicable manner. This may involve mediation, arbitration, or other forms of alternative dispute resolution.
  • Exit strategies: The agreement should outline the procedures for a partner to exit the partnership, whether through voluntary withdrawal, retirement, or unforeseen circumstances such as death or disability. This includes provisions for the valuation of the partner’s share in the business, the transfer of ownership, and the settlement of any outstanding financial obligations.

Definition of partnership, partner, firm and firm name

According to Section 4 of the Partnership Act of 1932, “partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.

Persons who have entered into partnership with one another are called individually “Partners” and collectively “a firm” and the name under which their business is carried on is called the “firm name”.

If someone has to start a business in partnership, ‘“what type of partnership he/she must enter into?”

Types of partnership

  • General partnership- It is the most common type of partnership in which all partners have total liability and participation in managing the business and the capacity to agree to business contracts and loans on behalf of the business. General partnerships can easily be formed as well as dissolved.
  • Limited partnership- In limited partnership (LP), there are some general partners who have the responsibility of day-to-day business operations. While other partners who have capital contributions but are not an active part of decision-making. 
  • Limited liability partnership- Limited liability partnerships (LLP) are not so common as compared to general or limited partnerships, as in limited liability partnership partners are responsible for regular business operations, responsibilities and legal liabilities but not for errors made by other partners. For example, bad decisions or malpractice committed by one member shall not be borne by other partners.
  • Limited liability limited partnership- In limited liability limited partnerships (LLLPs), most of the functions operate like LPs but limit the general partner’s liability. As in an LP general partners are responsible for the day-to-day working of business but they have liability protection just like limited partners do.

After knowing about types of partnerships, one might be flabbergasted about entering into a partnership or a corporation so here are the differences mentioned between the two.

How is a partnership different from a corporation

Formation: It is easier to form a partnership than a corporation, as in the case of a partnership only a business license or filing a “doing business as”. But to form a corporation, a series of papers and formalities are needed, as it starts by filing Articles of Incorporation and business licence along with permits by concerned states and municipalities. 

Ownership: In a partnership, general partners or limited partners are the owners and make decisions for day-to-day functioning, while in a corporation, shareholders are the owners but they appoint a board to steer the company and make business decisions.

Taxes: In a partnership, taxes are paid on the personal income tax of partners, while in corporations, taxes are paid on both corporate tax returns as well as personal tax returns for shareholder’s dividends from the company.

Liability: In a partnership, being a general partner is like putting assets at risk unless the business type is eligible for an LLP. However, in a corporation, the owners and the company work separately; hence, the owner can not be held liable personally.

Maintenance: In a partnership maintenance is not something that bothers but in a partnership it is. As in the case of a partnership, paying an annual fee or tax to maintain the structure would be enough. But in the case of corporations, board and shareholder meetings needed to be held regularly and those shall be documented carefully with official minutes. And shareholders must fulfil other requirements for recording and reporting business activity and must abide by the company’s bylaws.

Legal structure

  • Title and recitals- The title of the agreement is mentioned that is ‘Partnership Agreement’ along with other recitals like date, nature of the agreement. 
  • Declaration of partners -it involves the identity of partners, their legal names, roles and responsibilities within the partnership. 
  • Partnership structure and management- There shall be a clause that clearly defines the roles, responsibilities and decision-making process for each partner.
  • Financial arrangements- The agreement has a mention of sums invested by the respective partners which can be in any form be it bond, property, assets or any other resource as per the partners’ choices. Specify the guidelines for drawings, reinvestment strategies and financial report requirements. Address issues related to insurance, indenificationand liability limitations.
  • Aims & objectives- There are always some aims and objectives of a partnership for which it is made, which shall be clearly enumerated in the partnership agreement. 
  • Profit and loss distribution: It has a mention of a formula for proportional distribution of profit and loss to be incurred by the partners. 
  • Partnership term- It must specify if the partnership is for a fixed term or at-will.
  • Duties and obligations- The fiduciary duties and obligations of each partner shall be clearly outlined; it shall also include confidentiality, non-disclosure and non-compete provisions. Specify the consequences of breach or misconduct
  • Meeting and voting- It states the essential elements for meeting and voting such as a quorum for making decisions. Outline the protocols for decision making, record keeping and reporting.
  • Withdrawal or death of a partner- It constitutes the procedure for exit or withdrawal of a partner including how their share is valued and transferred. In the event of the death of a partner, his heirs or legal representatives shall have the rights to the share of the deceased partner. 
  • Remuneration clauses- The agreement may include clauses for specification of remuneration to be paid to partners for their services.
  • Dispute resolution- The partnership agreement provides a reference point for resolution of dispute in order to make the process of dispute resolution smoother as well as legally binding. 
  • Confidentiality provisions- The agreement addresses sensitive business information and also sets terms for confidentiality of the same. 

If any one of the partners violates the terms of agreement, hence the kinds of breach of agreement and mechanism for redressal of such non-compliance shall be understood carefully .

There are two kinds of breach of agreements:

  • Active breach- It includes the performance of actions that go against the agreement, it involves the decision that serves as a contradiction to the terms of agreement.
  • Passive breach- It involves the non-compliance with the duties and responsibilities adhered initially in the agreement.

 Partnership agreement: mechanism for non-compliance

  • Enforcement action: This mechanism ensures that the defaulting partner adheres to the terms and conditions outlined in the agreement. This may involve legal action, such as a lawsuit or arbitration, to compel the partner to fulfil their obligations. Additionally, it could include imposing financial penalties or other sanctions as stipulated in the contract.
  • Recovery of damages: This action requires the party in breach of the agreement to compensate the aggrieved party for the losses incurred due to the breach. The amount of compensation will depend on the extent of the damages and the terms of the contract. This may include direct financial losses as well as indirect losses such as lost profits or business opportunities. Legal action may be necessary to recover damages.
  • Termination of agreement: This is a drastic step that is typically reserved for situations where the breach of contract is severe and irreparable. It involves ending the partnership agreement and ceasing all business activities between the parties. This may result in significant financial losses for both parties and could damage their reputations. Termination should only be considered as a last resort when other remedies, such as enforcement action or recovery of damages, have failed.

Current scenario and challenges

The rise of technology-driven businesses has brought several changes to partnership agreements. Some challenges emerge with the modern business environment, which can be listed below as under:

  • LLP’s and hybrid structures : The LLP’s have made the process for limiting the liabilities more flexible. Many entrepreneurs give preference to Llp’s because of their hybrid nature, i.e a combination of partnership and corporate benefits.
  • Cross-border partnerships: With the progression of globalisation, now cross-border partnerships are formed and in some cases tax implications and dispute resolution mechanisms must be handled with additional care.
  • Evolving tax laws: The emergence of new tax laws, especially GST (Goods & Services Tax) and income tax, requires ongoing compliance and transparency.

Case laws related to partnership agreement

Dwarkadas Khetan & Co., Bombay v.Commissioner Of Income Tax, Bombay City, Bombay: The agreement of partnership may be oral or written, and both will hold equal effectiveness. In this case partnership was executed by four person , one was Dwarkadas Khetan, two other major partners and the third was a minor Kantilal Keshardeo. The partnership agreement was executed by both the minor and his natural guardian, i.e., father. Hence the tribunal comes to the conclusion that in this partnership deed a minor is made a partner, therefore it is void.

Badrinath Shankar bhandari vs. Omprakash Shankar Bhandari (2024): The Supreme Court decided that in the absence of a written partnership, the courts shall rely on the conduct of parties and nature of business. It serves as a reminder of a well drafted agreement.

Narayanappa vs. Bhaskara Krishnappa (1966): It stated that on dissolution of partnership the property of the firm vests in all the partners and each partner shall incur the beneficial interest. The case throws light on importance of clear exit and dissolution clause in a partnership agreement.

V.Subramaniam vs. Rajesh Raghuvendra Rao (2009): The case emphasised on interpretation of partnership agreements and reaffirmed that courts must give respect to the clear terms of a partnership agreement. It clarified the necessity of precision while drafting a partnership agreement to avoid such legal battles.

Procter vs. Procter: This case is about the share of a retiring partner. As in the partnership agreement there was no mention about retirement, the retiring partner filed a case demanding a proportionate share (one quarter) of the assets and income of the partnership. The case highlights the absence of provision for a retiring partner leading to expensive and unpredictable litigation, which would otherwise not happen for a partnership agreement with a retirement clause.

Best practices for drafting a partnership agreement

For drafting partnership agreements, best practices would include:

  • Clarity and simplicity: The language of the agreement should be clear and simple and complex legal jargons shall be avoided so that partners can understand the agreement easily.
  • Tailor the agreement: Avoid using generic templates without any modifications; it shall be customised as per the demand of partnership.
  • Addressal of risks: The partnership agreement shall anticipate future contingencies and potential risks like changes in market conditions, new business strategy or the introduction of new partners.
  • Dispute resolution: The agreement shall include alternative dispute resolution instead of litigation which can be costly and time-consuming as well.
  • Review regularly: The partnership agreement must be reviewed regularly in order to meet the demands of the partners according to business, market and new laws.

Conclusion

A partnership agreement shall be drafted well in order to avoid any conflict in the future by clearly defining every aspect of the partnership and outlining the roles, responsibilities, and expectations of each partner. The partnership agreement is made in order to foster trust, minimise disputes and support sustainable growth for the partnership. A robust agreement strengthens the legal foundation of business by safeguarding the interests of all parties.

References

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Using AI for enhanced operational insights: an overview

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This article has been written by Manju Thomas pursuing a Training program on Using AI for Business Growth from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

AI and the business vision

To be successful, the minimum requirement for any business is to have a vision. That gives the clarity and purpose for its operations. AI can be fine-tuned for the business to grow exponentially. Technology driven AI can resonate with the business vision to take the organisation up the ladder. Aligning and training the employees makes the implementation  easier.

Impact of AI

  • AI alters the routine tasks by making smaller changes and by putting in lesser efforts embracing new technologies.
  • Transition to a user friendly and easily accessible process with self training modules to easily adapt to changes if possible with AI.
  • Integrating systems  for easy exchange of data and better collaboration leads to better data visibility and data analytics so as to enable informed decision making.
  • AI tools help in translating complex data sets or raw data into actionable insights in a smarter, efficient and faster way.
  • AI results in improved productivity and in creating a competitive edge.

AI gives a competitive edge

Implementing AI leads to higher levels of accuracy and lesser lead time. This in turn reduces the cost of operations in an immense way. High-value output and mass production improve the scalability of business.

Industries to adopt AI

Manufacturing industry

  • AI automation of systems in factories streamlines the processes and steps involved. This boosts productivity.
  • Predictive maintenance is possible with AI as it provides advanced warning systems. Usually equipment maintenance is a time consuming process. The advanced warning enables the organisation to take anticipatory measures which helps in reducing the production costs.
  • Demand forecasting through AI driven data analysis empowers the manufacturer to stock products accordingly. So there is no understocked or overstocked situation.

Healthcare

  • AI tools analyse the patient data to understand the type of patients and rise in certain types of diseases,   so that doctors can take informed decisions and suggest the right course of treatment. NLP(Natural Language Processing) applications provide comprehensive and structured data, which allows doctors to take informed decisions on the course of treatment. 
  • Advanced AI models can interpret visuals of medical reports, food labels or even physical injuries and engage in follow-up conversations. India’s first medical multimodal large language model (LLM), built by Fractal, is giving access to millions of Indians to quality  healthcare and empowering people with information. This will help the patients to be prepared for a doctor’s visit or to understand a medical report which has complex medical knowledge with much more clarity.

Retail

  • Operations are automated for smooth functioning using AI.
  • Demand forecasting helps with inventory management as well as supply chain management.
  • Customer enquiries as well as product support is more efficient with virtual assistance.

Industrial sectors like telecom, finance, construction, logistics and transportation have adopted AI for many of its functions. 

AI and business development

Approaching the potential customer at the right time is key to the growth of any business. To reach the potential customer, lead generation is essential. AI algorithms can analyse a large pool of data to target the right customer with accuracy and provide a personalised experience. AI tools can predict the buying behaviours of customers. So targeting the right customer has never been so easy.

AI in education 

Innovative teaching and learning practices with a human-centric approach have transformed the educational sector. Knowledge access at fingertips is no longer a dream for people living in rural locations. AI for all gives hope to explore all possibilities in moving ahead in the knowledge sector for everyone.

AI in governance

The 24*7 availability of government services through online applications becomes available to all with the power of AI. Automation of services ensures transparency and reduces corruption. Information gathering is simplified for both the government and the citizens or businesses. From maintaining public infrastructure to rapid disaster response, from security mechanisms to law enforcement, AI has made incomparable progress. Government officials are able to save quality time as AI has reduced the paperwork and improved the query response time.

AI in security

AI empowers defence and cyber security. AI based solutions will help in border surveillance using cameras, radars, etc. Drones equipped with AI-based aircraft technology can function at any time of the day. Lethal Autonomous Weapon Systems(LAWS) with preprogrammed algorithms can help to identify and track hostile targets. AI helps with data management and accurate data analysis enables the defence and security departments with actionable intelligence. It can effectively analyse large amounts of attack data and DNS queries every day. This will help in the detection and mitigation of cyber threats.

Success insights of AI

Artificial intelligence encourages a strategic transformation that improves scalability with competing products and services without incurring additional costs. There will be initial hiccups with respect to integrating AI with the business and getting the right talent. But these will be overcome in a short span of time.

The change aiming towards a better future of business becomes possible as AI has shown the way for numerous possibilities of improvement. In this fast-paced world, AI is able to give a personalised experience to all the stakeholders of a business-from management and employees to the end customer. 

AI concerns on data protection

Implementation of AI involves security concerns for most businesses. Businesses must implement data securing measures to secure the information.

AI in the years to come

AI driven data analytics will lead to identifying trends, optimising operations and making informed decisions. In addition, automation of routine tasks allows the business drivers to focus on strategies, saving time and effort and leading to growth and innovation. As data is the king, anything that hinders its privacy will affect the organisation. It presents the importance of spending money towards ethical and secure solutions in business too so that the changes do resonate with the vision and culture of the organisation.

Industry giants like Reliance Industries are taking the leap as deep tech innovators to bring AI through the Jio Brain to every Indian. By embedding AI into all their processes and operations, with real time data driven insights and automation the organisation is aiming to generate smarter and more responsive services. Retail, agriculture, education, healthcare and entertainment sectors will greatly benefit from this. In addition services like Jio Phonecall AI that allows users to record and store any call in Jio Cloud and automatically transcribe it. Call summary in text form and translating it to any language will be easily possible with AI inclusion.

Leveraging AI technology and creating AI models for social good is the focus of the Wadhwani Institute for Artificial Intelligence. The organisation works closely with the Indian government to define problems, identify data sets, and come up with solutions that create an impact in society. Media Disease Surveillance that captures media reports in health alerts to inform authorities and to be proactive in tackling contagious diseases is an example. Measuring newborns weight, length, head circumference and chest circumference through videos taken by front line health workers of ASHA simplifies their work and the data is automatically captured accurately in the government registers is another example of automatic digitisation.

Reasons for higher productivity using AI

AI is becoming a game changer sorts across the industries, but one of the best things it’s bringing to the table is productivity improvement. This increased efficiency can be traced back to  a few of the central capabilities AI has to offer:

Market analytics and demand forecasting: AI-based tools can intake large chunks of information from market trends, social media, and customer behaviour data. These insights help businesses to predict market changes and customer needs more accurately. Being proactive enables to optimize the planning of production, management of inventory and allocation of resources, minimizing waste and maximizing efficiency.

This allows checking all equipment performance immediately to help actually reduce system wait time. Sice models are continuously learning from production data, these ML models can detect bottlenecks and inefficiencies as well. This enables real-time tweaks for production settings, with benefits in terms of output and reduced downtime.

AI-based data analytics and decision making: One of the main key areas of development for businesses is AI based data analytics. These insights can shape strategic decision-making at every level of an organization from operational line business decision-making on the factory floor through to high level business strategies. This is driving fact-based decision-making, which in turn is driving productivity.

Impact of AI

Task automation: AI is changing the way we work, for instance, automating boring and repetitive tasks has been taking away a lot of human resource efforts for quite a while now. This enables organizations to delegate to AI-powered solutions, allowing the workforce to focus on more strategic, creative, and value-added pursuits. This change can not only maximize efficiency and productivity but also boost overall work satisfaction and engagement by enabling people to focus on work that brings them more fulfilment.

Faster processes: Integration of AI simplify complex processes with smart automation and easily usable user interfaces. Help automate processes, remove data entry, and guide users through workflows in a step-by-step manner, reducing complex processes to a more intuitive and user-friendly experience. This abstraction lowers the barrier to entry with new technologies, makes it easier for organisations to be agile in their operations, and reduces the possibility of making a mistake.

With guided learning comes the advantage of self-training: A significant element of AI-based systems is their self-learning and adaptable character. A self-improvement self-training module indeed incorporated into all AI solutions where they would analyse new data and accordingly modify their algorithms to improve their performance. Second, the inherent flexibility of AI helps ensure that the AI solutions can adapt to changes in the business environment or business need.

Improved collaboration and data transparency: Artificial intelligence is able to help the integration of diverse systems and data in a simple way; this leads to the breakdown of the information known as silos and promotes collaboration among all departments. AI is allowing for real-time data sharing for a unified view of information, which in turn enables teams to collaborate more efficiently, make better decisions through increased visibility, and adapt quickly to new opportunities or challenges.

Advanced data analytics: The size and complexity of data that modern-day businesses generate is a monumental challenge. Analytics tools powered by artificial intelligence are great at processing and analysing large datasets, being able to find hidden patterns, correlations, and trends that could easily be missed. These insights can be harnessed to streamline operations, uncover new market opportunities, personalise customer experiences, and provide a competitive advantage.

With continued advancements in AI technology, we only anticipate that the impact on the workplace will grow, and therefore adopting AI-driven solutions is essential to organisations that want to stay competitive in an ever-evolving world of work.

By incorporating AI into their operations, firms enjoy higher productivity, greater efficiency, and a more significant competitive advantage. AI allows organisations to optimise operations and make better strategic decisions by automating repetitive tasks, simplifying processes, and providing advanced analytics.

Conclusion

AI is creating a significant impact in our daily lives and is going to change the way we plan, build and deliver products and services. It has the potential to transform human capabilities in specific domains. A new talent pool is the need of the hour, which pronounces the need for AI literacy to be mandatory at all levels of education and social setup. Once the foundation for the same is laid, native skills can be developed, and in no time AI can go local. The advancements, including GenAI, can harness the AI’s potential and leverage it to aim for a secure digital experience.

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Iddat in Muslim Law

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This article is written by Priyanship Pandey, and has been further updated by Shamyana Parveen. In this article, the author has attempted to explain the idea of iddat and what iddat is all about and why it is done, how long it takes, the importance and lawful consequences of iddat.

This article has been published by Shashwat Kaushik.

Introduction

Before beginning the topic I want to ask one question. Have you ever asked yourself why women, including the Muslims remained confined to homes during the iddat period? So let us consider this question. The Iddat period is obligatory on the Muslim woman, who upon the dissolution of her marriage because of her husband’s death or divorce, shall be subject to iddat. Iddat is a designated period during which a woman is expected to observe certain restrictions. 

The main purpose of the iddat is to know whether the woman is pregnant or not and to accept the ability of the man to be sure of the paternity. Under the Sunni Law, if the woman marries with another person during iddat then her marriage is irregular and under Shia Law that marriage is void.

This article is about rules, ethical considerations and significance of iddat. It also includes a particular iddat period either after divorce or after the death of the husband. However, let me explain the topic of iddat in detail. Before those meanings are given, let it be necessary that we come to know what meaning is being carried by this word iddat.

Meaning of Iddat

Now moving forward to the next part of the introduction towards knowing about what is meant by iddat (also known as iddah).

Iddat means ‘numeration’ and ‘uddat’ means preparation of an object. In law, it refers to ‘waiting for an opportunity’ which a man or a woman has to do on account of something which makes one wait for iddat. 

According to Justice Mahmood, “Iddat is the term by which a new marriage is rendered lawful”. Iddat is a period during which a woman cannot remarry after dissolution of her first marriage i.e. period of purity or period during which previous existing marriage is deemed to be still in existence for some purpose even though the husband may have died if alive he had made a repudiation of the marriage.

A muslim marriage is not finally dissolved for all purposes there being death or divorce but even after such dissolution. It still works for some use and one of such uses is to know if she is pregnant for the husband so that people will not have confusion over who is the father of the baby growing in her womb.

To know more about the concept of iddat, click here.

Now we are moving forward and discussing the purpose of iddat. When we gathered information about the purpose of iddat we came to know why the woman has to observe the iddat period. Let’s now move forward and discuss the purpose of iddat.

Purpose of Iddat

The period of iddat is for the purpose of providing protection to the muslim women. It provides sufficient time for the woman to mourn her husband’s death. If the woman remarries just after her husband’s death then the society may criticise her for remarrying too quickly. So, it also protects the widow from that criticism.

The main purpose of iddat is to know about whether the woman is pregnant or not, because 4 months and 10 days is enough to know if she is pregnant or not. Another important purpose of iddat is to delay the dissolution of marriage. It increases the chance of reconciliation. If the Shariah had decided a marriage to be over after one or two periods such a reunion could not have been expected. It must be noted that during this time the couple can reconsider their decision of parting ways, during divorce the iddat period allows the couple to actually think twice before going for divorce.

Having understood the purpose, let’s delve into the duration of iddat under different circumstances.

Duration of iddat

The duration of iddat varies in different circumstances, which are as mentioned below:

Iddat after the death of the husband

If the marriage was consummated, after the death of the husband the wife should not remarry to another person without passing at least four months and ten days from the death of her husband.

If the wife was pregnant at the time of death of her husband, then the iddat period will continue to the time of delivery. If the delivery or its miscarriage comes before four months and ten days the remaining period will have to be observed.

Iddat after divorce

If the case where the marriage was valid and it was consummated, then after dissolution of the marriage, the wife has to go through iddat for three months.

Therefore, if a man did have a valid marriage and she was not consummated and divorce was sought then iddat will not be observed and such a woman is free to remarry any other person at will.

If a woman is pregnant at the time of divorce then the iddat period shall continue till she gives birth to a child.

To know more about this, click here.

Now, let me discuss the commencement of iddat.

Commencement of Iddat

Iddat starts after the dissolution of marriage, that is, divorce or death of the husband irrespective of whether the wife knows or not. Let us discuss in detail about the commencement of iddat:

In case the husband dies, the iddat starts immediately where the death was said to have occurred. The wife is not required to do iddat. If she came to know about the news of the husband’s death or divorce, after the expiration of the period of iddat.

In the situation when a husband, after a legal marriage, decides to divorce his wife, iddat period will begin from the moment of the divorce. If the husband dies during the period of iddat for a revocable divorce, then for death the wife has to undergo fresh iddat.

There are some rights of the iddat for the woman. Let me clarify several aspects of it.

Rights while observing Iddat

Let us discuss some of the rights of the iddat:

  • Where during the period of iddat continues, the wife has a right to be given maintenance.
  • A wife is also able to receive her deferred dower; its deferred only means that it has not been given to her at the same time of the other rights such as maintenance.
  • As for the act of iddat, if the husband or wife dies the other one is permissible to take the inheritance to the deceased as the wife or the husband. This condition, however, must be met where the divorce has not degenerated to the divorcee becoming completely irredeemable prior to the death of the deceased.
  • Where the husband says talaq thrice on the ground of death – illness and dies before the completion of the remaining period of iddat, the wife is entitled to inherit from him though the divorce is final which cannot be re-joined before his death.

There are some duties of iddat practice. Let’s move forward to know about it.

Duties while observing Iddat

  • As for the Muslim woman under iddat, she cannot even marry another man. During the iddat of any kind it is not lawful to propose to the woman observing the same.
  • The woman legally bound to observe iddat must do so in the house where she had her residence at the time of divorce or separation of any kind. Without an excuse recognized by the shariat it is not lawful for her to go out of that house.
  • A woman observing iddat after her husband’s death, irrevocable divorce, or any other kind of separation, should keep away from items of adornment like make- up and fancy clothes.
  • If the husband had four wives, including the wife to be divorced, the husband cannot marry another woman until the period of iddat by the divorced wife has elapsed.

Now we are going to discuss some rules of iddat.

Rules of Iddat

There are certain rules for Muslim women during the period of iddat which she has to follow. Let’s discuss some of these rules:

  • A Muslim woman is strictly prohibited to pamper herself during iddat either through application of makeup or even otherwise.
  • It also declares that she cannot wear any silken clothes or any colourful dress. As for the colour of the clothes they are required to wear, specifically black or white, or any other colour it is completely unknown which colour the women undergoing iddat are demanded to wear. She only has to wear a piece of cloth, though the most basic of them all.
  • She cannot go out of the house until iddat period does not get over until there is some absolute emergency like the need for food or water or shelter or any medical issues so even for doctors to come to her house it is not possible or has not been made possible.
  • The widowed wife needs to perform prayer and testify before Allah and do the prostration before Allah on behalf of her husband and herself.

Some of the breach of rules of iddat are mentioned below.

Breach of rules of Iddat

Now we are going to discuss breach of rules of iddat.

  1. Leaving the home: The main prohibition of iddat is that a woman should remain in her home all the days during the period of iddat. Any movement without any and all cause out of one’s home is unlawful during iddat. Valid reasons might include:
  • Danger to life or limb: If she is in danger in the home, then she may leave, but she has to be compelled to go back into the home as soon as the danger is over.
  • Necessity to earn a living: For instance, a widow for example requires support since there is no one to provide her with some cash, she may for example go to work during the day, but is compelled to go back home early in the evening.
  1. Receiving visitors: In the state of iddat a woman should not mingle much with men who are not mahram to them, this is men that one could wed. A man cannot even come close to her; only people related to her such as the father or brother may visit her.
  2. Adorning oneself: Any female in iddat cannot use cosmetics in her face, jewels, nice items, or anything that may transform the beautification of her body. It is essential to be sorrowful and introspective during this time, and therefore it is proper to be so.
  3. Correct duration: With regard to iddat period – they also may variable according to some situations:
  • Death of the husband: Four months and ten days.
  • Divorce: Three menstrual cycles that are three months for those women with menstrual cycles and three lunar cycles for those without menstruation.
  • Pregnancy: If the woman was pregnant at the time her husband died or divorced her then she was paid benefits up to the time the child was born.

Any violation of these rules attracts social and religious consequences because iddat proceed from an important principle of the Islamic law of the sanctity of the woman and her prior marriage.

Prohibition of marriage during Iddat

There are some prohibitions on marriage during the iddat, so now let us discuss it.

The Quran only allows the acceptable method of proposing the intentions of marrying a woman observing iddat, all other direct ways or secret ways are strictly prohibited. After the expiration of the period of iddat, the woman can legally contract a second marriage. Marriage done under the course of iddat is unlawful under Islamic law and hence the marriage is not recognized. Once the completion of the iddat period, the woman can lawfully enter into a contract of second marriage. A marriage done during the period of iddat is not recognised in  Islamic law and is considered void.

Maintenance is the right of women for their livelihood. There are some rules of maintenance during the iddat period as is mentioned below. Now let us talk about maintenance.

Maintenance during Iddat

A widow cannot claim maintenance out of her husband’s estate during the iddat period as she herself is a beneficiary under the will. However, according to the Muslim Personal Law (Shariat) Application Act, 1937 (To know more about this Act in detail, click here) in the cases of divorce, women are entitled to maintenance only till the period of iddat. But as time went on controversy emerged in relation to who should take care of Muslim women after the iddat period if she was unable to earn for herself. The above situation was addressed in the case of Mohammed Ahmed Khan vs. Shah Bano Begum And Ors (1985), which will be further discussed in detail:

The Bharatiya Nagarik Suraksha Sanhitha (BNSS), 2023  (previously Code of Criminal Procedure (CrPC), 1973 and the Muslim Women (Protection of Rights on Divorce) Act, 1986; regulates maintenance for divorced women.

Section 144 of the Bharatiya Nagarik Suraksha Sanhitha, 2023

Section 144 of Bharatiya Nagarik Suraksha Sanhita, 2023 (previously Section 125 of the Code of Criminal Procedure (CrPC, 1973). (To know more about Section 125 of CrPC in detail, click here.) Proceedings for maintenance of divorced women, which includes Muslim women also. Under Section 144, it is made mandatory for the husband of the family to maintain his wife and children either the legal or the illegal ones, aged parents etc. While under personal law muslim women died immediately after iddat without the right to be maintained in homes till they find a new husband.

Mohd. Ahmed Khan vs. Shah Bano Begum (1985)

Facts of the case

In Mohd. Ahmed Khan vs. Shah Bano Begum (1985), a five judge constitution bench of the Supreme Court headed by the Chief Justice Y.V. Chandrachud with Justice D.A. Desai, O. Chinnapa Reddy, E.S. Venkataramaiah and R.N. Mishra gave a historic judgement, dealing with the right of a Muslim divorced woman to maintenance.

Mohd. Ahmed Khan tied the knot to the Shah Bano in 1932. From this marriage a boy and a girl in each consecutive birth right up ten children were delivered, three sons and two daughters. The necessary fact which happened in 1975 was that the wife left the house in which the couple lived by the instance of the husband.

In April 1978, the wife filed a petition against her husband under Section 125 of CrPC before the Judicial First Class Magistrate, Indore, asking for maintenance at the rate of Rs. 500 per month. She alleged that her husband’s monthly earnings would cross Rs. 60,000 per year. After this, the husband divorced his wife by an irrevocable talaq on 6th November, 1978.

The husband’s argumentative response to the wife’s petition in maintenance was that she was not his wife in as much as had been legally divorced he was not obliged to maintain her. He also stated that he spent Rs. 200/- per month for her maintenance for about two years and that he has paid Rs, 3,000/- as dower to the court during the iddat period.

The Magistrate ordered the husband to pay Shah Bano a monthly amount of Rs. 25. Dissatisfied seeing her condition with children, she appealed before the High Court of Madhya Pradesh for an increase in maintenance. The High Court enhanced the amount of maintenance to Rs. 179.20 per month. Then the husband filed a special criminal application before the Supreme Court of India. He pointed out that there is no need to extend maintenance for divorced wives under Muslim Personal Laws and Section 125 of CrPC cannot be made applicable to the Muslim husbands.

Issues raised
  1. Whether the husband is bound under Section 125 of CrPC to pay maintenance to the divorced wife?
  2. The following question arises- Is the provisions of Section 125 of CrPC applicable on the Muslim husbands in the light of Muslim Personal Law (Shariat) Application Act, 1937?
  3. Whether the break up of maintenance amount decided by the Magistrate was logical or not?
  4. Is the defence of the husband that he has paid the maintenance amount and deposited the dower during the iddat period tenable?
Judgement

The Supreme Court granted the maintenance to the wife, and uphold the judgment of the High Court and further imposed costs at Rs.10,000 on the husband, who divorced his wife Shah Bano Begum of Indore and threw her out of the house after 43 years of married life and after they had three sons and two daughters.

The judgment of Shah Bano’s case caused sensational agitation among orthodox Muslim Community throughout the country alleging that the Supreme Court’s decision, Section 125 CrPC overrides the Muslim Personal Law. To satisfy the Muslims made an Act ‘The Muslim Women (Protection of Rights on Divorce) Act, 1986 forgetting about the constitutional obligation of the State to bring Common Civil Code as pointed out by the Supreme Court.

The Court held that it would be incorrect and unjust to extend the above principle of Muslim law to cases in which the divorced wife is unable to maintain herself. The court, therefore came to the conclusion that if the divorced wife is able to maintain herself, the husband’s liability ceases with the expiration of the period of iddat, but if she is unable to maintain herself after the period of iddat, She is entitled to have recourse of Section 125 of the Code of Criminal Procedure.

To know more about this case, click here.

Muslim Women (Protection of Rights on Divorce) Act, 1986

Under Section 3(1)(a) of the Muslim Women (Protection of Rights on Divorce) Act, 1986 the provisions relating to providing maintenance to divorced Muslim women is provided. It is also provided under the said Act that it is a statutory obligation upon the muslim husband to provide maintenance to his wife from the beginning of the iddat period till the divorce finally takes place.

In case she is pregnant at the time of divorce, he is liable to maintain her until she delivers the child and for two years after the child’s birth. She will also be entitled to receive mahr or dower, and all the property that the woman brought at the time of marriage or which she received from her relatives. If the above benefits are not provided to her at the time of divorce she has the right to apply to the Magistrate for an order that her former husband to provide and pay such maintenance mahr or dower or the delivery of the properties.

The liability of the divorced wife shifts from the husband to her relatives, those relatives who are entitled to inherit her property upon her death. If the relatives refuse or are unable to maintain her, she may bring a suit for maintenance against them.

The maintenance shall be decided in each case according to the standards of that woman and her relatives, the property she has, if any, and the standard of life she enjoys. The Magistrate shall determine the quantum of maintenance appropriate here in each case.

If the divorced woman has no parents, children or relatives, or even if they are alive but have no source of income, then the maintenance to the divorced woman has to be paid by the State Wakf Board on the order of the Magistrate.

As per Section 5 of the said Act, the Muslim wife and her former husband can declare their intention to be governed by Section 125 of CrPC instead of the provisions given under the Act before the Magistrate on the first day of divorce proceedings. Each of the parties must consent to the marriage by affidavit, or any other form as may be prescribed, but the consent must be in writing.

Arab Ahemadhia Abdullah And Etc. vs. Arab Bail Mohmuna Saiyadbhai and others (1988)

Facts of the case

In this case, Arab Ahemadhia Abdullah and Arab Bail Mohmuna Saiyadbhai are the appellant and respondents respectively, the two are legally married but Abdullah divorced Saiyadbhai in 1984. Then the wife filed a maintenance petition under Section 125 CrPC from the Judicial First Class Magistrate, Porbandar in 1984. The necessity of the wife for maintenance was decreed in the order dated 30th October 1985 passed by the learned Magistrate who directed the husband to pay Rs.300/- per month to the wife.

The husband with this backdrop sought a criminal revision by petition before the Additional Sessions Judge. Porbandar, they dismissed it, and affirmed the Magistrate’s decision. Unsatisfied with the two above mentioned jurisdictions, the husband left no choice but to approach the Gujarat High Court via Special Criminal Application.

The husband claimed that according to the Muslim Women (Protection of Rights on Divorce) Act, 1986 and Muslim Law his obligation towards foot the bill on his wife’s needs for both food and shelter is only required to do so for the period of iddat even if the wife is not capable of earning her own living.

Issues raised
  1. Does the Muslim Women (Protection of Rights on Divorce) Act, 1986 cancel out the orders made by a Judicial Magistrate under Section 125 of the Criminal Procedure Code that require a husband to pay maintenance to his divorced wife?
  2. Whether the Muslim Women Act takes away the rights which are conferred upon divorced women under the personal law as interpreted by the Supreme Court in the case of Mohd. Ahmed Khan vs. Shah Bano Begum, AIR 1985 SC 945?
  3. Whether the Muslim Women Act provides that a divorced woman is entitled to have maintenance only during the iddat period, i.e., only for the iddat period?
Judgement

While passing the judgement on the above mentioned case, the Gujarat High Court examined the preamble of the Muslim Women Act. The Preamble specifies that the said Act is enacted for the protection of the rights of Muslim women who have been divorced from their husbands. The court also observed that the Act does not say that it is passed to deprive some rights that Muslim women were enjoying either under the personal law or under the general law of Sections 125 to 128 of the CrPC.

The court also looked at Section 3 of the Act on the divorced woman’s right to reasonable and fair provision and maintenance within the iddat period for the former husband to make and pay to her. The court also pointed out that the Act provision and maintenance are to be made and paid for two years from the respective dates of the birth of such children.

The court further dismissed the contention that a divorced woman is entitled to get provision and maintenance from her former husband only during the period of iddat and that the word ‘with-in’ should be interpreted to mean ‘during’ or ‘for’. The court then had this to say: “We have also seen that the Act does not say that the concept of reasonable and fair provision and maintenance is only for the duration of iddat”.

According to the court, the Parliament has provided under Section 3(1)(a) for a divorced woman to be put into a position of having reasonable and fair provisions and maintenance from the former husband.

Therefore, the court held that the Muslim Women Act does not affect the validity of the orders passed by the Judicial Magistrate under Section 125 of CrPC. Further the said section does not repeal the rights given to the divorced women under personal law or the Act restricts the provision of maintenance up to the iddat period only.

Mohd. Abdul Samad vs. The State of Telangana (2024)

This is a recent case, which is related to the maintenance of Muslim women’s rights under Section 125 of CrPC, 1973. In this case, the appellant and the respondent got married on 15 November, 2012. After being in marriage for approximately 4 years, the respondent had to leave her matrimonial home. The respondent filed the case of maintenance under Section 125 of CrPC before the Family Court in Telangana. The Family Court awarded her Rs. 20,000 as monthly maintenance.

Subsequently, the spouses separated and dissolved their marriage through a valid divorce, and the appellant also contested the order passed by the Telangana High Court insisting that his wife could not seek maintenance under Section 125 of the CrPC. He said her right to claim maintenance was under the Muslim Women (Protection of Rights on Divorce) Act, 1986. The Telangana High Court rejected his arguments. However, it reduced the amount of maintenance to Rs. 10,000 per month. Against this order, the husband approached the Supreme Court of India.

On 10 July, 2024, the Hon’ble Supreme Court of India dismissed the appeal of the husband. The Divisional Bench made up of Justice BV Nagarathna and Augustine George Manish has held that Section 125 of CrPC is applicable to all married women including Muslim married women, even after the enactment of the Muslim Women (Protection of Rights on Divorce) Act, 1986.

As much as divorced Muslim women are concerned:

  • All such Muslim women, whether married or divorced under the Special Marriage Act, 1954 shall be entitled to the remedy under Section 125 of CrPC in addition to the provisions contained in the Special Marriage Act.
  • In case, where a Muslim woman is married under personal law then Section 125 of CrPC as well as the provisions of the Muslim Women (Protection of Rights on Divorce) Act, 1986 are available. This is so because the enactment of the Muslim Women Act does not in any way derogate from Section 125 of CrPC but affirmatively supplements it.

If there is an unlawful divorce, i.e., triple talaq as provided in the Muslim Women (Protection of Rights on Marriage) Act, 2019 then

  • A Muslim woman can seek subsistence allowance under Section 5 of the 2019 Act or can avail of the remedy under Section 125 of CrPC.
  • If a Muslim woman is ‘divorced’ and has a petition filed under Section 144 of BNSS, 2023, then she can take recourse under Section 125 of CrPC or file a petition under the 2019 Act.
  • The provisions of the 2019 Act provide a remedy in addition to and not in derogation of Section 125 of CrPC.

There are some societal impacts of iddat. So, let’s discuss it.

Societal impact

Iddat that is now practised in India and comes under the Islamic law is not only a legal thing but also a social incidence as far as the women of Islam is concerned. Iddat is the waiting period any Muslim woman has to undergo after the death of her husband or divorce. This is a time meant for clarity for paternity and also for the physical and social integration of the humans.

Women’s rights and gender equality

Restrictions

Following are the limitations which are imposed on women during iddat: Other restrictions include seclusion within society, cannot groom themselves by tying their hair or dressing appropriately by applying makeup or dressing in appropriate dressing codes. These are restrictions that are well understood as encroachment on the rights and body autonomy of women.

Economic impact

Every stage of the marriage has economic implications and during the iddat; most of the women find themselves helpless, particularly a widow or the divorced woman. The seclusion and restrictions can lead to employment restrictions, and lack of capability of their independence.

Social attitudes

Stigma and isolation

Most of the women observing iddat may feel socially right and rejected and thus stigmatised. It has to do with other supreme traditions of social prejudice as regards divorce and widowhood, further marginalisation of these statuses and discrimination of women in this sphere.

Community support

On the credit side, iddat is also one time the community may bring together resources to defend the woman and at times even offer her some sort of support during mourning or change over.India, according to Muslim Personal Law (Shariat) Application Act of 1937, act no. VIII of 1937 andMuslim Women (Protection of Rights on Divorce) Act, 1986, act no.25 of 1986.has to wait after the death of her husband or divorce. This period is to allow clarity regarding paternity and to provide time for emotional and social acclimatisation.

Some people criticise the practice of iddat. Now, let’s discuss in detail.

Criticism of iddat practice

The practice of iddat, or waiting period, has been criticised for many reasons, including:

  • Outdated: In today’s world, there are many laws on gender equality and women’s rights, and on the other side we impose iddat practice only on women, so this is not gender equality. Some people criticise while saying that what is deemed proper in terms of months it takes for the widow or the widower to marry again is irrelevant in the current society. 
  • Career hindrance: The women are prohibited to step out of the house during the period of iddat. It limits the activities of women to make their career and to earn money. In this modern era, it becomes a problem for the women who are observing iddat, because there exists a prohibition to leaving the house. In case of the death of the husband, she has to struggle to make a living for her children by looking for job opportunities outside the home. To meet the economic demands for herself or her children, it is necessary for her to step out.
  • Discrimination: The rules of iddat practice are gender-biased. Also, people will be looking at some of the reasons given in cases as they claim that provision of iddat is discriminating against women because only women are subjected to it not men. Men can remarry but women cannot remarry until the completion of the iddat period. If the woman remarries during the period of iddat then such marriage is void as per the Shia law and irregular under the Sunni law.

As we know, every country has its own rules and laws to govern the country. So, let’s discuss the duration of iddat and its rules according to the law of different countries.

Similarities between the iddat laws in different Muslim countries

Now let us discuss the similarities of iddat laws with different Muslim countries.

  • In India, the duration of iddat is already mentioned which is 4 months and 10 days for iddat after the death of a husband and 3 menstrual cycles for iddat of divorce. In India it is governed by the Muslim Personal Law (Shariat) Application Act, 1937.
  • In Saudi Arabia, the duration of iddat is also same for both the circumstances but it is governed by the Strict adherence to Quranic injunctions.
  • In Pakistan the duration is the same for iddat. It is governed by the Muslim Family Laws Ordinance, 1961.
  • In UAE, the duration of iddat is the same as mentioned above. It is governed by the UAE Personal Status Law.

Conclusion

In the Islamic legal system the Iddat occupies one of the leading places in its stated goal of defending the honour, rights, and chastity of women. It is an idle time that is needed from women after burying her husband or after divorce it may be to bring a certain level of social stability and in terms of understanding as regards firmer paternity.

The principle of personal law is an individualistic one and each law will have a character of its own which has to be preserved. Everyone knows that when society changes, the laws have to be adopted and changed from time to time as far as women’s rights are concerned. Now as it were high time that legislation should be made and changes be brought about regarding the status of women, which should be grounded and bear only rationality. We know that there are many illogical conditions governing the concept of iddat, that is why it should be eradicated from society.

Frequently Asked Questions (FAQs)

What is a valid marriage?

I shall therefore define valid marriage as a marriage whereby all the elements of marriage have been met. The requirements of a valid marriage require the proposal as well as the acceptance. The offer given by either of the contracting parties or such offer’s counterparty, and the offer: must be accepted by the other contracting party as well as an agreed upon dower. The parties contracting for marriage are adults, of sound mind and free to contract a marriage and should have the capacity to contract for marriage

To know more about valid marriage, click here.

What is an irregular marriage?

An irregular marriage is a marriage which is not unlawful in itself though unlawful ‘for something else’. As where the prohibition is temporary or relative or when the irregularity is created by an accident for instance where such things as the absence of other people could naturally explain why the accident happened. The irregular marriages will be recognised when those barriers have been lifted.

As compared to the common law, the Shia law does not distinguish between irregular marriages and void marriages. According to Shia law, a marriage is either valid or it is not valid at all. Sunni marriages which are irregular are void under Shia law.

What is the iddat period for a void marriage?

A marriage without a legal consequence is a ‘batil’ or void marriage. A void marriage being illegal is null and void ab initio and creates no civil rights and obligations between the parties. A marriage contracted by parties suffering from absolute capacity i.e., prohibited on the grounds of consanguinity, affinity etc., is void. It is not valid from the beginning, and no iddat period is required.

What is a muta marriage?

The term ‘muta’ is best translated by two words, ‘enjoyment’ and ‘use’. Muta marriage is a marriage for temporary but a fixed term after determining the marriage dower amount. Muta is a kind of temporary marriage known only in the Shia school of Muslim law. Muta marriage is not permitted in Sunni Law for the simple reason that according to this school there should be no limitation as to the extent of the marriage contract; the words which have been used at the proposal and acceptance must imply willingness for the actual ratification of the marriage at that very moment.

To know more about muta marriage, click here.

What is a revocable divorce?

If divorce is granted to a couple but later reconciles and wants to come back together, the husband could continue the intercourse normally, it is known as revocation of divorce. In the revocable divorce, the husband can take back the wife during ‘iddat’ without her consent and without a remarriage; but after the expiry of iddat, she is irrevocably divorced.

What does a ‘deferred dower’ mean?

A deferred dower is also called “mehr-i-muwajjal”. It is not paid right at the moment after the consummation of the marriage. It becomes payable only where the event takes place like, the period elapses or the marriage contract comes to an end through either death or divorce. The deferred dower becomes payable only on the expiration of the period specified. If the period is not fixed, it will be paid on dissolution of the marriage on the death of either of the parties or by divorce.

References

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Right to freedom of religion

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This article is written by Sachi Ashok Bhiwgade and further updated by Prashant Prasad. The article provides in-depth analysis about one of the fundamental rights i.e. right to freedom of religion, which is being provided under Article 25 to Article 28 of the Indian Constitution. Additionally, the article deals with the analysis of each provision relating to the right to freedom of religion and also covers the landmark cases associated with it.

This article has been published by Shashwat Kaushik.

Table of Contents

Introduction

India is the most populated country of the world and it is considered as a culturally diverse country. Every individual residing in the country does have their own sets of a belief and practice with regards a specific religion and therefore, the matter pertaining to religion is considered to be of a paramount importance in a country like in India. In India every individual does have a right to choose and practice the religion of their own choice. Also, the right to freedom of religion is considered to be a fundamental right as provided under Articles 25, 26, 27, and 28 of the Indian Constitution. We all are well versed with the fact that the Indian Constitution stresses on the secular model and it further provides that every person of the country has the right to choose and practise the religion of one’s choice without any inhibition. 

The Hon’ble Supreme Court of India, by way of many judgements, has ruled that ‘secularism’ is the basic feature of the Indian Constitution and, therefore, it must not be infringed or violated. There are different personal laws in our country that govern the different religions that are being followed by the people throughout the territory. However, an exception to this is the states of Goa as well as Uttarakhand which have adopted the Uniform Civil Code and therefore, the peoples residing in those states are governed by the uniform laws in certain matters, irrespective of religion. 

The right to freedom of religion as enshrined under Articles 25 to 28 of the Indian Constitution ensures that any right relating to the freedom of religion must remain protected. These rights related to religious freedom are not only available to the citizens of a country but to every other individual who is living in India. All these constitutional provisions which are related to the right to freedom of a religion ensures that any religious practice must remain protected from the interference of the State. However, it is often seen that the interpretation of the provision relating to religious freedom raises several concerns, and to eliminate those concerns judiciary is playing a crucial role so that the religious harmony among all the peoples in the country remains there. 

Explanation of the right to freedom of religion

Before directly plunging into the explanation of the right to freedom of religion let us take an instance in which there are two friends named ‘Gaurav’ and ‘Sourav’. Gaurav encountered one question and the same question he asked to Saurav i.e. what does the right to freedom of religion mean. Sourav replied to Gaurav that the right to freedom of a religion means that every individual does have a right to choose and practice the religion of one’s choice. 

In India the right to freedom of religion is being recognised as a fundamental right and it ensures that every religion is equivalent in the eyes of state and judiciary. Therefore, any kind of discrimination based on religion is prohibited. If the said right is contravened, then the Indian Constitution also provides a mechanism for that individual whose right is violated to avail remedies.

Illustration – In Hindu religion every person is entitled to go to a temple of their choice and worship over there. However, if there exists some situation due to which they are prohibited from entering into that particular Temple then one can directly approach the court of a law in order to secure their religious freedom. 

Under such a situation, The court may make necessary orders to allow that individual to enter into the temple and worship in accordance with the belief and practice of that particular religion. As the right to freedom of religion is a fundamental right and no person should be deprived of this right except certain reasonable restrictions in the interest of public order morality and health. 

After discussing a bit about the right to freedom of religion. It’s time for us to move further and look at the various constitutional provisions related to the right to freedom of religion. 

Different constitutional provisions regarding the right to freedom of religion

We must have wondered about the exact provisions that are available in the Constitution of India that protects the individual’s right to freedom of religion. So, let’s eradicate that subsiting thought and its time for us to explore these provisions, which are as follows – 

  • Article 25: This Article ensures that there must be a freedom of conscience, free profession, practice, and propagation of religion of one’s choice.
  • Article 26: This Article provides liberty for the management of religious affairs.
  • Article 27: By virtue this Article prohibition is being imposed on the payment of taxes for the promotion of any particular religion. 
  • Article 28: Under this Article certain restrictions have been imposed on impartation of religious instruction or practice of religious activities in the educational institutions. 

After reading these provisions we must have got a fair idea that the sole purpose of these articles is to protect the individual’s right to freedom of religion. But, it’s not the end, we are at the verge of delving into each of these provisions one-by-one in order to understand them in a better way. 

Article 25 of the Indian Constitution

Consider an instance in which there is a queue and a lot of people are standing with the sole purpose of contributing some amount for charity. Now, restitute the word charity with religious freedom and the word peoples with the above-mentioned provisions. Is it difficult for you to understand? Let’s simplify it a bit more. Since, we’ve discussed that there are various provisions that guarantee the right to freedom of religion and all of these provisions are like a queue which contributes towards the protection of religious freedom and Article 25 stands in the beginning of that queue. 

Article 25 of the Indian Constitution provides that every person is entitled to freedom of conscience and do have a right to profess, practice, and propagate the religion of one’s choice. However, this right is not an absolute right and certain restrictions have been imposed subject to public order, morality and health. 

It has further been provided under Article 25 that it’s working shall neither in anyway affect the law that is already in existence nor it shall in anyway prevent the state from enacting any kind of a law on following matters – 

  • Regulating or limiting any economic, financial, political, or any other secular activity associated with religious practice.
  • Administration of any social welfare and reforms associated with it. 
  • Inaugurating any Hindu religious institutions of public character for all the Hindus irrespective of their classes and sections. 

Article 25 of the Indian Constitution grants freedom with respect to conscience, free profession, practice, and propagation of religion. Therefore it is important for us to understand what is the nature of the free conscience, free profession, practice, and propagation of religion. 

In order to have a complete understanding with respect to this particular provision, It’s time for us to directly plunge into the analysis of Article 25 in which we will discuss every important aspect of this Article in a detailed and bifurcated manner. 

Analysis of Article 25 of the Indian Constitution

Freedom of conscience

It has been observed by the various courts in India that ‘freedom of conscience’ is a freedom that allows an individual to have any belief with respect to the matter of religion or morality. It provides complete liberty to the citizens to shape any form of connection with God in any manner that the person may deems fit. 

Therefore, it can be well inferred that Article 25 grants any person the right to entail any kind of a belief with regards to their religion but it must not be in contravention to the public order, morality, health and the other provisions of Part III of the Indian Constitution.

For example- Any person can choose their religious leader or priest and they can perform their religious practice in accordance with their guidance. While performing their religious activity, In accordance with those guidance as delivered by their religious leader or priest any form of connection can be made to the God. However, while performing those religious activities it must not infringe the public order, morality, health and the other provisions that are included under Part III of the Indian Constitution. 

Now that we’ve discussed freedom of conscience it is essential for us to understand about freedom to profess religion that has been explained below. 

Freedom to profess religion

The term religion has not been defined in the Indian Constitution and this is one such term which is hard to give any kind of rigid definition. However, the Apex court on many instances has defined the term ‘religion’ in a wide way, by stating that ‘religion’ can be described as a matter of faith that is related to a particular religious community or an individual and is not theistic. Moreover, different religions in our country like India, involve different systems of beliefs and doctrine that are being regarded and supported by the peoples who followed that particular religion. 

However, it is important for us to note that religion is not only confined to the system of a belief. It may include certain ethical rules, ceremonies, different modes of worship, and observances which are considered to be sacrosanct, vital and integral part of that religion. Therefore, an inference can be drawn by stating that religion is a matter of faith and every person has the right to have such religious belief and they can practice that belief in any way as prescribed by that particular religion. 

In the case of Shri A.S. Narayana Deekshitulu vs. State of Andhra Pradesh & Ors. (1996), it was observed by Justice Hansaria that our constitution’s framers used the term ‘religion’ in Articles 25 and 26 in a sense so as to convey the word ‘dharma’. Further the present case, provided the difference between religion and dharma by stating that “Religion is enriched by visionary methodology and theology, whereas dharma blooms in the realm of direct experience. Religion may inspire one to build a fragile, mortal home for God; dharma helps one to recognize the immortal shrine in the heart.” 

In the English language the term ‘profess’ means to affirm one’s faith and belief openly. Therefore, it can be said that the right to profess one’s religion means to express the ideology of religion by way of different activities such as taking out of a religious procession, worshipping at a public place, and wearing any specific garments that come within the ambit of the profession of that specific religion. The freedom to profess religion also means to declare openly and freely one’s faith and belief. 

For example- the Indian Constitution recognises the wearing as well as carrying of ‘kirpans’ as a profession of the Sikh religion.

The right to hold religious processions and gatherings is allowed as it comes under the ambit of Article 25(1). However, holding of such a procession and gathering must be subject to public order and morality. Various public authorities, for instance ‘police’ do have the power to regulate such religious activities. For conducting such religious activity a particular route and timing may be provided by the public authority. If there is any chance for the breach of public peace due to such processing or gathering then under those instances the magistrate can even impose a ban on such procession or gathering.

We must have heard about the case of Bijoe Emmanuel & Ors vs State Of Kerala & Ors (1987), In this case three students during the school assembly merely stood and respect but they did not sing the national anthem. Therefore, they were expelled from the school on the grounds of non-singing of a national anthem. It was contended on behalf of petitioner that the right to freedom of religion is a fundamental right as enshrined under Article 25 and Article 26 of the Indian Constitution. It is worth noting that the court ruled in favour of students. The court observed that the right to freedom of religion also includes the right to profess the religion of one’s choice. As a result, it was concluded by the court that expulsion of students from the school based on the facts of the case is not valid.  

Along with the freedom of conscience, and freedom to profess religion of one’s choice. Every individual has the freedom to practice their religion. This freedom is an essential aspect of Article 25 of the Indian Constitution and it has been described below. 

Freedom to practise religion

From the bare perusal of Article 25(1), one can easily infer that liberty has been provided to an individual to to follow the religion of one’s choice. Apart from that we can also observe that this Article provides that an individual is having a right to freely carry out their religious duties, rights and rituals to express the ideas of the religion in which the individual believes.

We all know that India is a culturally diverse country and there are different communities residing in India. It can be observed by us that certain religious groups prefer to wear distinct clothes. Therefore, wearing the clothes of specific design and style by a specific religious community can be said to be protected under Article 25 of the Indian Constitution and it forms the part of freedom to practice religion. 

The first case that arose for seeking protection under Article 25(1) is the case of State of Bombay vs. Narasu Appa Mali (1951). In the present case there was the enactment of the Bombay Prevention of Hindu Bigamous Marriage Act, 1946 and the said Act prohibited the practice of a bigamy among Hindus in the state. However, on the other hand the community of a Muslim who were practising polygamy were left out of the operation of the said Act. Therefore, based on the irregularity in the applicability of the Act with respect to religion, the appellant named Shri Narasu Appa Mali approached before the Bombay High Court with the main contention that the said Act abridges the plaintiff’s right to freedom of religion. Among all the contentions which were raised by the plaintiff in the present case one was that, the enactment in question created discrimination among Hindu as well as Muslims with respect to the religious practices. 

Therefore, the plaintiff wanted the court to declare the Act in question as void and unconstitutional. The court after considering the issues which were present in the instant case found that the right which is being claimed by the plaintiff under Article 25(1) is not an absolute right. Hence, if any matter related to religion violates the public order of the society then one cannot claim protection under Article 25(1) with respect to that religious matter. 

The court in the present case further clarified that the protection granted by virtue of Article 25 and Article 26 is not merely confined to religious belief but it also includes the actions that are performed in the name of that particular religion. The actions performed may include rituals, observances, ceremonies and modes of worship that are regarded as an essential part of the religion. Whether certain religious practice is essential or not with respect to that particular religion is to be decided by the court while taking into consideration the belief and practice of that religion. 

Having discussed the essential aspect of the right to profess religion. The time has arrived to go ahead with the analysis of Article 25 and discuss the freedom to propagate religion. 

Freedom to propagate religion

Is there any need for promoting a particular religion for securing religious freedom? The Answer to this question depends upon the belief and practice of that religion. If we look into the literal meaning of what actually the ‘propagation’ means then it can be concluded that propagation basically means to promote something. In respect of religious matters, the right to propagate means to spread the views of one’s religion. However, it is important to note that such propagation must be done without any undue influence or element of coercion. 

For e.g. – We often observe that certain seminars and workshops are conducted in various parts of our country to promote and spread the ideas of a particular religion. However, no person is forced to attend those seminars or and workshops, and discretion is being provided to the people if they really want to attend those seminars and workshops or not.  

In recent periods, it can be observed that in the name of propagation of religion certain instances of convincing others about the belief and practice of a distinct religion have been evoked. Those instances can eventually lead to the production of ill feeling and violence among the different members of the society. Under such circumstances it is the duty of a state to balance the right to propagate religion with the rights of the general public. Therefore, it can be said that although Article 25 of the Indian Constitution provides the right to propagate religion of one’s choice but such a right is subject to public order and it is not an absolute right. 

At this point it would be interesting to discuss the landmark case of Ramji Lal Modi vs. TheState of Uttar Pradesh (1957), in which the appellant used to work for a journal. That journal was entirely dedicated towards the well-being and protection of cows. In that particular journal an article was published by the appellant. The Allahabad High Court found that the article in question was published by the appellant with intention to provoke the sentiments of a particular religious community. As a result, the court fined the appellant under Section 295A of the Indian Penal Code, 1860 (now, Section 299 of the Bhartiya Nyaya Sanhita 2023) and was also convicted for the said offense.

Aggrieved by the decision of the High Court an appeal was preferred before the Supreme Court of India. It was argued before the Apex Court that the right to speech and expression that is guaranteed under Article 19(1)(a) of the Indian Constitution is violated because of Section 295A of the IPC (now Section 299 of the BNS). 

The contention of the appellant was rejected by the Hon’ble Supreme Court of India and it was ruled by the court that, although the right to freedom of speech and expression is there but it must be subject to the Article 19(2) which provides reasonable restrictions and it must be exercised for the maintenance of public order. The Apex Court, while rejecting the contentions observed that Section 295A of the IPC (now Section 299 of the BNS) does not penalise in every instance. However, under this Section such an act must be penalised which is committed with the deliberate and malicious intention to provoke the religious sentiment of some religious group. 

After discussing the various freedoms that are granted under the Indian Constitution by virtue of Article 25. It is important for us to note that the court will not enforce every religious practice but it will only enforce those practices that form the essentiality of that particular religion. The essentiality of any practice is decided by the court and the decision by the court is predominantly based on a test named ‘essential religious practice test’. 

Essential religious practice test under the Indian Constitution

Every religion has certain religious practices and one question might be wandering around our mind is whether such a religious practice is essential or not. The essentiality of any religious practice can be determined on the basis of the essential religious practice test. 

The essential practice test is basically a set of standards which is used by the Judiciary to decide whether such religious practice is protected under the Indian Constitution or not. This test was evolved in the case of The Commissioner, Hindu Religious Endowments, Madras vs. Shri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt (1954), it was ruled by the Hon’ble Supreme Court of India in this case that, in order to protect the practices that are an integral part of the religion, the court will only enforce essential religious practice, and not each and every practice. The court further observe that in every religion there are certain rituals which are considered to be an essential religious practice, such as – 

  • In Hindu religion, specific ceremonies must be performed for the solemnization of marriage and it includes the ceremony of Saptapadi
  • In Muslim religion offering prayer at a mosque is considered to be essential religious practice.
  • Wearing a turban by Sikhs is recognised by the Indian Constitution and is considered to be an essential practice.

We all are well versed with the fact that every religion has certain essential religious practices which need to be followed under some special circumstances. However if there exists a situation in which there are some supervining factors that interfere with such essential religious practice then what can be done? 

Under those instances, the essential religious practice test protects the essential practice of the religion from any kind of intervention. The Judiciary has been provided with the power to properly evaluate the belief and practices of that religion and determine if the practice in question is truly essential practice or not. However, many times the court’s power to determine the essentiality of any religion is being criticized by the law expert by stating that determining the essentiality of any religion is beyond the competency of the court. 

But, one fact cannot be denied by anyone is that the Judiciary is playing a pivotal role in eradicating the social evil that exists in our society related to religion and hence, social harmony can be achieved to a greater extent by exercising this test by the judiciary.

After analysing the various important aspects of Article 25 it can be said by us that the rights guaranteed under this particular provision is not an absolute right. It can also be observed by us that certain restrictions are provided on those rights. Therefore, it’s time for us to move ahead with the analysis and get to acquaint ourselves with the various restrictions that are imposed on this Article. 

Restrictions that are imposed on the exercise of the right to freedom of religion

Before discussing the various restrictions that are available to the right to freedom of religion, Let’s discuss an instance. Suppose a religious procession was carried out by a religious community and as a result there was a huge traffic jam and disturbance to the public order. Under that particular instance police authority intervened and provided certain guidelines to continue with that procession. Under these instances it can be observed that the guidelines that were provided by the police authority can be seen as a restriction that was imposed on the exercise of the right to freedom of religion. 

Therefore, it is crystal clear to all of us that the right to freedom of a religion is not an absolute right and in certain instances restrictions can be imposed. So let’s discuss one-by-one about the various restrictions that are imposed on religious freedom. 

Public order and morality 

Public order

One of the most important conditions for the existence of freedom and proper working in a society is that there should be peace and order in that particular society. It is the duty of the State to ensure that peace and order exist in the society so that everyone can enjoy the right without any kind of impediments. Therefore, if any person exercises his/her right in a way that undermines the peace and tranquillity of the society then under such a situation the State can exercise its power to limit it. 

As a result, any kind of religious gathering or procession, if it is performed in a public place then under such a situation State has been provided with the authority to regulate those activities. Moreover, if there exist some supervening factors or an imminent emergency then the State can even impose a ban on such a religious activity if it threatens the public peace. 

The State can even declare certain activities as an offence if such activities try to hurt the religious sentiments of any class of people, or if the activities promote disunity among different groups. In view of the existence of certain religious activities that might disturb the public order, many states have enacted certain legislation to curb those activities. Therefore, certain religious activities such as cow slaughtering or propagation of any religion with the intention to commit fraud has already been prohibited by the special legislation in many states, as these religious activities might disturb the law and order in society.

Illustration – There was an inauguration of a temple due to which a tent was pitched in such a way that it covered half of the nearby road. The religious ceremony for the inauguration of that tent was scheduled to take place for 11 days. Due to the tent, which was pitched on the side of the road there used to be a huge chaos and traffic jam as very little space was left for vehicles to pass. Therefore, under these instances the police authority can make appropriate orders to secure public order in the society. 

Therefore it can be said that restriction can be imposed on the exercises of a right to freedom of religion if such practice detters the public order of the society. 

Forced conversion is not allowed

The Indian Constitution confers the right on every individual to profess, practice and propagate the religion of one’s choice. However, nobody can be forced to follow their religious belief and, consequently, no one can be forced to practise any religion against the choice of that person. 

In the case of Rev. Stainislaus vs. State of Madhya Pradesh & Ors. (1977), two Acts were in question i.e. the Madhya Pradesh Dharma Swatantrya Adhiniyam, 1968 and the Orissa Freedom of Religion Act, 1967. Both of these Acts were challenged on the ground that it contravenes the fundamental right of an individual guaranteed and Article 25 of the Indian Constitution. Forced conversion of a person to one’s own religion was one of the major issues present during that particular time and to curb those practices both the Acts were passed. The petitioner in the present case contended that the right to freedom of religion also includes the practice of converting others into their own religion. It was further contended by the appellant that the State Legislature is incompetent to enact such laws as it does not fall within the ambit of Entry 1 of List II and Entry 1 of List III of the Seventh Schedule

The Hon’ble Supreme Court of India while rejecting the contention of the appellant ruled that both the Acts fall within Entry 1 of List II. The court observed that these Acts are enacted with the purpose to avoid any disturbance in this society by prohibiting the act of forcible conversion. Therefore, the court upheld the validity of both the Acts and it was ruled that both the Acts were passed in the interest of justice.

Morality

The fundamental purpose of any religion is to secure and promote moral behaviour. However, It can be noticed that every activity of religion cannot be considered as moral and some activities can eventually turn to be immoral as well. Under those instances, the state has been provided with an authority to impose, ban and regulate such immoral actions, so that the morals of society could be protected. Some of the religious practices have been recognised as immoral by the court of law and it has been prohibited such as devadasi system, sati system, gambling on the day of Diwali, etc.

Therefore, it can be said that the State has implemented various restrictions. All these restrictions were intended to secure public peace so that the instance of a violences must not be there in the society while exercising the rights of different religious practice in a different public places. 

The courts have also upheld the restrictions that can be imposed on religious freedom and it can be well understood by taking in account the case of Public Prosecutor vs. P. Ramaswami (1963). In this case there was an instance of deliberately publishing an article with the malicious intention to provoke the sentiment of other communities by the author. In this article certain parts of the holy Quran were criticized. Apart from this the author concluded the entire article in a very critical way by commenting on Allah. The Madras High Court After taking into consideration the facts and issues associated with the case found that the author of the article is guilty of an offence under Section 295A of the IPC (now Section 299 of the BNS). The court ruled that due regards must be given to every religious sentiment and feelings belonging to the peoples of different religions.

Further, in the case of Acharya Jagdishwaranand Avadhuta & Ors. vs. Commissioner Of Police, Calcutta & Anr. (1983), also known as ‘the first Anand Marga case’. In this case an order was issued by the police to prohibit tandava dance that was performed in the public place. Tandava dance can be regarded as a religious gathering or a procession that involves carrying of different kinds of lethal weapons and human skulls

It was ruled by the Hon’ble Supreme Court of India that the order which was issued under Section 144 of the Criminal Procedure Code, 1973 (now Section 163 of the Bharatiya Nagarik Suraksha Sanhita, 2023) by the Calcutta Police Commissioner was completely valid. It was observed by the court that possessing such dangerous weapons like daggers and human skulls and performing that dance in a public place creates danger to public order and morality of the society. 

From the above discussion it can be said that restriction can be imposed on the exercise of religious freedom in the interest of public order and morality. Apart from that it is also important to take this fact into consideration that religious freedom must be exercised while complying with the legal requirement. How such religious practice should comply with the legal requirements are discussed below. 

Legal requirements

Article 25(1) of the Indian Constitution ensures that every person has the right to freedom of a religion. However, in spite of the existence of religious freedom under this Article. It is further clarified under the same Article that the existence of such religious freedom must be subject to the public order, morality, health and to the other provisions that are present under Part III of the Indian Constitution. The Indian Constitution, by way of its restrictions, brings out the principle that every religious sentiments or activities are not entitled for an absolute protection. 

In the case of State of Bombay vs. Narasu Appa Mali (1951), it was ruled by the Bombay High Court that, although, Article 25 of the Indian Constitution provides the right to freedom of religion however, such a religious freedom is not an absolute right. It was further observed by the court in this case that the right to freedom of religion is firstly subject to the public order, morality and health and secondly this right must be subject to the provisions that are present under Part III of the Indian Constitution.

Since, we’ve discussed the restrictions that can be imposed with respect to legal requirements. Let’s go further and discuss a few more restrictions. 

Regulation of economic, financial, political, and other secular activities related to religion 

The various religious practices can be regulated by the State by virtue of the Article 25(2)(a) of the Indian Constitution. The practices may include any kind of a political, financial, economical or any other secular activities. Under certain instances, it becomes difficult for the State to figure out whether any activity will fall under ‘religious practice’ or else any other financial, political, or secular activities related to the religion. The freedom to practise religion only extends to those activities that form the essence of that particular religion and protection does not extend to such cases that do not form the essence of religion.

In the case of Adelaide Company of Jehovah’s Witnesses vs. The Commonwealth (1943) 67 CLR 116, the court observed that carrying out anti-war propaganda in the name of a religion must not be allowed, when a nation is at war. Therefore, it can be said that any kind of activity related to politics that has arised out of a certain religious belief of a particular organisation cannot be held protected under the Indian Constitution.

Apart from the authority that is provided to the state to regulate economic, financial, political and other secular activities related to religion. Certain more authority has been provided to the state which acts as restriction on the exercise of a right to freedom of religion. Therefore, in the next part we are going to see how for securing social welfare and social reform certain laws can be enacted which might impose restrictions on certain religious practices. 

Social welfare and social reforms

It has been stated under Article 25(2)(b) that the State has the authority to enact laws for social welfare as well as for social reform. Therefore, religious freedom is subject to social reforms. The state has been provided with the authority by virtue of Article 25(2)(b) of the Indian Constitution, to enact the laws in order to eradicate such social practices that act as an impediment in the country’s overall development. 

In the case of State of Bombay vs. Varasu Bapamali AIR 1953 Bom 84. The Act in question prohibited the practice of bigamy and such prohibition was held to be constitutionally valid by the Bombay High Court. The court observed that practice of polygamy is not an essential religious practice and therefore, it can be regulated by law. 

Moreover, Article 25 also grants the right to all the Hindus to enter into any temple for the purpose of worship irrespective of their class and status in the society. Such a provision makes sure that the right of an individual to enter in any temple must remain unobstructed and it is immaterial that from which caste or class that person belongs to. The Hindu temples such as Sikh Gurudrawa, Jain temples, Budh Vihars, etc. should remain open to all sections of Hindu, the term “Hindu” here includes Buddhist, Jain and Sikh.

In spite of the existence of this right the state has been provided with the authority to impose restrictions on the entry of certain religious groups to the temple. The restriction on the entry of temples to certain religious groups can be clearly inferred from the case of D. Senthilkumar vs. Government of Tamil Nadu (2024), this case is famously known as the ‘Palani Temple dispute’. The Madras High Court in the present case ruled that a non-Hindu cannot be allowed to enter into the premises of a temple without written undertaking. 

Such a written undertaking can be obtained from the government by those he non-Hindu who wanted to enter the temple. For obtaining the undertaking it must be shown by the non-Hindu that he is having a genuine faith in that particular God and in future he will follow the practice of Hindu religion. 

Moreover, certain restrictions can also be imposed on the exercise of the right to freedom of religion subject to public health. 

Public health

Safeguarding the public health and the life of an individual is one of the paramount responsibilities of the State. However, under certain situations the life saving measures which are taken by the State might affect these specific religious practices or beliefs.

For instance, in the present criminal law, suicide or attempt to commit suicide by an individual is considered to be a crime and it penalises the person who does so along with the other persons who assist to commission of such act. Thus, any action to attain the spiritual end or death by starvation or self-inflicted torture is an offence and the State does have the authority to take action in such a situation. Some of the social evil that were considered to be a religious practice in a primitive age such as sati was prohibited and was made a criminal offence.

Since, we have discussed the essential aspects and various limitations of the Article 25 of the Indian Constitution. Let’s look at some of the important judicial precedents which were delivered by the various High Courts and the Apex Court while deciding the issues relating to the religious matter. 

Important cases on Article 25 of the Indian Constitution

Gulam Abbas & Ors. vs State of Uttar Pradesh & Ors. (1981)

In this case, the dispute arose between shia and sunni sect of Muslims regarding the performance of certain religious rites by shia Muslims on a certain plot of land in Varanasi. The Hon’ble Supreme Court of India in order to avoid the clashes among the different sects with regards to the problem in question and to find a permanent solution, appointed a 7 member committee in which the chairman was Divisional Commissioner and 3-3 members were there from sunni and shia sect of Muslims. The recommendation made by the committee was that the graves should be shifted to a different location for the purpose of worship. However, the recommendation was challenged by the sunni sect on the ground that such action would be violative of the right to freedom of religion that is guaranteed under Article 25 and Article 26 of the Indian Constitution.

The Hon’ble Supreme Court of India observed that the religious freedom that is guaranteed under the Indian Constitution is not an unlimited or an absolute right but such right is subject to public order. The courts further observed that if the shifting of graves is in the interest of the general public then in such cases opinions of parties are immaterial even if the Muslim personal law is against the shifting of graves. 

It was found by the court that the suggestion which was made by the committee to shift the grave is important in order to maintain the social harmony and to ensure the public order in the society. The court found that, although the Shariat law is against the practice of shifting graves, the rights of every religious denomination are subject to ‘public order’. On the basis of the above stated reasoning, it was finally concluded by the court that shifting of graves in the present situation is essential to maintain the public peace and order of this society. 

Ramesh, s/o Chotalal Dalal vs. Union of India & Ors. (1988) 

In this case, there was a serial named “Tamas”. The said serial was based on a book that depicts the communal violence among two religion i.e. Hindu-Muslim and Sikh-Muslim. Along with that the instances of killing and looting were there in the serial. A writ petition was filed under Article 32 of the Indian Constitution, seeking the direction of the issuance of the writ of prohibition or any other appropriate direction for restraining the screening of the serial “Tamas”.Moreover petitioner urged that the screening of the said serial is violative of Section 5B of the Cinematograph Act, 1952 and hence the casting should be prohibited.

The court after evaluating the facts and the other issues associated with the case dismissed the petition and it was ruled by the court that the series is not in violation of Articles 21 and 25 of the Indian Constitution. The court observed that the author of the book merely wanted to bring the past history of the country, and the said serial creates the impression of peace and co-existence and the peoples are not likely to be carried away by the violence that is being shown in the serial. 

Bhuri Nath & Ors. vs. State of Jammu & Kashmir & Ors. (1997)

The main issue, in this case, was regarding the constitutionality of the Jammu and Kashmir Mata Vaishno Devi Shrine Act, 1988. The Jammu and Kashmir Mata Vaishno Devi Shrine Act, 1988 vested the right to perform pooja, right to administration, management of the shrine fund to the Board that was constituted under the said Act. The Hon’ble Supreme Court of India addressing the issue of the case upheld the validity of the Act and it ruled that the right to perform pooja is a customary right and the state by way of its legislation can abolish such a right. 

Gulam Kadar Ahmadbhai Menon & Ors. vs Surat Municipal Corporation & Ors. (1998)

In the present case, Section 212 of the Bombay Provincial Municipal Corporations Act, 1949 was challenged contending that the provision of the said Act is violative of the right to freedom of religion. Based on the said provision of the Act an order was passed to clean the line of a road by demolition of the mosque. 

Being aggrieved by such an order a petition was filed under Article 226 of the Indian Constitution. The Gujarat High Court in the present case observed that if the place of worship is taken because of some important purpose such as the expansion of a road as in the present case. Then under such a situation it does not in any way affect the religious sentiment or any religion.

N. Adithayan vs. The Travancore Devaswom Board & Ors. (2002) 

Petitioner in the present case claimed that every devotee as well as the authorities of the temple always followed the tradition. As a result, a non Brahmin who was appointed as a priest of a temple is violative of the tradition which was there since time immemorial. The Hon’ble Supreme Court of India rejected the contention of the petitioner and it was ruled by the court that any individual who is qualified and trained to perform pooja in appropriate manner can carry out such rituals. 

Shayara Bano vs. Union of India & Ors. (2017)

In this case, Shyara Bano a Muslim women from Uttarakhand challenged the constitutional validity of talaq-e-biddat i.e. triple talaq (form of divorce in which a Muslim man divorces his wife by uttering the word “talaq” three times in a moment). It was submitted by her that the practice of triple talaq is not in consonance with the principles of a gender justice and therefore, it is violative of her fundamental rights. The major issue before the court was to decide whether the practice of triple talaq is essential religious practice or not. 

The court after evaluating the contentions in the present case was of the opinion that the practice of triple talaq has been banned in most of the Islamic country and therefore, it cannot be regarded as an essential religious practice. Therefore, the practice of triple talaq was held to be unconstitutional in this case. 

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M Siddiq (D) Thr Lrs vs. Mahant Suresh Das & Ors. (2020)

The major dispute relating to the present case, was regarding the area of 1500 sq. metres that was situated in Ayodhya. It was contended by the respondents that the temple of Lord Shri Ram was present on that particular land but the Mughal emperor named ‘Babur’ destroyed that temple which was already built on that land. However, this contention was vehemently opposed by the appellant and it was submitted by them that mughal emperor ‘Babar’ did not destroy any such temple. 

The major issues for consideration before the Allahabad High Court was – 

  • Whether the dividing the land in question into three parts was legally valid or not.
  • Whether there was ever such a temple existed on that land as it was contested. If such a temple existed then whether the Hindu community is eligible for that or not? 

The Hon’ble Supreme Court of India consisting of five-judges bench ruled that the land which is under dispute must be given for the construction of the Ram Mandir (temple). Moreover, alternative land was provided to the Sunni Central Waqf Board for the construction of the mosque.

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After discussing every essential aspect of the Article 25 of the Indian Constitution. Let’s move further and discuss Article 26. 

Article 26 of the Indian Constitution 

What do you think is the right to freedom of religion is an individual right or right guaranteed to a certain group of people? The answer to this question lies under Article 26. From the above discussion of Article 25 it can be said that the right to freedom of religion is granted to an individual. However, apart from the right of religious freedom granted to individuals, Article 26 ensures the same for religious denominations as well. 

This Article states that subject to the public order, health and morality every religious denominations shall have following rights –

  • Right to establish and maintain any institution for religious or charitable purposes. 
  • Right to manage its affairs. 
  • The right to acquire movable or immovable property
  • Right to administer their property, while complying with the existing laws. 

In order to have a complete understanding of this provision let’s delve into the analysis of Article 26 of the Indian Constitution. 

Analysis of Article 26 of the Indian Constitution

The right to freedom of a religion to every religious denomination or section thereof, is being guaranteed by virtue of the Article 26 of the Indian Constitution. Article 26 guarantees every religious denomination or section thereof with the right to establish and maintain the religious institution for any religious or charitable purpose. 

However, the right granted to the religious denomination under this Article is not an absolute right and certain limitations or restrictions have been provided. Moreover this article also provides that religious denomination or section thereof does have a right to acquire as well as manage the movable and immovable property in accordance with law.

To complete the picture of the above stated provision, it’s important for us to discuss some important elements of this provision.  

Religious denomination

The right guaranteed under Article 25 of the Indian Constitution is an individual right, however the right guaranteed under Article 26 is the right belonging to a collective group like the religious denomination or any particular section of the society. The term ‘religious denomination’ is made up of two words i.e. ‘religious’ and ‘denomination’, the Constitution of India does not define any of the words.

However the Supreme Court of India in the case of Hindu Religious Endowments vs. Sri Lakshmindra Thirtha Swamiar or Shirur Mutt (1954), stated that the word ‘religion’ is a term which is “hardly susceptible of any rigid definition”. The court further clarifying on the said term goes on stating that the term religion is the basis of a system of beliefs or doctrine and it is regarded by those who profess that particular religion. Further, the court observed that the religion may not lay down any specific rule for its follower to accept and follow that, however, the religion may prescribe certain rituals, ceremonies and mode of worship, that are regarded as a vital part of religion. Furthermore, the court defined the term “denomination” by taking reference to the meaning that was provided in the Oxford Dictionary, which states that the denomination is a collection of individuals that are classed together under the same name having common faith and designated by a distinctive name.

Therefore, it has been established by now, with various judgments that in order to qualify as a religious denomination under Article 26 of the Indian Constitution, three conditions must be satisfied, which are as follows –

  • There should be a collection of individuals and they must have common faith among themselves.
  • There must be a common organisation.
  • The common organisation must be designated by a distinctive name.

As a result the members belonging to the different religion, on successfully satisfying the above-mentioned condition, would be recognized as a denomination within the meaning of Article 26 of the Indian Constitution. 

Illustration – Christianity is one of the religious denominations of India. Therefore, they can establish any institution either for the charitable or religious purpose. For any affairs related to the religion they can manage themselves without any interference. Moreover, they have a right to acquire either movable or immovable property for catering any purpose relating to the management of their religious denomination. Apart from that, it is important for us to note that the process of administration must be done while complying with the existing laws of the country. 

Establishment and maintenance of religious institutions under Article 26(a)

The right to establishment and maintenance of religious institutions has been guaranteed under Article 26(a) of the Indian Constitution. The phrase ‘establish and maintain’ provided under this Article needs to be read conjunctively and, therefore, it can be inferred that, whenever any institution has been established by a religious denomination, then it can claim the right to maintain the same. Therefore, any institution can only claim to be maintained by a religious denomination if such institution had been established by that specific denomination. 

For e.g. – Islam is one of the religious denominations in India and if a mosque has been established by them in a particular locality. Then, under those instances only peoples belonging to Islamic denomination can have the right to maintain such institutions. 

All the religious denominations have been provided with the right to establish and maintain the religious institution. One question we might encounter is whether the religious denomination has an absolute right to manage any matter relating to religion or not. The provision for the same has been provided under Article 26(b) and to have a better understanding about this let’s move further and discuss it.

Right to manage religious matters under Article 26(b)

Article 26(b) guarantees that every religious denomination has a right to look after its own religious affairs. However, the right that is granted under this provision with respect to the management of religious affairs is not an unlimited or absolute right and it can be restricted if such right is exercised in any such way which violates the public order, health, or morality. Therefore, unless and until any activities go contrary to the public order, health or morality, the state cannot enter into such activities of religious denominations. 

Hence, it can be said that the religious denomination does have a complete liberty to choose and practice any religious ceremonies and rites which is considered to be essential religious practice based on their religious belief. The question regarding whether certain religious practices are essential or not is to be ascertained by the court of a law by properly evaluating the various principles and beliefs of that particular religion. 

Article 25(2)(b) of the Indian Constitution provides that the Hindu temple and other places of worship must remain open to all the Hindus. However, contrary to the above mentioned provision Article 26(b) provides religious denominations with the authority to decide who can enter into the temple and worship. Consequently, it can be said that while Hindu institutions should remain open to all Hindus, the religious denomination still has control as to who can participate and worship in accordance with their practice. As a result of a combined reading of both the articles an inconsistency appears to be there. The question that arises in such a situation is whether the right guaranteed under Article 26(b) is subject to Article 25(2)(b).

However, It is pertinent to note that under such a situation the rights that are guaranteed are merely limited to the matter of a religion and are subject to Article 25(2)(b). Therefore, the state has the authority to regulate any kind of secular activities, however those secular activities must be related to religion. For instance, there are various places of worship such as temples, mosques, churches, gurudwaras, etc. and such places cannot be used to secretly hide any criminal or such places cannot be used to carry out any kind of anti-national activities. Under those instances, the state can exercise its power and can prohibit those activities. 

The court in order to resolve such persisting issue, in the case of Sri Venakataramana Devaru vs. State of Mysore (1957), ruled that the right of the religious denomination to limit who can worship in the temple as described under Article 26(b) is of less importance when compared with the right of public to enter and worship in the temple as mentioned under Article 25(2)(b). The court further stated that if the religious denomination wants to restrict the access of certain services, rather than completely excluding the public from worshipping, then a way needs to be found in order to respect both the rights. The court harmonising both the Article stated that, if the public can still worship meaningfully even after restrictions imposed by the denomination, then under that situation religious denominations can be allowed to keep their specific rules while allowing the public to worship. 

Further, in the case of Sarwar Husain & Ors. vs. Additional Civil Judge & Ors. (1981), the question that was encountered by the court was, whether a Muslim belonging to a particular sect does have an absolute right to demand that an Imam of his set would lead him to prayers and restrain others from offering prayer as desired by him. The court after analysing the literature behind the present issue held that a public mosque is a place of worship for Muslim regardless of their sect, sub-sect, denomination or who has founded the mosque. The court considered that it is the fundamental right of every Muslims to offer prayers in the public mosque and the person cannot be denied of this right merely on the ground that the person does not belong to a particular sect, or denomination that has founded the mosque.

After discussing the above mentioned rights about the religious denomination. Now, let’s discuss the rights of religious denominations to acquire and administer the property. 

Acquire and administer the property under Article 26(c) and 26(d)

Clauses (c) and (d) of Article 26 of the Indian constitution provides the right to the religious denomination to acquire, own and administer the property in accordance with the law. 

The distinction can be drawn between “administration of property” which is mentioned under (d) of Article 26 and “management of religious affairs” as mentioned under (b) of Article 26. The former can be regulated by the laws that legislature can make, however the latter right is subject to the public order, morality and health that can’t be taken away by the rules of legislature.

It is pertinent to note that the right guaranteed under Article 26(d) of the Indian Constitution to administer property in accordance with the law is a fundamental right of religious denomination, which is subject to such restrictions and regulations as it might choose to impose. Therefore, any law which takes away the right of administration from the religious denomination and vest it to any other secular authority would amount to the infringement of right that is guaranteed under Article 26(d) of the Indian Constitution. 

It is important to note that the right that is being provided under clauses (c) and (d) of Article 26 of the Indian Constitution only protects such rights of the religious denomination that are already in existence with regards to the management of its property. The right of a religious denomination which is related to the management of property can only be regulated by the laws and the laws cannot entirely take away the right of a religious denomination to administer such property. Therefore it can be said that the religious denomination has been provided with the right to manage its property but it is subject to some reasonable restrictions that the law may choose to impose. 

However, if there is any situation in which the right of a religious denomination to administer the property has never been vested, or the right to administer such property has been lost by way of some superveining factors then no such right is created under Article 26 of the Indian Constitution. 

In the case of Khajamian Wakf Estates Etc. vs. State of Madras & Anr. (1970), it was contended that the acquiring of property that belongs to a religious denomination by way of special enactment by legislature is violative of Article 26(c) and (d) of the Indian Constitution. The court rejected the said contention and it was observed that Article 26(c) and (d) does not take away the right of the state to acquire the property that belongs to the religious denomination. It was further ruled by the court that all the religious denominations do have a right to own and acquire the property according to law, but that doesn’t mean the property owned by them cannot be acquired by the state. Therefore, it can be said that if a property is acquired by the State then it cannot be said that Article 26 is violated under those circumstances. 

Based on the above discussion we can see that various rights have been granted to the religious denomination to secure or promote the right to freedom of religion. But all those rights are not an absolute right and hence this article further provides certain restrictions. Therefore, it is important for us to know about the various restrictions that are provided under Article 26 of the Indian Constitution. 

Limitations of Article 26 of the Indian Constitution 

The religious denomination has been provided with the various rights under Article 26 of the Indian Constitution. However, it is pertinent to note that, the right guaranteed to the religious denomination are not an absolute or unlimited right and certain restrictions has been provided for the same, which are as follows – 

  • If any kind of a religious practice by the religious denomination possesses threat to public order, morality or health. Then, under such instances the authority has been provided to the State government to regulate such religious practices. 
  • Although the religious denomination under this particular Article has been provided with the right to administer their property. But, it must be done in accordance with the legal framework of the country and it must not in any way contravene such legal framework.

Since, we have discussed the essential aspects and various limitations of Article 26 of the Indian Constitution. Let’s look at some of the important judicial precedents which were delivered by the various High Courts and the Apex Court while deciding the issues relating to Article 26. 

Important cases on Article 26 of the Indian Constitution

Bramchari Sidheswar Bhai & Ors. vs. State of West Bengal (1995)

Ramkrishna Mission in the present case, wanted to be recognized as a non-Hindu minority. Moreover, it was also claimed by them in this case that, while being recognised as a non-Hindu minority they also wanted to be treated as Hindu for certain purposes such as- inheritance or marriage. 

The Apex Court after analysing the facts persisted in this case ruled that, status of minority cannot be claimed by the Ramkrishna Mission as they are the part of Hindu religion and are not a separate religious group. Therefore, Ramkrishna Mission does not have any right to administer and establish any Educational Institute. 

S. Azeez Basha & Anr. vs. Union of India (1967)

The present case arose because of certain amendments that were brought into the Aligarh Muslim University Act, 1920. Those alterations in the amendments was challenged by the petitioner contending that such amendments are violative of his fundamental rights guaranteed under Article 30 of the Indian Constitution. Since the petitioner in this case belongs to a Muslim minority committee. It was submitted by them before the court that,  because of the amendment in the said Act, their right to freedom of religion has been violated. They specifically mentioned some of the articles such as under Article 25, 26, and 29 are violated because of these amendments That were brought in the Act. 

The Apex Court ruled that before the year 1920 there was nothing that prevented the Muslim community from establishing the university. The Aligarh Muslim University was established by way of legislation i.e. the Aligarh Muslim University, 1920 and therefore Muslim community cannot claim that the university was established by them as it was brought into existence by the central legislation. 

Sardar Syedna Taher Saifuddin Saheb vs. The State of Bombay (1962) 

In the present case, petitioner challenged the constitutional validity of the Bombay Prevention of Excommunication Act, 1949. The petitioner was the head of the Dawoodi Bohra community and along with that he was the trustee of its property. The said legislation was challenged on the ground that it invalidates the ex-communication among the members of the community and thereby his rights under Article 25 and Article 26 of the Indian Constitution has been violated. 

The Supreme Court of India after examining the provisions of the Act that was in question, ruled that the expression i.e. “law providing for social welfare and reform” that is used under Article 25(2)(1) does not intend to enable the legislature to reform the religion in any way out of existence or identity. 

It was interestingly ruled by the court that the Act in question is violative of the religious freedom that are guaranteed under the Indian Constitution. 

State of Rajasthan & Ors. vs. Sajjanlal Panjawat & Ors. (1973)

In the present case, it was ruled by the court that authority has been granted to the State to regulate as well as administer the property that belongs to any trust. But, the state cannot by law take away the right to administer such property and vest such property to the authority that does not even comprise the denomination. However, if it is being done then it would be clear violation of Article 26 (d) off the Indian Constitution

Having explored the entire concept regarding the Article 26 of the Indian Constitution in a greater detail. Let’s move on to the next constitutional provision that endeavours for securing the right to freedom of religion. 

Freedom from the payment of taxes for the promotion of any specific religion 

We as a prudent citizens of a country are obliged to pay taxes under certain instances. But have you ever thought of a situation wherein you can be forced to pay tax for the promotion of any specific religion? Let’s consider an instance in which the government has imposed taxes on the general public for promoting Hindu religion. Under those situations you might refuse to pay taxes because Article 27 of the Indian Constitution protects you from the payment of such taxes. 

Therefore, if it can be said that if certain taxes are imposed with the sole purpose to promote or maintain any specific religion then under those instances no person can be compared to pay search taxes. 

With the literal understanding of this provision it can be observed by all of us that this particular provision intends to prohibit any kind of compulsion that can be imposed on a person to pay taxes. If that taxes will eventually be used for promotion or maintenance of any specific religion or religious denomination. 

Challenges while implementing Article 27 of the Indian Constitution

The main objective of Article 27 is to uphold social justice and maintain neutrality among the different religions. However, in the contemporary period it has been observed that this Article has been subject to the various controversies and challenges. Among all the challenges one of the major issues is regarding the clarity of the fact as to what exactly does the promotion of religion means. 

It has been argued on many occasion that any kind of expenditure on religious activities, even if it is for the purpose of maintenance violates Article 27 of the Indian Constitution, and the governments should completely be refrained from providing any kind of financial assistance to the religious institution as it may indirectly promote that particular religion to whom the assistance is provided. 

On the contrary, the supporters of religious freedom contend that any religious place holds cultural and historic significance and it is very important to maintain those places. Apart from that the proponents of religious freedom also emphasises that as long as the funds are distributed among all the religions without any discrimination then under those instances Article 27 of the Indian Constitution is not considered to be violated. 

The subsisting challenges on many occasions have been taken into consideration by the Indian judiciary and it is indisputable fact that Indian Judiciary is playing a crucial role to address the subsisting challenges relating to the Article 27 of the Indian Constitution. 

For instance, in the case of, Bira Kishore vs. State of Orissa (1975), a certain amount of money was granted by the government for the purpose of renovation of the water tank of Markanda, Narendra and Sweta-ganga at Puri. It was ruled by the court that granting money for the purpose of a renovation of a water tank does not violate Article 27 of the Indian Constitution.

It was observed by the court that the tanks in the present case were used by the general public consisting of the different communities and not by the single class of people. Therefore, it is essential to maintain and repair those tanks and it cannot be said that the state is promoting or maintaining Hindu religion. 

Different instances when Article 27 is considered to be violated

There are certain instances and on the successful fulfilment of those instances, the Article 27 of the Indian Constitution is considered to be violated, which are as follows –

  • Existence of tax.
  • That tax should directly or indirectly go towards the maintenance or promotion of any specific religion or religious denomination. 
  •  Compelling an individual to pay such tax. 
  • The main intention behind imposing such tax by the state is to directly promote any specific religion or religious denominations.

Important cases on Article 27 of the Indian Constitution

Commissioner, Hindu Religious Endowments, Madras vs. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt (1954)

In this case, the legislature of Madras enacted the Madras Hindu Religious and Charitable Endowment Act, 1951 and Section 76 of the said Act, levied contribution. The petitioner contended that the said contributions are taxes and not fee and therefore, the contribution violates Article 27 of the Indian Constitution. The Hon’ble Supreme Court of India ruled that the contribution levied under Section 76 of the Act is a tax, however, the purpose of such tax is the proper administration of religious institutions and the endowments. Therefore, the court considering this fact held that Article 27 is not violated because of the tax levied under the Madras Hindu Religious and Charitable Endowment Act, 1951. 

T.M.A. Pai Foundation & Ors. vs. State of Karnataka & Ors (2002)

The Hon’ble Supreme Court of India in this case, ruled that the manner in which the Article 27 has been framed does not In any way prohibits the State from enacting a law to enact the expense particularly for the promotion or the maintenance of any specific religion.

However, the court clarified that based on this provision no person shall be compelled to pay any tax if that tax is going to be utilised either for the promotion or maintenance of any specific religion or religious denomination. 

To know more about this case, click here

Mahant Sri Jagannath Ramanuj Das & Anr. vs. The State of Orissa & Anr. (1954)

In this case, there was a legislation named Orissa Hindu Religious Endowment Act, 1951 and Section 49 of the said legislatio was challenged. According to Section 49 of the Act every temple or maths that is having income more than Rs. 250 was required to pay an annual contribution at a certain percentage of the annual income.

In light of Section 49 of the said Act it was asserted before the court that the said provision is violative of Article 27 of the Indian Constitution. The court ruled that, for the payment of tax two essentials must met i.e. the imposition of tax was made for a public purpose to meet the general expense without any special benefit and the payment of that tax is collected as a general revenue of the State that is used for the welfare of a general public. 

However, the payment levied is to be considered as a fee when such payment is regarding the fulfilment of certain services that an individual has accepted, either willingly or unwillingly and there should be certain elements of quid pro quo. Therefore it was concluded by the court that contribution in the present case must not be considered as a text and hence Article 27 is not violated under such a situation. 

Since, we’ve explored the essential concepts regarding the Article 27 of the Indian Constitution. Let’s move further and discuss other constitutional provisions that promote the right to freedom of religion.

Article 28 of the Indian Constitution

The provision regarding impartation of religious instructions inside the educational institution has been provided under Article 28 of the Indian Constitution. Whether certain religious instruction can be imparted in the educational institute or not depends upon the nature of such educational institute and with which funds such educational institute is being maintained. 

Firstly let’s discuss the restriction that is imposed under Article 28(1) regarding the impartation of religious instruction. Suppose there is an educational institute near the area where you live and that educational institute is completely maintained out of state funds. Therefore, whenever you visit that particular educational institute you will notice that no religious instruction is being imported in those institutes. The reason for the same is Article 28(1), this provision ensures that no religious instruction can be allowed to be imparted in those educational institutes that are maintained completely out of state funds. 

But here’s the catch, as we all know that there are two sides of every coin the same goes with Article 28. The general rule has been provided under Article 28(1), however, an exception to that general rule is provided under Article 28(2). The exception to the general rule is that if any educational institute even though has been established completely out of the state funds, religious instruction can be imported provided it must have been established under an endowment or trust. 

Are you still wondering if Article 28 provides something else? Indeed yes, and it’s time for us to discuss Article 28(3). Suppose there is a situation in which you are not in a mood to attend any religious workshop that is being conducted inside any educational institute maintained out of State fund, can you be compelled to attend that workshop? If anybody compels you to attend that workshop make sure you take stand of your constitutional right guaranteed under Article 28(3). Article 28(3) provides that no person can be compelled to attend any workshop that is conducted in such an educational institute receiving an aid out of State fund. 

However, a person may attend those workshops without any force or any other factors which might affect his decision, and under those conditions it cannot be said that there is the abridgment of Article 28(3). In case a person is a minor, then consent can be given by the guardian on behalf of that person.  

Prohibitions and limitations under Article 28 

Imparting any kind of religious instruction in the educational institution which is maintained wholly by the state fund is prohibited under Article 28 of the Indian Constitution. 

However, there is a limitation to the prohibition that is being provided under Article 28. Limitation provides that prohibition must not be applicable on such educational institutions that are administered by the state but has been established endowment or trust, that requires that such religious instructions should be imparted. Additionally, if any educational institute is funded by the state then in such an institute it is not necessary for a person to take part or attend any workshop that is conducted within the premises of that educational Institute.

Different types of educational institutions under Article 28 

Article 28 of the Indian Constitution mentions about 4 types of educational institutes, which are as follows – 

  • Educational institutes that are maintained wholly by the state fund and in those educational institutes religious interaction is completely prohibited. 
  • There are certain educational institutes that are recognised by the State. In those educational institutes, religious instructions can be imparted with the consent of an individual.
  • Those educational institutes that receive aid out of the State fund. In such educational institutes religious instructions may be imparted, but it must be done only with the consent of an individual.
  • Lastly, those educational institutes that are established under an endowment or trust but are administered by the State. In suh educational institutes there are no restrictions on religious instructions.

Important cases on Article 28 of the Indian Constitution 

D.A.V. College Bathinda, Etc. vs. State of Punjab & Ors. (1971) 

In this case, the Guru Nanak University (Amritsar) Act, 1969 was enacted and Section 4 of the Act, made it mandatory for the State to make provisions to study about the teaching and the life of Guru Nanak. 

The main issue in the present case was that, since Guru Nanak University was completely maintained out of the state fund. Therefore, whether such mandatory provision for the study about teaching of Guru Nanak is violative of the Article 28 of the Indian Constitution or not? 

The court in the present keys draws a very good reasoning and it was observed by the court that the provision in question merely aims to provide the valuable lesson regarding the life of Guru Nanak. The court thus ruled that Article 28 cannot be considered to be violated under these instances. 

Aruna Roy & Ors. vs. Union of India & Ors. (2002) 

In this case, a PIL was filed and it was submitted before the court that the National Curriculum Framework for School Education (NCFSE) which was published by the NCERT is contrary to the constitutional provisions. Petitioner submitted before the court that imparting education with regards to a particular religion would violate the Article 28 of the Indian Constitution and would also go contrary to the secularism which is one of the basic structures of the Indian Constitution. 

The main issue in the present case was whether the NCFSE and syllabus which was framed under the said framework was violative of the Article 28 of the Indian Constitution and principles of secularism?

The court by virtue of its judgement in the present case provided that there is no prohibition on the study of principles related to religion for having a value based life. It was further added by the court that Article 28 does not restrict any person to study about the philosophy of any religion for having knowledge with respect to that religion and hence Article 28 is not violated in the present instance. 

Since we have discussed every provision that protects the right to freedom of religion of an individual and the religious group and therefore, we can say that we’ve the right to freedom of religion as a fundamental right. However, in spite of the availability of these provisions one may encounter a situation in which there can be the abridgment of their fundamental right to freedom of religion.

But under those situations one can recourse to the various remedies that are available. Therefore, it’s time for us to move further and discuss the remedies that are available in situations when there is curtailment of the right to freedom of religion. 

Remedies available against the abridgment of the right to freedom of religion

Under the Indian Constitution the right to freedom of religion is being regarded as the fundamental right. As a result if there is any instance in which the fundamental right to freedom of a religion is being violated then under such a situation an individual can directly file a writ petition either to the the Supreme Court of India or before any other High Courts. 

The different types of writs are briefed below. To know more about writs, click here.

  • Habeas corpus – The meaning of the term habeas corpus is “to have the body”. For instance, while performing any kind of religious activities if a person gets detained by the public authority and prima facie it appears that his detention is unlawful then under such circumstances one can recourse to the writ of habeas corpus. There are various instances under which the writ of habeas corpus can be issues such as: non-presentation of detained person before the magistrate within 24 hours under normal circumstances, if the arrest was made under the law which is unconstitutional, person got arrested without any violation of law, etc.
  • Mandamus – If a person is having a legal right to perform certain religious or any other activities, however if that activity is being inhibited due to certain reason, then under those circumstances one can approach the court for the issuance of this writ. The court can issue the writ of mandamus in the form of direction, that is given to the public authorities to perform certain tasks. 

The term “public authorities” here includes government, tribunals, public officials, inferior courts or public corporations. 

  • Certiorari – Whenever it is observed by the Higher Court that the Lower Court in its final decision has made a certain error or the decision is beyond the court’s authority. Then under those situations the writ of certiorari can be issued. The court under the situation can transfer the case before itself and can take the charge of such a case or can even quash the verdict delivered by the inferior court. Before the year 1991 the writ of certiorari could have been issued against the judicial body or against the quasi-judicial body. However, after the year 1991 the writ of certiorari can also be issued against the administrative authorities
  • Quo warranto – In order to understand this writ in a better way let’s discuss an instance.  We must have noticed the fact that certain permanent positions are provided by the state in order to manage and regulate specific religious institutions. But what if that position is held by a person who does not have a proper authority to hold that. In that situation the writ of ‘quo warranto’ can be issued. 

The word ‘quo warranto’ means “by what authority”. The court by using this writ can stop the excessive or arbitrary use of authority. The main ground for issuing this writ is that the person holding the office is not qualified by law to hold that. 

  • Prohibition – If while exercising the power the lower court or tribunal exceeds their lawful jurisdiction, then under that condition the writ of prohibition may be issued to prevent further proceedings by that court.

The principles of natural justice refer to fairness and due process and if it is alleged that the lower court or the tribunal while exercising its power has acted in contravention to the principles of natural justice then under those instances the writ of prohibition may be issued. If the law used by the authorities is invalid or if the power is exercised in the way in which there’s infringement of basic legal rights, then under those conditions as well the writ of prohibition can be issued. 

Other recourse 

Apart from seeking remedies by way of filing writ petitions or any other lawsuit in the court of law, there are some other remedies to which one can recourse which are as follows – .

  • Filing of complaints before the human rights commissions that are actively engaged to look before the matter related to religious freedom.
  • Collaborating with Non-Governmental Organisations (NGOs) or any other proper groups to apply public pressure on the authorities to address violations of religious freedom.
  • Any aggrieved person can directly reach out either to a religious group or any community that can as is them with the proper remedies. 

However, if you ever encounter any situation where you believe that there is curtailment of the right to freedom of a religion. Then under those situations it is highly recommended to consult a legal practitioner in order to get the remedy at the earliest and through effective measures. 

Having discussed the various remedies, let’s look at the role of secularism in achieving the right to freedom of religion in our country. 

Role of secularism in achieving religious freedom in India

Secularism in foreign countries vs. secularism in India 

It is usually seen in India that religion and State are not separated and on many occasions the State contributes to the various activities of different religions. On the contrary, in many foreign countries such as the United States, the term secularism is contemplated in a bit stricter sense, and for them secularism means that there is no interference of the State in the matters of religion. In India the right to freedom of religion is considered to be a fundamental right and this right has been granted to every person who is residing in India without taking into consideration which class or community that person belongs to. 

In the case of Everson vs. Board of Education of Ewing Township (1947), the American Supreme Court establishes that the state should have minimal or no interference in the matter of religion as evident from the observations made by the court in the present case. It was observed by the court that the power to establish a church can never be given to either State all to a Federal government. It was also observed by the court that for supporting any religion no taxes can be charged from the normal people and it is immaterial whether such tax is nominal or exorbitant. Furthermore, it was also ruled that neither the state nor the Federal government can participate in any kind of religious matter. 

After getting acquainted with the above-mentioned facts it can be observed by us that secularism in foreign countries is exercised in a bit stricter sense. Whereas, in India it is exercised in a flexible manner by considering the situation and circumstances of the case. 

Secularism in India

Secularism in India basically means that equal status and equal treatment must be given to all the religions without any impartiality. The idea of secularism can be traced back in the year 1948 when KT Shah put forward the opinion to include the word ’secular’ in the Indian Constitution. The framers of the constitution agreed on the secular nature of the Indian Constitution, but unfortunately the word “secular” was not included in the Preamble of the Indian Constitution and finally it was included in the year 1976 by way of the 42nd Amendment Act

India being a secular State does not have any particular religion of the State and thereby, every religion in India enjoys the same protection without any kind of discrimination. For a democracy to exist in a true sense the existence of secularism is of paramount importance, and in the absence of secularism there are high chances that the followers of different communities would be fighting among themselves. 

Therefore, India being a secular country leaves the matter relating to religious affairs at the discretion of an individual. Moreover, the basic idea underlying the concept of secularism is that along with religious freedom the religious protection should also be provided to every distinct religion without any discrimination. Therefore, every place of worship is treated equally in India. 

In the case of Santosh Kumar & Ors. vs. Secy. Ministry of Human Resource Development (1995), certain changes were brought in the curriculum of CBSE (Central Board of Secondary Education) and Sanskrit language was included as a subject. It was contended in the present case that introduction of a new language i.e. Sanskrit in the present case is violative of the principles of secularism. It was observed by the Hon’ble Supreme Court of India, that Sanskrit language is a mother of all Aryan language and therefore, the introduction of a Sanskrit language as a distinct subject is not in violation of the principles of secularism. 

After covering every provision and important concept with regards to the right to freedom of religion. It’s time for us to move further and discuss some of the landmark cases that were delivered by the High Courts and The Apex Code while deciding the pertinent issues regarding religious freedom. 

Landmark judgments 

Indian Young Lawyers Association & Ors. vs. The State of Kerala & Ors. (2018)

Facts

The present case, the temple in question was known as ‘Sabarimala Temple’. This temple was located in the state of Kerala. As per the tradition of a temple the women of menstruating age were not allowed to enter in the premises of the temple. The prohibition of women from entering into the temple was justified on the basis of the ancient custom which was legitimised by way of rule 3(b) framed under the Kerala Hindu Places of Public Worship (Authorisation of Entry) Act, 1965

The prohibition imposed on the women of a certain age from entering into the temple was challenged before the Apex Court in the year 2006. The petition was filed with the primary contention that the Sabarimala temple’s custom is violative of Articles 14 and Article 25 of the Indian Constitution. It was contended that such a practice is in derogation to the dignity of women and along with that female worshipers are deprived of one of the vital rights i.e. right to freedom of religion. 

Issues

Major issues that were before the court for consideration are as follows –

  • Whether the prohibition of women from entering into Sabarimala temple is violative of right guaranteed under Article 14, 15, 17 and 25 of the Indian Constitution?
  • Whether the freedom of religion as enshrined under Article 25, can impose restrictions based on biological factors such as menstruation?
  • Whether Sabarimala Temple is a religious denomination under Article 26 of the Indian Constitution?

Judgment

The Honorable Supreme Court of India by majority of 4:1 ruled that the prohibition imposed on the entry of a woman of menstruating age from entering into the temple is unconstitutional. The court also struck down Rule 3(b) of the Kerala Hindu Places of Public Worship (Authorisation of Entry) Act, 1965 considering it to be violative of the Part III of the Indian Constitution. Apart from that, the court also passed certain orders in order to ensure the safety of women devotees for entering into the temple without inconvenience. 

The court found that the devotees of Lord Ayyappa did not constitute a separate denomination and in absence of any scriptural or textual evidence justifying the exclusion of women cannot be considered to be an essential religious practice. 

To know more about this case, click here

Acharya Jagdishwaranand Avadhuta vs. Commissioner of Police, Calcutta & Anr. (1983)

Facts

In the present case, an order was issued by the responded under Section 144 of the CrPC (now Section 163 of the Bharatiya Nagarik Suraksha Sanhita, 2023) that no members of the assembly or procession being 5 or more in number should carry any weapon that has potential of creating an offence and disturb public peace. 

Aggrieved by such an order a writ petition was filed before the Calcutta High Court under Article 226 of the Indian Constitution by the General Secretary of Ananda Marga. It was contended by them that the order issued is violative of their right to freedom of religion.  It was observed by the Calcutta High Court that any religious practices should not violate the public order of the society. 

The court further clarified that there is no objection in holding any procession or demonstration. However, waiving fire or skulls or daggers in the public cannot be placed under the similar category, under those instances many other things are involved such as sense of security, interest of other members of society etc. The court further stated that the authorities need to ensure the feelings of the other members and eventually its the duty of the authorities to secure the law and order in the society. As a result the court concluded that in the present case the different activities carried out by the petitioner such as carrying fire, skulls and daggers in the public place cannot claim protection of the right to freedom of religion. Therefore, the said petition was dismissed by the court. 

Aggrieved by the decision which was delivered by the Calcutta High Court, a writ petition was preferred before the Apex Court. It was contended by the petitioner before the court that the practice of tandava dance is an essential religious practice of Ananda Marga and they are entitled to perform such religious practice in private as well as in public place. 

Moreover, it was contended by the petitioner that interference of respondents in such religious practice is opposed to the fundamental rights that is guaranteed under Article 25 and Article 26 of the Indian Constitution and the repetitive order issued by the respondent under Section 144 of CrPC (presently – Section 163 of BNSS) was never contemplated by the Code and therefore, issuance of such order is abuse of law.

Issues

  • Whether tandava dance could be regarded as an essential religious practice of Ananda Marga?
  • Whether the repetitive order issued under Section 144 of CrPC (presently – Section 163 of BNSS) was valid?
  • Whether Ananda Marga is a religious denomination?

Judgment

It was observed by the court that in order to be recognized as a religious denomination, three conditions must be satisfied i.e. there must be the collection of individuals having common faith, there should be a common organisation, and the organisation must be designated by a common name. The court after evaluating the evomission point concluded that Anand Marga is a religious denomination within the Hindu religion. 

However, the court found that when Anand Marga was first established, tandava dance was not an essential religious practice. Tandava dance was made a part of religion in the year 1996 and hence it cannot be regarded as an essential religious practice. Therefore, the Apex Court ruled that the performance of tandava dance in public cannot be regarded as an essential religious practice. 

The court on the issue of repetitive order imposed by the respondent under Section 144 of CrPC (presently – Section 163 of BNSS) was of the opinion that the order imposed under Section 144 of CrPC (presently – Section 163 of BNSS) was never intended by the Parliament to be of the permanent or semi-permanent in character. 

The Ahmedabad St. Xaviers College vs. State Of Gujarat & Anr (1974)

Facts

The facts of the present case, mainly revolves around the legislation and working of an educational institute. The petitioner belongs to a religious denomination and he used to run a college. That college was affiliated to the Gujarat University Act, 1949, and it was established with the main purpose to provide higher education to those students belonging to Christian and other religions. 

The petitioner approached the court of law with the submission that the Gujarat University Act, 1949 is encroaching upon the working of the minority educational institute. It was submitted before the court that the provisions of the Gujarat University Act, 1949 is inconsistent with the constitutional mandates and hence the said legislation must be declared void and unconstitutional. 

The petitioner pointed out some of the facts with respect to the Gujarat University Act, 1949 which were arbitrary. The petitioner contended that no laws can be made by the State which takes away or abridges the fundamental right of the citizen and in the present case there were various instances in which clear violation of fundamental rights can be observed. Therefore, he urged before the court to declare the Gujarat University Act, 1949 as unconstitutional.  

Issues

The major issues before the court were – 

  • Do minorities have the right to establish and administer educational institutes?
  • Whether such educational institutes can be established with the main purpose to provide secular and general education? 

Judgement

The court in the present case observed that the right of a minority to establish and administer an educational institute must not be read or contemplated in a restrictive manner. However, it was further clarified by the court that like any other fundamental right certain restrictions must be imposed on the establishment and administration of such educational institutes. Therefore, from the above observation of the court it can be inferred that the right to establish and maintain the religious institution by any minority is not an absolute right and certain restrictions can be imposed on that right.

Furthermore, it was also observed by the court that the main objective behind the fundamental provision that secures the right to freedom of a religion of an individual is to preserve the rights of religious and linguistic minorities. Therefore, the court in the present case ruled that any law in question that violates the rights of minorities can be held to be void.

Shafin Jahan vs. Asokan K.M. (2018)

Facts

The facts of this case revolve around a female medical student named Hadiya Jahan. It is important for us to note that the girl was originally of a Hindu religion. Father of Hadiya named K.M. Asokan received information that she has changed her religion and has got married to a Muslim man named Shafin Jahan. As a result, father fell ill, and hearing this news Hadiya Jahan left to meet his father, but she never reached father’s home.

K.M. Asokan i.e. father of Hadiya Jahan filed a writ of habeas corpus before the Kerala High Court, and in the said petition the marriage was challenged. It was submitted by her father before the court that the marriage of her daughter was performed by forcing and misleading her and therefore, she got converted into Muslim religion. However, that writ petition was rejected by the court as the daughter affirmed to the court that her marriage was performed with her full consent and there was no element of force or coercion.

After the writ petition got rejected by the court another petition was filed by the father with the contention that her daughter was subjected to forced conversion. It was also submitted before the court that there are high chances that her daughter will be transported to another country in future. Based on the contentions given by the father the court passed an interim order to keep surveillance on the daughter. The interim order was passed with the purpose to ensure that the daughter should not leave the country. However, Hadiya Jahan appeared to the court and it was asserted by her that she does not have any passport and there is no likelihood to leave this country. The daughter also declared before the court that she is married to a man named Shafin Jahan. 

Considering the above-mentioned point the court invoked parens patriae jurisdiction and the marriage was declared void. The court declared marriage as void by noting the fact that the daughter in the present case is vulnerable and there is high probability that she is capable of being exploited. 

Aggrieved by the said order an appeal was filed by the Safin Jahan before the Hon’ble Supreme Court of India.  

Issues

The main issues before the court were – 

  • Whether the High Court was correct in allowing the writ of habeas corpus?
  • Whether annulling the marriage between in the present case was right?

Judgement

The Apex Court set aside the judgement that was delivered by the High Court. As a result the marriage between Hadiya Jahan and Safin Jahan was restored. However, the Apex Court directed that the investigation that is ongoing in the present case should continue. 

Moreover, the daughter at that time was under the custody of her parents, the court ordered that she should be removed from such custody as it was against her will. Furthermore the court ordered to send her back to the place where she was pursuing her internship, after she expressed her desire to continue that. 

Church of God (Full Gospel) in India vs. K.K.R. Majestic Colony Welfare & Ors. (2000)

Facts

In this case, the question regarding the right to freedom of a religion by the church and securing the public interest came into picture. Before directly delving into the facts let’s have a brief background of the present case. There was a church that was located in Chennai and under the premises of that church various musical instruments were present. Those musical instruments were used at the time of prayers. 

The respondents filed a complaint before the state pollution control board with the submission that the use of various musical instruments during the prayers are causing inconvenience to the peoples residing in that locality due to the sound produced during prayers. The complaints were also made to the officer-in-charge of police and the superintendent of police and in light of the complaint made the level of sound were checked by the board’s acting chief environmental officer. The result of the test revealed that the noise pollution on the Madhavaram High Road was majorly because of the traffic.

As a result the KKR Majestic Colony Welfare Association petitioned the High Court for seeking appropriate order directing the officer-in-charge of police and the superintendent of police to take appropriate action. The learned counsel on behalf of the church contended that the petition has been filed with the intention to prevent the religious minority institution from pursuing its religious activity and the court must not issue any order otherwise it might act as an impediment towards the church’s exercise of religious belief. 

It was observed by the court that there’s nothing of malice or malicious wish to cause any hindrance to the free practice of religious faith of church and if the sound created by the church exceeds the prescribed limit then in that case it has to be abated. 

Aggrieved by such an order the church filed an appeal before the Apex Court for the final decision.

Issues

  • Is it viable for a particular community to claim addition of noise pollution on the grounds of religion? 
  • Whether the use of a loudspeaker and amplifiers during prayers and thereby causing breach of peace and harmony is legal or not?
  • Whether in the present case Article 25 and Article 26 has been violated or not? 

Judgment

The court in the present case was of the opinion that the rights of every individual must be respected and must remain protected. Therefore, exercise of one’s right must not go contrary or affect the rights of another or rights of society at large. The arguments that were put forward by the appellant in the present case were dismissed and it was noted by the court that authorities were only instructed to comply with certain guidelines that were already present by way of certain legislations. 

The court also noted that in the present era industrialisation and urbanisation has contributed to the pollution to a greater extent. In such circumstances it cannot be permitted for others to continuously increase the level of pollution by different activities such as beating drums, using amplifiers, speakers and other similar musical instruments.

The court while adjudicating the appeal regarding the rights that were claimed under Article 25 and Article 26 of the Indian Constitution ruled that such a right is subject to public order, morality and health. As a result, the court finally ruled that if the prayer is being performed in such a way that adversely affects the right of another which includes the instances of being disturbed then such activities cannot be allowed. 

Shri A.S. Narayana Deekshitulu vs. State of Andhra Pradesh & Ors. (1996)

Facts

In the present case, the petitioner is one of the chief priests (archaka) in an ancient and renowned Hindu Temple at Thirumala Tirupathi, which is famous in the entire South-Asia as well as abroad as venkateswaraswamy temple. According to the petitioner the office of archaka has been passed down through generations according to ‘Vaikhanasa Agama Shastra’ rule, involving four families namely – Paidapally, Gollapalli, Pethainti, and Thirupathanna Garu. The petitioner belongs to the Paidapally family and they perform religious service at the lord venkateswaraswamy temple on the Saptagiri hills in Thirumalai in accordance with the vaishnava traditions.

The petitioner in the present case challenged the validity of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 , as the Act brought changes in the process for the appointment of temple priest (archakas) and along with that the Act takes away the rights to share offering made at the temple. The petitioner submitted before the court that appointment of priest in a temple is a religious practice and search practice was established by their ancestors from time immemorial. Therefore, the practice regarding appointment of temple priests is their inheritance right and the Act in question violates that right. 

Issues

Whether the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987, violates Article 25 and 26 of the Indian Constitution?

Judgment

It was observed by the Court that the rights guaranteed under Article 25 and Article 26 of the Indian Constitution is not an absolute right and certain restrictions are provided to it. As a result, the Act in question does not in any way violate the constitutional provisions in question. 

Therefore, the court by way of its judgement ruled that the abolition of inheritance rights of priests does not violate Article 25 and Article 26 of the Indian Constitution. 

Atheist Society of India, Nalgonda vs. Govt. of Andhra Pradesh (1992)

Facts

The petitioner in this case, filed a writ of mandamus before the Andhra Pradesh High Court under Article 226 of the Indian Constitution. The petitioner prayed to the court for the issuance of a writ of mandamus to the respondent i.e. The Govt. of Andhra Pradesh. The petitioner wanted to have an order by way of a writ, instructing all the heads of departments to prohibit the religious performance of worship during the state functions. The petitioner prayed that the religious practice must be prohibited during any state function such as laying of foundation stone for small and large projects, inauguration of any state buildings or institutions and exhibiting any religious symbol in the state office or its subordinates.

The main grievances on part of petitioner were that the respondent i.e. The Govt. of Andhra Pradesh is not following the secular provision mandated under the Indian Constitution. It was further submitted by the petitioner that the state by permitting the activities such as performance of pujas, breaking of coconut, and chanting of mantras of different religion during the time of laying foundations and inauguration is promoting religious sentiments of a particular religion, and hence such activities must be prohibited. The petitioner further goes on pointing towards the fact that various public bodies such as Andhra Pradesh State Road Transport Corporation, are freely exhibiting religious symbols in the bus station as well as in the buses. 

The petitioner asserted that, since all the practices are supported by the government, as a result the religious sentiments of peoples are raised thereby leading to communal tension among different religions. Before approaching the court of law the petitioner made representation to the respondent dated 2-12-1991 to discontinue the religious performance during the state function, however there was no response made on the part of respondent. As a result the said petitioner fled before the Hon’ble Andhra Pradesh High Court for the decision regarding the existing issues.

Issues

The main issue before the court was, whether the performance of religious activities at the state owned organisation is violative of Article 25 and secular principles of the Indian Constitution?

Judgment

The court was of the opinion that, the bare perusal of the Preamble and Article 25 to 30 gives us the idea that the object of the constitution is not to prevent religious practice but to provide liberty, freedom, equality and fraternity to the various peoples belonging to different religions. 

The court further stated that the objective of constitution is not to turn the country into an irreligious place and if the prayer of petitioner would be granted then it would infringe the rights of crores of Indians that is guaranteed to them under Article 25 of the Indian Constitution. Therefore, the court rejected the petition considering that there is no merit in that writ petition. 

Conclusion

From the above discussion it can be said that India is a secular country and does not support any specific religion. As a result, the Indian Constitution provides every individual with the right to profess, practice and promote the religion of their choice. However, the religious freedom that is being guaranteed under the Indian Constitution is not unlimited or absolute and certain reasonable restrictions are provided to it. Therefore, the State can take certain actions, if in the name of a religion public order is disturbed or intolerance among the people is being caused because of such an activity. 

From the above discussion of the various provisions relating to the ‘right to freedom of religion’ it can be well inferred that these provisions are playing a pivotal role for securing the principle of secularism and equality. These rights that are guaranteed to every individual by virtue of Article 25 to 28 of the Indian Constitution makes sure that the beliefs of every individual are respected while ensuring that such religious beliefs do not lead to any kind of discrimination or religious conflict.

But, it’s a lamenting fact that in spite of the existence of various rights relating to the right to freedom of a religion many problems still persist. Those problems are non-exhaustive but some of the inconveniences that can be observed by us are religious intolerance, conflicts in religious practice, disagreement while implementing these rights etc. In order to overcome such challenges the awareness and education about these rights must be done to achieve the stricter enforcement of the available provisions. The various efforts and initiative by prudent citizens regarding addressing the subsisting challenges can lead to the harmonious and inclusive society where every individual will enjoy the right to freedom of religion without any inhibitions.

Frequently Asked Questions (FAQs)

How does the principle of “reasonable restriction” apply to Article 25 of the Indian Constitution?

In the above analysis of Article 25 we have seen that many rights have been guaranteed to the individual that ensures the right to freedom of religion. But, one fact can also be construed from that discussion i.e. religious freedom guaranteed under Article 25 is not absolute and is subject to public order, morality and health. 

On many occasions it has been reiterated by the various courts that while an individual does have the right to freedom of religion, this freedom can be restricted in order to ensure that it must not contravene the public order, morality or health. 

Mention the difference between “profess, practice, and propagate” religion enshrined under Article 25 and “freedom to manage religious affairs” as enshrined under Article 26?

Article 25 allows an individual to practise their religion including the right to teach or spread knowledge about their faith i.e. propagate. However, it can be noted by all of us that the religious freedom guaranteed under Article 26 is predominantly conferred to the religious denomination. 

Therefore the right to profess, practice and propagate religion under Article 25 is an individual right.  On the other hand the freedom to manage religious affairs under Article 26 does have a slightly broader ambit as it covers and confers right to the religious groups. 

References

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Strategies for content marketing in the B2C space

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This article has been written by Nikhil Patil.

This article has been published by Shashwat Kaushik.

Introduction

In the world of marketing, you can no longer trust regular advertising. Only then will it be possible to create truly engaging and value-laden content that resonates with your audience. Now, before the rest of the world realises just how powerful persuasive content can be, is the time to find out how B2C content marketing differs and what it is that makes it so effective.

In order to learn more about B2C content marketing, we have to answer: What are the critical areas in B2C content marketing? At the user’s end, you need to know that consumers are more sceptical than ever, bombarded by a number of adds, text messages, emails and tags.

Here is a framework that you can use to lead your brand with some amazing, exciting content that will eventually lead to your target audience.

Paid search and ad campaigns

Paid searches have always been, and always will be, powerful and expensive marketing because they are cutting-edge marketing tactics that bring high engagement as compared to the normal ones. The emergence of generative AI is bringing in a new era of possibilities.

Takeaway:

If we’re to believe the current statistics, even in this shifting landscape, Google will remain in charge and dominate. But the real winners will be advertisers with high-performing paid search campaigns who can afford to bid more profitably per click.

The downside of these new generative AI tools is also that they increase the risk for new and fresh digital marketers in the field, the new and small content creators, that their work may be flagged as AI-generated content, paraphrasing or plagiarism at a scale that would drive to, go to a wall.

Arm’s credentials for social responsibility

Highlight your credentials for social responsibility. Today’s consumers are more morale-seeking; they desire brands that reflect their own values. Consumers want to contact ethical businesses that do the following:

  • Offer items and services that are sourced ethically overall.
  • They treat their co-workers and the staff well and with respect.
  • Show transparency to your customers and ensure fairness in your services.
  • Steer clear of marketing gimmicks that mirror the brand’s practices, standards, and values.
  • Look for useful feedback and frequent tweaks and upgrades.

B Corp Status, which progressively works towards environmental performance and constantly seeks accountability. (if you are in that niche.) See the examples below. So what do you do to demonstrate that you care about making the world a better place to your customers?

By articulating your values on your website.

So tentree, for instance, focuses on a commitment to sustainability, building a greener future and sustainability at B Corp. (packaging details); they even have a quote or a commitment from one of the founders on all of the social platforms about the importance of these values and standards to the business.

Here’s another instance of how a company fully embraces its values. So they explain on their website what their mission is and what their company is. They also talk in terms of how their team is helping the environment to offset an unavoidable amount of carbon footprint and showcase the special certifications that make them a great place to work.

Takeaway:

Be honest, precise, and genuine. Don’t fake it. People know when fake being sustainable. If you are transparent and fair, that pays off all the time for your brand.

Personalisation

In B2C, personalising the content is when you make it unique and special for each person based on what all is liked, which is how they act and what they do, enhancing and absolutely an experience that is more significant to what they see and how they consume.

Customising a content strategy increases engagement, customer loyalty and conversion by enhancing the personalisation and relevance of the sequence of interactions for everyone.

Example:

The largest online shopping company, Amazon, suggests products to customers according to what they watch and buy.

Amazon Prime is an online shopping platform that offers benefits for their loyal customers.

Spotify follows suit and does so with music.

​​They are all platforms that are much used, and each one gives good service as discounts, even if from time to time. If people already like you, they will buy from the site. Personalise your emails and messages to potential customers. Make sales letters friendly so when you are doing anything for a customer, he knows instantly that it’s meant especially for him. This also ups the level of interest in your ad, and when someone clicks to view more about your product or service from publicity, which appears at the bottom right-a position governed by clever marketing techniques-they’ll see an entire screen full of details!

Examples:

News event on new trend in holiday decorations

Make a blog post, run a social media campaign featuring your product, and pair it with the trending buzz for the holiday season. So if fancy lighting and decoration is another current trend, show your decor products that are in line with this trend: dim restaurant lights, blinking lights, etc.

It will be an enhanced visibility and credibility effect when an article about holiday decorations.

News/event: major sporting event

Watch out for opportunities during the big games — run a creative promotion or social media contest related to the event If your brand deals in sportswear, come up with a unique tagline or a quirky game day merchandise slogan for your products and try to offer an amazing discount to the customers who posts pictures in your merchandise on their game days.

Video marketing strategy

Video marketing is something of the same, but for a company or brand. When you share light-hearted videos that really highlight your brand, people resonate with this stuff. Which makes your audience internally receive the message visually, delivering the meaningful message, which makes it appealing towards a larger audience.

Keep in mind that you could always get your videos out for free by utilising something like YouTube or Vimeo instead of spending loads of money on ads. Imagine you design videos that are interesting and tailored and show the characteristics of your brand. They are, for sure, likely to be seen by lots of people who get excited and create buzz with your target audience.

In other words, it is a bit like throwing the greatest party ever, inviting everyone and giving them the chance to learn about you or your brand through your cool and fabulous videos! This method (at the end of the day) will help you get an organic reach for your brand.

Example:

You are filming an unboxing video of a DIY candle kit and showcasing how to create incredible scented candles from scratch. Then you open the kit so that people can see the contents, and then you direct and talk them through creating simple ingredients and types of candles, add different colours, or mix scents. Make it simple, accessible and fun, so everyone will have a go at baking their own candles.

Takeaway:

You use a video marketing platform to blaze through the concept of building and framing a stronger bond with your audience, followed by building your reach at a wider scale.

Conclusion

These strategies mentioned will help you get a sense of how to get a clear idea of your loyal audience by optimising paid advertising, tapping niche markets, showcasing social responsibility, and assisting in digital PR and video marketing.

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