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Special Marriage Act, 1954

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This article is written by Sonali Chauhan, a student of Lloyd Law College, Greater Noida; and Jaya Vats, a practising advocate, Delhi. The author, in this article, has discussed the concept of the Special Marriage Act.

It has been published by Rachit Garg.

Table of Contents

Introduction

Marriage has traditionally held a sacred place in Indian society, with people placing the union of two individuals as a couple on a very high pinnacle. Throughout history, the practice of marriage has accumulated so many norms and ethics that it has resulted in a union of two families rather than two individuals. When picking partners for marriage, there is frequently a significant level of social involvement. In many regions of India, for example, marriage between members of the same social status or caste has become a norm, while inter-caste marriages are strongly prohibited. Inter-religious marriages, on the other hand, are frowned upon, with individuals being outcasts or socially boycotted simply for marrying someone of their choice who does not share their religious beliefs and customs. Various vigilante organisations have further exacerbated the couples’ troubles to the point where they must engage in a protracted battle to guarantee that their lives and safety are not jeopardised.

Since the Hindu Marriage Act of 1955, or the registration of marriages under Muslim personal laws, religious laws in India have not been able to accommodate and regulate marriages between interfaith or inter-caste couples who do not want to associate and solemnise their marriage according to any particular religious laws since the colonial era. Taking note of this stumbling barrier that stopped two consenting eligible adults from marrying, the British Government in India created the Special Marriage Act, 1954, 1872, in order to protect the cherished principle of secularism in the society. The current Special Marriage Act, 1954, 1954, was thus framed and implemented along the lines of the colonial statutory provision in newly independent India, which was highly essential to ensure that the secular fabric of the nation remained tightly knit after it had been significantly torn due to the after-effects of the partition of 1947.

As a result, the government of newly independent India’s only rationale for enacting this special legislation was to find an effective alternative to earlier colonial law and provide a straight–jacket remedy to individuals who wanted separate provisions for solemnisation and registration of marriages through a civil contract, since the ‘Right to Marry’ has also been included as a Fundamental Right under Right to Life and Personal Liberty under Article 21 of the Indian Constitution.

Nevertheless, the laws that were framed during the colonial era and thus were incorporated into a specific legislation, had a large number of loopholes and did not fit perfectly into the constitutional setup of modern-day India. Thus, the legislation was in a desperate need of being amended in order to fit into the current society setup. Hence, the Special Marriage Act, 1954 of 1954 was enacted to facilitate inter-caste and inter-religious weddings, in which the couple is not needed to abandon their faith in order to marry. Registration might even take place while they preserve their religious identity.

A brief overview of the Special Marriage Act, 1954

As one of independent India’s most significant secular initiatives, the Special Marriage Act, 1954 was brought into the Indian legal system in 1954. The Act was intended to be a piece of legislation that controls weddings that could not be solemnised due to religious traditions. The Act applies to all Indian nationals, whether they live in India or outside. The State of Jammu and Kashmir is not included in the scope of this Act, although persons domiciled in other states but residing in Jammu and Kashmir would be eligible for these provisions. 

It is a piece of law that establishes a special type of marriage by registration. Marriage is unique in that there is no requirement to convert or reject one’s religion. Unlike conventional arranged weddings, which include two families from the same caste or community, the Act aspires to legalise interreligious or inter-caste marriages. The Act’s Certificate of Registration has been regarded as universal evidence of marriage. As stated in the Preamble, the Act allows for a special form of marriage in specific circumstances, registration of such and other marriages, and divorce. 

Objectives of the Special Marriage Act, 1954

The following are the key goals that may be derived from the Act’s Preamble: 

  • A specific type of marriage,
  • documentation of certain marriages,
  • separation.

Purpose of the Special Marriage Act, 1954

The purpose of the Act is to establish consistent legal measures to protect those who want to marry across castes or religions. By establishing a system for inter-faith marriages, the Act serves the interests of all Indian people.

The Act includes provisions for lawful marriage, prerequisites for a valid marriage, dissolution of an inter-faith marriage, marriage registration, and other regulations. As a result, the enactment of the aforementioned legislation intended to protect people’s basic rights and enable them to pick their married partners. The Act also intends to reduce the threat of societal ills such as honor killing and love jihad, as well as to acknowledge the rights of children born out of such marriages.

Elements of the Special Marriage Act, 1954

The Act, via the use of the following elements, drastically revolutionised society’s perception of inter-caste and inter-faith marriages in the following ways:

  • Unlike the previous marriage legislation, this Act applies to all Indian citizens, regardless of religion or caste. As a result, any individual desirous of marrying another individual might do so under the aforementioned Act.
  • Since the Act considers marriage to be a legal transaction, no rituals or ceremonies are conducted. The marriage is carried out in accordance with the law i.e, through court marriage.

Applicability of the Special Marriage Act, 1954

The Special Marriage Act, 1954 extends to all Indian states as well as Indian nationals living in other countries. Individuals of diverse faiths, such as Muslims, Hindus, Parsis, Sikhs, or Christians, can marry under this Act. The Act applies not only to interreligious or inter-caste marriages or love marriages but also to intra-faith marriages and provides an option to register marriages performed in accordance with the couple’s personal laws. The fulfillment of customs and ceremonies to solemnise the marriage is a requirement of personal laws, whether Hindu or Muslim law, however, the Special Marriage Act, 1954 does not demand the performance of any rituals or ceremonies; rather, the single requirement for being married is two persons having permission.

It applies to the whole of India except the State of Jammu and Kashmir and applies also to citizens of India domiciled in the territories to which this Act extends who are (in the State of Jammu and Kashmir). Marriages between Hindus, Muslims, Christians, Sikhs, Jains, and Buddhists are all covered under the statute. As a result, there is no distinct court marriage for different faiths; rather, it is a uniform process of being married regardless of religion.

Requirements

Since Indians believe in marriages with proper rituals, customs, and ceremonies that include pomp and show & extravagant celebrations, none of them is required by the Special Marriage Act. The fundamental requirement under this Act for a valid marriage is the consent of both parties to the marriage. If both parties to the marriage are willing to marry each other, that’s enough; caste, religion, race, etc. can’t act as a barrier to their union here. For marriage under this Act, the parties must file with the district’s Marriage Registrar a notice stating their intention to marry each other in which at least one of the parties to the marriage has lived for at least 30 days prior to the date on which such notice is filed. After the expiry of 30 days from the date that such notice was published, the marriage is then said to be solemnized. But if any person related to the parties objects to this marriage and the registrar finds that it is a reasonable cause of objection, on such grounds he can cancel the marriage. For a valid marriage, the parties must also give their consent to the marriage before the marriage officer and three witnesses. These are the basic requirements for a valid marriage under the Special Marriage Act that every Indian must know about.

Important Sections of the Special Marriage Act, 1954

Section 4 of the Special Marriage Act, 1954 addresses the numerous requirements for a lawful marriage. It specifies four basic requirements for a legitimate marriage:

  1. It forbids polygamy and declares a marriage null and void if neither party had a spouse living at the time of the marriage.
  2. The married partners must be in a sound state of mind. The parties must be able to make their own decisions and be sane at the moment of marriage.
  3. Both parties to the marriage must have reached the legal age of majority. The female party must be at least eighteen years old at the time of marriage application, and the male party must be at least twenty-one years old.
  4. The parties going into marriage should not be in close proximity to one another and should not be in a forbidden connection with each other.

The degree of banned relationship is determined by the conventions of the persons involved and differs from one tradition to the next. Schedule one of the legislation outlines the degrees of banned connections; nonetheless, in typical circumstances, the norms governing persons take precedence. The marriage will only be lawful if all of these prerequisites are met. Other prerequisites for a lawful marriage include the permission of the parties, with both parties entering into the marriage providing acceptable consent. The willingness of both parties is taken into account. The caste or religion of either party is not taken into account and will not operate as a barrier.

Section 5 of the Act specifies that the parties must give written notice to the Marriage Officer of the District and that at least one of the parties must have lived in the district for at least 30 days immediately before the date of such notification. The application must be filed in accordance with the required format, which is listed in schedule two of the act.

According to Section 6 of the Act, the original and genuine copy of the notification must be submitted in the ‘Marriage Notice Book.’ After the Marriage Officer receives the application, he or she will publish a thirty-day public notice to see whether there are any objections to the marriage. Non-compliance with any of the Act’s criteria or requirements is one of the most common objections dealt with.

Section 8 of the legislation stipulates that anybody may object to the intended marriage after the notice is published. When a Marriage Officer receives an objection, he or she must do the necessary investigation and deal with it correctly.

According to Section 11 of the Act, the declaration of marriage must be signed by the parties to the marriage and three witnesses, and it must be checked and signed by the Marriage Officer.

According to Section 12 of the Act, the marriage may be solemnised in the Marriage Officer’s office or within a reasonable distance of the office. If the marriage takes place outside of the Marriage Officer’s office, there should be additional costs paid.

Section 13 of the Act deals with marriage certification. The marriage officer enters the marriage in the ‘Marriage Certificate book’ and issues a Marriage Certificate when the marriage is solemnised.

There are no religious rites necessary under Section 16 of the Act which defines the procedure for registration of marriage. The marriage under this Section is solemnised by a Marriage Officer designated by the Government, and the relevant parties to the marriage must provide notice to the Marriage Officer in the appropriate way.

Section 26 of the Act recognizes the validity of children born to people who married under the Special Marriage Act, 1954. They retain ownership of the property even after the marriage is declared null and void. The offspring of such marriages are not entitled to ancestral property. They can only obtain a share of their parents’ self-owned or inherited property.

Conditions of the Special Marriage Act, 1954

Under the Special Marriage Act, 1954 of 1954, certain circumstances must be met before a marriage can be solemnised. These qualifications are outlined in Chapter II, Section 4. The prerequisites for this particular sort of marriage are not dissimilar to those for regular customary marriages and are fairly comparable to Section 5 of the Hindu Marriage Act, 1955

To begin with, 

  1. Firstly, both parties should be monogamous at the time of marriage; that is, neither party should have a living spouse at the time of marriage. 
  2. Second, both parties must be mentally fit and in a position to make their own decisions; that is, neither party should be of unsound mind, suffer from any mental ailment, or have been subject to recurrent outbreaks of insanity. 
  3. Third, the man must be at least twenty-one years old and the female must be at least eighteen years old at the time of marriage. 
  4. Fourth, the parties must not be within the degrees of forbidden kinship; that is, they should not be blood relatives. 

As a result, any violation of any of the conditions stated in Section 4 of the Act will render the union null and void.

Changes with the Emergence of Special Marriage Act in India

Succession to the Property

Another important point that why every Indian should have knowledge of SMA (Special Marriage Act) is that the succession to the property of persons married under this act or any marriage registered under this act and that their children will be governed under the Indian Succession Act. But if the parties to the marriage belong to Hindu, Buddhist, Sikh, or Jain religions, then the Hindu Succession Act will govern the succession to their property.

In 2006, India’s Supreme Court made it necessary to enrol all relational unions. A marriage can be registered in India either under the Hindu Marriage Act, 1955 or under the Special Marriage Act, 1954. The Hindu Marriage Act is relevant to Hindus, although the Special Marriage Act is suitable for all Indian residents regardless of their religion applicable to the Court marriage.

Registration of Marriage under the Special Marriage Act in India

In India, all marriages can be registered either under their respective personal laws (Hindu Marriage Act, 1955/Muslim Marriage Act, 1954) or under the Special Marriage Act,1954. A marriage under the Special Marriage Act, 1954 enables people from two distinct religious backgrounds to unite in the marriage bond. Unlike personal laws, the Special Marriage Act’s applicability extends to all Indian citizens regardless of their religion. Although marriage laws allow only the registration of an already solemnized marriage under personal laws, the Special Marriage Act provides for both solemnizations and legal registration. The Special Marriage Act has designed a simple means of legally registering a marriage between two people of different religions, but even if both the concerned parties belong to the same religion, they may choose to register the marriage under this Act. This is a step-by-step procedure to apply in India for a Special Marriage Act.

Step-1: Eligibility Check

All the given eligibility criteria should meet before applying for the Special Marriage Act: 

  1. Both the intending parties must be Indian citizens.
  2. At the time of the marriage, neither of the parties must have a living spouse. Where either or both of the parties have been involved in an earlier marriage, it is essential that the earlier marriage is dissolved legally before applying under this Act.
  3. Both parties must be in a position to grant free and full consent to the marriage.
  4. The intending parties shall adhere to the age limit laid down in this Act. At the time of applying for marriage, the female should be at least eighteen years old, and the male must have completed the age of twenty-one.
  5. The Act prohibits marriage solemnization if the intending parties fall within the degree of prohibited relationships as per the customs governing any of the parties. The degrees of prohibited relationship vary from custom to custom. The Act’s First Schedule provides for a comprehensive list of relationships that may be considered prohibited. However, the rule is that it may be solemnized if a custom governing at least one of the parties allows marriage as intended.

Step-2: Reach out to the concerned Marriage Officer

The district jurisdiction may be invoked in which either of the two parties has a permanent residence (must live there for at least 30 days prior to the notice being submitted). To apply, reach the chosen district marriage officer (either the intending husband or the intending wife resides). The application should be written in accordance with the format set out in the Second Schedule. For reference, the format is also set out below:

NOTICE OF INTENDED MARRIAGE

To Marriage Officer for the ………………District. We hereby give you notice that a marriage under the Special Marriage Act, 1954, is intended to be solemnized between us within three calendar months from the date hereof.

A, B. Unmarried

Widower

Divorcee

C.D. Unmarried

Widow

Divorcee

Witness our hands this …………………………………………..day of ………………….19.

(S.d.) A.B. (S.d.) C.D.

Step-3: Public Notice and Objections 

Once such an application has been received by the marriage officer, duly signed by both parties, the officer shall then issue a thirty-day public notice to raise objections to the intended marriage if any. The objections generally relate to non-compliance with the conditions referred to in Section 4 of the Act (also referred to in Step 1). If the conditions are duly met and no such objections are raised, a marriage certificate should be entered in the Marriage Certificate Book. Here, both the intending parties and the witnesses are required to sign.

The marriage under this Act can be said to be duly solemnized and registered after having completed all of the above steps. Please note that you may also need certain documents along with three witnesses on the day of solemnization. An illustrative list has been provided here:

  1. Proof of Age
  2. Address Proof
  3. Affidavit with regard to Marital Status
  4. Non-Relationship between the parties within the degree of prohibition.
  5. Passport size Photos.

Notice of Proposed Marriage

Any couple wishing to make use of the fruits of this Act is required to issue a written notice to the district’s “Marriage Officer” where for the last thirty days at least one of the parties to the marriage has resided. The marriage is usually scheduled to take place within three months from the date of issue of notice. The notice thus received will be published by displaying it in a noticeable place in the office of the Marriage Officer. A copy of the notice must also be attached to a “Marriage Notice Book” that anyone can inspect.

Special Marriage Act 1954 Application Form

Period of Objection

Any objections to marriage regarding age, consent capacity, incest, etc. may be addressed to the Marriage Officer within 30 days of the notice being published. The Marriage Officer is mandated to conduct an inquiry into its validity within a 30-day window period of time, during which the marriage can not be solemnized in case of any objections. If the marriage officer finds that the objection is valid and decides against the marriage of the parties concerned, the bride or groom may, within thirty days of such refusal, appeal to the district court. If all the objections concerned are dealt with, a declaration must be signed by the bride, groom, and any three witnesses in the presence of the Marriage Officer, who would then countersign it. The marriage will be solemnized upon the cessation of the objection period in the absence of any objections.

Power of Enquiry

In receiving an objection, marriage officers are granted the following rights: 

  1. Summoning and enforcing witnesses’ attendance.
  2. Examining the witnesses on oath.
  3. Demanding documents to produce.
  4. Demanding the evidence on affidavits.
  5. Issue of commissions for the witness scrutiny.

Unreasonable Objections

If the marriage officer believes that the objection he/she has received is not reasonable and is not made in good faith, the person making the objection may be on the receiving end of objective costs of up to Rs. 1,000. The sum received will be awarded to the parties of the proposed marriage for this purpose.

Objections in Jammu & Kashmir

Any objections regarding a proposed marriage made in Jammu and Kashmir State will be addressed by the respective Marriage Officer to the Central Government. The Central Government inspects the case on its own conditions and communicates its decision to the Marriage Officer, who then implements the decision ordered by the governing body.

Solemnization of Marriage

After clearing objections, the marriage may be solemnized at the expiry of 30 days, if any field. The notice is valid for 3 months. Before the marriage is solemnized, the parties and three witnesses should sign declarations in the prescribed form in the presence of the marriage officer.

In whatever form the parties may choose to adopt, marriage can be solemnized. The marriages can be solemnized either within a reasonable distance from the office of the marriage officer or at such other place as the parties may wish.

Procedure for solemnisation of marriage

The Special Marriage Act, 1954 of 1954 mandates various preliminaries and civil requirements before marriage may be solemnised. Both intending parties to the marriage must send a written notification to the Marriage Registrar of the district in which at least one of the parties to the marriage has lived for a minimum of 30 days. When the Marriage Registrar obtains the notice of marriage, he must publish it by affixing a copy to a prominent location in his office. The Marriage Registrar is required to maintain all notices with records in his office and to register a genuine copy of each such notice in the ‘Marriage Notice Book,’ which is available to everybody for examination without charge. Any individual may object to the marriage before the expiration of thirty days from the date of publication on the grounds that it violates the requirements established in Section 4 of the Act. 

Following the completion of the thirty-day objection period, the marriage will be solemnised, unless it has already been opposed to by any individual. In any case, if an objection is raised against an intended marriage, the Marriage Registrar cannot solemnise the marriage until he has investigated the matter of objection and reached a decision that the earlier raised objection will not prevent the marriage from being solemnised, or the prior objection is withdrawn by the individual raising it. However, if the marriage officer validates the objection and refuses to solemnise the marriage, any of the intended parties may file an appeal with the district court within the local limits of the marriage officer’s office within thirty days, and the decision of the district court on such appeal will be binding, and the marriage officer must act in accordance with the court’s decision.

Before the marriage may be solemnised, the intended parties and three witnesses must sign a statement in the prescribed form in the presence of a Marriage Officer, and the declaration must also be notarized by the Marriage Registrar himself. Following this, the marriage can be solemnised in the Marriage Registrar’s office or wherever else the parties prefer. In front of the Marriage Officer and three witnesses, each party must state to the other partner in any language known by the parties, “I, (X), accept the (Y), to be my lawful wife (or husband).” After the marriage is solemnised, the Marriage Officer writes the facts on a certificate which he keeps in a ‘Marriage Certificate Book’ also called the Marriage Registration Record which has to be duly signed by the newlyweds along with the three witnesses and serves as definitive proof of the marriage. 

Before the expiration of 30 days from the date on which any such notification has been published under sub-section (2) of Section 6, any person may object to the marriage on the grounds that it would violate one or more of the requirements mentioned in Section 4.

Registration of Marriage Celebrated in Other Forms

Any marriage celebrated, with the exception of those solemnized in accordance with these provisions, may be registered by a marriage officer under Chapter III of the Act, subject to the condition that a marriage ceremony has been conducted for the parties under any of the Acts and that the couple has since led a marital life. Besides that, the conditions for the conduct of marriage specified in this Act shall apply.

Implications on Family Membership

Any member of an undivided family who professes the religion of Hinduism, Buddhism, Sikhism or Jainism would be forced to separate from such a family, i.e. a family member married under this Act would not be considered a part of the family hierarchy after the marriage proceedings under this Act were terminated.

Restitution of Conjugal Rights

On marriage, it is the parties ‘ primary duty to live together in order to fulfill their marital obligations. This right to cohabit with one another is called the’ consortium’ right. Husband and wife have the right to each other’s society, comfort, and affection. The origin of the action seems to lie in the husband’s early concept of law having a quasi-proprietary right over the wife. It included the society of his wife as well as its services. The consortium notion presumed a distinct footing of mutuality with the passage of time. Conjugal rights can not be enforced by either party’s actions, and by force, a husband can not seize his wife and detain her. If a spouse makes an infringement of this obligation without any justifiable cause, the other may go to court to restore his conjugal rights.

Section 22 of Chapter V of the Special Marriage Act, 1954, sets out the conditions under which a petition for restitution of conjugal rights would be based.

  1. Restitution of conjugal rights – When either the husband or the wife has, without reasonable excuse, withdrawn from the society of the other, the aggrieved party may apply to petition to the district court for restitution of conjugal rights, and the court, on being satisfied of the truth of the statements made in such petition, and that there is no legal ground why the application should not be granted, may decree restitution of conjugal rights accordingly.

Explanation: Where a question arises as to whether there was a reasonable excuse for withdrawal from society, the burden of proving a reasonable excuse is on the person who withdrew from society.

The section’s elements are as follows: 

  1. The respondent withdrew from the petitioner’s society.
  2. Without reasonable cause, the respondent has withdrawn.
  3. The burden of proving a reasonable cause lies with the respondent. 

In the district court, the petition is filed. 

The court is satisfied with the truth of the statement, and there is no other reason to deny the relief.

Corresponding Law

This section is consistent with Section 9 of the Hindu Marriage Act, 1955, Section 36 of the Parsi Marriage and Divorce Act, 1869, Section 32 of the Divorce Act, 1869, and Section 13 of the Matrimonial Causes Act, 1965.

Withdrawal from Society

The word ‘society’ that occurs in the section means the same thing as consortium or cohabitation, i.e. living together as husband and wife in a place called ‘matrimonial home’. It is therefore evident that withdrawal from the other’s society would mean withdrawal from the matrimonial home by either spouse that would involve a total loss of consortium such as desertion. Society withdrawal involves two elements: animus and factum. This means that the withdrawing spouse intends to put an end to the cohabitation and, secondly, the mere intention of withdrawal would not amount to withdrawal unless it is combined with the factum of separation on the part of spouse’s withdrawn.

Cohabitation

Cohabitation does not necessarily mean that parties live together under the same roof, but there may be cohabitation states where they see each other as much as they can and yet are not separated. 

Kay v. Kay, (1904), A man may cohabit with his wife even if he is away or on a visit or on business because it does not determine the conjugal relationship in any form. 

G v. G, (1930), A husband can not be considered to have deserted his wife without reasonable cause because he is forced to live away from her because of his work in life.

Matrimonial Home

Shastri law was based on the principles that the wife is bound to live with her husband and submit herself to his authority. This rule of law that gave the husband the right alone to set up a matrimonial home in preference to the wife was based on a custom that reflected the condition of the age in which the custom was practised. Moreover, the husband’s right to establish a matrimonial home is not a law proposition; it is simply a proposition of ordinary good sense arising from the fact that the husband is usually the bread earner and has to live near to his work. It becomes quite natural in such circumstances that the husband should have the right to choose a matrimonial home. India’s Constitution gives both sexes equal status, so both have equal rights to pursue their careers. Now the casting vote on the choice of the matrimonial home is not with the husband or wife, but it is a matter that has to be decided in a friendly manner between them.

Case Reference

In several cases, the question as to what amounts to withdrawal from society came to our courts in an interesting way: does the refusal of the wife to give up her job in the husband’s case amount to withdrawal from the husband’s society? In several cases, the question came before the Punjab High Court for consideration and in the affirmative, it was answered. In the cases Tirath Kaur v. Kirpal Singh AIR 1964 Punj 28, Gaya Prasad v. Bhagwati AIR 1966 MP 212 (DB), and Kailashwati v. Ayodhya Prakash 1977 HLR 175, The courts held that the husband had the right to decide the matrimonial home and that the wife had to resign and live with him. The other view, which is contrary to this extreme opinion, as held in S. Garg v. K. M. Garg, AIR 1978 Del 296, is that the wife can not be prevented from taking up employment in the present social scenario and can not be forced to live in the same place where her husband lives. None of the parties shall have a casting vote, and the matter shall be settled by agreement between the parties, by process of giving and taking and by reasonable accommodation.

Without Reasonable Excuse

The burden of proving that he/she has withdrawn with a reasonable excuse would be on the respondent once the petitioner proves that the respondent has withdrawn from his/her society. A restitution petition will fail if the respondent is found to have withdrawn from the petitioner’s society with a reasonable excuse to do so.

It will be a reasonable excuse or reasonable cause under the modern matrimonial law:

If there is a reason for this, the respondent may claim any matrimonial relief. So if the petitioner is found to have another wife (Parkash v. Parmeshwari, AIR 1987 P & H 37), is guilty of cruelty (Bejoy v. Aloka, AIR 1969 Cal 477), or is adulterous (Laxmi Malik v. Mayadhar Malik, AIR 2002 Ori. 5) the petition will fail.

If the petitioner is guilty of any matrimonial misconduct, then it is not sufficient to be the ground for matrimonial relief but sufficiently weighty and serious.

If the petitioner is guilty of such an act, omission or conduct that makes a living with him impossible for the respondent.

Jurisdiction

The jurisdiction under the section to entertain a petition for restitution of conjugal rights rests with the district court. The District Court has been defined in S. 2(e) the Act. It means the principal civil court of original jurisdiction and a civil court of the city where such court exists. An aggrieved party may invoke the jurisdiction of a district court if any of the following qualifications are fulfilled: 

  1. The marriage has been solemnized within that court’s local limits.
  2. The husband and wife both live together within that court’s local limits.
  3. Both the husband and wife last lived together within that court’s local limits.

Judicial Separation

Under English law, before the Reformation, the church considered the marriage as a sacrament which made it impossible to obtain a divorce. The ecclesiastical courts in the case of a marriage validly contracted granted ‘divorce a men’s et thoro,’ i.e. divorce from bed and board, which did not allow the parties to remarry. This solution was not divorce, i.e. it didn’t dissolve the marriage. This solution is now called judicial separation, allowing the parties to live separately from each other, without dissolving the marriage bond, with the option of re-uniting and re-living together if conditions change subsequently.

Section 23 of the Special Marriage Act provides for the relief of judicial separation.

(1) A petition for judicial separation may be presented to the District Court either by the husband or the wife:

(a) on any of the grounds specified in sub-section (1) and sub-section (1A) of Section 27 on which a petition for divorce might have been presented, or

(b) on the ground of failure to comply with a decree for restitution of conjugal rights; and the Court, on being satisfied of the truth of the statements made in such petition, and that there is no legal ground why the application should not be granted, may decree judicial separation accordingly.

(2) Where the Court grants a decree for judicial separation, it shall no longer be obligatory for the petitioner to cohabit with the respondent, but the Court may, on the application by petition of either party and on being satisfied of the truth of the statements made in such petition, rescind the decree if it considers it just and reasonable to do so.

Corresponding Law

This section is in accordance with Section 10 of the Hindu Marriage Act, 1955, Section 34 Parsi Marriage and Divorce Act, 1936, Section 22 of the Divorce Act, 1869 and Section 12 of the Matrimonial Causes Act, 1965.

Grounds for Judicial Separation

A district court shall lodge a petition for judicial separation from either the husband or the wife on any of the grounds that the respondent: 

  1. Has committed adultery. 
  2. Has deserted the spouse for a period of two years immediately prior to the petitioner’s submission without cause. 
  3. Is imprisoned for an offence as described in the Indian Penal Code for seven years or more. 
  4. Has the petitioner treated with cruelty? 
  5. Has been of unsound mind incurably. 
  6. Has been suffering from the communicable form of venereal disease.
  7. Has suffered from leprosy that the petitioner has not contracted. 
  8. Has not been heard for at least seven years as being alive.

Where the petitioner is the wife, on the additional ground, she can file a petition for judicial separation: 

That since the solemnization of marriage her husband has been guilty of Rape, Sodomy, or Bestiality; or

That there has been no cohabitation between her and the husband for not less than one year after passing a decree or maintenance order against her husband in her favour, or

That her husband has failed to comply with a decree to restore conjugal rights.

The aforementioned grounds are similar to divorce grounds under Section 27 of the Act.

Power of the Court

The District Court must be satisfied with the truth of the statements made in such petition upon presentation of the petition. If the court is satisfied, a judicial separation decree will be passed. The parties are free to live apart from one another after the passing of the decree. However, if it considers it fair and reasonable to do so, the court may rescind the decree of judicial separation upon subsequent application by either party. In a petition for divorce, if the petitioner fails to establish the alleged ground for divorce, although facts establish a ground for judicial separation, the court has the power to pass a decree for judicial separation, even though no such prayer has been made in the petition, as held in Bhagwan v. Amar Kaur, AIR 1962 Punj 144.

Effect of Decree

The decree of judicial separation entitles the parties to live separately, and cohabitation is not compulsory on either party as the essential of the marital relation. But it does not break husband and wife’s marital status. No one is able to remarry until the divorce decree. Each party may submit a divorce petition to the district court on the ground that there has been no resumption of cohabitation as between the parties for a period of one year or upwards after passing a judicial separation decree.

Nullity of Marriage

The law of nullity refers to impediments to premarriage. The subject matter of impediments to marriage is covered under the capacity to marry. If there are certain impediments, parties are unable to marry each other. If they get married, despite impediments, their marriage may not be valid. These impediments are generally split into two: 

  1. Absolute impediments: If there are absolute impediments, a marriage is void ab initio, i.e. from the start it is an invalid marriage.
  2. Relative impediments: If there are relative impediments, a marriage is voidable, i.e. one of the parties to the marriage may avoid it if he or she wishes.

These impediments classify the marriage into Void and Voidable Marriages.

Void Marriage

A void marriage is not marriage, i.e. from the beginning, it does not exist. It is called marriage because there are two people who have undergone ceremonies of marriage. Since they absolutely lack the capacity to marry, they can not become husband and wife just by undergoing marriage ceremonies. In other words, avoid marriage does not give rise to any legal consequences. No court decree is required in respect of void marriages. Even when a decree is passed by the court, it simply declares the marriage to be null and void. It is not the court’s decree that makes such a marriage void. It is an existing fact that the marriage is void and the court is merely making a factual judicial statement. In accordance with Section 24 of the Special Marriage Act, 1954, either party can make a petition for nullity to marriage.

  1. Void marriage- (1) Any marriage solemnized under this Act shall be null and void and may, on a petition presented by either party thereto against the other party, be so declared by a decree of nullity if –

(i) any of the conditions specified in clauses (a),(b),(c) and (d) of section 4 has not been fulfilled, or

(ii) the respondent was impotent at the time of the marriage and at the time of the institution of the suit.

(2) Nothing contained in this section shall apply to any marriage deemed to be solemnized under this Act within the meaning of Section 18, but the registration of any such marriage under Chapter III may be declared to be of no effect if the registration was in contravention of any of the conditions specified in clauses (a) to (e) of Section 15:

Provided that no such declaration shall be made in any case where an appeal has been preferred under Section 17, and the decision of the District Court has become final.

Corresponding Law

This section corresponds to Section 11 of the Hindu Marriage Act, 1955, Section 18 and 19 of the Indian Divorce Act, 1869 and Section 9 of the Matrimonial Causes Act, 1965.

Grounds for Void Marriage

A marriage may be declared void by a decree of nullity on the following grounds: 

  1. Any of the conditions stated in clauses (a), (b), (c) and (d) of section 4 of the Act have not been fulfilled. Such conditions are as follows: 
  2. At the time of marriage, neither party has a spouse living. The first marriage ought to be a valid marriage.
  3. Neither party is unable to give valid consent. 
  4. The male should have 21 years of age, and the female should have 18 years of age. 
  5. The parties are not within the degrees of prohibited relationship.
  6. The defendant was impotent at the time of marriage and at the time of the institution of the suit. The initial responsibility in the case of impotency is on the petitioner’s wife to prove the respondent husband’s impotence.

Voidable Marriage

So long as it is not avoided, a voidable marriage is perfectly valid. Only one of the parties to the marriage may request it to be avoided. If one of the parties refuses to demand the annulment of the marriage, the marriage will remain valid. If one of the parties dies before the annulment, no one can challenge the marriage, and it will remain valid forever. All the legal implications of a valid marriage flow as long as it is not avoided. The grounds for voidable marriages are set out in Section 25 of the Special Marriage Act.

  1. Voidable marriage: Any marriage solemnized under this Act shall be voidable and may be annulled by a decree of nullity if:

(i) the marriage has not been consummated owing to the willful refusal of the respondent to consummate the marriage, or

(ii) the respondent was it the time of the marriage pregnant by some person other than the petitioner, or

(iii) the consent of either party to the marriage was obtained by coercion or fraud, as defined in the Indian Contract Act, 1872 (9 of 1872);

Provided that, in the case specified in clause (ii) the Court shall not grant a decree unless it is satisfied-

(a) that the petitioner was at the time of the marriage ignorant of the facts alleged.

(b) those proceedings were instituted within a year from the date of the marriage. and

(c) that marital intercourse with the consent of the petitioner has not taken place since the discovery by the petitioner of the existence of the grounds for a decree.

Provided further that in the case specified in clause (iii), the Court shall not grant a decree if:

(a) proceedings have not been instituted within one year after the coercion has ceased or, as the case may be, the fraud had been discovered, or

(b) The petitioner has with his or her free consent lived with the other party to the marriage as husband and wife after the coercion had ceased or, as the case may be, the fraud had been discovered.

Corresponding Law

This section corresponds to Section 12 of the Hindu Marriage Act, 1955, Section 19 of the Divorce Act, 1869, Section 32 of the Parsi Marriage and Divorce Act, 1936 and Section 9 of the Matrimonial Causes Act, 1965.

Grounds for Voidable Marriage

Non-consummation of marriage: Due to the respondent’s willful rejection, the marriage has not been consummated. In Sunil K. Mirchandani v. Reena S Mirchandani, where the parties had lived together for about 5 months, and a letter written by a husband to wife indicates his satisfactory sexual relationship with her, there could be no basis for an annulment of marriage under Section 25(1) of the Act.

Pre-marriage pregnancy: The presumption of law is that a child born during the continuity of a valid marriage or within the gestation period of 280 days after the dissolution is legitimate unless there is strong evidence to prove otherwise. The petitioner’s right is somewhat limited to initiate proceedings on this ground of the respondent’s pregnancy at the time of marriage by an individual other than the petitioner. In such cases, the court shall not issue a nullity declaration unless it is satisfied: 

  1. That at the time of marriage, the petitioner was quite unaware of the fact of pregnancy.
  2. The proceedings were initiated within a year of the date of the marriage.
  3. That no marital intercourse has happened with the petitioner’s consent since the alleged facts were discovered.

Coercion or fraud: if either party’s consent to the marriage has been obtained by coercion or fraud as described in Section 15 and 17, respectively, of the Indian Contract Act 1872, the marriage can be avoided.

Section 15 describes coercion as committing or threatening to commit, any act forbidden by the Indian Penal Code or any unlawful detention or threat of detention of any property, to the prejudice of any person, with the intention of causing an individual to enter into an agreement.

Section 17 of the Indian Contract Act describes fraud, which implies and involves any of the following acts committed by a party to a contract or his connivance, or by his agent, with the intention of deceiving or inducing another party or his agent to enter into the contract: 

  1. A statement as to a fact that is not true by anyone who does not believe that it is true.
  2. The deliberate concealment of a fact by someone who has knowledge or belief of the fact. 
  3. A promise made without any intention to perform it. 
  4. Any other deception-fitting act. 
  5. Any such act or omission as stated by law to be specifically fraudulent.

In Gitika Bagchi v. Subhabrota Bagchi, AIR 1999 Cal 246, where the wife concealed the fact that she was 3 years older than her husband, it amounted to fraud as provided in Section 25(iii) of the Act. In Asha Qureshi v. Afaq Qureshi, AIR 2002 MP 263, hiding of fact by the wife that she was previously married and widowed at the time of the second marriage is a material fact, and as such, it amounts to fraud committed on her second husband, he is entitled to a decree of nullity.

The court should not issue a decree of nullity in case of coercion or fraud unless proceedings were not initiated within one year after the coercion had ended or the fraud had been detected.

The petitioner lived with the respondent with his or her free consent after the coercion been ended or the fraud had been detected.

In such cases, the petitioner’s acquiescence to such an act or omission will be assumed, and the petitioner’s right to such scores will be waived.

The legitimacy of Children of Void or Voidable Marriages

Section 26 aims to give the children begotten a status of legitimacy before the nullity decree is passed. Where a decree of nullity is issued for void or voidable marriage, it shall be considered to be a decree of dissolution for the specific purpose of conferring the status of legitimacy on the children begotten before the decree is issued. But the child from such a union shall have right on the parents’ property but no rights in or to the property of any person. In those cases, the child is considered not to be a legitimate child of his parents by a legal fiction.

Divorce

Divorce puts an end to marriage; the parties return to their unmarried status and are free to marry again. The grounds for divorce are set out in Section 27 of the Act.

Grounds for Divorce

The District Court is the proper forum for filing a divorce petition on any of the following grounds:

Adultery

The respondent to the case has committed adultery since the solemnization of the marriage. Adultery is the matrimonial offence in which a married person and a person of the opposite sex, other than the wife, have consensual sexual intercourse during the subsistence of the marriage, as held in Dawn Henderson v. D Henderson, AIR 1970 Mad 104 (SB). In view of provision (a) of cl. (1) of s. 27 of the Act, a single act of adultery may constitute an adequate ground for divorce. As required in Section 13 of the Hindu Marriage Act, 1955, it is not necessary to prove that the respondent was ‘living in adultery’. 

In the case of adultery, the court must be satisfied that adultery has been committed, beyond a reasonable doubt. But adultery can, if ever, be proven very rarely by direct evidence of the witness. Therefore, in most cases, the evidence must be circumstantial in nature and depends on the probabilities of the situation. However, as in the case of Jyotish Chandra Guha v. Meera Guha, AIR 1970 Cal 266 (DB), in the absence of wife’s reciprocity, the mere production of love letters written by a person to a wife will not prove adultery.

Desertion

The respondent must have deserted the petitioner without cause for at least 2 years before the petition was submitted. In essence, desertion means intentional permanent forsaking and abandonment of one spouse by the other without the consent of the other and without reasonable cause. It is a complete repudiation of the marriage obligations. Desertion is not a withdrawal from a place, but from a state of things that are necessary for marital life. It is a continuing offence and must exist for two years immediately before the petition is presented. The essential elements of desertion are factum or intention to desert or physical separation and animus. All these ingredients must remain in place during the statutory period. The Doctrine of Constructive Separation is one when one spouse is compelled to leave the matrimonial home by the conduct of the other. The spouse that drives out is guilty of desertion. There is no significant difference between the case of a man who intends to stop cohabitation and leaves his wife and the case of a man who compels his wife to leave him with the same intention through his conduct.

In Geeta Jagdish Mangtani v. Jagdish Mangtani, 2005 SC 3508, on the ground that the husband had inadequate income, the wife had abandoned him after seven months of marriage. She began to live with her parents and gave birth to a child. She did not attempt to rejoin the husband and continued her job as a teacher. She knew about the husband’s income status before marriage. Desertion on her part has been proved under the circumstances. Due to the unpalatable atmosphere in the matrimonial home, the wife left the matrimonial home in Sunil Kumar v. Usha, AIR 1994 MP 1, and the reign of terror that prevailed there drove her out. She was held not guilty of desertion.

Imprisonment

The respondent is subject to a seven-years or more imprisonment decree for an offence laid down in the Indian Penal Code. On this ground, however, no decree for divorce shall be granted unless the respondent has already been imprisoned for at least three years out of the said period of seven years or more prior to the petition being presented.

Cruelty

Since the marriage solemnization, the petitioner must have been treated with cruelty by the respondent. The term’ cruelty’ was not defined in the Act and could be attached to it as such a broad meaning. Russell v. Russell, [1897] AC 395, laid down the legal position of cruelty in divorce proceedings. The legal concept of cruelty is usually described as the conduct of such a character as to have caused risk to life, limb or health (physical or mental) or to give rise to a reasonable apprehension of such danger.

In a divorce proceeding on the grounds of cruelty, the petitioner must prove that the respondent has behaved in such a way that the petitioner can not be called upon to endure in the circumstances and that misconduct has caused injury to health or a reasonable apprehension of such injury. The standard of proof required is the preponderance of probability and not beyond all reasonable doubt as in criminal proceedings.

Unsoundness of mind

The respondent must be of unsound mind, which is incurable. The burden of proof lies with the petitioner that the respondent is of unhealthy mind or has suffered from such a kind of mental disorder continuously or intermittently and to such an extent that it is not reasonable to expect the petitioner to live with the respondent. The petitioner will also need to prove that the unsoundness of mind is incurable. If the court finds that the respondent’s unsoundness of mind is incurable, it does not interfere with the degree of unsoundness of mind for decision-making purposes, as stated in Lock v. Lock, [1958] 1 WLR 1248.

Venereal Disease

The respondent must be suffering from venereal disease in a communicable form. Where it is not contracted from the petitioner who provides evidence that he or she has not had any intercourse with any person other than the respondent, it is a prima facie case that the respondent had committed adultery. It is then up to the respondent to refute the prima facie case against him by calling for medical evidence to demonstrate that:

  1. The respondent did not suffer from the disease, or
  2. The respondent innocently contracted the disease, or
  3. The respondent had not committed adultery. 
  4. The doctor who examined the respondent personally can only provide evidence to this effect.

Leprosy

The respondent should have been suffering from leprosy and the disease must not be contracted from the petitioner. Proving the disease have a communicable nature is not necessary.

Not heard as being alive

The respondent has not been heard by people who are closely related to the respondent as being alive for not less than seven years. If the person is not heard of for 7 years by those people who would naturally have heard of him being alive, then it is presumed that the person is dead. The burden of proving that the respondent is alive lies with the person who asserts it.

Husband is guilty of Rape, Sodomy or Bestiality

The wife can make a petition at the District Court on the ground that her husband has been guilty of rape, sodomy, and bestiality since the solemnization of marriage. These are also grounds for prosecution on criminal charges. However, the husband’s conviction on these grounds of criminal offence is not enough to grant a divorce decree. The commission of the offense must be proven de novo either by the petitioner calling witnesses or by the respondent admitting guilt; the court will decide whether any evidence is desirable to be corroborated.

Decree or order of maintenance obtained by the wife

The wife can also file a divorce petition on the ground that she has obtained a decree or maintenance order and since the passing of such decree or order, she has been living apart and has no resumed the cohabitation between her and her husband.

No resumption of cohabitation after a decree of judicial separation

The parties have not resumed cohabitation for at least one year after the passing of a decree of judicial separation. The legislature’s intention to give such space and time to the parties so there would be a possibility of reconciliation between the parties. In the absence of any such change of mind of the parties, the legislature believes that for any further period there is no justification for keeping the right of cohabitation available to the parties. Based on their peculiar facts and circumstances, each case has to be decided. A single act of cohabitation does not mean the resumption of cohabitation.

Non-compliance with a decree for restitution of conjugal rights

There has been no restitution of conjugal rights between the parties for a period of not less than one year after the decree of restitution of conjugal rights has been passed.

Divorce by Mutual Consent

Under section 28 of the Act, which deals primarily with provisions relating to obtaining a divorce by mutual consent in respect of a marriage solemnized and/or registered under the Act, a petition for divorce may be filed with the District Court by mutual consent. The following are some key points to consider when seeking a divorce by mutual consent: 

  1. Both parties must present a petition for divorce to the District Court together.
  2. There must be a petition on the grounds, 

They lived separately for a period of one year or more. 

That they were not able to live together. 

That they agreed to dissolve the marriage mutually.

  1. Only after one year from the date of entering the wedding certificate in the Marriage Certificate Book then only the petition can be presented. However, in instances where the petitioner suffers extraordinary hardship or in instances of extraordinary depravity on the part of the respondent, relaxation may be provided.
  2. The petition seeking divorce by mutual consent could be submitted to a district court within its jurisdiction, either, 

The marriage was solemnized. 

The respondent resides, or where the wife resides, in the case where the wife is the petitioner. 

The parties to the marriage last resided together. or 

The petitioner resides, in cases where the respondent is residing outside the territories to which the Act extends.

  1. Between 6 months after and within 18 months, the date of filing of the petition for seeking divorce by mutual consent, both parties must make a motion together for seeking a decree of divorce.
  2. Among other aspects, the District Court considers the following, before passing a divorce decree, 
  • That the petition has not yet been withdrawn. 
  • That under the Act, marriage has been solemnized. 
  • That the petitioner’s averments are true. 
  • The divorce consent was not obtained through force, fraud or undue influence. 
  • That there was no unnecessary or inappropriate delay in commencing the proceedings.

Thus, the provisions and procedures under the Special Marriage Act for acquiring divorce by mutual consent are relatively straightforward and fairly simple.

However, parties wishing to obtain a divorce by mutual consent must bear in mind that the Act also contains provisions dealing with the granting of alimony and maintenance, both permanent and during the pendency of the proceedings. In cases of divorce by mutual consent, the parties may agree on the terms relating to the payment of alimony or maintenance and the same may be incorporated in the pleadings before the Court. However, care must be taken to incorporate the appropriate provisions in the pleadings in order to avoid future misunderstandings or litigation. Therefore, while discussing the various issues related to seeking a divorce by mutual consent with their advocates, it is advisable that the parties should specifically discuss their arrangement and alimony and maintenance arrangements, and take appropriate steps to ensure that their interests are safeguarded.

Restriction on Divorce during 1st year of the marriage

Any person who is married under the Special Marriage Act must be aware of this important provision of the Act. Unless and until one year has expired from the date of their marriage as recorded in the marriage books, the parties may not apply for divorce in the District Court. However, in cases where the court considers that the petitioner has suffered exceptional hardship or the respondent has shown exceptional depravity on his part, a request for divorce would be retained, but if there is any misrepresentation on the part of the petitioner to apply for divorce before the expiry of 1 year, the court may, if any order has been passed, state that order to take effect only after the expiry of 1 year, as mentioned in Section 29 of the Act.

Can they remarry?

Speaking of the option of remarriage available for marriages of persons registered under the Special Marriage Act, 1954, one important thing to bear in mind is that, where the marriage has been dissolved, and there is no right of appeal available, or there is no petition for it within the required period, or where the appeal is dismissed, the parties may remarry as provided by the parties.

The General and Legal understanding

The general understanding is that only marriages are sacred and auspicious which are done in one’s own caste, whereas the legal aspects of it as discussed above doesn’t make marriages any less sacred or valid under this act. Our Law, under its provisions, gives every citizen the right to marry and have a happy life with any person of their choice. But many support this opinion and criticize it. Some people think it’s valid; some don’t. The effect of arranged marriages on love marriage has brought about this situation which, even after judgments and laws have been passed more frequently in this regard, has not brought about a major change in the mindsets of people who support marriages within religion and caste.

Difference between the Hindu Marriage Act and Special Marriage Act

The Hindu Marriage Act only applies to the Hindus, whereas the Special Marriage Act extends to all Indian citizens.

The Hindu Marriage Act was enacted in 1955 by the Parliament of India Act. The Hindu Marriage Act allows for an already solemnized marriage to be registered. It does not provide for Registrar for solemnization of a marriage. Parties to the marriage must apply to the Registrar in whose jurisdiction the marriage is solemnized or to the Registrar in whose jurisdiction either party to the marriage has resided for at least six months immediately before the date of marriage. Both parties must appear with their parents or guardians or other witnesses before the Registrar within one month from the date of marriage. There is a provision for the Registrar, and subsequently, the District Registrar concerned to condone delay for up to five years.

The Special Marriage Act, 1954, is an Act of the Parliament of India enacted to provide the citizens of India and all Indian nationals in foreign countries with a special form of marriage, regardless of the religion or faith practised by either party. The Special Marriage Act provides for marriage solemnization as well as registration by a marriage officer. The parties to the intended marriage must notify the marriage officer in whose jurisdiction at least one of the parties has resided for at least 30 days prior to the date of the notice. It should be put in his office at some conspicuous place. If either party lives in another Marriage Officer’s area, a copy of the notice for similar publication should be sent to him. If no objections are received, the marriage may be solemnized after the expiry of a month from the date of publication of the notice The Marriage Officer has to enquire into them if any objections are received and make a decision either to solemnize the marriage or to refuse it. Registration will be made after the marriage has been solemnized.

Any marriage already celebrated, subject to certain conditions, may also be registered under the Special Marriage Act after giving a 30-day public notice.

Maintenance For Wife & Children: Under Special Marriage Act, 1954

Alimony During The Pendency Of The Case In The Court

Where, in any proceeding under the Special Marriage Act, 1954, it appears to the District Court that the wife does not have enough independent income for her support and the required expenses of the proceeding, the wife may, at the request of the court, order the husband to pay her the costs of the proceeding and, in the course of the preceding proceeding, weekly or monthly, such amount should regard to husband’s income, which the court may seem reasonable. 

Permanent Alimony and Maintenance

Any court exercising jurisdiction under the Special Marriage Act of 1954 may, at the time of the passing of any decree or at any time after the decree, order the husband to secure the wife’s maintenance and support, if necessary, by charge on the property of the husband, such gross sum or such monthly or periodic payment of money for a period of time not exceeding her life.

If the District Court is satisfied that there is a change in the circumstances of either party at any time after it has rendered an order pursuant to subsection (1), it may, in either party’s case, alter, adjust or cancel any such order in such a manner as it may appear to the Court to be reasonable.

(3) Where the District Court is satisfied that the wife for whom an order has been made pursuant to this section has remarried or has not lived a chaste life, it may, in the case of the husband, change, alter or cancel any such order and in such a manner as the Court may deem appropriate.

Amount of Maintenance

The maintenance amount shall be purely the Court’s discretion. The court shall take due account of the following factors in deciding the amount of maintenance, namely: 

  • The position and status of the parties; 
  • The fair preference of the claimant; 
  • If the claimant resides separately, whether the claimant is justified in doing so; 
  • The value of the claimant’s estate and any income derived from that property or from the claimant’s own income or from any other source; or

Any other relevant facts and circumstances.

By its very nature, the captioned subject is complex. In such cases,after reviewing the relevant provisions of the law, i.e. the Special Marriage Act, 1954, The Code of Civil Procedure, 1908, The Limitation Act, 1963, The Evidence Act, 1872, The Code of Criminal Procedure, 1973, Other Acts & Judgments and Citations of the Hon’ble Supreme Court of India and the High Courts. Even otherwise, the question of how rules, decisions, and quotations are to be applied is rather more complicated as it requires a thorough examination of substantive laws, procedural laws and precedents of the Court in a given set of facts and circumstances.

Offences and punishment under the Special Marriage Act, 1954 

Section 43 of the Special Marriage Act, 1954 discusses the penalty for a married person marrying again under this Act, which states that anyone who, while married, procures a marriage of himself or herself to be solemnised under this Act shall be deemed to have committed an offence under Section 494 or Section 495 of the Indian Penal Code, 1860 as the case may be, and the marriage so solemnised shall be void.

Section 44 of the statute further highlights the penalties for bigamy. It states that anyone whose marriage is solemnised under this Act and who contracts any other marriage during the lifetime of his or her wife or husband shall be subject to the penalties provided in Sections 494 and 495 of the Indian Penal Code, 1860 for the offence of getting married again during the entire life of a husband or wife, and the cohabitation so contracted shall be void.

The punishment for signing a fraudulent statement or certificate is detailed in Section 45 of the Special Marriage Act, 1954. It says that anybody who makes, signs, or attests any declaration or certificate required by or under this Act that contains a false statement that he either knows or believes to be false or does not believe to be true commits the offence stated in Section 199 of the Indian Penal Code, 1860.

Benefits of the Special Marriage Act, 1954

The Special Marriage Act, 1954, along with its implementation, has provided significant benefits to the two individuals who are marrying, and these benefits are as follows:

  • Marriage does not require the spouses to alter their caste.
  • Since caste and religion have not been altered, the rights to ancestral property also remain unchanged. Personal laws manage the succession of property, which is governed by people’s beliefs. As a result, despite marrying outside the religious fold, the rights of inheritance and succession granted by the particular faith continue to exist.
  • The property obtained by the married couple is devolved to their offspring under the secular law of succession, the India Succession Act, 1925.
  • Because of the age requirements, the Act inhibits child marriage.
  • Polygamy is discouraged.
  • It protects the womens’ right to refuge and support.
  • Unlike the earlier Marriage Act of 1872, the present Special Marriage Act, 1954 allows for divorce. It also emphasises on mutual consent to divorce. It registers marriage with the government, legalising it in a court of law, and allows for marriage under unusual situations.
  • When determining a maintenance amount, the wife’s income is taken into account (i.e. alimony).

Drawbacks of the Special Marriage Act, 1954

Although the Special Marriage Act, 1954 of 1954 permits couples to reject society’s traditional conventions and marry outside the human-made limits of caste, religion, and faith, certain aspects of the Act appear to cause trouble and limit an individual’s freedom to marry a partner of his or her own choice. 

The Special Marriage Act, 1954 of 1954 permits citizens of India and Indian nationalities in foreign countries to marry beyond man-made boundaries of religion, caste, and community, but it also regards such weddings with caution by applying criteria that do not apply in interfaith marriages. 

There is no option for a quick procedure for instant marriage; instead, the couple must wait 30 days from the day the notification was issued. If there have been no previous objections to such notification, the union can be solemnised at the conclusion of the thirty-day period.

In addition, the Act compels intended spouses to wait one month following the publication of the notice, which is believed to be the time of objection. This interval, however, appears to be too prolonged for people who are constantly threatened by their relatives and communities. The Act gives family, caste, and society ample time and space to harass persons who intend to use it. Despite the fact that it allows two consensual adults to marry without regard for the faiths to which they belong, the law does not make it simpler in practice, since it appears that such couples still want community acceptance to confer validity to their marriage.

It is difficult to understand how couples married under the Special Marriage Act, 1954 of 1954 differ from those marrying under their own laws. There appears to be a misalignment between the goal intended by this Act and the methods taken to attain it through its provisions.

Due to the exposure in the local registration office, family members who are opposed to the union may try to halt it by pressure. In such circumstances, the candidates’ lives may be jeopardised. There have been instances of right-wing organisations opposing interfaith weddings while keeping an eye on marriage office notice boards and taking down the data of the parties in order to pressure them into abandoning the notion.

As a result, it appears that the Act’s negative features exceed its beneficial aspects. Some changes to the Act must be made in light of the problems that have been identified in order to accomplish the vision of secularism and to encourage those couples who wish to marry under this Act by providing them with legislation that is just, fair, and reasonable, and that does not bend with age or socio-cultural oppression. Only then can couples of all religions and groups be encouraged to marry under this Act, allowing the country to attain its ideal of secularism in its genuine sense.

Judicial perspective on the Special Marriage Act, 1954

The Supreme Court in the landmark decision of Lata Singh v. State of UP, 2006 directed the state governments to establish a framework to protect individuals marrying under the Special Marriage Act, 1954. In the current instance, the petitioner sought to have the petition filed by her furious brother dismissed since the petitioner had an intercaste marriage. As a result, the Supreme Court determined that the petitioner, at the age of 24, is of legal age and can choose her spouse.

In Kuldeep Singh Meena v. State of Rajasthan, 2018 the Rajasthan High Court confirmed this rationale, holding that the Special Marriage Act, 1954 simply requires a notice to be shown on the display board at the Marriage Officer’s office. The High Court makes it very apparent that authorities cannot impose extra obligations on spouses in addition to the conditions established in the Special Marriage Act, 1954.

The Delhi High Court in case of Pranav Kumar Mishra v. Govt. of NCT of Delhi, 2009 held that “the Special Marriage Act, 1954 was intended to permit a special form of marriage for any Indian person professing multiple faiths or preferring a civil form of marriage.” Unwarranted exposure of marital arrangements by two individuals authorised to solemnise it may undermine the marriage itself in certain circumstances. Due to parental meddling, it may potentially jeopardise one or both parties’ life or limb in some cases. In such circumstances, if such a method is taken by the authorities, it is wholly arbitrary and without legal power.

The question of marrying without interference came up before the Supreme Court of India in the case of Shafin Jahan v. Asokan K.M. and Others, 2018 in which the Court declared, “The constitution respects the freedom and sovereignty which inheres in each individual.” This involves the ability to make choices about parts of one’s personality and identity. The choice of a partner, whether within or outside of marriage, is entirely up to the person. Marriage intimacies exist within the fundamental zone of privacy, which is impenetrable. The ultimate right of a person to choose a life partner is unaffected in the least by religious considerations.

In the case of Sufiya Sultan and Ors. v. State of U.P. and Ors, 2021 the Allahabad High Court stated that, while giving notice under Section 5 it is up to the couple to request in writing to the concerned Marriage Officer if they want to publish a public notice under Section 6 and follow the objection procedures under Section 7.

Conclusion

In Indian society, the caste system is not a fresh notion. History demonstrates that massive empires lost their hold owing to the prevailing caste system. The beginning of which could not be determined, but the conclusion of which may be near. Individuals would be able to marry the person of their choice regardless of caste, community, religion, or cultural taboos if a competent version of the Special Marriage Act, 1954 was enacted. Bearing in mind the community’s wrath, the Special marital Marriage is meant to safeguard the couple to the greatest extent feasible. The Act has established laws for lawful marriage, invalid marriage, voidable marriage, registration procedure, reasons for divorce, support, child status, and remarriage. The goal was to develop a universal code that would minimise the gap running deep in the society and devouring it like a termite.

Regardless of all the attempts, society prefers to impose burdens and harass spouses. The need of the hour is to raise information and engage people about how the difference would only stifle progress, and that interfaith marriage is just a personal decision, not a sin.


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Theories of international trade

0
International Trade Law

This article has been written by Diksha Paliwal, a practising advocate in the High Court of Indore and a student of LL.M. (Constitutional Law). This article aims to provide an understanding of the concept of international trade and its theories. 

This article has been published by Sneha Mahawar.

Introduction

International trade acts as a major contributing factor in global economic activity and a catalyst of economic growth in developing as well as developed countries. Differences in various conditions, like resource availability, natural climatic conditions, cost of production, etc., act as the motive behind trade between the countries. International trade has made it all possible and has provided a large number of employment opportunities as well as several goods and services for the consumer. Not just this, it has been a major reason for the rising living standards of people all over the globe. International trade has been a part of human civilization for a very long time; however, the past few decades have seen rapid development in cross-border trading. Imports and exports have largely contributed to the growth of GDP, and the credit for the same goes to imports and exports.

The article, in its first section, will deal with the concept of international trade and its historical development. Whereas, the next parts will deal with the different theories of international trade that have been formulated to deepen our understanding of this significant global phenomenon.

International trade : an overview

In layman’s language, international trade is the exchange of goods and services between different countries. The term “exchange” includes the import as well as export of goods and services. As quoted by Wasserman and Haltman, international trade can be connoted as transactions among the inhabitants of different countries. Edgeworth, an Irish-based statistician, defined the term as the phenomenon of trade between countries. The term ‘international trade’ is an example of economic linkage and can be referred to as an economic transaction between countries. 

International trade stands as a crucial determinant of openness among countries and has been a remarkable factor in economic growth. In recent years, overseas trade has become a strategy of paramount importance for the growth of the national economy. However, the significance of international trade is not just limited to this, it also helps in encouraging social and international relations among countries. Increased foreign trade has augmented the process of globalisation.

In the early years, political economists like Adam Smith and Ricardo were among the few people who acknowledged the significance of international trade, which has been practically affirmed by visible global growth and economic development. Global trade gives consumers the opportunity to experience and enjoy a variety of goods and services that, for whatever reason, are not available in their country or which might be a bit costly in their country compared to others. Foreign trade also, to a great extent, curbs the issue of irregular availability and distribution of resources all over the world by facilitating a smooth flow of raw materials as well as finished products. The optimum use of abundant raw materials is one more benefit expedited by trading globally. 

Classification of international trade activities

The activity of international trade has been broadly classified under 3 subheads, namely, international trade operations, strategic alliances, and direct foreign investments. They are discussed as follows:

International trade operations: This category specifically includes the operations constituting international business via import and export, import-export combined operations, and transit. Although the parties, in several instances, might have dissimilar interests, to gain a mutual advantage, they harmonise their differences and arrive at a mutual consensus by prioritising benefits. These international trade operations are legally considered under the category of bilateral contracts, which consist of international sales contracts as the legal instrument. In most cases, these transactions are short-term, however, the relationships between the parties can be long-term or short-term depending on their choice. 

Strategic alliances: This category mainly includes activities like franchising, sub-contracting, joint ventures (private or government), etc. It connotes the operation involving cooperation among the various partners from different countries, pertaining to the transfer of technologies globally. 

Foreign direct investment:  The strategy closely resembles the categories of involvement, risk, and profit, each one of them at its maximum potential. It is an alternative to stepping foot into the global market. It comes under the category of cross-border investment, wherein, the interested residents of one economy invest or influence significantly in enterprises based in another country.

History and evolution of theories of international trade 

Global trade has been a very crucial part of human civilization, and owing to its dynamic nature, the concepts involving trading have also evolved drastically. International trade has a long history. The simple concept of the exchange of goods and services between different countries has been interpreted in a number of ways by different philosophers and economists. These theories that provide different explanations and definitions of the concept of international trade are called international trade theories. These trade theories basically study the changing patterns of international trade, its origins, and its impact, along with its practicability. 

The study of international trade has been a subject of research from the ancient Greeks to the present governments of different countries, political economists, and intellectuals. The determinants and factors affecting trade among the countries and its pros and cons have been a subject matter of study. The most important question of the research is the determination of policies for different countries as per their situation, in order to have efficient and smooth global trade.

In the early period, theoreticians and philosophers did not have a very systematic approach towards the study of trade theories. Their theories were a bit clouded by ethical and political considerations. The four most remarkable periods of development in trade theories in the middle ages were:

  1. Ancient Greek ideas, 
  2. Scholastic and Christian thought, 
  3. Mercantilism and 
  4. Physiocracy. 

The crucial ideas relating to these trade theories were put forward by Plato, Xenophon, and Aristotle in the Greek period. They emphasised the benefits of the division of labour and the exchange of goods and stated that not limiting them within the boundaries of the city would be mutually beneficial to both parties. Plato, in his work, “The Republic”, talked about the fact that it is practically impossible to attain self-sufficiency in terms of goods and services for a city, and explained the benefits of division of labour and how it would result in higher output and productivity. Xenophon, in his various studies, has also talked about the benefit of expanding the trading system internationally. However, despite various attempts made by the Greek philosophers, the Greeks were not much of a supporter of international trade. Aristotle also argued that as a part of efficient ruling, the rulers must decide which imports and exports are necessary and, not only should they do this, but they should also maintain fairness in these exchanges, possibly by forming some treaties with the countries. 

The above-discussed ideas, mainly the Aristotelian philosophies, emerged as the basis of Scholastic and Christian thought, which came around the period of the 13th and 15th centuries. This period of intellectual legacy came to be known as the birth of economic science as a branch of ethics. Philosophers and theologians of this period were of the view that international trade could possibly be compatible with principles of moral philosophy. They acknowledged the possibility of differences in the availability of resources and accepted the fact that nature has not provided each region of the world with every possible resource and, hence, international trade, at least to a certain extent, is essential and unavoidable. But they were very much aware of the fact that this international commerce must be kept in check and that this might have adverse moral consequences. They acknowledged the possibility of fraud and other malicious practices in the event of global trading. However, with time, the importance of foreign trade was widely accepted and soon it became an established fact that this is an inalienable right that an individual has, and should not be snatched away from him, although a security check must be kept to avoid adverse consequences. 

With the passing of time and the origination of national states, increasing commercial relations became of prime importance for both scholars and statesmen. However, with this growing popularity and acceptance of international trade, the national movement of mercantilism spread, which stated that before everything else, priority must be given to the welfare of one’s own nation and that countries are often in conflict with each other, hence, we must first flourish our own nation. Thus, this aim could only be achieved by discouraging the welfare of other nations and focusing on oneself first. This aim was mainly achieved by collecting and increasing the country’s treasure by accumulating gold and silver. Promotion of exports, the balance between import and export, and prioritising only the import of essential raw materials, were some of the main strategies behind the movement of mercantilism. However, this doctrine gradually lost its popularity and was severely criticised by the liberals.

After the failure of mercantilism, the theory of Physiocrats emerged, who believed in the liberalisation of trade. They advocated the importance of free and equally free trade in all branches. 

Theories of international trade 

International trade theories were mainly developed under two categories, namely, classical or country-based theories and modern or firm-based theories, both of which are further divided into various categories. 

Let’s have a brief overview of the various theories of international trade.

Classical or country-based theories

The founders of the various theories of the classical country-based approach were mainly concerned with the fact that the priority should be increasing the wealth of one’s own nation. They were mainly of the view that the focus should be on economic growth on a priority basis. The main classical theories in reference to international trade are discussed below.

Mercantilism

The Mercantilism theory is the first classical country-based theory, which was propounded around the 17-18th century. This theory has been one of the most talked about and debated theories. The country focused on the motto that, on a priority basis, it must look after its own welfare and therefore, expand exports and discourage imports. It stated that an attempt should be made to ensure that only the necessary raw materials are imported and nothing else. The theory also propounded the view that the first thing a nation must focus on is the accumulation of wealth in the form of gold and silver, thus, strengthening the treasure of the nation.  

To put it simply, it can be stated that the classical economists behind the theory of Mercantilism firmly believed that a country’s wealth and financial standing are largely demonstrated by the amount of gold and silver it holds. Hence, economists believe that it is best to increase the reserve of precious metals to maintain a wealthy status. For this theory to work, the aim to be fulfilled was that a country must produce goods in such a large quantity that it exports more and should be less dependent on buying goods and other materials from others, thereby strongly encouraging exports and strictly discouraging imports. 

A large number of countries in the past benefited from strictly following the theory of Mercantilism. History is evident that by implementing this theory, many nations benefited by strictly following the theory of Mercantilism. Various studies done by economists prove why this theory flourished in the early period. In the early period, i.e., around 1500, new nations and states were emerging and the rulers wanted to strengthen their country in all possible ways, be it through the army, wealth, or other developments. The rulers witnessed that by increasing trade they were able to accumulate more wealth and, thus, certain countries became very strong because of the massive amount of wealth they stored. The rulers were focused on increasing the number of exports as much as possible and discouraging imports. The British colony is the perfect example of this theory. They utilised the raw materials of other countries by ruling over them and then exporting those goods and other resources at a higher price, accumulating a large amount of wealth for their own country. 

This theory is often called the protectionist theory because it mainly works on the strategy of protecting oneself. Even in the 21st century, we find certain countries that still believe in this method and allow limited imports while expanding their exports. Japan, Taiwan, China, etc. are the best examples of such countries. Almost every country at some point in time follows this approach of protectionist policies, and this is definitely important. But supporting such protectionist policies comes at a cost, like high taxes and other such disadvantages. 

Absolute advantage

In 1776, the economist Adam Smith criticised the theory of mercantilism in his publication, “The Wealth of Nations”, and propounded the theory of Absolute advantage. Smith firmly believed that economic growth in reference to international trade firmly depends on specialisation and division of labour. Specialisation ensures higher productivity, thereby increasing the standard of living of the people of the country. He proposed that the division of labour in small markets would not cater for specialisation, which would otherwise become easy in the case of larger markets. This increase in size fostered a more refined specialisation and thus increased productivity all around the globe.

Smith’s theory proposes that governments should not try to regulate trade between countries, nor should they restrict global trade. His theory also encapsulated the consequences of the involvement and restraint of the government in free trade. Also, he firmly believed that it is the standard of living of the residents of a country that should determine the country’s wealth and the amount of gold and silver that a country’s treasure has.  He states that trading should depend on market factors and not the government’s will. 

Smith was firmly against the mercantilist theory, and he argued that diminishing importation and just focusing on exports was not a great idea, and thus restricting global trade is not what needs to be done. He proposed that even though we might succeed in forcing our country’s people to buy our own goods, however, we may not be able to do so with foreigners, and hence it is better that we make it a two-way trade and just focus on exports.

In relation to the restrictions imposed on import, Smith stated that even though the restrictions on import may benefit some domestic industries and merchants when looked at from a broad spectrum, it will result in decreasing competition. Along with this, it will increase the monopoly of some merchants and companies in the market. Another disadvantage is that the increase in the monopoly will cause inefficiency and mismanagement in the market. 

Smith completely denied the promotion of trade by the government and restrictions on free trade. He reiterated that it is wasteful and harmful to the country. He proposed that free trade is the best policy for trading unless, otherwise, some unfortunate or uncertain situations arise. 

Comparative advantage 

The theory of comparative advantage flourished in the 19th century and was propounded by David Ricardo. This theory strengthened the understanding of the nature of trade and acknowledges its benefits. The theory suggests that it is better if a country exports goods in which its relative cost advantage is greater than its absolute cost advantage when compared with other countries. For instance, let’s take the examples of Malaysia and Indonesia. Let’s say Indonesia can produce both electrical appliances and rubber products more efficiently than Malaysia. The production of electrical appliances is twice as much as that of Malaysia, and for rubber products, it is five times more than that of Malaysia. In such a condition, Indonesia has an absolute productive advantage in both goods but a relative advantage in the case of rubber products. In such a case, it would be more mutually beneficial if Indonesia exported rubber products to Malaysia and imported electrical appliances from them, even if Indonesia could efficiently produce electrical appliances too. 

What Ricardo proposed is that even though a country may efficiently produce goods, it may still import them from another country if a relative advantage lies therein. Similar is the case with export, even if a country is not very efficient in certain goods from other countries, it may still export that product to other countries. This theory basically encourages trade that is mutually beneficial. 

Heckscher-Ohlin theory (Factor Proportions theory)

The theories founded by Smith and Ricardo were not efficient enough for the countries, as they could not help the countries determine which of the products would benefit the country. The theory of Absolute Advantage and Comparative Advantage supported the idea of how a free and open market would help countries determine which products could be efficiently produced by the country. However, the theory proposed by Heckscher and Ohlin dealt with the concept of comparative advantage that a country can gain by producing products that make use of the factors that are present in abundance in the country. The main basis of their theory is on a country’s production factors like land, labour, capital, etc. They proposed that the approximate cost of any factor of resource is directly related to its demand and supply. Factors which are present in abundance as compared to demand will be available at a cheaper cost, and factors which are in great demand and less availability will be expensive. They proposed that countries produce goods and export the ones for which the resources required in their production are available in a much greater quantity. Contrary to this, countries will import goods whose raw materials are in shorter supply in their own country as compared to the one from which they are importing. 

For example, India has a large number of labourers, so foreign countries establish industries that are labour-intensive in India. Examples of such industries are the garment and textile industries.

Modern or firm-based theory 

The emergence of modern or firm-based theories is marked after period of World War II. The founders of these theories were mainly professors of business schools and not economists. These theories majorly came up after the rising popularity of multinational companies. The Country based classical theories were mainly focused on the country, however, the modern or firm-based theories address the needs of companies. The following are the modern or firm-based theories propounded by various business school professors: 

Country similarity theory

Steffan Linder, a Swedish economist, was the founder of this theory.  The theory marked its emergence in the year 1961 and explained the concept of in-train industry trade. Linder suggested that countries that are in a similar phase of development will probably have similar preferences. The suggestion proposed by Linder was that companies first produce goods for their domestic consumption and later expand production, thereby exporting those products to other countries where customers have similar preferences. Linder suggested that most of the trade in manufactured goods, in most circumstances, will be between countries with similar per capita incomes and that the in-train industry trade will thus be common among them. This theory is generally more applicable in understanding trade where buyers mainly decide on the basis of brand names and product reputations. 

Product life cycle theory

This theory was propounded by Raymond Vernon, a business professor at Harvard Business School, in the 1960s. The theory that originated in the field of marketing proposed that a product life cycle has three stages, namely, new product, maturing product, and standardised product. The theory has a presumption that the production of a new product will completely arise in the country where it was invented. This theory, up to a good extent, helps in explaining the sudden rise and dominance of the United States in manufacturing. This theory also explained the stages of computers, from being in the new product stage in the 1970s and thereby entering into their maturing stage in the 1980s and 1990s. In today’s scenario, computers are in a standardised stage and are mostly manufactured in low-cost countries in Asia. However, this theory has not been able to explain the current trading pattern where products are being invented and manufactured in almost all parts of the world. 

Global strategic rivalry theory

Paul Krugman and Kelvin Lancaster were the founders of this theory. This theory emerged around the 1980s. The theory majorly focused on multinational companies and their strategies and efforts to gain a comparative advantage over other similar global firms in their industry. This theory acknowledges the fact that firms will face global competition and prove their superiority. They must surely develop a competitive advantage over each other. The ways through which the firms can gain competitive advantage were termed as barriers to entry for that particular industry. These barriers are basically the obstacles that a firm will face globally when they enter the market. The barriers that companies and firms may try to optimise are:

  1. Mainly research and development,  
  2. The ownership of intellectual property rights,  
  3. Economies of scale,  
  4. Unique business processes or methods, 
  5. Extensive experience in the industry, and 
  6. The control of resources or favourable access to raw materials.

Porter’s national competitive advantage theory

The theory emerged in the 1990s with the aim of explaining the concept of national competitive advantage. The theory proposes that a nation’s competitiveness majorly depends upon the capability and capacity of the industry to come up with innovations and upgrades. This theory attempted to explain the reason behind the excessive competitiveness of some nations as compared to others. The main determinants proposed in this theory were local market resources and capabilities, local market demand conditions, local suppliers and complementary industries, and local firm characteristics. The theory also mentioned the crucial role of government in forming the competitive advantage of the industry.

Conclusion 

For years, theories concerning international trade have been the subject of intense research and debate. Growing international trade has its own pros and cons. The analysis of the system of international trade by way of various theories has enabled a systematic framework for better understanding. International trade contributes to the economic growth of a country, thereby increasing the standard of living of its people, creating employment opportunities, a greater variety of choices for consumers, etc. The development of trade theories has seen a major shift from the view of restricting free trade as stated in the theory of mercantilism to the various modern theories providing a better understanding to facilitate smooth international trade with increasing benefits. 

Frequently Asked Questions (FAQs) 

Why are international trade theories important?

The study of these theories caters to smooth and efficient trading by explaining the pits and falls, dos and don’ts to be kept in mind while trading. A vague or misguided view on such an important topic might affect a country’s financial position and its standing in the world. Hence, it is important to properly understand the theories pertaining to international trade for the benefit of the country as a whole. 

Which trade theory mainly focuses on decreasing imports?

The theory of mercantilism emphasises the point that primarily the country must focus on increasing the country’s export and restrict the import to only products that are absolutely necessary.

Why was the theory of Mercantilism slowly losing popularity?

The reason behind the gradual loss is very simple, we cannot force a country to buy our exported products. Also, in the absence of relative advantage, no country would accept products from countries that are themselves not acknowledging the concept of free trade.

Which is the most popular international trade theory?

International trade theories have emerged as a great helping hand in understanding the changing pattern of trade in the past few years. Even though not every theory may be applicable to every country and every situation,  each one of them still has its own significance. Thus, we can say there is no particular theory that was the most popular of all the others. Instead, every single theory, in some way or another, has helped in the improvement of the tactics of international trade.

References 


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First amendment of Indian Constitution

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This article is written by Ritika Sharma, a law graduate from the University Institute of Legal Studies, Panjab University. It is a comprehensive study of the First Amendment of the Indian Constitution. Along with examining the intention and need to introduce the First Amendment, it provides insights into the history, characteristics, and repercussions of the amendment of 1951. 

It has been published by Rachit Garg.

Table of Contents

Introduction

Giving the status of a backbone to the Constitution of India, 1950 would be an understatement, as apart from being a support system, it breathes life into the laws of our land. It is also the heart and soul of India’s legal fraternity and provides a back to the victims of crime and injustice. The latest amendment to the Constitution of India, 1950, is the 104th amendment via the Constitution (One Hundred and Fourth Amendment) Act, 2019, which has extended the deadline for ending reservations to the Scheduled Castes and Scheduled Tribes for another 10 years. The journey from the 1st to the 104th amendment is about 7 decades-long traverse. 

Let’s go about 70 years back and peek into the features of the Constitution (First Amendment) Act, 1951, which has served as a basis for ensuring several rights and remedies for Indian citizens. 

This article will be a journey back to the 1950s when we had just adopted the Indian Constitution and immediately felt the need to amend it in the very first year of its enforcement. What were the concerns of the Parliament? What was altered in this bulky, self-sufficient document? How is the First Amendment important to our Constitution? Apart from going into the depths of these questions, this article will illuminate the features and challenges of the First Amendment to the Indian Constitution. 

Drafting of the Indian Constitution

The framing of the Indian Constitution was a long procedure carried out by the Constituent Assembly. The first meeting of the Constituent Assembly was held on December 9, 1946, under the presidency of Dr Sachchinanda Sinha. Then, a different committee was formulated by the Constituent Assembly that submitted reports on separate areas of the Constitution. The Drafting Committee prepared a draft that was published for the citizens who could suggest any alterations or modifications to the provisions. After that, amendments were made, and the final draft was presented to the Assembly for discussion and debate. The Constituent Assembly debates are the comprehensive discourse on the final draft of the Indian Constitution. These are one of the fundamental sources of this bulkiest instrument, which are often looked into by the judiciary to decipher the intention behind the debatable constitutional provisions. The discussion on the draft was concluded on November 26, 1949, following which the Indian Constitution was adopted. 

Mode of amendments in the Indian Constitution

The amendments to the Constitution are made by two methods:

  1. The informal method,
  2. The formal method.

Informal method of amendment of the Constitution

No proper procedure is required to be followed for an informal method of amendment. In this method, the Constitution is amended by a change in the interpretation of the constitutional provisions. The law is applied by judges who can overrule their previous decisions by interpreting certain laws in a different manner. However, adopting this indirect mode of amendment leads to debates as the judiciary is criticised for usurping the power of the legislature.

Formal method of amendment of the Constitution

This is provided under Article 368 of the Indian Constitution. The Parliament is empowered to add, alter, or repeal any constitutional provision. In the landmark case of I.R. Coelho (Dead) By LRs v. State of Tamil Nadu & Ors. (2007), a distinction was made between the constituent power and the power to make amendments. The Supreme Court highlighted that constituent power was the original power that belonged to the Constituent Assembly while framing the Constitution. On the other hand, the power to amend the Constitution is a derivative power that has been culled out from Article 368 of the Indian Constitution and, thus, is subject to certain limitations stipulated under the Constitution itself. 

Types of constitutional amendments 

Depending upon the provisions of the Constitution, there are three ways of introducing amendments. These are discussed below:

Amendment by simple majority

Some of the constitutional provisions can be amended by the simple majority vote of members present and voting in both Houses of Parliament. For this, a Bill is introduced in either House of Parliament. These are initiated at the instance or in consultation with the states. Examples of the provisions that can be amended by the simple majority are Article 11, Article 73, Article 169, Schedule V, and Schedule VI

Amendment by a special majority of Parliament

The provisions which cannot be amended by a simple majority are amended in accordance with Article 368 of the Indian Constitution. For this, a Bill is introduced in either House of Parliament. After the Bill is passed in each House of Parliament by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of the House present and voting, it is presented to the President. The amendment procedure is completed only after the Bill receives the assent of the President.

Amendment by a special majority of Parliament with the ratification by half of the total states

In case of certain constitutional provisions, along with the vote of members of both the House, it is essential to receive the consent of not less than one-half of the States. This is called ratification, and it has to be done before the Bill is presented to the President. The provisions that require this procedure include the following:

Overview of the First Amendment of the Indian Constitution

Objectives of the First Amendment

The Indian Constitution was enforced in 1950, and in the very next year, an amendment was introduced. The Act amended the Indian Constitution even before the first elections were held in independent India. There were three fundamental changes made in the Constitution via this amendment. The following points reflect the objectives for the same:

  • Need to restrict the right to freedom of speech and expression- It was necessary to add certain restrictions by including the terms ‘public order’, ‘friendly relations with foreign states, and ‘incitement to an offence’. 
  • Need to introduce special provisions for backward classes- Clause 4 was added in Article 15 as the country felt the need to make special provisions for the backward classes or for the Scheduled Castes and Scheduled Tribes. 
  • Land reforms- Article 31A and Article 31B were added which exempted land reforms from constitutional scrutiny. In addition to these, the Ninth Schedule was inserted that contained the laws insulated from any challenge against violation of fundamental rights. 

Highlights of the First Amendment

The Constitution (First Amendment) Act, 1951 contains 14 sections that amended or inserted certain provisions in the Indian Constitution. The following are the highlights of the changes that were introduced.

Right to non-discrimination

Under Article 15, a fourth clause has been added, which provides that the government can make special provisions in favour of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes. Article 15 and Article 29(2) of the Constitution will not restrict the state from introducing benefits for these sections of society.

Restrictions on freedom of speech

Under Article 19, clause (2) was modified. The right to freedom of speech and expression ensured under Article 19(1)(a) can be exercised unless it is against the interests of the security of the state, friendly relations with foreign states, public order, decency, or morality, or in relation to contempt of court, defamation, or incitement to an offence. Secondly, a substitution was made in Article 19(6), which empowered the government to carry on trade or business with or without the exclusion of other entities. 

Saving of certain laws

Articles 31A and 31B were added to the Constitution via Sections 4 and 5, respectively. These provisions were aimed at removing social and economic disparities in the agricultural sector.

Power of President/Governor regarding sessions of Parliament, prorogation, and dissolution

With Section 6 of the Constitution (First Amendment) Act, 1951, Article 85 was substituted to include the provision related to the sessions of Parliament, prorogation, and dissolution. It lays down that the President can summon each House of Parliament and the interval should not be more than 6 months between two sessions. Further, the President can prorogue the Houses of Parliament and dissolve the House of People. 

Similarly, Section 8 of the Amendment Act, 1951, substituted a provision with regard to the sessions of the State Legislature, prorogation, and dissolution. The substituted Article, i.e., Article 174, is the mirror image of Article 85 with the difference that it stipulates the power of the Governor for the respective states. 

Special address by President/Governor

In Article 87, two changes were made. Firstly, the frequency of special addresses by the President was changed from “every session” to “the first session after each general election to the House of the People and at the commencement of the first session of each year”. Secondly, the words “and for the precedence of such discussion over other business of the House” were omitted in the second clause.

Section 9 of the First Amendment Act, 1951, made changes similar to Article 87 with respect to the Legislative Assemblies of the states. The amended Article 176 contains provisions for a special address by the Governor. 

Changes in provisions for Scheduled Castes and Scheduled Tribes

In Article 341 and Article 342, the phrase “may with respect to any State, and where it is a State specified in Part A or Part B of the First Schedule” was added. These provisions have undergone further amendments, which will be discussed later in this article. 

Extension of the time period for modification in laws

Clause 3 of Article 372 specifies the power of the President to make any adaptations or modifications to the existing laws. Section 12 of the First Amendment Act extended the time period within which such modifications could be made from 2 years to 3 years from the commencement of the Indian Constitution. 

Eligibility of judges of the High Court of provinces for appointment as Chief Justices

Article 376 was amended to make the judges of the High Court of any province eligible for appointment as Chief Justices of High Courts. 

Addition of Ninth Schedule

The last section of the First Amendment Act of 1951, added the Ninth Schedule to the Indian Constitution. This Schedule is read with Article 31B, and it contains 13 statutes on land reform. With further amendments, more Acts were added, and currently there are 284 Acts in the Ninth Schedule.

Amendment of Article 15

Article 15 is an important constitutional provision that bars any kind of discrimination on the basis of religion, race, caste, sex, or place of birth. It ensures citizens the right not to be discriminated against on any basis. Also, it establishes that every person must have access to public places without any kind of prejudice against any particular community. Furthermore, it empowers the government to formulate any law for the benefit of women and children.

Need for amendment of Article 15

The First Amendment Act, 1951, added the fourth clause to Article 15 that empowered the government to make any law for the upliftment of socially and educationally backward classes of citizens or for the Scheduled Castes and Scheduled Tribes. It reads, “Nothing in this article or in clause (2) of article 29 shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes.”. The added clause elucidates that in case such special provisions are introduced, they cannot be said to be breaching Article 15 and Article 29(2) of the Constitution. 

The need to insert this clause was felt after the decision of the Supreme Court in the State of Madras v. Srimathi Champakam (1951). According to the facts of this case, the Madras government issued an Order that provided reservation on the grounds of religion, race, and caste. This Order was contended to be in breach of Article 15(1) of the Indian Constitution. The Court also gave a literal interpretation to the constitutional provisions and held that reserving seats in public institutions for backward classes violates Articles 15(1) and 29(2). Therefore, in order to nullify the effect of similar judicial pronouncements, Article 15 was amended. 

Scope of Article 15(4)

Article 15(4) is an enabling provision, and it gives the government the discretion to make special provisions. It has a wide ambit provided that special provisions are made for the advancement of backward classes of citizens and those of scheduled castes and scheduled tribes. 

In the case of M.R. Balaji And Others v. State of Mysore (1963), it was held that the term ‘backward’ used in Section 15(4) denotes both social and educational backwardness. The social backwardness could be due to the person’s occupation, place of habitation, or other relevant factors besides caste. Furthermore, in R. Chitralekha & Anr. v. State of Mysore & Ors. (1964), the Supreme Court determined that the basis on which the socially and educationally backward classes are classified are economic conditions and occupations. 

Another landmark case that illuminated the ambit of Clause 4 of Article 15 is Mrs. Valsamma Paul v. Cochin University And Others (1996). In this case, the Supreme Court examined the scope of Article 15(4) with respect to voluntary mobility into the backward classes or Scheduled Castes and Scheduled Tribes. The Court very succinctly put forth that the objective behind the addition of clauses such as Article 15(4) and Article 16(4) is to remove the handicaps or disadvantages that these communities have to face right from their birth. Thus, in the cases of voluntary mobility into these communities via conversion or marriage, these special provisions will not apply. 

Amendment of Article 19

Article 19(1)(a) grants the right to free speech and expression to Indian citizens. This right is considered an essential feature of democracy. However, Article 19(2) specifies the restrictions that can curtail this freedom. The First Amendment to the Indian Constitution altered these restrictions by widening their ambit. The second change, via the Amendment Act of 1951, was made to Clause 6 of Article 19.

Need of amendment of Article 19(2)

When the Constitution was adopted, the barriers to free speech and expression included ‘security of state’, ‘decency or morality’, ‘contempt of Court’, and ‘defamation’. With the First Amendment, the following three restrictions were added to Clause 2 of Article 19:

  • Friendly relations with foreign states- This was added to prohibit any kind of malicious propaganda against a foreign nation. This addition was an attempt to build friendly relations with foreign states.
  • Public Order- This barrier was constructed in response to the case of Romesh Thappar v. The State of Madras (1950). The Supreme Court observed that the ambit of Article 19(1) was so large that it can even acquit a person charged with the offence of murder. Also, the Court stated that the expression ‘security of state’ is not comprehensive enough to include the concept of ‘public order’. This decision was sufficient to introduce an amendment to Article 19(2). 

In the case of Babulal Parate v. State of Maharashtra and Others (1961), the Supreme Court examined the ambit of restriction ‘public order’. In this case, Section 144 of the Code of Criminal Procedure, 1908 was upheld on the ground that it was a reasonable restriction to prevent a person from carrying out certain acts if those acts were likely to disturb public tranquillity or result in a riot or an affray. 

  • Incitement to an offence- This is a limitation on free speech in the form of opinions or agitations on the involvement of an accused in any crime. 

Need for amendment of Article 19(6)

The alteration was made in Article 19(6) via the First Amendment, and the intention behind this was to avoid objections to the power of the state to create any monopoly. 

Article 19(6) is a reasonable restriction on the right to practice any profession or to carry on any occupation, trade, or business. Before the First Amendment, the State had the power to impose reasonable restrictions by asserting that it is in the interests of the general public. This conferred the state the power to implement any scheme of nationalisation provided it is ‘reasonable’. However, the Amendment in 1951 added the clause which said, “the carrying on by the State, or by a corporation owned or controlled by the State, of any trade, business, industry or service, whether to the exclusion, complete or partial, of citizens or otherwise”, thus removing any scope of ambiguity regarding the power of the government to nationalise. This modification even excluded the factor of reasonableness while creating such a monopoly.

The Supreme Court in the case of Saghir Ahmad v. the State of U.P. and Others. (1954) studied the consequences of this amendment. The Court observed that after this alteration, the government can create a monopoly in its own favour, but this clause will prevent it from creating any monopoly in the favour of third parties. 

Criticism of the amendment of Article 19

The changes made in Article 19(2) faced criticism as several people opined that it was an arbitrary move to limit the restrictions on the right to freedom of speech and expression. The addition of three more restrictions has the capability of narrowing down the liberty of citizens that was granted to them by the Constituent Assembly. This step was condemned, stating that it could revive the arbitrary power of the government by convicting citizens under the offences of ‘sedition’ (Section 124A of the Indian Penal Code, 1860), and ‘enmity between the groups’ (Section 153A of the Indian Penal Code, 1860). 

Insertion of Article 31A 

Section 4 of the First Amendment Act, 1951, added Article 31A to the Indian Constitution, which made provision for the saving of laws for the acquisition of estates, etc. Currently, this article, along with Articles 31B and 31C is grouped under a separate sub-head ‘Saving of Certain Laws’. This subheading was introduced via the Constitution (Forty-second) Amendment Act, 1976

Need for the addition of Articles 31A 

The objective behind this amendment was to validate the acquisition of zamindaries or the abolition of the Permanent Settlement without interference from the courts. After the Constitution was adopted, several steps were taken by the state governments toward agrarian reform. One of them was the introduction of the legislation, the Bihar Land Reforms Act, 1950. This Act empowered the state government to acquire the estates of some zamindars. However, when the Act was challenged before the Patna High Court in the case of Sir Kameshwar Singh v. Province of Bihar (1951), the Court declared it to be unconstitutional as it breached Article 14 of the Constitution. In order to nullify such issues, Article 31A was introduced. This provision empowered the government to acquire any estate and restricted anyone from challenging it on the ground of violation of the rights enshrined under Part III of the Indian Constitution.

Scope of Article 31(A)

The government has the power to acquire estates under this provision. According to the Cambridge Dictionary, the term ‘estate’ refers to “a large area of land in the country that is owned by a family or an organisation and is often used for growing crops or raising animals.” Article 31A was added with the aim of introducing agrarian reforms in the country. 

In the case of the State of Kerala and Anr. v. The Gwalior Rayon Silk Mfg. (Wvg.) Co.Ltd. (1973), the constitutionality of the Kerala Private Forests (Vesting and Assignment) Act, 1971, was in question. The Supreme Court observed that as this statute was enacted for the purpose of distributing private forests to the rural people, the owner of the lands could not claim it to be against their fundamental rights. Therefore, it is well protected within the ambit of Article 31A(1)(a). 

Present scenario

Article 31A was further amended by three amendments: the Constitution (Fourth  Amendment)  Act, 1955, the Constitution (Seventeenth  Amendment) Act, 1964, and the Constitution (Forty-fourth  Amendment) Act, 1978. It includes five clauses under Article 31A(1), and Clause (2) was also amended. The following are some of the key features of the other amendments made in Article 31A(1):

  • Taking over the management of the property- This clause empowered the government to take the management of property for a limited duration if it is in the interests of the public.
  • Amalgamation of corporations- This can be done if it is in the public interest in order to eliminate the unhealthy competition between rival concerns. 
  • Modification of rights of mine owners- The government is empowered to modify the conditions of the mining leases and similar agreements. This amendment was introduced via the Fourth Amendment Act, 1955, and the purpose was to put mineral and oil resources under government control. 

Amendment of Articles 85 and 174

Articles 85 and 174 deal with the sessions of Parliament and the State Legislature, respectively. The contents of these provisions were altered via the First Amendment, 1951. The significant features of these provisions are as follows:

  • Summoning of sessions- The President/Governor has the right to summon the sessions of Parliament/State Legislature, and this right is subject to the condition that there should not be a gap of more than 6 months between two sessions of either House of the Parliament or State Legislature.
  • Prorogation of the Houses of Parliament/State Legislature- Article 85(2)(a) provides for the prorogation of the House. The power to terminate a session is with the President under this provision. 
  • Dissolution of House- Clause (b) of Articles 85(2) and 174(2), empowers the President/Governor to dissolve Lok Sabha or Legislative Assembly. If not dissolved, then these automatically get dissolved within a period of 5 years. 

Amendment of Articles 87 and 176

The First Amendment has made alterations to these provisions by substituting certain terms. According to the amended Articles 87 and 176, the President/Governor has to address both Houses on two occasions. Firstly, after the elections to the House of People or Legislative Assembly, as the case may be, and secondly, after the commencement of the first session each year. This special address by the President/Governor, not only takes the form of a motion of thanks but also of a motion of confidence in the government. 

Furthermore, in Articles 86(2) and 176(2), a phrase was omitted via the First Amendment. The amended clause reads, “Provision shall be made by the rules regulating the procedure of either House for the allotment of time for discussion of the matters referred to in such address.” 

Amendment of Articles 341 and 342

Articles 341 and 342 specify the provisions that guide the enlistment of communities as Scheduled Castes and Scheduled Tribes, respectively. The First Amendment Act amended these Articles, which then stated that the President could specify the castes, races, or tribes, with respect to any state. Furthermore, if it is a state specified in Part A or Part B of the First Schedule, then the President has to consult the Governor or Rajpramukh. However, these provisions were amended multiple times via further amendments.  The words “specified in Part A or Part B of the First Schedule”, which were added by the First Amendment Act, were also omitted by the Constitution  (Seventh Amendment)   Act,  1956.

The President, while exercising the power under Article 341(1) issued two orders, namely the Constitution (Scheduled Castes) Order, 1950, and the Constitution (Scheduled Castes Part C States) Order, 1951. They stipulate the communities covered under the Scheduled Castes with respect to every state. Similarly, acting under Article 342(1), the President issued the Constitution (Scheduled Tribes) Order, 1950

Amendment of Article 372

Article 372 is a transitional provision. Clause (2) of this Article empowers the President to make adaptations or modifications to the existing laws for a certain time period after the commencement of the Constitution. The Indian Constitution, as adopted in 1949, stipulated this time period as 2 years, however with the First Amendment in 1951, it was extended to 3 years.

Amendment of Article 376

At the time of the commencement of the Indian Constitution, Article 376 ensured the right of the Judges of the High Court in any province to be appointed as the Judges of the respective High Court. The First Amendment further clarified that these judges would also be eligible for the appointment as Chief Justice of such a High Court, or as Chief Justice or other Judge of any other High Court. 

Addition of Article 31B and Ninth Schedule

Article 31B is read with the Ninth Schedule. The intention behind adding these provisions to the Constitution was to insulate the acts and regulations from being challenged on the ground that they violate fundamental rights. 

With the First Amendment, 13 Acts were provided with this protection. However, after further amendments, this list extended to 284 Acts and regulations. Thirteen land reform legislations that were originally added are:

  1. The Bihar Land Reforms Act, 1950 (Bihar Act XXX of 1950).
  2. The Bombay Tenancy and Agricultural Lands Act, 1948 (Bombay Act LXVII of 1948).
  3. The Bombay Maleki Tenure Abolition Act, 1949 (Bombay Act LXI of

1949).

  1. The Bombay Taluqdari Tenure Abolition Act, 1949 (Bombay Act LXII of 1949).
  2. The Panch Mahals Mehwassi Tenure Abolition Act, 1949 (Bombay Act LXIII of 1949).
  3. The Bombay Khoti Abolition Act, 1950 (Bombay Act VI of 1950).
  4. The Bombay Paragana and Kulkarni Watan Abolition Act, 1950 (Bombay Act LX of 1950).
  5. The Madhya Pradesh Abolition of Proprietary Rights (Estates, Mahals, Alienated Lands) Act, 1950 (Madhya Pradesh Act I of 1951).
  6. The Madras Estates (Abolition and Conversion into Ryotwari) Act, 1948 (Madras Act XXVI of 1948).
  7. The Madras Estates (Abolition and Conversion into Ryotwari) Amendment Act, 1950 (Madras Act I of 1950).
  8. The Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 (Uttar Pradesh Act I of 1951).
  9. The Hyderabad (Abolition of Jagirs) Regulation, 1358F. (No. LXIX of 1358, Fasli).
  10. The Hyderabad Jagirs (Commutation) Regulation, 1359F. (No. XXV of 1359, Fasli).

The objective of introducing Article 31B was looked into in the case of I.R. Coelho (Dead) by LRs v. State of Tamil Nadu & Ors. (2007). The Supreme Court stated that the intention was “not to obliterate Part III in its entirety”. The Court further discussed the concerns related to the extension of the list of regulations under the Ninth Schedule. It was held that this has resulted in the “destruction of constitutional supremacy and creation of Parliamentary hegemony”, thus, disrupting the system of checks and balances. 

Challenges to the First Amendment

Challenges before the First Amendment Bill was passed

The First Amendment Bill was introduced as it was felt that there were certain difficulties in the functioning of the Indian Constitution. One of the major criticisms was that this Amendment Bill was introduced just within 15 months of the commencement of the Constitution and that too without public consultations. 

Furthermore, on the basis of the constitutional provisions, several Acts such as the Indian Press (Emergency Powers) Act, 1931, and Sections 124 to 153 of the Indian Penal Code were challenged. The objective of the Indian Press (Emergency Powers) Act, 1931, is to “provide against the publication of matter inciting to or encouraging murder or violence”. These were some of the reasons that the First Amendment Bill was highly condemned.  It narrowed down the scope of the fundamental right enshrined under Article 19(1)(a). 

Criticisms of the First Amendment Act 

The First Amendment Bill, 1951, was passed without much scrutiny and evaluation. The following points illuminate some of the criticisms of the First Amendment Act of 1951:

  • Power under Article 31(A)- Under Article 31(A), the government has been provided broad powers to acquire any estate, and these acts cannot be challenged for violating Articles 14 and 19 of the Indian Constitution. This led to the creation of wide powers within the government and became a subject of criticism.
  • Limitations on right to free speech and expression- Three more grounds of restrictions were introduced with the First Amendment, 1951. This raised several questions and was called ‘arbitrary state action’ by many judicial scholars. 
  • Misuse of the Ninth Schedule- The Ninth Schedule was inserted with the objective of land reforms, and progressing the economic and social development of the agricultural sector. However, the further addition of about 270 legislations in the Ninth Schedule clearly highlights that this amendment has greatly been misused. Any law, which otherwise could have been declared unconstitutional, was put into the Ninth Schedule.

The First Amendment was called into question in the case of Sri Shankari Prasad Singh Deo v. Union of India and State of Bihar (1951). The question was whether the amendments that were initiated according to Article 368 were included within the ambit of ‘law’ as stated under Article 13 of the Indian Constitution, or not. The Court answered negatively and declared that the power granted to the Parliament under Article 368 was constitutive power, while the term ‘law’ under Article 13 refers to ordinary legislative power.

Tabled summary of First Amendment

The Draft Constitution of India, 1948, was submitted by the Drafting Committee to the President on 21st February 1948. It was the first blueprint of the Indian Constitution, after which it was reviewed and amended according to feedback and suggestions. The following table reflects upon the history and current status of the provisions that were altered by the First Amendment Act, 1951. 

Name of the provisionAs under Draft Constitution, 1948As under the Constitution adopted in 1949Amendments under the First Amendment Act, 1951Current status (2022)
Prohibition of discrimination on grounds of religion, race, caste, sex, or place of birthThis was provided under Article 9, and it contained only two clauses.Under the adopted Constitution, this provision is stipulated under Article 15 with three clauses.The Fourth clause that gave discretionary power to the government to formulate special provisions for the socially backward classes was added.Article 15 now consists of 6 clauses. The latest amendment made to this provision is the  Constitution  (One  Hundred  and  Third  Amendment)  Act,  2019. The government can make special provisions for the backward and economically weaker sections of society in the field of education.
Protection of certain rights regarding freedom of speech, etc.Article 13 of the Draft Constitution contained this right.The corresponding Article to Article 13 of the Draft Constitution is Article 19.Freedom of speech was further curtailed as restrictions such as public order, friendly relations with foreign states and incitement to an offence were added in Article 19(2).The amendments were also made in Article 19(6) on the basis of which the state was empowered to carry on any business, industry, or trade to the complete or partial exclusion of others.With the Constitution (Sixteenth  Amendment) Act, 1963, the term ‘sovereignty and integrity of India’ was added under clause (2) of Article 19 as another restriction to the freedom of speech and expression. 
Saving of laws and validation of certain Acts related to the estate.These provisions were not present in the Draft Constitution.They were not present in the Constitution as adopted in 1949.Articles 31A and 31B were inserted.Article 31A has been amended by three further amendments: the Constitution (Fourth  Amendment)  Act, 1955, the Constitution (Seventeenth  Amendment) Act, 1964, and the Constitution (Forty-fourth  Amendment) Act, 1978. 
Sessions of the Parliament, prorogation, and dissolutionThis was provided under Article 69.It is stipulated under Article 85.The First Amendment substituted the contents of this Article, however, it did not introduce any significant change.No further amendment has been made.
Special address by the PresidentThis was provided under Article 71.It is stipulated under Article 87 of the Indian Constitution, 1950.The amendment with regard to the occasions of a special address by the President was introduced. In addition to the commencement of every session, now President shall also address both Houses at the start of the first session after the general elections. No further amendment has been made.
Sessions of the Legislature, prorogation, and dissolutionThis was provided under Article 153 of the Draft Constitution.It is stipulated under Article 174.The First Amendment substituted the contents of this Article, however, it did not introduce any significant change.No further amendment has been made.
Special address by the GovernorThis was provided under Article 155.It is provided under 176 of the adopted Constitution of India.The amendment with regard to the occasions of a special address by the Governor was introduced. In addition to the commencement of every session, now Governor shall also address both Houses at the start of the first session after the general elections. No further amendment has been made.
Scheduled CastesThis was provided under Article 300A.It is provided under 341.It altered the provision by empowering the President to specify the Scheduled Castes with respect to any State, and where it is a State specified in Part A or Part B of the First Schedule, after consultation with the Governor or Rajpramukh.It was amended further via the Seventh Amendment Act, 1956. 
Scheduled Tribes This was provided under Article 300B.It is provided under 342.It altered the provision by empowering the President to specify the Scheduled Tribes with respect to any State, and where it is a State specified in Part A or Part B of the First Schedule, after consultation with the Governor or Rajpramukh.It was also amended further via the Seventh Amendment Act, 1956. 
Continuance in force of existing lawsThis was provided under Article 307.It is provided under 372.The amendment extended the time period during which the President could modify any law after the commencement of the Constitution from 2 years to 3 years.No further amendment was made, and currently, this provision has no effect.
Provision as to judges of the High CourtThis was provided under Article 310.It is provided under 376 under the Indian ConstitutionThe First Amendment made the Judges of the Province eligible for the appointment as the Chief Justice of any High Court in independent India. No further amendment was made. 
Ninth Schedule It was not present in the Draft Constitution.It was not present in the Constitution as adopted in 1949.The Ninth Schedule was added, and it is read with Article 31B. It consists of 13 Acts that are protected from being challenged on the ground of violation of fundamental rights.Now, Ninth Schedule contains 284 Acts. 

Concluding Remarks

Some of the constitutional provisions were amended by the First Amendment as a sequel to the judicial pronouncements. The literal interpretation of Article 15, and the challenges around free speech and expression, seemed dangerous to the Legislature. Consequently, within a span of 15 months from the commencement of the Constitution, the First Amendment was made. On one hand, this Amendment was applauded for its wide approach to guaranteeing equality to all sections of society, while on the other hand, it was also criticised for curtailing the right to free speech by widening the ambit of Article 19(2)

The power to introduce amendments is with the Parliament/Executive. Several times, this power is exercised to assert its supremacy. Therefore, it is crucial that the Supreme Court performs the simultaneous role of interpreting and evaluating them judiciously. It is the role of the judges to limit these powers or declare the arbitrary and flawed amendments unconstitutional.

Frequently Asked Questions (FAQs)

What are the significant features of the First Amendment of the Indian Constitution?

Three fundamental changes were introduced via the First Amendment Act, 1951. Firstly, clause (4) was added to Article 15, which empowered the state to make special provisions for backward communities and castes. Secondly, restrictions on the right to freedom of speech and expression were widened. Thirdly, Articles 31A, 31B, and the Ninth Schedule were added to introduce land reforms, and uplift the agricultural sector.

What is the doctrine of prospective overruling?

The doctrine of prospective overruling implies that the decision of the courts will be applied in the future, and the ruling of the courts cannot affect any transaction of the past. This doctrine was applied in the case of I.C. Golaknath & Ors. v. State of Punjab & Anr. (1967) for the first time. The Apex Court, in this case, held that the ruling of the Court cannot invalidate the First Amendment, Fourth Amendment, and Seventeenth Amendment to the Constitution. 

How is prorogation of the House different from adjournment of the House?

Prorogation terminates the House, while adjournment merely suspends the sitting of the House. Unlike in prorogation, when a House of Parliament or Legislative Assembly is adjourned, it is not required to be re-summoned. The President/Governor has the right to prorogue the session, while the adjournment motion can be initiated with the consent of the Speaker or the Chairman. 

References


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Top 10 most wanted criminals in India

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This article is written by Nishka Kamath, a graduate of Nalanda Law College, University of Mumbai. It is an attempt to throw light upon the top 10 most wanted criminals in India.

This article has been published by Sneha Mahawar.

Table of Contents

Introduction

Society invites the crime, and criminals accept the invitation. -Vikrant Parsai 

Below is a list of all the most wanted criminals in India who not only accepted the invitation but overstayed there. The list ranges from Dawood Ibrahim to Chotta Shakeel to one of the biggest conspirators of the 26/11 attack- Major Iqbal. This article has information on all the top masterminds and gangsters who shook the entire nation with their heinous activities and caused a great catastrophe throughout the country. 

Top 10 most wanted criminals in India

India, a nation that is home to around 1.39 billion people, a nation that obstinately believes in the idiom ‘unity in diversity’; a nation that respects all the religions, traditions, and norms; a nation that believes in living safe and sound in a unanimous manner, has, unfortunately, extremely high crime rates. As per a report, India ranks 71, with a rate of 44.43 per 100,000 people. 

With each passing day, hundreds and thousands of people breathe their last because of crime in India. All these deaths usually get overlooked, but a few of them can never be forgotten. Remember the blasts of 26/11? Or the German Bakery blast in Pune? Such occurrences not only disturb the souls of the nation but also pose shame to humanity. 

Herein below is a list of the top ten criminals in India who have made it scary for us all to even walk on the streets. 

Dawood Ibrahim Kaskar                             

Who is Dawood Ibrahim Kaskar

Dawood Ibrahim Kaskar, also addressed as “Dawood Bhai, Sheikh Farooqi, Bada Seth, Bada Bhai, Iqbal Bhai, Mucchad, and Haji Sahab”, is a don, well-known as one of the most vicious fugitives in the world. He works in a close-knit group with his brother Anees and Chotta Shakeel, both of which are discussed later. 

The birth, rise and history of Dawood Ibrahim Kaskar

Born on December 26, 1955, in Khed, Ratnagiri, Maharashtra, to the late Ibrahim Kaskar (the head of constables in the Mumbai Police Department) and the late Amina Bi, was a boy named Dawood Ibrahim Kaskar. He was raised in the Temkar Mohalla area of Dongri. There, he attended Ahmed Sailor High School but dropped out later on. It was in Dongri that he met Haji Mastan (the far-famed mobster) and thus began his journey as an underworld don. An issue arose when Haji Mastan attacked two of Dawood’s group members, which is why Dawood, in retaliation for the same, formed the D-Company with his brother Shabir Ibrahim Kaskar. This company is recognised to be one of the largest organised crime syndicates in the region of Southeast Asia. This crime group, which works mostly in Pakistan, India, and the United Arab Emirates,  has been a party to everything ranging from narcotics to contracts for murder. 

He has also worked for the Karim Lala Gang, a gang famous for liquor dens, gambling, and extortion rackets, inter alia.  

After getting his name involved in the 1993 Mumbai serial blasts, which killed 257 people and wounded several individuals, he became the most-wanted criminal in India. Furthermore, in 2003, he was declared to be a “global terrorist” by the United States Government. To add to it, in 2011, he was listed as the 3rd in the world’s top 10 most dreaded criminals list by Forbes.

As per the US Government, Ibrahim Kaskar shares smuggling routes with al Qaeda and has joined hands with both al Qaeda and its South Asian affiliate- Lashkar-e-Taiba, which is well-known for causing the 2008 Mumbai attacks, perhaps with the assistance of Ibrahim Kaskar.  

Why is Dawood Ibrahim wanted

The 1993 Bombay bombings

12th March 1993, a day which every individual of this nation dreads about, a day where 257 people lost their lives within a span of 2 hours and ten minutes. Also referred to as the “Black Friday” attack, this blast remains to be one of the deadliest coordinated terror attacks to emerge on Indian soil.

In this incident, properties worth Rs. 27 crore were sabotaged. This attack marked the first use of RDX in India and was planned and executed by gangster Dawood Ibrahim Kaskar and his henchmen, including Tiger Memon. These attacks are alleged to be vindication of the 1992 riots that occurred in Mumbai after the Babri Masjid was demolished. 

The explosives were believed to have been buried in cavities of cars, strapped in scooters, and hidden in suitcases, which were kept stranded in the buildings wherein the blasts occurred. It is believed that these bombs were set to be exploded on the occasion of Shivaji Jayanti but were postponed after the arrest of Gul Mohammad Sheikh alias Gullu, who was one of Tiger Menon’s henchmen. Gullu made a confession about the plan to the police, but they did not take this seriously. After this occurrence, the plan was postponed to March 12th, 1993.

This case was cracked by the Mumbai police within 48 hours of the blast. Individuals like Dawood Ibrahim, his brother Anees Ibrahim, Tiger Memon, and his brother Yakoob Memon were the main accused in this case and evacuated the country soon after this incident. Yakoob Memon was arrested in 1994 and was given a death sentence in 2015 after the refusal of several mercy petitions filed by him. Around 35 people are still wanted in the case. Further, in 2017, via a special court, Abu Bakar, Yusuf Batla, Shoeb Baba, and Sayyed Qureshi were held guilty and convicted in this case by the Gujarat Anti Terrorism Squad (ATS) on May 17.

The series of events 
  1. On the afternoon of 12th March 1993, around 1:30 pm, there was a car blast in the basement of the 28-story commercial building known as the Bombay Stock Exchange. As per several reports, this explosion massacred around 50 people. This was the first blast in the 12 serial blast series.
  2. The aforementioned blasts were followed by blasts in Katha Bazar, Shiv Sena Bhavan in Dadar, the Air India Building, Fisherman’s village that is located at Mahim causeway, Century Bazaar, Zaveri Bazaar, Hotel Sea Rock, Plaza Cinema, Hotel Juhu Centaur and Passport office.

India’s hawala system

Even today, as terrorists search for innovative technologies and methodologies to operate certain missions and acquire new sources of funding, their reliance on one traditional system continues to remain unaffected, meaning they still use the hawala system to move and distribute funds to their cadres and sympathisers all around the globe. 

India has been tackling the issue of hawala for terrorists’ financing since time immemorial. For instance, the 1993 Mumbai blasts (discussed above) that were carried out by the Dawood crime syndicate were funded via the hawala system. He is believed to control most of the hawala system and is presumed to be involved in the Rs. 1,000 crore hawala racket unearthed by IT officials.     

Illegal activities conducted by Dawood’s syndicate

Dawood, along with other international terrorists, namely: 

  1. Haji Anees also known as Anees Ibrahim Shaikh, 
  2. Shakeel Shaikh, also known as Chotta Shakeel, 
  3. Javed Patel, also known as Javed Chikna, and 
  4. Ibrahim Mushtaq Abdul Razzaq Memon alias Tiger Memon 

are all believed to have indulged in unlawful activities like smuggling arms, narco-terrorism, money laundering, circulating bogus currency, and actively working and uniting with international terrorist organisations like Lashkar-e-Taiba (LeT), Jaish-e-Mohammad (JeM), and Al Qaeda (AQ). This syndicate is allegedly believed to have around 5,000 members and is commonly known as the D-Company.  

The destabilisation of the Indian Government 

It is believed that Ibrahim’s syndicate has always been geared toward destabilising the Indian Government via inciting riots, acts of terrorism, and civil disobedience. From sources, it has occurred that Ibrahim used to support groups of Islamic militants economically to function against India. For instance, the LeT (Lashkar-e-Tayyiba) caused an upsurge in attacks in Gujarat by the same group.    

Financing of Lashkar-e-Taiba 

Dawood is also wanted for unlawful economic dealings of the crime syndicate controlled and managed by him, along with indulging in terror financing in the western suburbs of Mumbai. 

Declared to be a global terrorist  

As stated in the aforementioned paragraphs, Dawood was declared to be a global terrorist by the United Nations under UN Security Council Resolution 1267. He was also listed on the al-Qaida sanction list in November 2003. Further, the Council had also issued a special notice in his name in April 2006. The National Investigation Agency (NIA) has also made an announcement for a cash reward of Rs 25 lakh for information on the underworld gangster Dawood Ibrahim. 

The current state of affairs of Dawood Ibrahim

Recently, it was asserted by Dawood Ibrahim’s nephew, Alishah Parkar, the son of Haseena Parkar, Dawood’s deceased sister, that he lives in Karachi, Pakistan. He also claimed that on occasions such as Eid, Diwali, etc., his maternal uncle, Dawood Ibrahim, and aunt, Mehjabeen Dawood Ibrahim (wife of Dawood Ibrahim), get in touch with his wife and sisters. Thus, even though the Pakistan Government denies it, Ibrahim is probably in Karachi, Pakistan, having all his crucial ties to the powerful intelligence service.  

Syed Salahuddin/Mohammad Yusuf Shah

Who is Syed Salahuddin?

Syed Mohammad Yusuf Shah, popularly known as Syed Salahuddin, the head of Hizb-ul-Mujahideen, which is a military group functioning in Kashmir, is one of the most-wanted criminals in India. He is also the head of the United Jihad Council (UJC), which is an anti-India militant group working to affix Jammu and Kashmir to Pakistan.  

The birth, rise and history of Syed Salahuddin

Born in December 1946 at Soibug village in Budgam district, which is 15 km away from Srinagar, to a farmer-Ghulam Rasool Shah, was a boy named Syed Salahuddin. His maternal grandfather was a prominent spiritual figure and took a keen interest in his education and upbringing. During his years of schooling, Salahuddin wrote poetry in English and also became an efficient debater. During class 12, he got a first-class (commonly known as an inter-science then) but flunked to secure admission to a medical college. So, he graduated in arts from Sri Pratap College, Srinagar, and later pursued his master’s degree in political science from the University of Kashmir, which he completed in 1971. As per a biography published in the Hindustan Times, he was a significant Islamic scholar and preacher. Additionally, his Friday sermons at the Exhibition Grounds in Srinagar were widespread among youngsters. According to Showkat Ahmad Bakhshi of the Islamic Students League, his sermons were contemporaneous and “had the power to articular what was in our minds“.

In 1972, a year after his graduation, he was appointed as the tehsil chief (Amir-e-Tehsil) of Jamaat-e-Islami for Budgam. Afterwards, he became the Chief Mazime-Aala of the Tehreek-i-Talabe, which was Jamaat-e-Islami’s student wing. Thereafter, in 1986, he was designated as the district Amir Jammat-e-Islami, Srinagar. Thereupon, in March 1987, he received a ticket for the assembly election as a candidate of the Muslim United Front, which later converted into the All-Parties Hurriyat Conference. But just before the votes were counted, he, along with other MUF (Muslim United Front) campaigners, was arrested. He was released from prison nine months after the incident. Afterwards, he drifted into belligerence, thus choosing violence. In April 1991, he was appointed as the supreme commander of the Hizb-ul Mujahideen, founded by Muhammad Ahsan Dar, alias “Master” of Patan in North Kashmir in September 1989. The takeover by Salahuddin saw increased activities of the JeIK (Jamaat-e-Islami in Kashmir) cadres as the overground force of the HM (Hizb-ul-Mujahideen). It is one of the most active terror groups in Jammu and Kashmir. Here, he adopted his nom de guerre “Syed Salahuddin”, named after “Saladin”, the 12th-century Mulsim political and military leader and the sultan of Egypt and Syria, who fought in the Crusades. In 2012, in an interview, Syed Salahuddin affirmed that Pakistan was supporting Hizb-ul-Mujahideen in a fight against Kashmir. He also announced that he would attack Pakistan if it stopped supporting jihadis in Jammu and Kashmir, as they were fighting “Pakistan’s war”. To quote him, “We are fighting Pakistan’s war in Kashmir and if it withdraws its support, the war would be fought inside Pakistan“. Further, he also vowed to block any pacifist resolution to the Kashmir dispute, threatened to introduce more Kashmiri suicide bombers, and pledged to turn the Kashmir valley into a “graveyard for Indian forces.”

Moreover, he is also the chief of the Muttahida Jihad Council, a grouping of terrorist organisations based in Pakistan. He was declared to be a “Specially Designated Global Terrorist” by the US Department of State in June 2017. This is discussed in detail below. 

Why is Syed Salahuddin wanted

Delhi High Court blast

One of the biggest strikes against Salahuddin is that he is alleged to have conducted the blasts in Delhi High that took place on September 7th, 2011. One of the accused who got arrested in this occurrence himself confessed that the blasts were carried on by Salahuddin and that he was the mastermind behind this operation. 

Frequented several blasts in Jammu and Kashmir 

Syed Salahuddin, along with his outfit, is very much accountable for all the blasts, fights, and attacks in Kashmir. His organisation works for the amalgamation of Kashmir with Pakistan. This organisation has close links with the Inter-Service Intelligence (ISI).

Listed on the most wanted criminal list by the National Investigation Agency (NIA) 

He is also responsible for most of the criminal cases in India, which is why he was declared to be one of the most-wanted criminals by the NIA (National Investigation Agency). 

Named a Specially Designated Global Terrorist (SDGT) by the US Department 

On June 26, 2017, Mohammad Yusuf Shah, aka Syed Salahuddin, was designated to be a Specially Designated Global Terrorist (SDGT) under Section 1(b) of Executive Order (E.O.) 13224 by the U.S. Department of State. 

This compels sanctions on foreign nationals who have committed, or pose a significant risk of committing, acts of terrorism that threaten the security of U.S. nationals or the national security, foreign policy, or economy of the United States.

The current state of affairs of Syed Salahuddin

In August 2020, India’s Enforcement Directorate had a charge sheet filed against Syed Salahuddin for a money laundering case related to providing economic aid for terror activities in J&K. Assets worth a total of ₹ 1.22 crores, besides other punishments under the  Prevention of Money Laundering Act (PMLA), 2000,  have been included in the charge sheet thus filed.

Later, in 2021, a court in New Delhi issued a summons with regard to a money laundering case related to supposedly acquiring funds of around ₹ 80 crores from Pakistan for carrying out terror activities across India. Besides, in 2022, a National Investigation Agency (NIA) court ordered the framing of charges against him under several sections of the Unlawful Activities Prevention Act (UAPA), 1967, including criminal conspiracy, waging war against the country, unlawful activities, etc., in a case related to the terrorist and secessionist activities that disturbed Jammu and Kashmir. The Court asserted that the financial aid for carrying out the terror activity was provided by Pakistan and its agencies, and even the diplomatic mission was used to fulfil the evil design. 

All the above incidents and cases filed against him make him one of the most wanted criminals in India. Currently, he is said to be based in Muzaffarabad, which is situated in Pakistan-occupied Kashmir (PoK) and is wanted by Indian officials and the government. 

Sajid Mir

Who is Sajid Mir

Sajid Mir, a Pakistani national from Lahore and an associate of the terror group Lashkar-e-Taiba, is on the list of most wanted criminals in India. His nom de plume includes “Ibrahim“, “Wasi“, “Khalid”, “Vashi”, “Vashibhai”, “Bhai Ali”, “Ali Bhai”, “Moosa Bhai“, “Wasi Bhai”, “Wasi Ibrahim”, “Sajid Majeed”, “Sajjid Mir”, “Bhai Moosa”, Ibrahim Shah”, “Uncle Bill”, etc. He is famously known to be one of the lead suspects in the horrific 26/11 attacks. 

His name is on the most wanted criminals list by the Federal Bureau of Investigation (FBI) and in order to have leads on him, the FBI has announced a reward of $5 million to anyone who assists the police with his arrest. 

The birth, rise and history of Sajid Mir

Sajid Mir, a terrorist commonly known as Sajid Majid, inter alia, was either born on 1st January 1978 or 31st January 1976, there is no proper claim on his date of birth. He was born into a middle-class Punjabi family and was the son of Abdul Majid, a textile business owner who shifted to Lahore, Pakistan during the India-Pakistan partition. He is also the son-in-law of a retired officer of the Pakistan Army. He entered India in 2005, secretly, as a cricket fan to watch a match between the cricket teams of the two countries, and stayed back for approximately 15 days. In 2012, Sayed Zabiuddin Ansari, in his interrogation, revealed that Sajid Mir visited India with a fake name and passport under the cover of cricket diplomacy to watch the India-Pakistan ODI Cricket match at Mohali. Ansari further revealed that after visiting several places in India, Sajid Mir prepared Taj Hotel’s miniature model to train the attackers to familiarise themselves with the hotel’s inner places.

This mastermind, as stated above, is a fellow partner of the terrorist organisation Lashkar-e-Taiba. It is said that Mir’s association with LeT dates back to 1994, when he was around 16 years of age. He then kept achieving ranks in the terrorist outfits and later on became involved in LeT’s international wing. 

He is also declared to be the leader in the planning of the 26/11 Mumbai blasts. Mir is said to have undergone training by Ilyas Kashmiri, an Al-Qaeda-linked militant commander who was reportedly killed in a US drone strike in 2011. 

Mir also has had a pictorial depiction of himself, it so happened in 2015, when Kabir Khan, the director published a film named ‘Phantom’.

Why is Sajid Mir wanted

Militancy 

In 1994, Sajid Mir was involved with the chief of Lashkar-e-Taiba: Hafiz Muhammad Saeed, and got early access to Zakir-ur-Rehman-Lakhvi. With the protection of the Inter-Service Intelligence (ISI), he also plotted several terror attacks in the United States, France, and Australia.  

The 2003 terrorism plot in Australia 

In 2003, Sajid Mir plotted attacks against Australia with the aid of a French national named Willie Brigitte and an Australian individual named Faheem Khalid Lodhi. The former, after joining hands with Mir, converted to Islam and joined Lashkar-e-Taiba. Later, in May 2003, Mir provided monetary support to Brigitte to travel to Australia. Furthermore, in 2007, Brigitte and Sajid Mir were both sentenced to 9 and 10 years of imprisonment, respectively, by the Sydney police. Moreover, Brigitte, who used to train, prepare, and instruct, made a confession that Sajid Mir was very much known amongst the Pakistan Army, and thus, he never faced any trouble or difficulties while roaming in the Pakistan Army’s areas. 

One of the major suspects in the 26/11 Mumbai terror attacks

Starting on November 26, 2008, and continuing through November 29, 2008, ten attackers who received their mentorship from the Pakistan-based terrorist organisation LeT carried out several coordinated attacks at numerous targets in Mumbai, ranging from hotels and cafes to a train station. This incident killed approximately 166 people, including Americans, Japanese, etc., among other nationalities (around 17 nationalities), and approximately 300 were wounded.   

Mir was allegedly suspected to be the lead planner of the attacks, who directed and organised this occurrence and one of the many Pakistan-based controllers during these attacks. Furthermore, it was asserted that Mir spent two years surveying and reconnoitering this Mumbai incident. He visited Mumbai and Delhi in 2005, entering India as a cricket fan and stayed for about a fortnight doing his survey and plotting his moves for the attack. It was via this trip that Mir got an insight into the contours of both Mumbai and Delhi, which eventually helped him connive the invasion. Additionally, Mir, along with LeT’s operational chief Zaki-Ur Rehman Lakhvi, formulated an electronic blueprint of the Taj Mahal Hotel and plotted several rooms and halls on maps to make the 10 terrorists well-acquainted with the interiors of the hotel. The Crystal Ballroom of the Taj Hotel, which witnessed multiple firings, was specifically marked by Mir in the blueprint. He also made a miniature model of the hotel to assist the terrorists in getting an insight into how they would feel while visiting the place to wreck it. 

It is said that David Coleman Headley (Daood Sayed Gilani) – the American terrorist who is now serving a jail term of 35 years in the US, helped Mir in executing this mission.

For this occurrence, Mir was arraigned in the United States District Court, Northern District of Illinois, Eastern Division, Chicago, Illinois, on April 21, 2011, and was charged with conspiracy to injure the property of a foreign government; providing material support to terrorists; killing a citizen outside of the U.S. and aiding and abetting, and the bombing of places of public use. An arrest warrant was issued on April 22, 2011. In August 2012, he was designated as a ‘Specially Designated Global Terrorist’ by the US Department of Treasury.  He was also moved to the most-wanted list of both the FBI and India for the same reason. He was also listed on the FBI’s most wanted terrorist list for aiding and abetting, bombing places of public use, providing material support to terrorists, injuring foreign government property, killing citizens outside the United States, and other terrorist activities.

The 2008 and 2009 Denmark attacks 

Mir is said to be the brain behind the 2008-09 Denmark bombings codenamed ‘Mickey Mouse’ which referred to the publishing of cartoons of the Prophet in the Danish newspaper named ‘Jyllands Posten.’ Mir collaborated with David Coleman Headley (an American terrorist) on this plan. 

An associate of Lashkar-e-Taiba

Sajid Mir is one of the members of the terrorist organisation Lashkar-e-Taiba. He also handled the assignments of the ‘foreign affairs’ of Lashkar-e-Taiba’s international wing. Even though Sajid’s brainwashing to enter the world of hate and crime was initiated at home, it was polished by the training at Lashkar-e-Taiba camps, where he rose in positions and evolved to be the commander-in-charge for the training of western jihadists.

It has been believed that Mir has been a senior member of LeT for a long time, approximately since 2001. From 2006 to 2011, he was in charge of LeT’s external activities and guided, prepared, and scheduled several attacks on behalf of the group. Reports affirm that he remained the deputy chief of LeT’s international operations, but others indicate that he even led that unit at some point. He is declared to have enjoyed direct access to Zaki-ur-Rehman Lakhvi, who was the chief of all terrorism operations. Ever since he allied with the organisation, he has been trying to maximise the global footprint of Lashkar-e-Taiba.  

The current state of affairs of Sajid Mir

The above incidents caused Sajid Mir to be moved to the most wanted list of both the FBI and India. In 2019, there was a report published by the US on terrorism that stated that Mir currently resides in Pakistan. Further, there were claims by Pakistan authorities that Mir had died but the same was not accepted by the Western countries. In 2020, India sought the extradition of Sajid Mir, but the Pakistani Government did not respond to it. 

However, in June 2022, Mir was sentenced to around 15 years of jail time with a fine of Pakistani ₹4,20,000 in a terror financing case by an anti-terrorism court in Lahore. This sentence was in regard to a terror-financing case by an anti-terrorism court in Pakistan. Pakistan notified the global terror financing watchdog, the Financial Action Task Force (FATF), that they had arrested and convicted Sajid Mir and sought removal of Pakistan from the ‘Grey list’ of the FATF.

Masood Azhar

Who is Masood Azhar

Masood Azhar, also known as Mohammad Masood Azhar Alvi, is an Islamist and one of the most renowned terrorists. He was freed by the Government of India in December 1999 in place of passengers that were aboard on the Indian Airlines Flight, which subsequently landed in Kandahar, Afghanistan. He is the founder of the Pakistan-based terrorist group known as the Jaish-e-Mohammed. This group is mainly active in Pakistan-acquired Kashmir (PoK).

Azhar is said to be responsible for the 2001 attack on Parliament as well as the 2019 Pulwama attack. Further, it has been asserted that his actions are not limited to the South Asian region, say, for example, BBC News illustrated him as “the man who brought jihad to Britain“. It was on May 1, 2019, that Masood Azhar was enlisted as an international terrorist by the United Nations Security Council.

The birth, rise and history of Masood Azhar 

Mohammad Masood Azhar Alvi was born in Bahawalpur, Punjab, Pakistan, to Allah Bakhsh Shabbir and Raqua Bibi. His father, Allah Bakhsh Shabbir, was a headmaster at a school run by the government. He was also a clergyman with Deobandi learnings, which were revealed via his book ‘The Virtues of Jihad’.   

Azhar dropped out of his school in class 8 and joined another school- the Jamia Uloom-ul-Islamia school, where he received his graduate degree. He was then appointed as a teacher. The madrasa (educational institute) was closely involved with Harkat-ul-Ansar, the other name being  Harkat-ul-mujahideen, which played a great role in influencing him and other students to get involved in the Afghan jihad. But as he was not competent enough physically, it is alleged that he did not complete the 40-day military training held at Harkat Camp at Yavar in Afghanistan. Subsequently, he was assigned to be the head of the department of motivation, where he started amending the Urdu magazine- Sad’e Mujahidin in Urdu, and the Sawte Kashmir in Arabic. It was there that he started to motivate innocent youngsters of Pakistan and Afghanistan against India. He was later appointed as the general secretary of Harkat and was considered to be one of the best orators in the group. He also took several international trips for fundraising, spreading the message of Pan-Islamism and visited Lusaka, Chipata, Zambia, Abu Dhabi, Saudi Arabia, Mongolia, and the United Kingdom, among other destinations. 

In 1994, he visited India for the first time in the battle of Harkat-ul-Jihad-al-Islami and Harkat-ul-Ansar, where he was arrested. However, in 1995, his acquaintances kidnapped six foreign tourists in J&K and demanded his release, but one of the hostages managed to escape, which is why they killed all the other five. Four years after this occurrence, in December 1999, five armed terrorists hijacked a plane [Indian Airlines Flight 814 (IC814)] with around 178 passengers on board who were held captive for seven days. The terrorists demanded the release of 3 terrorists, namely, Maulana Masood Azhar, Mushtaq Ahmed Zarar, and Ahmed Omar Saeed Sheikh, in return for those passengers. He fled to Pakistan after his release and became quite dangerous after that. He then created terrorist organisations like the Harkat-al-Mujahideen and Harkat-ul-Ansar to conduct terrorist activities in India. He then came to India in the year 2000 with a fake passport and carried out his first bomb blast, thus starting his journey of terror activities in India. 

Why is Masood Azhar wanted

Activities in Somalia

Azhar made a confession that he visited Nairobi, Kenya, in 1993 to have a meeting with leaders of al-Itihaad al-Islamiya, which is an al-Qaeda-aligned Somali group, and the one who had requested funds and recruits from Harkat-ul-Mujahideen (HuM).

It has been believed by Indian intelligence officials that he visited Somalia at least three times and that he also aided in the recruitment of Yemeni mercenaries (individuals employed to fight in an armed conflict who are not members of the state or any military group and whose primary motive is private gain).  

Activities in the United Kingdom 

Azhar’s activities in Britain are quite elaborate. Azhar entered the United Kingdom with the intent of going on a speaking, fundraising, and recruitment tour in 1993. It is said that he has passed out the message of jihad at some of the most reputable Islamic institutions, including the Darul Uloom Bury seminary, Zakariya Mosque, Madina Masjid in Blackburn and Burnley, and Jamia Masjid. 

As stated above, it was in 2016 that he was labelled as a man who “brought jihad to Britain”.  He also made several contacts with individuals on his tour of Britain, who ultimately helped him provide logistical support for many terror plots. 

Activities in the United States

Masood Azar’s organisation, Jaish-e-Mohammed (discussed in detail below), had openly declared war against the United States. In 1999, after Masood’s release, the Harkat-ul-Ansar was proscribed by the U.S. and added to the list of banned terrorist organisations. This action contrived Harkat-ul-Ansar (discussed in detail below) to rename it Harkat-ul-Mujahideen (HuM).

Harkat-ul-Ansar (HuA)

The militant organisation Harkat-ul-Ansar was founded in 1993, and Masood Azhar served as the general secretary for the organisation. In 1998, the United State’s Central Intelligence Agency (CIA) in its report stated, “HuA, an Islamic extremist organisation that Pakistan supports in its proxy war against Indian forces in Kashmir, increasingly is using terrorist tactics against Westerners and random attacks on civilians that could involve Westerners to promote its pan-Islamic agenda.” The CIA also stated that HuA had kidnapped at least 13 individuals, of which 12 were from western countries, in the period from early 1994 to 1998. 

Founder of Jaish-e-Mohammed (JeM)

Jaish-e-Mohammed (JeM), also known as the Army of Mohammed, Khudamul Islam, and Tehrik ul-Furqaan, among other names—is an extremist group based in Pakistan, which was set up by Masood Azhar in early 2000 after he was released from prison in India. The main motive of this organisation is to unite Kashmir with Pakistan and to cast out troops based in Afghanistan. JeM is said to be responsible for several attacks including the 2001 Parliament attack, the 2016 Pathankot attack, the 2019 Pulwama attack, etc. 

Further, it is stated that JeM has at least several hundred armed supporters based in Pakistan, India’s southern Kashmir and Doda regions, and in the Kashmir Valley. These supporters are mostly said to be of Kashmir or Pakistani origin, but they also include Afghans and Arab veterans of the Afghan war against the Soviets. This organisation uses light and heavy machine guns, assault rifles, mortars, improvised explosive devices, and rocket-propelled grenades to carry out their attacks. 

This organisation was designated as a “Foreign Terrorist Organisation” by the U.S. State Department. It has carried out several lethal terrorist attacks, including one suicide bombing attack at the J&Kb legislative assembly building in the Indian-administered Kashmir. This incident took place in Srinagar in October 2001 and is known to have killed at least 30 people. 

In 2002, Pakistan forbade JeM, and by 2003 JeM was divided into- 

  1. Khuddam ul-Islam (KUI), headed by Azhar, and 
  2. Jamaat ul-Furqan (JUF), led by Abdul Jabbar.

In 2006, JeM held itself guilty of carrying out several attacks, including the killing of numerous police officers in Srinagar. JeM remains to function openly in Pakistan even after the complete ban in 2002 on their activities.

The 2001 Jammu and Kashmir Assembly attack

After being freed from India, Masood Azhar flew to Pakistan, where he founded JeM (discussed above). This organisation, on October 1st, 2001, drove an IED-laden vehicle into the J&K Assembly and blew it up. This explosion resulted in the deaths of around 38 individuals. 

The 2001 Indian Parliament attack

On December 13th, 2001, the members of  Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM), Pakistan-based organisations, opened fire on the Parliament of India in New Delhi. This almost brought India and Pakistan to the verge of a full-scale war. This attack caused the deaths of five terrorists, six Delhi Police personnel, two Parliament Security Service personnel, and a gardener, so in total 14 people lost their lives in this attack, five of whom were members of LeT and JeM. This attack also resulted in increased tensions between India and Pakistan, thus resulting in the 2001-02 India-Pakistan stand-off. After this attack, considering the diplomatic pressure from India and the international community, he was detained by the Pakistani authorities but was never officially penalised. 

The 2008 Mumbai attacks

Masood Azhar is said to be responsible, along with Sajid Mir (the founder of LeT), also known as “Sajid Majeed Chaudhury”, for the 26/11 attacks. The chief of JeM, Masood Azhar, along with his brother Rauf Asghar, have been said to be behind these attacks, inter alia.  

The 2014-15 Kashmir attacks 

After a long break, with the hanging of the Parliament attack convict Afzal Guru, JeM became active in Kashmir again and created the “Afzal Guru Shaheed Squad” and executed attacks on police stations and army camps in Kathua, Samba, Handwara, and Pulwama, which led to the deaths of over a dozen security personnel.

The 2016 Pathankot attack 

On January 2nd, 2016, there was a terrorist attack at Pathankot air base in India. This attack resulted in the deaths of many security personnel. Reports claimed that Masood Azhar was one of the leading masterminds behind this attack. 

In this incident, four heavily armed members of the Afzal Guru squad set foot in the high-security premises of the Indian Air Force base at Pathankot, and six security personnel lost their lives in this attack. 

The 2016 strikes

On November 29, 2016, at around 5:30 am, three members of the JeM sub-cell Afzal Guru Squad attacked a unit of the Army’s 166 Field Regiment in the town of Nagrota, Jammu and Kashmir. This attack led to the deaths of several Indian army soldiers. 

Further, on September 18, 2016, an attack was carried out on an Indian Army camp in Uri, Jammu and Kashmir by the JeM organisation. The attack was carried out by heavily armed militants who executed a pre-dawn ambush on the brigade headquarters in Uri, near the Line of Control, which killed around 17 security personnel. 

It is alleged that JeM’s Kashif Jaan, Rauf Asgar, and Masood Azhar are the masterminds behind this brazen attack.

The 2019 Pulwama attack

On February 14, 2019, at around 3:15 pm, a 20-year-old suicide bomber, identified as Adil Ahmed Dar- a jihadist from the Pakistan-based terror outfit Jaish-e-Mohammad (JeM), rammed an explosive-laden vehicle into a convoy of the Central Reserve Police Force (CRPF). In this incident, 40-42 jawans were martyred in this attack, commonly known as the “Pulwama attack”. It is said that the vehicle had 200 kg of explosives. 

In August 2020, a 13,500 charge sheet was filed in a special court in Jammu and Kashmir against 19 people, including Masood Azhar, for the planning and execution of this terror attack. The charge sheets had Masood Azhar, his brothers- Abdul Rauf and Ammar Alvi, and his nephew- Mohammed Umer FarooqFarooq, amongst others as lead suspects. The charge sheet involved the names of around 19 individuals, out of which 12 were residents of Kashmir, while 7 were Pakistani nationals. The Pakistani residents contained the names of Masood Azhar Alvi, Rouf Asgar Alvi, Ammar Alvi, Qari Mufti Yasir (killed), Mohammad Ismail, Muhammad Umar Farooq (killed in an encounter), and Kamran Ali (killed in an encounter). The Kashmiri residents contained the names of Shakir Bashir,  Adil Ahmed Dar (the suicide bomber who was killed), Sajjad Ahmed Bhat (killed in an encounter), and Mudasir Ahmad Khan (killed), inter alia

The vilification and provocation of attacks against India

In 2017, JeM conducted several rallies encouraging youngsters to conduct terrorist attacks against India. Further, JeM also publishes an online journal- al Qalam Weekly, that has extremist material and provocations that encourage individuals to conduct terrorist attacks against India. This journal glorifies the JeM attacks against Indian security forces and incorporates the contributions of Masood Azhar. 

Declared to be a global terrorist  

In 2019, Masood Azhar was declared to be a “global terrorist” after China lifted its grasp on a proposition for blacklisting the Pakistan-based Jaish-e-Mohammed chief, a decade after New Delhi approached the world body for the first time on this matter. It was in March 2019 that a fresh proposal for Azhar’s designation as a global terrorist was moved by France, the United States, the United Kingdom, and Russia. However, China, which was one of the five permanent members of the Security Council who hold veto powers, had earlier obstructed the proposal on technical grounds.

Since Azhar is now designated to be a global terrorist, Pakistan will be coerced to take action against him and all the individuals and entities associated with him, the organisations he has founded and so forth. This will also lead to the total restraint of Azhar and may also lead to the termination of his organisations and institutions such as terror camps and madrasas.

The current state of affairs of Masood Azhar  

The whereabouts of Masood Azhar are not very well-known. Firstly, it was claimed that he resided in Afghanistan, but the same was refuted by Taliban spokesman Zabiullah Mujahid. The spokesperson, instead, asserted that Azhar is based in Pakistan. 

This comes as Pakistan wrote a letter to Afghanistan for arresting Masood Azhar. Finally, it has been alleged that Maulana Masood Azhar is probably present in Afghanistan’s Nangarhar and Kanhar areas.

Ilyas Kashmiri

Who is Ilyas Kashmiri

Ilyas Kashmiri, also known as Maulana Ilyas Kashmiri, Muhammad Ilyas Kashmiri, Elias al-Kashmiri, Ilyas, Naib Amir, and Commando Commander, is a Pakistani ex-Special Forces Islamist guerrilla insurgent from Azad Kashmir, Pakistan who competed against India. He was also allegedly said to have been a successor of Osama Bin Laden and the head of Al-Qaeda by NBC News; the source of information is said to be United States officials.

He was also referred to as “one of the most dangerous men in the world”. Further, the late journalist Syed Saleem Shahzad affirmed that “he is invariably described by the world intelligence agencies as the most effective, dangerous, and successful guerrilla leader in the world.”

The birth, rise and history of Ilyas Kashmiri

Mohammed Ilyas Kashmiri was born in February 1964 in Bhimber in Azad Kashmir, Pakistan. He attended Islamabad’s Allama Iqbal Open University, where he studied communications. It is also affirmed that he studied for a while in Karachi’s Jamia Uloom-ul-Islamia, a madrasa known to produce Islamist militants, which is where he formed the first jihad outfit in Pakistan,  Harkat-ul-Jihad-al-Islami (HuJI), with the assistance of two fellow students. However, he soon dropped out pertaining to his connection to jihadist activities. In the 1980s, he lost an eye and a finger during the Soviet-Afghan war. It is also partly believed that he was involved in the Pakistan Army’s special forces, known as the Special Services Group (SSG); further, there are doubts as to whether he served in the military at all or not.

After the war with Afghanistan, Kashmiri had links with a terrorist organisation known as Harkat-ul-Jihad-al-Islami, commonly known as HUJI. He was designated to be the
chief commander of Jammu and Kashmir” and his unit was named the Harkat-ul-Jihad Brigade (also known as Brigade 313). He, in this unit, gave training to his cadre at a camp outside Kotli in Azad Kashmir.   

Kashmiri’s operatives were regarded to be an elite group of jihadists who set up a “daring series of cross-border operations into Indian-controlled Kashmir”. During a raid, Kashmiri was held captive and imprisoned for two years before breaking out of jail.  

Later, in 2004, Kashmiri was arrested by the security forces in Pakistan for allegedly having links with the suicide bombers who rammed their vehicles into Musharraf’s convoy on December 25, 2003. However, he was released from prison after 30 days as the officials had cleared him of any doubt or suspicion against him. However, this incident left quite an impact on him, which is why he abandoned his struggle for Kashmir’s liberation, which is why he then shifted to North Waziristan with his family. 

Why is Ilyas Kashmiri wanted

A senior operative of Al-Qaeda

Ilyas operated as one of the significant operational commanders for al-Qaeda and was fully engaged in transnational terrorist activities. He played a key role in al-Qaeda’s plans to hold attacks against the West. His threats against western countries appeared to be fruitful, considering his affiliation in linking David Coleman Headley, Tahawwur Hussain Rana, and Raja Lahrasib Khan with the operations of al-Qaeda and plotting attacks in North America and Europe. He was also detained by the ISI for his alleged role in several attacks, his links to al-Qaeda, etc. 

Head of Harkat-ul-Jihad-al-Islami (HuJI)

While studying in Karachi’s Jamia Uloom-ul-Islamia, Kashmiri formed the first jihadi outfit in the country, which later became Harkat-ul-Jihad-al-Islami (HuJI). HuJI’s operations were led by Kashmiri in Kashmir. He then continued to serve as a member, but due to certain disagreements with Qari Saifullah Akhtar, the central leader of the group, he formed his own unit within HuJI, and named it “313 Brigade”.  

Revenge against the loss of lives of fellow Muslims 

Revenge against the Gujarat riots 

Ilyas Kashmiri is allegedly said to have had a role in the attacks intended to avenge the Gujarat riots. In 2003, Mumbai was hit by a string of bombings wherein the Gateway of India and Zaveri Bazaar were targeted, killing fifty-two people, amongst injuring many others. This attack was carried out in retaliation for the Muslims who lost their lives in the 2002 Gujarat riots. 

Revenge against the demolition of Babri Masjid

Ilyas Kashmiri is allegedly said to have had a key role in the attacks conducted as vengeance against the demolition of Babri Masjid in Ayodhya. He threatened to take revenge for the massacre of Muslims in the Gujarat riots and the Babri Masjid demolition, stating that the entire Muslim community would never forget the same. 

Pertaining to these incidents, he vouched that the entire Muslim community is one body and revenge for all the atrocities and injustice shall be taken. 

Involvement in the Soviet-Afghan war and other attacks on Afghanistan 

It was in the 1980s that Kashmiri fought against the Soviets in Afghanistan. He lost an eye and a finger on this battlefield. Further, it is also believed that Kashmiri was involved in the suicide attack on the Central Intelligence Agency’s Camp Chapman in Afghanistan’s Khost Province in December 2009.

Involvement in plotting the 26/11 Mumbai blasts 

Kashmiri’s Brigade 313 had an involvement in the Mumbai attacks, commonly known as the 26/11 attacks, which are known to have killed around 160 people. David Coleman Headley had helped him in plotting the attack by conducting survey operations at several places. When enquired whether he had plans for more such attacks in an interview, he asserted that “Mumbai was nothing compared with what has already been planned for India in the future”. 

Pune’s German bakery blasts

Kashmiri’s group was also responsible for Pune’s German bakery blasts in 2010. These blasts are known as the 2010 Pune bombing and the German bakery blast. This bomb was held responsible for killing at least 9 people and injuring 32 individuals through the ripping of a powerful bomb blast in the landmark German Bakery in Koregaon Park. This is one of his biggest strikes. 

Kashmir conflicts 

After his involvement in the war against Afghanistan, Kashmiri joined the Kashmir conflict as part of HuJI. In 1999, when he was asked what he would do if the conflict between India and Pakistan on the issue of Kashmir happened to have been resolved, he affirmed that there were several other places in India left to be conquered.  

Multiple attacks on Indian states 

Kashmiri is known to have attacked several Indian states, among them include the following attacks:

  1. The attack on American Centre in Kolkata in 2002,
  2. The blasts in Delhi, Ahmedabad, Bangalore, and Jaipur in 2008. 

Attacks against and on the United States

On March 2, 2006, HuJI set up a suicide bombing against the U.S. Consulate in Karachi, Pakistan. This incident killed four people, including U.S. diplomat David Foy, and injured 48 others. Further, in January 2010, Kashmiri was convicted for offences related to terrorism in connection with a terrorist plot to attack the Jyllands-Posten newspaper in Denmark by a U.S. federal grand jury. 

Designated as a ‘Specially Designated Global Terrorist’

On August 6, 2010, Kashmiri was designated as a “Specially Designated Global Terrorist” by the U.S. Secretary of the Treasury. Moreover, his organisation- HuJI was also designated as a ‘Foreign Terrorist Organization.’   

The current state of affairs of Ilyas Kashmiri  

Ilyas Kashmiri was reportedly killed by a drone attack in South Waziristan, along the border of Afghanistan. The banned organisation- HuJI, had confirmed the demise of their leader (amir) and commander-in-chief in a statement which was faxed to media organisations in Pakistan. The spokesperson stated that Kashmiri was “martyred” along with other companions in the American drone strike. Further, Pakistan’s Interior Minister, Rehman Malik, stated that he was 98% sure that Ilyas Kashmiri had been killed. However, Tehreek-e-Taliban Pakistan has been quoted as stating that Kashmiri is “alive and safe.” Even the United Nations (UN) updated the status of Ilyas Kashmiri, one of India’s most wanted criminals, as dead, until proven otherwise.   

Chhota Shakeel

Who is Chhota Shakeel?

Chhota Shakeel, another criminal on the list of the top most wanted criminals in India, is an Indian crime boss. He has been on the radar for at least thirty years now. He is wanted for several cases of murder, extortion, and terrorism in relation to the 1993 blasts in Mumbai.  

He is also Dawood Ibrahim’s most trusted aide and is also known to be the CEO of Dawood’s D Company. He has had major control in conducting the day-to-day activities of the Dawood Ibrahim gang.

The birth, rise and history of Chhota Shakeel

Chotta Shakeel, one of the most notorious criminals in India, was born in Bombay, Maharashtra. His real name is Mohammed Shakeel Babu Miyan Shaikh. He is also known as the CEO of D Company, Haazi, etc. 

He initially ran a suspicious travel agency in Dongri, Mumbai; later, in 1988, he joined Dawood’s gang. After joining the D Company,  he got involved in extortion, kidnapping, and betting with the assistance of other henchmen of Davood.  He is famously known for murder, extortion, and terrorism.  

Chotta Shakeel was arrested under the National Security Act in 1998 and underwent jail time for four months, after which he received bail and flew away to Dubai.

Why is Chhota Shakeel wanted

Ties with D-Company

Shakeel joined D Company in 1988, under the leadership of Dawood Ibrahim. With the assistance of Rahim Merchant (famously known as “Dogla”), who is an affluent Pakistani from Karachi, Pakistan, he made deals for the D Company and extortion activities and helped run many arms operations on behalf of the ISI. It is also believed that he was accountable for operations related to international drug trafficking for the D Company, and he worked with Afghan syndicates and Colombian cartels to carry out such tasks. Shakeel was one of the early members of the D-Company along with other joiners like Bishal Cheetah, Johnny Akhawat, and Liger Bhai/Mushu Bhai. 

Shakeel worked his way up the ranks in D Company and later started managing the day-to-day business activities of D Company, which carried on until 2016. After that, Dawood’s brother, Anees Ibrahim Kaskar, began to skim money from D Company and threatened to oust Shakeel from leadership. 

The 1993 Mumbai blasts

One of the main accused in the 1993 Mumbai blasts is Chhota Shakeel. The National Investigation Agency (NIA) had also announced a reward of Rs 20 lakh on any key leads that would lead to his arrest. 

Attempts to kill Chotta Rajan

In 1994, when Chhota Rajan parted ways with the D Company and built up his own gang, Dawood, through Chotta Shakeel, tried to kill Chhota Rajan numerous times, but he eluded them every time. In 2000, Shakeel attacked Chhota Rajan in Bangkok. Further, even while Chotta Rajan was imprisoned, an attack on him was made via some henchmen. 

ISI conspiracy 

It is believed that Shakeel received aid for his illicit activities from the Inter-Services Intelligence (ISI), which is a Pakistani intelligence agency. He also ran several operations on behalf of ISI. After the 1993 Bombay attacks, he sought refuge in Pakistan with the protection of the ISI.

Acquisitions and criminalities 

Real estate investments 

In addition to the aforementioned activities, Shakeel also had an interest in real estate. His real estate empire grew to include possessions in Morocco, Algeria, Tunisia, the UAE, Kenya, Spain, and South Africa. He also owned several properties in India, Pakistan, and the US.  

Investments in African mines 

Further, he made investments in the African mines, thus smuggling diamonds to and for Ukraine’s Odesa Mafia and exchanging diamonds for weapons. 

Extortion 

In 2015, Shakeel also threatened some renowned builders in Mumbai along with his henchmen for the purpose of extorting money from them. 

Added in the specially Designated Nationals and Blocked Person list 

The current state of affairs of Chhota Shakeel

It is rumoured that Chhota Shakeel is dead and that this incident occurred in 2017. According to sources, Shakeel died in Islamabad, where he had visited for a meeting with the members of the infamous Odessa. However, there are two versions of his death, both not very authenticated to date.

As per one version, he had a cardiac arrest and was rushed to a hospital in Rawalpindi by air with the help of his bodyguards, but was declared dead on arrival.

Another version states that Pakistan’s ISI used Odessa to kill Shakeel because he was being tough to handle. 

Point to be noted: After his alleged death, there were rumours that the Royal Thai Police had sent a letter to the Interpol asserting that Shakeel is no longer subject to the Red Corner Notice post his demise, however, this surfaced letter was later on proceeded to be fake. 

Major Iqbal

Who is Major Iqbal?

The suspicious Major Iqbal, who was then identified as “Chaudhary Khan is one of the top conspirators of the 26/11 Mumbai blasts. It has been suspected by the US and Indian courts that he is a Pakistani army officer serving in Pakistan’s Inter-Services Intelligence Directorate (ISI). He is known to have trained David Headley, also known as Daood Gilani. 

The birth, rise and history of Major Iqbal

Major Iqbal is known to be a cold, calculating operational mastermind of the 26/11 Mumbai bomb blasts. He is allegedly known by the name “Chaudhery Khan”. He was born in 1965 in Lahore with Pakistani nationality.  

Why is Major Iqbal wanted? 

One of the biggest conspirators of the 26/11 attacks 

Major Iqbal handled the logistical aspects of the 26/11 terror attacks, including pending money, selecting the locations and joining hands with other ISI operatives and terrorist organisations to carry out the attacks. 

Planning and funding attacks by Lashkar

Main delegate of David Coleman Headley 

Major Iqbal acted as David Headley’s main handler. He was once an informant for the US Drug Enforcement Administration. It was Major Iqbal who recruited David Headley and sent him money to start with the survey of identifying the major places for targeting the blasts in Mumbai. 

The current state of affairs of Major Iqbal

Publicly, the Islamabad Government denied Major Iqbal’s role in any attack and also raised a query on his existence. But it is said that he was shifted to a new unit and was promoted.

Major Iqbal is now believed to be serving in the Pakistani army, however, there is not much information available about his whereabouts. 

Hafeez Muhammad Saeed

Who is Hafeez Muhammad Saeed

Hafeez Muhammad Saeed is the co-founder of several Islamic organisations in Pakistan, including Lashkar-e-Taiba (LeT). He played a significant role in the 2008 Mumbai blasts and is also said to have been responsible for the 2001 Parliament attack. 

After all the criminal activities he committed (discussed below), India demanded that Saeed be handed over to the custody of India by Pakistan, but there was no agreement between the countries. 

The birth, the rise and the history of Hafeez Muhammad Saeed

Hafeez Muhammad Saeed was born in the city of Sargodha in the Punjab province of Pakistan on June 5th, 1950. A few years after the 1947 partition, his family left for Shimla in northwestern India. He became well-versed in Arabic and Islamic studies and also obtained a postgraduate degree from the University of Punjab. He, later on, started giving lectures at the University of Engineering and Technology based in Lahore. He also continued his education at King Saud University in Riyadh and then returned to Pakistan in the late 1970s where he was designated to serve on the Council of Islamic Ideology, which is an advisory council to the Government of Pakistan. 

Later, around the mid-1980s, he co-founded an organisation that was then merged with an organisation led by Zaki-ur-Rehman Lakhvi, and it came to be known as Lashkar-e-Taiba. He is also said to approve of suicide bombings, hate Jews, Shias, and democracy, and is of the belief that jihad should be waged until Islam rules the world.  

Hafeez is also accused of being one of the many masterminds of the 26/11 attack on Mumbai. Despite being under house arrest for the same, he is known to have organised protests against the US and India, which are discussed below in brief. 

Why is Hafeez Muhammad Saeed wanted

Co-founder of Lashkar-e-Taiba

As stated above, Hafeez Saeed 

Lashkar-e-Taiba’s primary target is to gain control over the Indian-administered territory of Jammu and Kashmir. On this, Hafeez once quotedThere cannot be any peace while India remains intact. Cut them, cut them so much that they kneel before you and ask for mercy.

Leader of the organisation Jamaat-ud-Daawa  

Hafeez Saeed is said to have lived a respectful life in Lahore at the designation of the head of the Jamaat-ud-Daawa, which is believed to be a front organisation of the LeT group by many. Saeed is said to have recruited several boys into the organisation. 

He was also put under house arrest by the Pakistani Government when they were pressured to do so at an international level. 

The 2001 Lok Sabha attack

Hafeez Saeed is also said to have an involvement in the attack on Lok Sabha that occurred on 13th December 2001. The Pakistani government took him into custody for this activity and he was held captive until March 31st, 2002, after which he was released but was taken into custody again on May 15th. He was then placed under house arrest in October 2002.

The 2006 and the 26/11 bombings and terror attacks

Saeed is also said to have played a key role in the 2006 Mumbai train bombings. Also, he participated in the 2008 Mumbai terror attacks, commonly known as the attacks of 26/11. It is only after these incidents that international scrutiny of him intensified. It is believed that his organisation LeT, was behind these occurrences. 

Designated as a terrorist 

Saeed is designated as a terrorist by the United Nations Security Council, India, the United States, the United Kingdom, the European Union, Australia, and Russia. Further, he is listed on India’s National Investigation Agency’s (NIA) most wanted list.

Publicly criticising India 

Hafeez Muhammad Saeed is known to have publicly criticised India. There are several videos on the internet where he is openly making hate speeches against India. 

The current state of affairs of Hafeez Muhammad Saeed 

Recently, in April 2022, Hafeez Saeed was sentenced to 31 years of imprisonment in two cases of terrorism where he had provided economic aid. This incident occurred just 3 months before the scheduled review of Pakistan’s action plan by the Financial Action Task Force. He was already arrested in 2019 and was serving a 15-year sentence for being guilty of similar charges of terror financing in 2020. 

Anees Ibrahim Kaskar

Who is Anees Ibrahim Kaskar

Anees Ibrahim Kaskar is yet another most-wanted criminal in India. He is the brother of Dawood Ibrahim Kaskar, one of the most wanted criminals in India. He is a gangster, criminal mobster, and drug dealer who heads the organised crime syndicate-D-company. He is wanted for several cases of murder, extortion, and drug smuggling.

The birth, rise and history of Anees Ibrahim Kaskar

Anees Ibrahim is a Mumbai-based Indian terrorist, drug dealer, and criminal mobster. He is the son of a former Criminal Investigation Department havaldar, Ibrahim Kaskar.

As stated above, he has ties with his brother, Dawood Ibrahim Kaskar, and his company, which is named the D-Company. 

He is also said to have recruited several brutal operatives, including Chhota Shakeel, Ahmad Babu, Rajendra Nikhalje, and Sunil Sawant. 

Why is Anees Ibrahim Kaskar wanted 

The 1993 Mumbai blasts

Anees is allegedly involved in the 1993 Mumbai blasts along with other members of the D-Company. They are all the subjects of Interpol Red Notices for their alleged role in the 1993 blasts that took the lives of around 257 people. 

Ties with D-Company

Anees Ibrahim is said to be the brains behind the day-to-day activities of the D-Company. It is also alleged that he plays a major role in the decision-making process of the company. 

Co-accused of every crime committed by Dawood Ibrahim Kaskar 

Anees is the co-accused for almost every crime committed by his brother-Davood Ibrahim, including smuggling, global hawala operations, counterfeit currency, extortion, contract killings, illegal betting, and, allegedly, major financial scams.

Running drugs, fake banknotes operations, extortions, targeted killings 

Anees is also known to have played a key role in activities like drug trafficking, extorting money, contract killings, and money laundering on behalf of the D Company. 

Wanted for several cases

He is also wanted by the Mumbai police for his connection with more than 24 cases of murder, extortion, and drug smuggling.

The current state of affairs of Anees Ibrahim Kaskar 

Details of his whereabouts are not available anywhere, however, as per an article published in the Economic Times in 2009, Anees Ibrahim was shot in Karachi by unidentified assailants, as per an unconfirmed source. After this incident, not much has been heard about him. 

Nonetheless, he is amongst the world’s most wanted fugitives. The United States Department of Treasury named Ibrahim as a Significant Foreign Narcotics Trafficker according to the Kingpin Act

Zaki-Ur-Rehman Lakhvi

Who is Zaki-Ur-Rehman-Lakhvi

Last but not least, the most wanted criminal in India is Zaki-Ur-Rehman-Lakhvi. He is one of the founding members of the terror organisation Lashkar-e-Taiba and is said to be one of the primary suspects in the dreadful attacks in Mumbai in 2008, commonly known as the 26/11 attacks. 

The birth, rise and history of Zaki-Ur-Rehman Lakhvi

Zaki-ur-Rehman Lakhvi was born on December 30th, 1960, in the Okara district of Punjab, Pakistan. He is referred to as “Chachu” or “Uncle” by trainees who come to seek training under LeT. Lakhvi is a graduate of Jamia Mohammadia in Gujranwala, which is an Ahl-e-Hadith school.

It is stated that he began his journey in 1982, when he participated in the Afghan Jihad and then eventually rose to the rank of becoming LeT’s chief. 

He has directed terrorist attacks in Afghanistan, Chechnya, Bosnia, Iraq, and South-East Asia.

Why is Zaki-Ur-Rehman Lakhvi wanted

One of the major planners of the 26/11 attacks

Zaki-Ur-Rehman Lakhvi, along with Hafiz Saeed, is said to be one of the major planners of the 26/11 attacks. Indian officials were of the opinion that Lakhvi communicated with the attackers during the journey and may also have been in touch while executing the attack. 

Founder member of Lashkar-e-Taiba (LeT)

LeT has carried out several attacks in India and is one of the most dreaded active terror groups in the country. 

India’s NIA most wanted list

Lakhvi, being one of the masterminds behind the 26/11 attacks, was stated to be on the National Investigation Agency’s “most wanted” list.

Declared a global terrorist 

Lakhvi is also listed on the United States Department of the Treasury’s Specially Designated Nationals and Blocked Persons List as a Specially Designated Global Terrorist. He was designated as a global terrorist on December 10th, 2008.

The current state of affairs of Zaki-Ur-Rehman Lakhvi 

Lakhvi was arrested in 2008 and imprisoned by Pakistani authorities in 2009 and was granted bail in 2015. 

He is currently said to be in custody for his involvement in the 26/11 strike. In January 2021, he was arrested by Pakistani authorities and was convicted for three concurrent five-year sentences in jail for providing economic support in conducting terror attacks by Lashkar-e-Taiba.

Conclusion 

Mentioned above was a list of the most wanted criminals in India was mentioned above. Even though we have several organisations like that of the Federal Bureau of Investigation (FBI), National Investigation Agency (NIA), Central Bureau of Investigation (CBI), and the Terrorist and Disruptive Activities (Prevention) Act, 1987, commonly known as TADA, working to discourage such terror attacks, terror activities have occurred.

For a more aware society, it is important for us individuals to be aware of their whereabouts and wrongdoings. So, we, as individuals, can aid in reducing the chance of terror attacks or criminal activities by being vigilant and keeping an eye on any suspicious situations. For instance, if you happen to see an underlying suitcase or someone with a conspicuous interest in the security of a particular place, it is always beneficial that such incident(s) be reported to the police authorities.

Frequently Asked Questions (FAQs)

How and when will an individual be listed in the UN Global Terrorist List?

The criteria laid down by the UN Security Council with respect to terrorists associated with  ISIL (Da’esh) and Al-Qaida are given in the 2610 Resolution of 2021. It states that if any individual commits any activity like that of planning, helping or providing economic support or carries out any activity related to supplying, selling or transferring weapons or any arms-related material or recruits for, or otherwise supports actions or activities of ISIL, Al-Qaida or any cell, affiliate, splinter group or derivative thereof, they can be listed in the UN Global Terrorist List.  

Who has the highest bounty on the list of most wanted criminals in the world?

The criminal who is said to have the highest bounty on the list of most wanted criminals in the world is Alexis Flores. He was convicted for the offence of kidnapping, raping, and murdering a 5-year-old girl from Philadelphia, Pennsylvania. The Federal Bureau of Investigation (FBI) has announced a reward of $100,000 for providing any leads for this arrest.

Who has been awarded the highest bounty with respect to criminals in India? 

Previously, Dawood Ibrahim was known to have the highest bounty for criminals in India. However, now, Mappalla Laxman Rao is believed to have been in this position. Rao’s bounty is said to be worth ₹ 1 crore, which is allegedly double the amount of Dawood’s bounty. Mappalla Laxman Rao, commonly known as Ganapathy played a major role in the formation of CPI (Maosit) which aimed to overthrow the Indian Government through people’s war.

References  


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The Partnership Act, 1932

2

This article is written by Richa Goel of Banasthali Vidyapith and Adhila Muhammed Arif, a student of Government Law College, Thiruvananthapuram. In this article, she has discussed the scope, nature of Partnership Act, 1932 and various provision related to admission, death, the retirement of a partner.

It has been published by Rachit Garg.

Table of Contents

Introduction

Partnership results from a contract and is governed by the Partnership Act 1932. The partnership is also governed by the general provision of the Indian Contract Act on such matters where the Partnership Act is silent. It is expressly mentioned that the provision of India Contract Act which is not repealed will be applicable on Partnership until and unless such provision is in contrary to any provision of Partnership Act, 1932. The rules of contract regarding the capacity to contract, offer, acceptance etc will also be applicable to the partnership. But the rules regarding the status of minor will be governed by the Partnership Act, 1932 since Section 30 of the Act talks about the position of the minor.

Nature of Business

It is a business organization where two or more persons agreed to join together to carry out the business for the purpose of earning the profits. It is an extension of a sole proprietorship. It is better than sole proprietorship because in sole proprietorship the business is carried out by the individual with limited capital and limited skill. Due to the limited resources of a single individual carrying a sole proprietorship, a larger business requiring more resources and investment than available to the sole proprietor cannot be thought of such business. On the other hand in partnership, a number of partners join together with their capital to form an agreement and carry out a business jointly.

Meaning

According to Section 4 of the Partnership Act,1932

“Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all”.

Essential requirements of a partnership

  • It must be an association of two or more persons. 
  • There must exist an agreement between the partners.
  • There must be a business undertaking or a commercial activity that is lawful. 
  • The motive must be to earn the profit and share between the partners.
  • The agreement must be to carry out the business jointly or by any of them acting on the behalf of all i.e., there must be mutual agency.

Examples:

A and B buy 100 tons of oil which they agree to sell for their joint account. This forms a partnership and A and B are considered as partners.

A and B buy 100 tons of oil and agreed to share it among them. It does not form a partnership as they had no intention to carry out business.

Number of members

Any two or more persons may form a partnership. There is no limit imposed on the minimum and the maximum number of partners under the Partnership Act,1932. According to Companies Act 2013, the maximum number of 100 must not exceed in case of partnership and minimum is 2 partners.

If in any case, it exceeds the maximum limit then it will amount to the illegal association under Section 464 of Companies Act,2013. According to Section 11 of Companies Act the maximum number of partner in case of:

  • Banking purpose-10 persons
  • Other purposes- 20 persons

Agreement

The partnership is an agreement in which two or more person has decided to carry out business and share the profit and losses equally. To create a legal relationship it is necessary to form a partnership agreement.

The partnership agreement becomes the foundation or the basis on which it is based. It can be either written or oral. The written agreement is known as a partnership deed. Partnership deed mainly consists of the following details:

  • Name and address of its firm and business
  • Name and address of its partner
  • Capital contributed by each partner
  • Profit and loss sharing ratio
  • Rate of interest on capital, loan, drawings etc
  • Rights, duties and obligation of partners
  • Settlement of accounts on the dissolution of the firm
  • Salaries, commission payable to partners
  • Rules to be followed in case of admission, retirement and death of a partner
  • Mode of settlement on disputes among partner.
  • Any other affecting the rights of the partners

Business (Section 12)

The partnership must be created for the purpose of carrying the business which is legal in nature. Co-ownership of property does not amount to the partnership. As per the definition given in Section 2(b), a business includes any trade, occupation or profession. It is any kind of occupation that is not something done just for pleasure. It is an operation conducted by a particular method that is continuous, and from which income or profits can be derived. 

Mutual agency (Section 13)

The business is to be carried by all of them or by any one of them on behalf of all. It gives two assumptions

Each partner is entitled to carry out the business. The mutual agency exists between the partners. Each partner is a principal as well as an agent for the other partners.he is bound by the acts of other partners as well as can bind others by his own act.

Sharing of profit

The agreement is to share profit and losses among the partners. The sharing of profit and losses can be according to the ratio of the capital contributed or equally.

It helps to distribute the burden among the partners in the case when the partnership suffers losses.

Liability of partnership

All the partners are jointly liable for paying the debts of the firm. The liability is unlimited which means that the partner’s private assets can be disposed of for the purpose of paying the debts of the firm.

Test of partnership 

Section 6

Section 6 of the Indian Partnership Act provides the mode of determining the existence of a partnership. The following are the provisions in Section 6: 

  1. While determining whether an association of persons is a firm or if a person is a partner to a firm, the real relation shown by relevant facts between the parties must be examined. 
  2. Sharing profits from a property held by persons jointly does not automatically qualify such persons as partners. 
  3. A person can hold a receipt of the share in profits or receipt of payment that is contingent upon the profits, but that does not make him a partner. The following are such persons: 
  • Servant or agent who receives remuneration or commission. 
  • Widow or child of a deceased partner who receives an annuity. 
  • Moneylender to the partnership business. 
  • The previous owner or part owner who has consideration for the sale of the goodwill of the business or share of it. 

Real criteria for determining partnership 

It is clear from Section 6 that the sharing of profits is not the ultimate test for determining whether a partnership exists. The existence of a partnership depends on the actual intention of the parties and the contract drawn up by them. In some cases, an alleged partner might have a share in the profits of the business, but that does not by default make him a partner. 

The earlier position was that the share of profits is the criteria for determining partnership, as held in the case of Waugh v. Carver (1973). The House of Lords overruled this decision in the case of Cox v. Hickman (1860). In this case, Lord Crownworth held that the real test of partnership is mutual agency among the members of the particular association. However, the factor of share of profits cannot be eliminated. Share of profits is certainly an important piece of evidence that helps to determine the existence of a partnership, but not the ultimate test.

Kinds of partnership

The various types of partnership are based on two different criteria.

With regard to the duration of the term of partnership:

Partnership at will

when no fixed period is prescribed for the expiration of partnership then it is a partnership at will. According to Section 7 two conditions need to be fulfilled:

  • No agreement about the determination of the  fixed period of partnership
  • No clause with respect to the determination of partnership.

Partnership for a fixed period 

When the partners fixed the duration of the partnership firm then after the expiration of the fixed period the partnership comes to an end. When the partners decided to continue with the partnership even after the expiry of the fixed period then it becomes a partnership at will.

On the basis of the extent of the  business carried by a partnership

Particular Partnership (Section 8)

When the partnership is created for completing any project or undertaking. When such an undertaking or project have been completed then partnership comes to an end. The partners have a choice to continue with the firm.

General Partnership 

when the partnership is created for the purpose of carrying out the business. There is no particular task that has to be completed. The task is general in nature.

Scope of Partnership Act (Section 5)

The partnership arises from the contract but not from the status. The intention of partners is a question of the partnership. the partners may exercise any of its power at time but must not exercise in the pursuance of illegal, fraudulent or misconduct.

If any of the partners have made the contract without the consent of all other partners then the question as to the validity of such contract arises. If all the partners have accepted or ratified the contract then no question as to the validity of such contract arise.

With the consent of all the partners, the partnership can become a member of another firm.

Partners

The member of a partnership is called partners.it is not mandatory that all the partners are the same or all the partners participate in the conduct of the business or share the profit or losses equally. The partners are classified depending on the nature of work, the extent of liability, etc. There are basically six types of partner:

  • Active/managing partner: The partner who takes participation in the conduct of the business daily. This partner is also called an ostensible partner.
  • Sleeping/Dormant: He does not participate in the conduct of the business but he is bound by the conduct of all the partners.
  • Nominal partner: He is a partner to the firm only by his name. In reality, he has no significant or real interest in the firm.
  • Partner in profit only: The partner who agrees to share the profit but does not suffer losses. He is not liable for any liabilities in case of dealing with the third party.
  • Minor partner: A minor cannot be a partner according to the Indian Contract Act, but he can be admitted to get the benefit of all the partners gives the consent. His will share the profit equally but his liability will be limited in case of loss of the firm.
  • Partner by estoppel: it means when the person is not a partner but he has represented himself by conduct, or words to another person to be the partner then he cannot deny afterwards. Even though he is not a partner but he becomes the partner by holding out or by estoppel.

Relation of partner with one another

All the partners have a right to create their own terms and condition with regard to the affairs of the business in the partnership deed. The Indian Partnership Act has prescribed the provision to govern the relation of partners and this provision is applicable in case when there is no deed. The various rights of the partners are explained below:

  • Right to determine the relationship by contract (Section 11)

The partnership deed determines the general administration of the partnership like what will be the profit-sharing ratio, who will do what work etc. The partnership contains the rights and duties of the partners.

Such a deed can be made either expressly or by necessary implication. For example, if one partner looks into sales daily and other partners do not object to it, his conduct will be presumed as the right of all the partners in the absence of written agreement. So it can be concluded that all partners create a right for their own.

Section 27 of the Indian Contract Act,1872

Agreement in restraint of trade is void

All the agreements which restrain the person from carrying any lawful profession, trade or business are void.

But Section 11 of the Partnership Act states that the partners can restrain each other from carrying a business other than the firm. but such restraint must contain in the partnership deed.

Rights of the Partners

  • Right to take part in the conduct of the firm’s business: Section 12(a) provides that every partner has the right to be involved in the conduct of the firm’s business. All partners have the right to manage the firm’s business. 
  • Right to express opinion: Section 12(c) provides that all partners can freely express their opinion in matters concerning the firm’s business. However, before a decision is made based on an opinion of a partner, the consent of other partners must be obtained. 
  • Right to have access to books of the firm: Section 12(d) of the Act provides that every partner has the right to look into the books of the firm, whether the books concern the accounts of the firm or not. 
  • Right to profit: As per Section 13(b), all partners must equally share profits earned through the business. 
  • Right to interest on capital: Section 13(c) provides that on an agreement, the partners of a firm have the right to claim interest on the firm’s profits from the capital. 
  • Right to interest on advances made by partner: In some cases the firm may need extra money apart from the capital. In such cases, a partner may make advances to the firm and he may also claim interest on such advances. 
  • Right to indemnity: Section 13(e) of the Act provides that a partner may make some payments and incur liabilities while acting on behalf of the firm. The firm shall indemnify a partner in respect of such payments and liabilities, whether it was made in ordinary course of business or in emergency. 
  • Right to dissolve the partnership: Section 44 provides that a partner has the right to file a suit to dissolve the partnership. The court may dissolve firm on any of the grounds given below: 
  1. Unsoundness of mind of a partner, where the suit shall be brought by another partner or the next friend of the unsound partner;
  2. Permanent incapability of another partner to perform his duties;
  3. Another partner is guilty of conduct that prejudices the business of the firm;
  4. Committing breach of agreement by another partner by wilfully or persistently;
  5. Transfer of interest in firm by another partner to a third person;
  6. Business of firm cannot be carried on due to losses;
  7. Any other ground which makes it just and equitable to dissolve the partnership. 
  • Section 46 provides that after dissolution, a partner has the right to wind up the business       of the firm. On dissolution, every partner or his representative is entitled, as against all the other partners, to have the firm’s property applied in payment of debts and liabilities of the firm, and then have the surplus distributed among the partners or their representatives. 
  • Right to not get expelled: Section 33 provides that all partners have right to not get expelled except on certain grounds and they must be given reasonable warning and opportunity of explanation before the expulsion. 
  • Right to prevent introduction of new person: Section 31 provides that every partner has the right to prevent the introduction of a new partner without his consent to the firm, unless the agreement has expressly provided that such introduction is permitted. 
  • Right to retire: Section 32 of the Act provides that a person has right to retire with the consent of other partners, unless the requirement of consent is waived by the agreement. The partners can retire by simply providing a notice to other partners in partnerships at will. 

Relations of partners to third parties

Section 18 to 22 of the Act talks about the relation of partners third parties

Section 18 prescribes that the partners are an agent of the firm for the purpose of conducting the affairs of the business. The partners act as the principal and agent as well. when he performs the act in his own interest he is the principal and when he does in the interest of another partner then he is an agent. He is not an agent for the dealings or the transactions between the partners themselves.

Section 19 states that any act which is performed by the partners in the usual course of its business binds the firm itself. The authority to bind the firm is implied authority

Section 20 states that partners can make a contract to restrict or expand the implied authority of a partner.

Section 21 states that if any act is done by any partners in case of an emergency which a prudent man would do, then such acts need to bind the firm.

Section 22 specifies that if any act is done by any partner then it must be done in the name of the firm or in such manner which binds the firm.

Duties of partners

  • Duty of greatest common advantage: As per Section 9 of the Act, it is incumbent upon the partners to carry on their business for the greatest common advantage of the firm. The partners must act so that all the partners benefit and secure the maximum profits. No partner should act for their personal gain. 
  • Duty of good faith: As per Section 9, the partners must act just to each other. The relationship of partnership is on mutual trust and hence, there must be good faith between them. A partnership is of fiduciary nature and thus, at every stage of a partnership, the partners must act just and faithful to one another. 
  • Duty to render true accounts: Partners of a firm have a duty to render true accounts as per Section 9. A partner of a firm must keep and render true and complete accounts of the partnership firm’s business. He must make it available to other partners or their representatives when required. 
  • Duty to render full information: As per Section 9, partners of a firm have a duty to provide true and full information regarding the business. Partners are agents of each other and hence, partners must communicate all information regarding the running of the business in a complete and truthful manner to each other. 
  • Duty to not carry another business: As per Section 11(2) of the Act, a partner must not conduct a business other than that of the firm. Partners can restrain one another from carrying on another business, provided that such restraint is reasonable. 
  • Duty to act diligently: As per Section 12(b), a firm’s partner must act diligently in the business. 
  • Duty to perform without remuneration: As per Section 13(a), every partner must perform and attend to the firm’s business without expecting remuneration. There is a presumption that all partners are to work for the common advantage of the firm. 
  • Duty to share losses: As per Section 13(b) of the Act, partners must share losses in the proportions as provided by the partnership agreement. If the agreement does not provide it, it must be shared in the proportion that they share the profits. 
  • Duty to indemnify for wilful neglect: As per Section 13(f), a partner shall indemnify his firm for any of the losses caused to it due to his wilful neglect during the course of the business. Wilful neglect refers to an act that is deliberate and intentional. 
  • Duty to not assign his rights: No partner can assign his rights in a partnership firm to a third person in order to make him a partner. 
  • Duty to act within authority: Every person has to act within the authority that he has conferred upon him as per the partnership agreement. 
  • Duty to account private profits: Section 16(a) provides that no partner can use the partnership firm’s property for private use, or use any profits derived from the partnership business for his own advantage. If the property of profits of a firm is ever used for personal advantage, it must be accounted for. 
  • Duty not to compete: Section 16(b) states that no partner of a firm can carry on another business simultaneously, except with the consent of other partners. On the failure of obtaining the consent, he must account for all the profits he made as a result of that and must compensate for the losses sustained by the firm if any.
  • Duty to properly use the firm’s property: Sections 14 and 15 of the Act provide that the property of the firm must be used solely for the purpose of the firm’s business and not for private purposes. The term ‘property of the firm’ covers all properties and rights and interests in a property originally acquired by the firm for the purpose of running the business. The goodwill of the business is also a property of the firm. 

When do Rights and Duties change?

The existing relationship between the partners come to an end when there is a change in the constitution of the firms. Such changes in the constitution of the firm may occur due to the following reasons (Section 17)

  • Expiration of term of the firm.
  • Carrying out the additional business other than agreed upon.
  • Changes in the composition of members due to admission, retirement or the death of a partner.

The duties and rights of partners remain the same until there is any change in agreement but such right and duties may vary or modified by creating a fresh agreement.

Status of a minor

Section 30 states the legal provision related to the minor according to Section 18 of the Indian Contract act 1872, no person below the age of 18 years can enter into the contract which implies that no minor can enter into a contract. But Section 30 states that the minor cannot be a partner in a partnership firm but he can be admitted to benefit from the partnership firm. The minor will be liable to get only the benefits from the partnership but is not liable for any losses or liability. The minor can be admitted to the partnership only with the consent of all the partners.

There are various rights that are granted to the minor.

Various rights are as follows:

  • Right to inspect the books of account
  • Rights to share the profits from the firm
  • Rights to sue any partner or all for his share of benefit or profit
  • He has a limited liability which means his personal assets may not be disposed of to pay the firm debts
  • A minor has a right to become a partner on attaining the age of 18 years.

Liabilities of a minor

  • A minor has Limited liability. If minor is declared as insolvent his share will be kept in the possession of official liquidator.
  • If after attaining the age of 18 years he decided to become the partner then he has to give public notice within 6 months of attaining the majority. If notice not given then minor will become liable for all the acts of others until the notice is given
  • When a minor partner becomes the major he will be liable for the acts of all partners to the third parties.
  • If he decided to become a full-time partner then he will be considered as a normal partner and will take part in the conduct of the business.

Liabilities

  • Liability of partners for the acts of the firm (Section 25): All the partners is jointly and severally liable for the acts of the firms. He is liable only for those acts which are done at the time he is a partner.
  • Liability of a firm for the wrongful act of partner (Section 26): When any wrongful act or omission is done by any of its partners in the ordinary course of its business or with the consent of others partners then the firm is liable to the same extent as a partner.
  • Liability of a firm for the misapplications by partner (Section 27): when any partner acting as an agent receives the money from the third party and misapplies it or the firm receives the money and money are misappropriated by any of its partners then the firm is liable to pay for the loss suffered.

How is registration done?

Section 58 explains the procedure of the registration of a partnership firm.

  • Making an application to Registrar: Any of its partners can send an application along with the prescribed fee and copy of partnership deed o the registrar of the area in which any place of business is proposed to be situated or is situated. Such a statement shall be signed by all of its partners. Such a statement should contain:
  • Name of the firm
  • Principal place of business
  • Any other place where the business is carried on
  • Duration of partnership firm
  • Name and address of all partners of a firm
  • The date on which each partner joined the firm
  • Verification: Each partner who has signed the statements needs to be verified.
  • The name of the firm shall not contain any name resembling the name of Crown, Emperor, king, Royal, Emperors’, or any other words implying or expressing the sanction of the government.

Section 59 states that when the Registrar is satisfied that the conditions of Section 58 are complied with then he shall record an entry of the statement in a register called the Register of Firms, and shall file the statement.

Non-registration of partnership firm

In India, it is not compulsory to register the partnership and no penalty is being imposed for non-registration but if we talk about English law it is compulsory to register partnership firm and if it is not registered then the penalty is imposed. Non-registration leads to a certain disability in accordance with Section 69 of the Act.

Effect of non-registration (Section 69)

  • No suit can be initiated in civil court by the firm or other co-partners against the third party
  • In case of breach of contract by the third party; the suit cannot be brought in any civil suit. The suit must be filed by the one whose name is registered as a partner in a register of the firm.
  • No partners can claim a relief of set-off.
  • Any action which is brought out by the third party against the firm having a value of Rs 100 cannot be set off by the firm or any of its partners.
  • An aggrieved person cannot sue against firms or other partners

Generally, no action can be brought against the firm or the partners but there is an exception to it. In a case when the firm is dissolved it can bring a suit for the realization of his share in the firm’s property.

Non-registrations do not affect the following rights

  • A third party can bring a suit against the firm
  • Right of the partners or firm to claim a relief of set off the claim for the value which does not exceed Rs 100
  • Power of official liquidator, official assignees to release the property of insolvent partners and brings a legal action
  • Partner right to claim for the realization of his share in case of dissolution of the firm

Introduction or Admission of partner (Section 31)

As per Section 31, no person can be introduced as a new partner to the firm without the consent of other partners. This is, however, subject to the provisions in the agreement of partnership and Section 30, which deals with minor partners. 

Modes of introduction

The following are the modes of introduction of a partner: 

  1. With the consent of all partners
  2. Introduction as per the contract between partners
  3. A minor admitted to the benefit of the partnership becoming a partner

Rights of incoming partner 

  1. Right to manage partnership business
  2. Right to access books of firm
  3. Right to capital, profit and loss
  4. Right to dissolve partnership
  5. Right to indemnification of losses

Liabilities of incoming partner 

A partner’s liabilities are only with respect to transactions subsequent to becoming a partner. The same is provided under Section 30(2). However, the incoming partner and co-partners can enter into an agreement where it provides that the incoming partner can be held liable for obligations of the firm prior to his arrival. 

Retirement of partner (Section 32)

Section 32 of Act talks about the retirement of partners. When the partner withdraws from the partnership by dissolving it then it is dissolution but not a retirement.

Any partner may retire:

  • When there is a partnership at will, by serving a notice to all the existing partners
  • When there is an express agreement among the partners
  • When the consent of all the partners is given

Liabilities of retired partner

A retired partner continues to be liable for the acts of firms and other partners till he or any other partners give public notice about his retirement. When the third party does not know that he was a partner and deals with the firm; then in such case a retired partner is not liable. if it is a partnership at will then there is no requirement to give public notice about his retirement.

The outgoing partner may enter into an agreement to not carry similar business or activities within a specified period of time.

Expulsion of partner (Section 33)

A partner can be expelled only when below three conditions are satisfied:

  • Expulsion of the partner is necessary for the interest of the partnership
  • Notice is served to the expelled partner
  • An opportunity of being heard is given to the expelled partner

If the above three conditions are not fulfilled then such expulsion will be considered as null and void.

Insolvency of a partner (Section 34)

When a partner is declared as insolvent by the court, it leads to the following consequences:

  • He ceases to be the partner of a partnership firm from the date of adjudication
  • His estate which is in possession of official liquidator ceases to be liable for any acts of the firm whether the partnership subsequently dissolves or not
  • Partnership ceases to be liable for any act of insolvency partner

Liability of estate of a deceased person (Section 35)

Generally, the partnership comes to end on the death of a partner but if there is a contract between partners to continue with the partnership on the death of a partner then surviving partner continues with the business after clearing the deceased partner estate from any liability for the future acts of the firms.

Liability of outgoing partner (Section 36)

The outgoing partner is restricted to perform acts like:

  • Using the name of the firm
  • Representing himself as a partner
  • Make the customer of the firm in which he was a partner as its own.

The outgoing partner may enter into an agreement not to carry similar business or activities within a specified period of time. After the specified period, the outgoing partner is allowed to carry on a similar business or advertise it.

Liabilities of outgoing partner to subsequent profits (Section 37)

When the any of the partners ceases to be a partner or dies and remaining partner continues with the business without settling the accounts then the outgoing partner is liable to get a share from the profit earned by the firm since the date he ceases to be a partner.

The share may be attributable to the use of a share of his property or 6% interest per annum on the amount of share in his property.

The surviving partner has the option to purchase the share of the deceased partner and if they purchase it then the deceased partner has no right to get the profit derived from such property.

Dissolution of a firm

Section 39 to 44 deals with the Dissolution of a firm.

Sometimes circumstances arise when the firm gets dissolved. Sometimes a firm is dissolved voluntary or by the order from the court. There are various modes prescribed under Section 39 to 44 for the dissolution of a partnership firm. Even when the partnership is dissolved then it gives certain rights and liabilities to the partners.

Lets us understand the concept of dissolution in detail through the Powerpoint Presentation given below.

Dissolution of a firm ( Section 39 to Section 44)

Liability of partners in Different Situations

Liabilities of partners after the dissolution of the partnership firm (Section 45)

The partners are liable for the acts of the firm to the third party until public notice is given. A partner who is declared as insolvent, or who is retired, the estate of a person who dies, or who was not known as a partner at the time of dealing with the third party will not be liable for the act.

Wind up the Business Post-Dissolution (Section 46)

When the firm is dissolved every partner has a right to apply for the firm’s property in the payment of debts and liabilities. If there is any surplus it needs to be distributed among the partners.

The partners have mutual obligations and rights until the affairs of the firm is wound up.

Settlement of partnership account (Section 48)

When the partnership has dissolved the accounts of the partners needs to be settled under the usual course of business. Various modes can be used for the settlement of accounts.

If there is a deficiency in capital or loss is incurred when it is paid out of profit. If profit is not sufficient or no profit is earned then it is paid out by the capital and by the partners if necessary. The partners contribute to the proportion of the profit sharing ratio.

The asset of the firm and the capital contributed by the partners to meet up the deficiency in the capital is applied in the following order:

  • Repayment to third parties
  • The amount which is due to him from the capital
  • The amount which is due to him on account of capital
  • And if any amount is left then it is distributed among all the partners in their profit sharing ratio.

Paying Firm Debts and Separate Debts (Section 49)

In a case when there are joint debts from the firm and the separate debts from the partner then joint debts from the firm is given priority and if any surplus is left then separate debts from the partner is to be paid off.

The property of the individual partners is applied firstly for the payment of separate debts.

Personal Profit Earned After Dissolution of Firm (Section 50 and Section 53)

When the firm is dissolved by the death of the partner and business is carried out by the existing partners or his legal heirs then they have to account for the personal benefit earned before winding up the partnership.

Section 53 states that if there is no contract the partner can restrain other partners from carrying similar activities, or using the firm’s name or firm’s property for their own benefit until the winding up process is complete.

Return of Premium on the Premature Dissolution of the firm (Section 51)

When the firm is dissolved before the expiry of a fixed period, then a partner paying a premium can receive a return of a reasonable part of the premium. Such rules are not applicable in a case when the partnership is dissolved by:

Misconduct of partner paying a premium (Section 52)

Post an agreement in which there is no clause for return of premium.

Contract Rescinded for Fraud or Misrepresentation

When the partnership arising from the contract is rescinded due to fraud and misrepresentation then the party who has rescinded the contract will be liable as:

After the debt of the firm is paid the lien on remaining assets. He will be treated as a creditor for the payment of any debts made by him.

An indemnity from the partners guilty of misrepresentation or fraud against all debts of firms.

Sale of Goodwill After Dissolution of Firm (Section 55)

The goodwill is treated as an asset. The goodwill is included in the assets while settling the account after the dissolution of the firm. The goodwill may be sold separately or with other assets. Once the firm is dissolved and goodwill is sold then any partners can carry on a similar business or advertise a business competing with the buyers of the goodwill. The partners are prohibited from doing the following acts:

  • To use the name of the firm
  • To represent himself as carrying the business
  • To solicit the customers of the firm dealing before dissolution.

Conclusion

Partnership is a very common type of business which is prevailing in the country. It has many advantages for the company. This Act is a complete Act as it covers all the aspect related to the partnership.

Frequently asked questions 

Which statute governed the law of partnership before 1932? 

Prior to 1932, the law of partnership was contained in Chapter XI of the Indian Contract Act, 1872. However, the Indian Contract Act did not contain provisions related to many aspects of the law of partnership, which called for the enactment of a separate statute that compensates for such inadequacies. 

Is the Partnership Act, 1932 an exhaustive statute? 

The Act does not consolidate the law of partnership into a complete single code, and hence it is not meant to be exhaustive. Section 3 of the Partnership Act provides that the provisions in the Contract Act that are not repealed and not inconsistent with the Partnership Act shall continue to be operative. 

Is the Partnership Act, 1932 retrospective in the application? 

Section 1(3) provides that the Act comes into force on October 1st, 1932. The Act applies prospectively and not retrospectively. The same has been clarified under Section 74 of the Act which states that the Act shall not affect what has been done before its commencement. 

References

  1. https://www.toppr.com/guides/business-laws/the-indian-partnership-act/consequences-of-dissolution-of-a-firm/
  2. https://www.advocatekhoj.com/library/bareacts/partnership/index.php?Title=Indian%20Partnership%20Act,%201932
  3. http://www.legalservicesindia.com/article/158/Indian-Partnership-Act,1932.html
  4. https://www.lawnotes.in/Indian_Partnership_Act,_1932

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Procedure established by law

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This article is written by Shraddha Jain, a student of the Institute of Law, Nirma University, Ahmedabad. This article discusses the concept of procedure established by law and how its interpretation has changed from case to case.

This article has been published by Sneha Mahawar.

Introduction 

Article 21 of the Indian Constitution uses the phrase “procedure established by law”. It signifies that if a law has been passed by the Parliament by following the proper procedure, then it will be a valid law. Implementing this concept indicates that a person might be deprived of his life or personal liberty according to the procedure established by law. After the judgment of Maneka Gandhi v. Union of India (1978), the Indian judiciary adopted a liberal meaning of the phrase procedure established by law to make it equivalent to the  American concept of due process of law to safeguard the fundamental rights of an individual.

Different definitions of procedure established by law

The literal meaning of the phrase procedure established by law signifies that the law that has been enacted by the Parliament or the relevant authority is lawful if the proper procedure has been followed.

In the case of King Emperor v. Benoari Lal Sharma (1944), the Privy Council described the procedure established by law as “the conventional and well-established criminal procedure”.

As per the Oxford Dictionary, the term ‘established’ implies “to fix, settle, initiate, or regulate by statute or contract.” The term ‘established’ implies an authority that sets the boundaries. This authority, according to the word, might be either the Parliament or a written agreement between the parties. As a result, there is no reason for assigning the definition of ‘jus’ to ‘law’ in Article 21.

In the case of A.K. Gopalan v. the Government of India (1965), the Supreme Court defined the procedure established by law under Article 21 as merely following the procedure mentioned in the statute and nothing more. As a result, a person’s ‘life’ or ‘personal liberty’ might be taken away if a law has been passed as per the procedure. The exclusion of the term ‘due’, the restriction provided by the term ‘procedure,’ and the addition of the word ‘established’ highlight the concept of Parliamentary prescription in the language used in Article 21. The Constitution of India provides the Parliament with the final say in determining the law by using the words procedure established by law.

In Maneka Gandhi v. Union of India (1978), the Supreme Court ruled that a procedure established by law under the ambit of Article 21 should be “fair, just and reasonable, not fanciful, oppressive or arbitrary“, otherwise it will not be considered as a procedure at all, and the condition of Article 21 will not be fulfilled. Therefore, in our country, the phrase procedure established by law has achieved the same importance as the phrase due process of law in the American Constitution.

Procedure established by law and due process of law

Procedure established by law indicates that a law that has been passed by following a proper procedure is lawful even if it violates principles of fairness and equality. The rigorous attention to the procedure may increase the chance of endangering a person’s life and personal liberty. To minimise such circumstances, the Supreme Court through various judgements emphasised the significance of the due process of law.

Due Process of Law = Legal method + the procedure must be fair, just, and not arbitrary.

Difference between procedure established by law and due process of law

Point of differenceProcedure established by lawDue process of law
MeaningIt means that a law passed by the Parliament would be valid if it had undergone the proper procedure.The due process of law theory examines not only whether an existing law takes away a person’s life and personal liberty but also examines whether the law is fair, just, and not arbitrary.
OriginOriginated from the British Constitution.Originated from the Constitution of the United States.
ProvisionArticle 21 of the Indian Constitution mentions the phrase procedure established by law.The Indian Constitution does not explicitly mention the phrase due process of law.
ScopeThe scope of procedure established by law is narrower.The scope of due process of law is broad.
RoleTo determine the legality of a statute by examining whether the procedure for establishing it has been followed properly or not.It determines that the law in question is not arbitrary and unfair.
Power of judiciaryIt provides limited power in the hands of the judiciary.It provides greater power in the hands of the judiciary.
ProtectionProcedure established by law safeguard individuals from the arbitrary actions of only the executive.The due process of law protects individuals from both arbitrary executive and legislative action.
Impact of the doctrineStrict adherence to the legal procedure raises the risk of negatively impacting life and individual liberty.Pay attention to all the legal rights and gives personal privacy to all individuals.
Emphasis of the doctrineThis doctrine emphasises more on the wisdom of the legislature and the power of public belief in the nation.The due process of law gives a wide range of power in the control of the Judiciary.

Similarities between procedure established by law and due process of law

Although the application of the doctrine of procedure established by law and due process of law are different but there are certain similarities between them which are mentioned below:

  • In the Indian polity, both the procedure established by law and the due process of law are essential principles.
  • The Supreme Court is the highest court in both situations. The Supreme Court of India decides on the legality of the legislation.
  • The procedure established by law is specified in the Indian Constitution and therefore is lawful in the country. However, in several recent Supreme Court decisions, the issue of due process has been brought back into focus.

Procedure established by law and Article 21 of the Indian Constitution

Article 21 is a fundamental right under Part III of the Constitution. It is considered to be one of the most important and progressive articles in our Constitution. Article 21 can only be used whenever the ‘State,’ as defined in Article 12, deprives an individual’s life or personal liberty. As a result, infringement of the right by a private person falls beyond the scope of Article 21.

Article 21 of the Indian Constitution provides, “No one shall be deprived of his life or personal liberty unless in accordance with the procedure established by law.” At the international level, the phrase procedure established by law has also been used in relation to the right to life and personal liberty under Article 31 of the Japanese Constitution of 1946, which specifies, “No one shall be stripped of his life and personal liberty, and no criminal punishment should be levied, apart from procedure established by law.”

Article 21 of the Indian Constitution guarantees two basic rights:

  • The right to life;
  • The right to personal liberty.

The basic meaning of Article 21 is that the two rights mentioned above cannot be taken away without following the proper procedure. This means that the above rights, i.e., life and personal liberty, can be taken away if the legislature follows the proper procedure. The ambit of this concept was expanded in the case of Maneka Gandhi v. Union of India (1978), which will be addressed later in this article.

Judicial pronouncements on the procedure established by law

In the case of A.K. Gopalan v. Government of India (1965), AK Gopalan, a political leader, was arrested in Madras under the Preventive Detention Act, 1950. He claimed that the action taken under the Prevention Detention Act violated his fundamental rights under Article 14, Article 19, and Article 21 of the Indian Constitution. He also claimed that the phrase procedure established by law in Article 21 refers to due process of law. In his case, the procedure followed was not proper, resulting in a breach of Article 21 of the Indian Constitution.

The Supreme Court ruled that if the government takes away an individual’s freedom in accordance with the procedure established by law, i.e., if the imprisonment was done by following the proper procedure, then it will not be considered a breach of Articles 14, 19, and 21 of the Indian Constitution. The Court took a narrow interpretation of Article 21 in this case. The Court took Article 21 very literally in this case and ruled that the expression procedure established by law indicates that a procedure established in a statute can take away the right to life and personal liberty.

However, in this case, Justice Fazal Ali gave a dissenting opinion. He said that the meaning of the term procedure established by law also implies the due process of law, which indicates that no one should be left without the opportunity of being heard i.e. audi alteram partum (no person shall be left unheard) since it is one of the important principles of natural justice.

The Court in Satwant Singh Sawhney v. D. Ramarathnam (1967) determined that the procedure established under Article 21 to deprive a person’s life and liberty has to be examined under Article 14 to check its validity and fairness. This decision started a new trend in the legal system, which was confirmed in R.C. Cooper v. Union of India (1970), in which the Supreme Court unequivocally said that the procedure followed under Article 21 must be reasonable.

In 1975, when a national emergency was imposed, the Court went against its own decision. In the case of ADM, Jabalpur v. Shivakant Shukla (1976), the Court upheld the detention under the Maintenance of Internal Security Act  (MISA), 1971, while rejecting Article 21 entirely. The Court ruled that during an emergency, Article 21 is deemed to be suspended (overturned by the Puttaswamy case). So, in this case, the Court will only look at the literal meaning of the procedure established by law. The Court did not acknowledge whether the act of government (MISA, 1971) was just, fair, or reasonable.

In the case of Maneka Gandhi v. Union of India (1978), the passport of Maneka Gandhi was detained by officials under the provisions of the Passports Act, 1967. The petitioner went to the Supreme Court under Article 32 and argued that the government’s act of seizing her passport was a clear violation of her personal liberty under Article 21. This decision greatly expanded the ambit of Article 21 and accomplished the purpose of making our country a welfare state, as mentioned in the Preamble. The Court concluded that the procedure established by law ought to be fair, just, and reasonable. The Court noted that the procedure specified by law for depriving a person of his right to life and personal liberty must be proper, reasonable, and fair, rather than discretionary, whimsical, and oppressive.

Post Maneka Gandhi judgment

In the case of Mathews v. Eldridge (1976), United States Supreme Court established the triple test to assess whether the legislation violates individual freedom or not. A law has to satisfy three tests to become a valid law. Post Maneka Gandhi’s judgment, the Supreme Court of India also adopted this test. The three tests are as follows:

  1. Whether there is any existing provision that allows the state to deny any person’s life and liberty;
  2. Whether the Parliament that has passed the concerned legislation has the authority to do so;
  3. Whether the assembly fulfilled the proper procedure while passing the legislation.

If a law fails to fulfil any of the abovementioned conditions, then it would be considered an arbitrary act of the state.

Conclusion

Before the Maneka Gandhi case, the extent of Article 21 of the Indian Constitution was very limited. However, in the Maneka Gandhi case, the Supreme Court broadened the ambit of Article 21 of the Indian Constitution by declaring that due process of law is an inherent element of procedure established by law. Moreover, an individual’s life and freedoms can be taken away only when the following requirements are satisfied:

  • The law must be valid.
  • There must be a proper procedure.
  • That procedure should be just, fair, and not arbitrary.

If the procedure provided by law is frivolous, oppressive, or unreasonable, then it should not be considered a procedure at all. A system has to be reasonable or just in order to represent the idea of natural justice. Natural justice seeks to establish justice in the law.

Frequently Asked Questions (FAQs) 

What is actually practised in India as a procedure established by law or due process of law?

Since 1978, the Indian judiciary has attempted to make the words procedure established by law identical with due process of law whenever it comes to protecting the rights of an individual. In the judgement of Maneka Gandhi v. Union of India (1978), the Supreme Court ruled that a procedure established by law under Article 21 should be “just, fair, and reasonable” and “not unjustifiable, fanciful, or arbitrary.” Thus, in India, the phrase procedure established by law has achieved similar importance as the phrase due process of law in the USA.

What is the principle of natural justice?

Natural justice is a fundamental idea that states that all people should be given fair and unbiased treatment. This concept mandates that judgments be decided without bias and that all parties concerned should be given an equal opportunity to be heard.

Which country has a procedure established by law?

The phrase procedure established by law seems to be borrowed from Article 31 of the Japanese Constitution.

Who introduced the procedure established by law?

The procedure of law is mentioned under Article 21 of the Indian Constitution. The Maneka Gandhi v. Union Of India (1978) brought forth and established the difference between the due process of law and procedure established by law.

 References 


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Section 145 CrPC

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This article is written by Monika Pilania, a student of Maharshi Dayanand University, Rohtak. This article seeks to elucidate Section 145 of the CrPC, which contains the procedure where a dispute concerning land or water is likely to cause a breach of peace.

It has been published by Rachit Garg.

Introduction

Conflicts over immovable property, such as land, water, crops, and other products from the land, as well as the right to utilise such properties, sometimes result in violence or killing, which pushes people to commit crimes. Land conflicts must be resolved by the Civil Court since they are of a civil nature, i.e., between two parties over a civil problem such as ownership of the land, the title to the land, etc. What happens when a party uses force to obtain land or otherwise breaches the peace? In these situations, the law provides for an alternative criminal proceeding under Section 145 of the Criminal Procedure Code (CrPC) in order to stop a breach of peace and fairly and justly protect the party’s interests.

Chapter 10(D) of the Code of Criminal Procedure, 1978, which comprises Sections 145 to 148, contains the legal regulations that deal with preventing crimes related to property disputes. When a Magistrate finds that there is a dispute between two parties over a certain piece of land, how would he handle the circumstance?

This Section is self-contained, self-explanatory, and comprises ten subsections. The Magistrate who has been granted jurisdiction under this Section must limit his conduct to the provisions of this Section alone. Proceedings conducted in accordance with Section 145 are of a summary nature.

Section 145 deals with the following provisions, namely:

  • Procedure when a land dispute is likely to result in a breach of peace
  • Power of Magistrate

What is breach of peace

Section 145 of the Code of Criminal Procedure contains provisions related to a breach of peace on account of a dispute over land or water. If there is a dispute between two parties/groups who own a piece of land, water, or a boundary, this will result in a breach of peace and the Executive Magistrate has the power to take action in this regard.

The following conditions must be met in order for a magistrate to have jurisdiction under Section 145:

  1. That there is a dispute.
  2. That it might result in a breach of peace.
  3. That the disputed property includes buildings, markets, fisheries, crops, or other agricultural products, as well as the land’s boundaries, rentals, or profits.
  4. That the alleged possession occurred within two months of the Magistrate’s first order, and
  5. That it falls within the Magistrate’s jurisdiction.

Let me illustrate this with an example: –

Two parties, ‘A’ and ‘B,’ are at odds over a plot of property.

‘A’ approaches ‘B’ with other men carrying deadly weapons and tells him that he will return on Monday and forcefully capture the land, firing a few bullets into the air.

Being a short-tempered individual himself, “B” threatens “A” not to attempt to capture the land on Monday and fires a few rounds into the air as well.

In such a circumstance, the parties are extremely likely to engage in a deadly fight. Therefore, in such a circumstance, if the Executive Magistrate is informed by the police report or any other material that a breach of peace is likely to occur, he might order the parties to appear in court and present their written arguments to him.

Procedure to prevent breach of peace

Section 145 of the CrPC contains provisions related to the procedure which is being followed to prevent a breach of peace.

Procedure where dispute concerning land, etc is likely to cause breach of peace

A Magistrate of the First Class may take action if, after reviewing a police report or other information, he is convinced that there is a dispute over any immovable property, including buildings, markets, fisheries, crops, or other land products, and the rents or profits from such property, within the local limits of his jurisdiction that is likely to result in a breach of the peace. When a magistrate decides to take action in a dispute, he or she must issue a written order outlining the reasons why the parties must appear in court within a certain period and submit written statements of their respective claims regarding the fact that they actually possess the object of the dispute. There is no mention of any petition under Section 145(1). The “police report” or “other information” must satisfy the magistrate. This “information” could be a request made by a party with an interest, a third party, or even the Magistrate’s personal information. He may have received the information orally or in writing, or he might have witnessed a party acting in a way that indicated he should be concerned about a possible breach of the peace. Thus, it would seem that no formal application is required for the start of the proceedings. A party need not often present a case to the Magistrate. When the Magistrate, who is himself suspicious of a breach of the peace, makes certain inquiries and is ultimately satisfied that there is an apprehension of a breach of the peace and issues a written order stating the grounds of his being satisfied, the date of his order cannot be traced back to the first piece of information he discovered. This is because the starting point of an application or even a police report may not always be available. [ Section 145(1)]

Land or water

For the purposes of Section 145 of the Criminal Procedure Code, “land or water” refers to any immovable property, including houses, markets, fisheries, crops, and other agricultural products, as well as the rents and profits made by any such property. [ Section 145(2)]

Service of summons etc

This order shall be served as a summons, and a copy thereof shall be published by affixing it to a visible location at or near the subject of dispute. [Section 145(3)]

Inquiry as to possession

The Magistrate will then investigate possession in the following steps. Regardless of the case’s merits, he must read the submitted statements, hear the parties, receive any evidence they may present, consider the impact of that evidence, obtain any additional evidence he deems necessary, and, if possible, determine which of the parties was in possession of the subject at the time the order was made. However, if it seems to the Magistrate that any party has been unlawfully and violently removed from possession during the two months prior to the date of such order, he may treat the person thus removed as if he had been in possession at such date. The Magistrate may attach the object of the dispute in an emergency while he makes a ruling. [Section 145(4)]

If there exists no conflicts

The Magistrate shall cancel his first order and cease all future actions thereon if either party proves that there is or has never been a dispute as described above; but, prior to such cancellation, the Magistrate’s initial order shall remain in effect. The provisions of SubSection (5) are clear. All parties are allowed to show that no conflict “exists or has existed” that may lead to a breach of the peace. The sub-Section expressly states that the Magistrate shall withdraw his ruling in this situation and that all future actions shall be delayed. It’s possible that at this point before a judgement has been taken, the suspicion of a breach of the peace has disappeared, but the conflict itself is still in progress. [ Section 145(5)]

Possession shall be retained by the party in possession unless lawfully evicted

If the Magistrate determines that one of the parties was or should be considered to be in possession of the subject, he or she must issue an order stating that the party is entitled to possession of the subject until evicted from it in accordance with the law, or until the issue of title is resolved in a civil court. In addition, the Magistrate shall prevent any disturbances of such possession until such removal; however, if a party has been illegally and violently evicted within two months of the date of the first order, the Magistrate may return that party’s possession. [ Section 145(6)]

In the event of the death of any party to the proceedings, the following legal heirs will be considered a party to the inquiry

If a party to one of these proceedings passes away, the Magistrate may make the legal representatives of the deceased party a party to the proceeding and will then continue the investigation if there is any doubt as to who the legal representative of the deceased party is for the purposes of the proceeding. All individuals claiming to be the representative of the deceased party shall be made parties thereto. [ Section 145(7)]

Disposal of crops or other property produce prone to rapid and natural decay

If the Magistrate believes that any crop or other product of the property that is in dispute is subject to rapid and natural decay, he may order its custody or sale and, after the investigation is complete, may make an appropriate order for the disposal of that property or the proceeds of its sale. [ Section 145(8)]

Summoning of witness

On request from any party, the Magistrate may, at any time during the proceedings under Section 145, issue a summons to any witness requiring him to appear or to produce any document or material. [Section 145(9)]

Nothing in Section 107 limits the Magistrate’s authority to proceed

Section 145 of the Criminal Procedure Code further states that nothing in the Section should be interpreted as limiting the magistrate’s power to proceed under Section 107 of the Criminal Procedure Code. Section 107 of the Code of Criminal Procedure states that the magistrate may attach the object of the dispute until a competent court determines the rights of the parties thereto or the person entitled to possession thereof, if he determines that none of the parties was then in such possession or if he is unable to determine which of them was then in such possession. [Section 145(10)]

Powers of Magistrate

A Magistrate has the following powers in this regard:

  1. The Magistrates have the authority to attach the subject of the dispute and appoint a receiver or order that a certain status quo be preserved, generally in favour of the person in possession of the property on the day of judgement.
  2. The Executive Magistrate has the power to make an order requiring the parties to attend the court in person and to put in written statements of their respective claims.
  3. The Executive Magistrate has the power to order an investigation.
  4. The Executive Magistrate has the power to call upon the production of Documents.
  5. The Executive Magistrate has the power to issue a summon to any witness to attend the court or produce any documents.
  6. The Executive Magistrate has the power to make an order as he thinks fit.

Case laws related to Section 145 of CrPC

Held:

According to the Section, the Magistrate must be convinced that there is a conflict over an immovable property and that this dispute is likely to result in a breach of peace before starting any legal proceedings. However, the provision requires him to grant a preliminary order under subsection (1) after he is satisfied with these two requirements, and then to make an inquiry under subsection (4) and pass a final decision under subsection (1). It is not essential for the suspicion of a breach of peace to be present or continue at the time the final order is given. Regardless of the parties’ rights, the inquiry under Section 145 is only allowed to focus on the issue of who was in actual possession on the day of the preliminary order. The High Court refused to address the issue of whether the evidence presented to the magistrate was sufficient while exercising its revisional jurisdiction.

Held:

Section 145 is solely meant to provide a fast remedy for preventing a breach of peace arising from disputes over immovable property by keeping one or both parties in possession. Section 145 proceedings are quasi-judicial and quasi-administrative in character, with the goal of preventing a breach of peace and preserving tranquillity.

The orders that a magistrate issues in accordance with Section 145 of the Code of Criminal Procedure, 1973 are referred to as “police orders.” A provisional police order based on prior possession is all that the Magistrate’s order under this Section is. It is formed solely to prevent a breach of the peace, and because it is made regardless of the rights of the parties, it cannot allow the person in whose favour it is issued to defend an action on the property.

The Executive Magistrate is asked to decide the fact of real possession, not which party has a right to possess, in the proceedings under Section 145 of the Code of Criminal Procedure, 1973. A person is often prevented from asserting the criminal court’s jurisdiction if they have filed a suit or other remedy in civil court for possession and an injunction based on the title. However, if there is no question as to the title, this normal rule does not apply. When a claim or title is undisputed, the parties are co-owners on their own evidence, and there is no partition, one cannot be allowed to act violently illegally and demand that the other follow the law. The Magistrate is authorised to take cognizance under Section 145 of the Code of Criminal Procedure, 1973, if the dispute is not over the right to possession but rather over the question of possession.

While considering Section 145 of the Criminal Procedure Code, the Supreme Court stated, “Quite obviously, Sections 145 and 146 of the Criminal Procedure Code together comprise a scheme for the settlement of a situation where there is a danger of a breach of the peace due to a dispute about any land or water or their limits.”

Section 146 can be interpreted to mean that after an attachment has been made in any of the three circumstances listed there, the dispute can only be settled by a competent court and not by the Magistrate who made the attachment if it is taken out of its context and read independently of Section 145. However, Section 146 and Section 145 cannot be thus separated. It must only be interpreted in light of Section 145. Without a doubt, contextual construction will win out against isolationist construction. If not, it could be misleading. That is one of the fundamental elements of construction.

Held as follows: As a result, it is obvious that a finding of the presence of a breach of the peace is not essential at the time a final order is given. Furthermore, there is no provision in the Code of Criminal Procedure that mandates a finding of the existence of a breach of the peace in the final order. It is not necessary for the breach of peace to continue at every stage of the proceeding once a preliminary order issued by the Magistrate outlines the grounds for holding that one exists, unless there is convincing evidence illustrating that the dispute has ended in order to bring the case within the purview of subsection (5) of Section 145 of the Code of Criminal Procedure. Unless a situation like this occurs, the procedures must proceed to their natural conclusion, which is the final ruling under Section 145, subsection (6).

Held: When a class lawsuit over the same subject matter is already ongoing, the provisions of Section 145 of the CrPC should not be used. The parties should, as law-abiding citizens, bring their disagreement before a civil court rather than take matters into their own hands, keeping in mind that the whole intent of that clause is to avoid the disturbance of public peace at their request.

The main question that has been answered by the Supreme Court is whether the respondent had the right to use the Magistrate’s jurisdiction under Section 145 CrPC under the facts and circumstances of the current case, where a civil suit for a declaration was already pending before the appropriate court, the civil court, and the Magistrate had the right to start the proceedings and issue any interim orders appointing a receiver therein. It is undeniable that the court issued an interim injunction during the civil case itself and placed limitations on the parties’ ability to sell the subject property. It’s true that the applicant before the Magistrate hasn’t been named as a party-defendant in the civil suit, but that won’t change the situation in any way since, in our opinion, the civil court is in possession of the matter, it has the authority to grant any necessary relief, and the Magistrate lacks the authority to do so in the particular case at hand. In light of the situation, the High Court’s impugned ruling as well as the proceedings started before the Magistrate in accordance with Section 145 CrPC are quashed. It goes without saying that the current situation must be preserved so that the parties can request the necessary orders from the civil court.

Latest Supreme Court and High Court rulings

In the recent judgement U.Ramanjaneyulu vs The State of Andhra Pradesh (2019), the High Court of Andhra Pradesh pointed out that the actions under Section 145 CrPC are not maintainable if the issue involving the same subject property was either already resolved by a Civil Court or was already pending in that court. If civil litigation is ongoing in this situation, the Executive Magistrate shall instruct the parties to seek the necessary instructions from the relevant Civil Court. Similar to that, if the Civil Court has already decided the issue involving the same property, the Sub-Divisional Magistrate must instruct the parties to carefully abide by its ruling.

The Punjab and Haryana High Court ruled in a significant judgement (Kuldip Singh vs State of Haryana, 2019) that will change the way provisions of the Code of Criminal Procedure are used to interfere with a party’s control over land in the event of a dispute. Proceeding under Section 145 cannot be used as a tool to obtain possession of the land on the basis of title. “The parties should have been moved to the civil court where a lawsuit is already proceeding, according to the executive Magistrate. A tool to obtain control of the land on the basis of title cannot be used in the procedures under Section 145 of the Code” Justice Kshetarpal added.

In Mohd Shakir Vs State of Uttar Pradesh (2022), the Magistrate made observations and gave instructions regarding the rights of possession that one party possessed, and then urged the other party to refrain from interfering with the property under consideration. An issue was raised that whether the Magistrate’s Court can make findings, observations, and interim orders while the Section 145 CrPC case is still pending in the civil courts. The Court stated that when all legal proceedings on a subject are dropped due to continuing proceedings on the same matter in civil courts, the Magistrate cannot make any further remarks or draw any conclusion based on the findings obtained.

There is a strange case where an F.I.R. is lodged in Crime 45 of 2020 under Section 107 CrPC. The case name is Bandi Parushuramudu v/s The State of Andhra Pradesh, (2021). This criminal petition under Section 482 of the Code of Criminal Procedure, 1973 was submitted in an attempt to quash the F.I.R. in Crime No. 45 of 2020, which was registered under Section 107 of the CrPC. Justice Manavendranath Roy expressed outrage and questioned how the SHO could file an FIR under the above-mentioned Section while disobeying basic legal principles.

The procedures under Section 107 are not punitive in nature and are purely preventive, according to Justice Roy. As it is not an offence for which an FIR is to be registered, he added, it is not required by law that an FIR be registered in order to begin proceedings under the provisions.

Conclusion

We have seen in real life various issues related to the possession of property. Section 145 is implemented in real life when there is a dispute over an immovable property and the dispute is such that it may likely cause a breach of peace. Then, in order to prevent the disturbance and breach of peace, this power is given to the magistrate to resolve the issue of the right of possession. Now the question arises how and when this Section is used and why it was included, as we all know, a civil dispute is handled by a civil court. This provision was essentially added because immediate action is required in this situation. However civil courts take years to resolve a dispute related to property. So, in order to prevent breach of peace and if there is a need to take immediate action, this power is given to the Magistrate. Its purpose is to determine who was in possession of the property either on the day a breach was likely to occur or, in cases where one party has been illegally and violently removed from the property, within two months of that date. Since the Magistrate is solely interested in the issue of real possession, he must resolve the issue of the right to possession.

Frequently Asked Questions (FAQs) 

What is the object of enactment of Section 145 of CrPC?

Section 145 of the CrPC was enacted in order to prevent public disturbances and ensure that no party gains an advantage over another by making the other party prove his ownership in civil court. When there is a severe risk of a breach of the peace and the opposing parties are not in real possession of the property at the time of the preliminary order but have legitimate rights to succeed to it, Section 145 of the Criminal Procedure Code may be utilised. 

Is the likelihood of a breach of peace essential for a proceeding u/s 145 of CrPC?

An action under Section 145 of the Criminal Procedure Code requires the Magistrate to be convinced that there is a probability of a breach of the peace, either by a police report or other information; the mere existence of a land dispute is insufficient to grant him jurisdiction. The purpose of Section 145 was to allow the Magistrate to prevent a breach of the peace. He must also make the fact that a breach of the peace may occur a concern in his proceedings, and he must notify the parties that he is acting in accordance with Section 145 of the Criminal Procedure.

What is the preliminary order and what is the final order?

The preliminary order starts the legal machinery in action. The final order identifies which party is in possession, specifies that they will remain there until evicted by civil court order, and prevents any interference with their possession. The same Magistrate issues both preliminary and final orders. Preliminary and final orders are issued in the execution of the Magistrate’s authority under Section 145 of the CrPC. The final order is made under subsection (4) of Section 145 of the Criminal Procedure Code, whereas the preliminary order is made under subsection (1).

What is the difference between the exercise of power under Section 107 and Section 145 CrPC?

The exercise of power under Section 145 of the Criminal Procedure Code is mandatory. In contrast to Section 145 CrPC, which deals with a specific situation where a dispute is allegedly present that is likely to result in a breach of the peace, among other things, involving immovable property, Section 107 does deal with the prevention of breach of peace, but it does so in a very general manner. In this opinion, Section 145 CrPC, which is of a particular nature, would apply to a matter involving a dispute over ownership of immovable property rather than Section 107 CrPC.

What is the difference between the exercise of power under Section 112 and Section 145 CrPC?

The nature of procedures under Ch. XI pertains to the avoidance of nuisance or apprehended danger and has the smack of being of a civil nature. In contrast, Section 112 CrPC. refers to security for preserving peace and for good behaviour, which in fact impacts a person’s liberty and smacks of being punitive. The former concerns the detention of a person, whereas the latter concerns the attachment of property.

References


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Trade Unions Act, 1926 : a comprehensive analysis

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The Trade Unions Act
Image source - https://bit.ly/2Yl9JF0

This article is written by Shivangi Tiwari, a student pursuing B.A.LL.B. from Hidayatullah National Law University, Raipur and Kishita Gupta, a Unitedworld School of Law, Karnavati University, Gandhinagar, graduate. This is an exhaustive article dealing with the Trade Union Act, 1926.  The article also discusses the history, development, and the shortcomings of trade unions, along with a discussion on collective bargaining.

It has been published by Rachit Garg.

Table of Contents

Introduction

Before the emergence of industrialization on a massive scale, there were personal contracts between workers and employers. Therefore, no requirement for the evolution of any machinery governing the relationship between workers and employers arose until then. But after the establishment of the modern factory system, this relationship lost its significance due to large-scale industrialization, which enticed employers to reduce the cost of production in order to withstand the cut-throat competition in the market and maximise their profit by using technologically more sophisticated means of production. This in turn resulted in the rise of a new class of workers who were completely dependent on wages for their survival, which changed the existing employer-and-employee relationship in which the employees were exploited by their employers. The conflict of interest between workers and employers and the distress of workers resulted in the growth of various trade unions.

A trade union is an organised group of workers who strive to help the workers on issues relating to the fairness of pay, good working environment, hours of work, and other benefits that they should be entitled to instead of their labour. They act as a link between the management and the workers. In spite of being newly originated institutions, they have turned into a powerful force because of their direct influence on the social and economic lives of the workers. To control and manage the work of these trade unions, different legislation regulating the same is required. In India, the Trade Unions Act of 1926 is a principal Act for controlling and managing the work of trade unions. The present article aims at explaining and bringing forth various aspects of the Act.

History of trade unionism in India

In India, trade unions have developed into an important platform for putting up with the demands of workers. They have also turned into one of the most influential pressure groups, which is an aggregate seeking to influence the government in framing legislation in favour of workers without aspiring to become part of the government. As an organised institution, trade unionism took its concrete shape after the end of World War 1. The trade unions in India are essentially the product of modern large-scale industrialization and did not grow out of any existing institutions in society. The need for an organised trade union was first realised in 1875 by various philanthropists and social workers like Shri Sorabji Shapurji Bengali and Shri N.M. Lokhandey, whose constant efforts resulted in the formation of trade unions like the Printers’ Union of Calcutta (1905) and the Bombay Postal Union (1907). 

The setting up of textile and mill industries at the beginning of the 19th century in the presidency towns of Bombay, Madras, and Calcutta gave impetus to the formation of industrial workforce associations in India. The Bombay Mill-Hands Association, founded by N.M. Lokhande in 1890, was the first labour association in India. The following years saw the rise and growth of several other labour associations and unions in India, like the Madras Labour Union, which was the first properly registered trade union founded by B.P. Wadia in the year 1918. In the year 1920, the country saw the growth of the Ahmedabad Textile Labourer’s Association in Gujarat, which turned into a union under the guidance of Mahatma Gandhi and was considered to be one of the strongest unions in the country at that time because of the unique method of arbitration and conciliation it had devised to settle the grievances of the workers with the employers. Since the union followed the ideals of truth and nonviolence laid down by Mahatma Gandhi, it was able to secure justice for the workers in a peaceful manner without harming the harmony in society. In the same year, the first trade union federation, the All India Trade Union Congress (AITUC), saw the light of day. It was formed after the observations made by the International Labour Organisation which highlighted the influence of politics on trade unions and associations and how the same is detrimental to any economy’s ability to prosper.

The importance of the formation of an organised trade union was realised by nationalist leaders like Mahatma Gandhi, who, to improve the employer and worker relationship, introduced the concept of trusteeship, which envisaged the cooperation of the workers and employers. According to the concept, the people who are financially sound should hold the property not only to make such use of the property as will be beneficial to themselves but should make such use of the property as is for the welfare of the workers who are financially not well placed in society, and each worker should think of himself as being a trustee of other workers and strive to safeguard the interests of the other workers.

Many commissions also emphasised the formation of trade unions in India for eg. the Royal Commission on labour or Whitley commission on labour which was set up in the year 1929-30 recommended that the problems created by modern industrialization in India are similar to the problems it created elsewhere in the world and the only solution left is the formation of strong trade unions to alleviate the labours from their miserable condition and exploitation.

Development of Trade Union Law in India

Labour legislation in India has a key impact on the development of industrial relations. The establishment of social justice has been the principle of all labour legislation in India. The establishment of the International Labour Organisation to uplift the condition of labour all over the world gave further impetus to the need for well-framed labour legislation in the country. Several other internal factors like the Swaraj movement of 1921-24, the Royal Commission on Labour also paved the way for various labour laws and also encouraged the framers of the constitution to incorporate such laws in the constitution which will benefit the labourers. Under the Constitution of India, labour is the subject of the concurrent list and both the centre and the state can make laws related to the subject. The different labour laws in the country are as follows:

  • The Apprentices Act, 1961: The object of the Act was the promotion of new manpower at skills and the improvement and refinement of old skills through practical and theoretical training.
  • The Contract Labour (Regulation and Abolition) Act, 1970: The object of the Act was the regulation of employment of contract labour along with its abolition in certain circumstances.
  • The Employees’ Provident Funds and Misc. Provision Act, 1952: The Act regulated the payment of wages to the employees and also guaranteed them social security.
  • The Factories Act, 1948: The Act aimed at ensuring the health of the workers who were engaged in certain specified employments.
  • The Minimum wages Act, 1948: The Act aimed at fixing minimum rates of wages in certain occupations.
  • The Trade Union Act, 1926: The Act provided for the registration of trade unions and defined the laws relating to registered trade unions.

Provisions of the Trade Unions Act, 1926

The labourers, especially the ones who work in the unorganised sectors, lack the capacity to bargain, and this becomes a major reason for their exploitation. The right to collective bargaining is provided only to those trade unions that are registered. But in India, there is legislation regarding the recognition of trade unions but there is no single legislation on the registration of trade unions. Realising the need to have central legislation for the registration of trade unions, the parliament passed the Indian Trade Union (Amendment) Act in the year 1947. The said Act sought to introduce Chapter III-A into the Trade Union Act, 1926, which enumerated the conditions required for the mandatory recognition of any trade union. However, this Act was never brought into force. Therefore, the mandatory recognition of trade unions is not present under any law in force in India.

The words in Section 1 of the Act, “except the State of Jammu and Kashmir” were omitted by the amendment Act 51 of 1970. Thus, the Trade Unions Act of 1926 extends to the whole of India.

Definition clause

Section 2(h) lays down the definition of trade unions. It states the following:

Trade Union means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions:

Provided that this Act shall not affect –

(i) any agreement between partners as to their own business;

(ii) any agreement between an employer and those employed by him as to such employment; or

(iii) any agreement in consideration of the sale of the good-will of a business or of instruction in any profession, trade or handicraft.

A trade union is typically thought of as a group of wage earners or workers. It is a voluntarily formed group of workers in a specific trade or business. An organisation of wage workers known as a trade union was created largely for the purpose of taking collective action to further the defence of its professional interests.

These are the components of a trade union:

  • There must be a combination of employers and workers in a union;
  • The business trade is necessary, and
  • The primary goal of the union must be to control employer-employee interactions and establish limitations on how any trade or company may be conducted.

Since it includes both employers’ unions and workers’ unions, the definition of a trade union under Section 2(h) is excessively broad.

It was held in National Organisation of Bank Workers’ Federation of Trade Unions v. Union of India (1993) that a federation is not a trade union in accordance with Section 2(h) of the Trade Unions Act of 1926 if it is not a registered organisation under that Act. Any federation made up of two or more unions is included in the definition. The appellant lacked the authority to initiate or make any demands for and on behalf of the employees because it is not a registered organisation.

The Madras High Court in the case of the Registrar of Trade Unions, Union Territory of Pondicherry v. the Government Press Employees Union represented by its Secretary V. Thirunavukkarasu (1975) observed that the workmen who are employed in an industrial undertaking, for example, a government press, are ‘workmen’ entitled to the benefits of the Trade Unions Act of 1926.

Registration of trade unions

By relying on the registration mechanism, unions are encouraged to grow steadily and permanently. According to the Act, a registered trade union is entitled to certain protections and benefits. As a result, the union’s supporters are prompted into registering their trade unions under the Trade Unions Act of 1926.

The regulations relating to the registration of trade unions are outlined in Sections 3 to 14 of Chapter 2 of the Trade Union Act of 1926 and the Central Trade Union Regulations, 1938, which have around 17 Rules and forms A, B, and C. A useful tool for ensuring the expansion of long-lasting and reliable unions is registration. Although it is not required, registration is preferred because a registered trade union is granted certain benefits and immunity. Members of a registered trade union are also granted certain rights and advantages. In other words, those who belong to a legally recognised union are entitled to protection, immunity, and exemption from certain legal obligations on both the civil and criminal sides. However, it should be remembered that a personal conflict only becomes an industrial issue when it is represented by a group of employees or a trade union, whether they are registered or not.

In the case of Tamil Nadu N.G.O Union v. The Registrar of Trade Unions (1962), the N.G.O. union’s petition was denied by the High Court of Madras. The registrar of the trade union in this case rejected the N.G.O.’s union’s application for registration on the grounds that public servant unions could not be registered under the trade union Act. In order for the union to be registered under the Trade Union Act, its members must be workers employed by trade, business, or industry, and the applicants lack this qualification because they are civil servants responsible for the state’s sovereign and legal functions. Accordingly, the High Court dismissed the appeal. 

The Calcutta High Court ruled in the case of Registrar of Trade Unions, West Bengal v. Mihir Kumar Gooha (1962) that E.S.I. Corporation workers would fall under the definition of workmen and could, thus, register themselves as union members.

Section 3 : appointment of registrars

Section 3 of the Act empowers the appropriate government to appoint a person as the registrar of a trade union. The appropriate government can also appoint as many additional and deputy registrars in a trade union as it deems fit for carrying on the purposes of the Act.

The aforementioned actions must be taken in order to exercise and carry out the Registrar’s legal obligations under this Act, including any specific powers and functions that the Registrar may, by order, specify, as well as to specify the local boundaries within which any additional or deputy Registrar may exercise and carry out those obligations.

Section 4 : mode of registration

Section 4 of the Act provides for the mode of registration of the trade union. According to the Section, any seven or more than seven members of a trade union may by application apply for the registration of the trade union subject to the following two conditions:

  • At Least 7 members should be employed in the establishment on the date of the making of the application.
  • At Least 10% or a hundred members whichever is less, are employed in the establishment and should be a part of it on the date of making the application.

Section 5 : application of registration

According to Section 5 of the Act, every application for a trade union’s registration must be presented in writing to the Registrar and include a copy of the union’s rules as well as a statement of the information listed below:

  1. Firstly, the members submitting must mention their names, occupations, and addresses;
  2. Secondly, the name of the Trade Union and its headquarters’ address must also be included; and
  3. Finally, the titles, names, ages, addresses, and occupations of the Trade Union’s office holders must also be included.

A trade union’s executive must be organised in conformity with the Act’s requirements before it may be registered.

Section 6 : provisions to be contained in the rules of a trade union

Section 6 of the Act enlists the provisions which should be contained in the rules of trade union and it provides that no trade union shall be recognized unless it has established an executive committee in accordance with the provisions of the Act and its rules, specifies the following matters, namely:

  • Name of the trade union;
  • The object of the establishment of the trade union;
  • Purposes for which the funds with the union shall be directed;
  • A list specifying the members of the union shall be maintained. The list shall be inspected by office bearers and members of the trade union;
  • The inclusion of ordinary members who shall be the ones actually engaged or employed in an industry with which the trade union is connected;
  • The conditions which entitle the members to any benefit assured by the rules and also the conditions under which any fine or forfeiture may be imposed on the members;
  • The procedure by which the rules can be amended, varied or rescinded;
  • The manner within which the members of the manager and also the alternative workplace bearers of the labour union shall be elective  and removed;
  • The safe custody of the funds of the labour union, an annual audit, in such manner, as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the workplace bearers and members of the labour union, and;
  • The manner within which the labour union could also be dissolved.

The Supreme Court ruled in the case of M. T. Chandrasenan v. Sukumaran (1974) that a member cannot be regarded as a trade union member if the subscription fee is not paid. However, subscriptions cannot be rejected on the basis of a reason that prevents membership.

The Supreme Court of India ruled in the 2004 case of Bokajan Cement Corporation Employees Union v. Cement Corporation of India that membership in the union did not end immediately upon loss of employment.

Section 7: Power to call for further particulars and require alteration of the name

Section 7 of the Act confers upon the registrar the power to call for information in order to satisfy himself that any application made by the trade union is in compliance with Sections 5 and 6 of the Act. In matters where the discrepancy is found, the registrar reserves the right to reject the application unless such information is provided by the union.

This Section also confers power to the registrar to direct the trade union to alter its name or change the name if the registrar finds the name of such union to be identical to the name of any other trade union or if it finds its name to so nearly resemble the name of any existing trade union, it may be likely to deceive the public or members of either of the trade unions.

The Bombay High Court in the case of All India Trade Union Congress v. Deputy Registrar of Trade Unions (2005) set aside a request to register a trade union with a name that already existed, claiming it to be expressly contrary to the language in Section 7(2), leading to the cancellation of registration. It further observed that the very purpose behind Section 7 is to avoid misleading the general public or trade union members into thinking that the union seeking registration under the name for which registration is requested is somehow associated with the union already registered.

Section 8 : registration

According to Section 8 of the Act, if the registrar has fully satisfied himself that a union has complied with all the necessary provisions of the Act, he may register such a union by recording all its particulars in a manner specified by the Act. 

Each registered trade union should be a body corporate, which makes it a legal entity with perpetual succession. It shall have a common seal, the ability to buy, possess, and enter into contracts with both movable and immovable property, as well as the ability to sue and be sued using that name.

The Supreme Court ruled in the 1935 case of the Re-Indian Steam Navigation Workers Union that a Registrar just needs to check that all the technical conditions are being met, not whether it could be deemed illegal.

Whereas in another case before the Supreme Court of India, ACC Rajanka Limestone Quarries Workers Union v. Registrar of Trade Unions (1958), it was determined that an appeal might be filed to the High Court under Article 226 of the Indian Constitution if the registrar fails to register the trade union within 3 months of the application.

Section 9 : certificate of registration

According to Section 9 of the Act, the registrar shall issue a registration certificate to any trade union which has been registered under the provisions of Section 8 of the Act, and such a certificate shall act as conclusive proof of the registration of the trade union.

Section 9A : minimum requirement related to the membership of a trade union

Section 9A of the Act lays down the minimum number of members required to be present in any union which has been duly registered. This Section mandates that a trade union which has been registered must at all times continue to have not less than 10% or one hundred of the workers, whichever is less, subject to a minimum of seven, engaged or utilised in an institution or trade with which it’s connected.

Section 10 : cancellation of registration

The registrar, according to Section 10 of the Act, has the power to withdraw or cancel the registration certificate of any union in any of the following conditions:

  • On an application made by the trade union seeking to be verified in such manner as may be prescribed;
  • If the registrar is satisfied with the fact that the trade union has obtained the certificate by means of fraud or deceit;
  • If the trade union has ceased to exist;
  • If the trade union has wilfully and after submitting a notice to the Registrar, contravened any provision of the Act or has been continuing with any rule which is in contravention with the provisions of the Act;
  • If any union has rescinded any rule provided under Section 6 of the Act.

In the case of Tata Electric Companies Officer’s Guild v. Registrar of Trade Unions (1994), the Bombay High Court ruled that wilful disregard of the notification is a requirement for the registrar to cancel the registration. The registrar cannot cancel the registration on the grounds that the account statement was not filed earlier if the trade union provides the account statement after receiving notification from the registrar.

Where a 2-month show cause notice was not sent by the registrar to the changed address of the union, it was held by the Bombay High Court in Bombay Fire Fighters Service Union v. Registrar of Trade Unions, Bombay (2003), that the registrar did not comply with the mandatory provisions of Section 10 and quashed the order of cancellation.

Section 11 : appeals

According to Section 11 of the Act, any union which is aggrieved by a refusal to register or a withdrawal of registration made by the registrar can file an appeal:

  • In any High Court, if the head office of the trade union is located in any of the presidency towns;
  • In any labour court or industrial tribunal, if the trade union is located in such a place over which the labour court or the trade union has jurisdiction;
  • If the head office of the trade union is situated in any other location, an appeal can be filed in any court which is not inferior to the Court of an additional or assistant has chosen a principal Civil Court of original jurisdiction.

As observed by the Bombay High Court in Mukand Iron & Steel Works Ltd. v. V.G. Deshpande, Registrar of Trade Unions, Bombay and another (1986), a trade union has the choice to file an appeal or apply for new registration if the Registrar of Trade Unions cancels or withdraws its registration. If the appeal is successful, the trade union would continue to be included on the register as if the decision of cancellation or withdrawal of recognition had never been made. If a new registration is allowed, it will take effect as of that date. The Registrar loses all authority over that order once he cancels or withdraws a trade union’s registration. Because of the following circumstances, he is unable to evaluate it or rescind it.

In Philips Workers Union v. Registrar of Trade Unions (1989), the Calcutta High Court observed that Section 11 of the Trade Unions Act, 1926 is no bar to filing an application under Article 226 of the Indian Constitution.

Section 12 : registered office

Section 12 of the Act lays down that all communications and notices to any trade union must be addressed to its registered office. If a trade union changes the address of its registered office, it must inform the registrar within the period of fourteen days in writing, and the registrar shall record the changed address in the register mentioned under Section 8 of the Act.

Section 13 : incorporation of registered trade union

Section 13 of the Act states that every trade union which is registered according to the provisions of the Act shall:

  • Be corporate by the name under which it is registered.  
  • have perpetual succession and a common seal.
  • Power to contract and hold and acquire any movable and immovable property.
  • By the said name can sue and be sued.

Rights and liabilities of registered trade unions

Sections 15 to 28 elucidate the rights which a registered trade union has and also the liabilities which can be imposed against them.

Section 15 : objects on which general funds may be spent

Section 15 of the Act lays down the activities on which a registered trade union can spend its funds. These activities include:

  • Salaries are to be given to the office-bearers.
  • The cost incurred for the administration of the trade union.
  • Compensation to the workers due to any loss arising out of any trade dispute.
  • Expenses incurred in the welfare activities of the workers.
  • Benefits are conferred to the workers in case of unemployment, disability, or death.
  • The cost incurred in bringing or defending any legal suit.
  • Publishing materials with the aim of spreading awareness amongst the workers.
  • Education of the workers or their dependents.
  • Making provisions for medical treatment of the workers.
  • Taking insurance policies for the welfare of the workers.

This Section also provides the reason for non-contribution to the said fund and also that a contribution to the fund can not be made as a criterion for admission into the union.

Section 16 : constitution of a separate fund for political purposes

Section 16 provides that a trade union, in order to promote the civic and political interests of its members, can constitute a separate fund from the contributions made separately for the said purposes. No member of the union can be compelled to contribute to the fund. 

A legally recognised labour union may establish a separate fund with the goal of advancing the civic and political objectives of its members. A recognised trade union is not allowed to use its general finances for its members’ political campaigns. The trade union must establish a separate political fund for political causes. Contributions to such a fund must be separately collected. Some of them are as follows:

  • The recovery of all costs incurred, directly or indirectly, by a candidate or prospective candidate for election as a member of any governmental body or local authority. The costs cover all outlays in connection with his candidacy before, during, or after the election.
  • Maintenance of any individual who serves on a local or legislative authority.
  • The election of a candidate for any legislative body or municipal authority, or the registration of voters.
  • The staging of political gatherings of any type or the dissemination to trade union members of any political material or papers.

Section 17 : criminal conspiracy in trade disputes

Section 17 of the Act states that no member of a trade union can be held liable for criminal conspiracy mentioned under sub-section 2 of Section 120B of the Indian Penal Code regarding any agreement made between the members of the union in order to promote the lawful interests of the trade union.

The office bearers of the registered trade unions are exempt from penal punishment for criminal conspiracy, per Section 17 of the Trade Unions Act of 1926. An agreement between two or more people to carry out an illegal act or a legitimate act through an illegal method is referred to as a conspiracy in English law.

Criminal conspiracy is defined in Section 120-A of the Indian Penal Code of 1860 as follows:

When two or more people agree to do something or make it happen

  1.  A prohibited act,
  2. An Act that is not committed via unlawful methods; such as a contract is referred to as a criminal conspiracy;

The Trade Union Act of 1926 grants registered trade unions immunity. Nevertheless, this immunity is only applicable with regard to the legal agreements made by trade union members for the promotion of legitimate trade union purposes. The right to call for a strike and persuade members is one of the rights granted to registered trade unions in the stimulation of their industrial conflicts. All acts that give rise to civil litigation are considered illegal acts. For instance, two men who conspire to get workers to violate their employment contracts are guilty of a crime. However, Section 17 safeguards a trade unionist from a crime if the arrangement they have entered into is not an agreement to conduct an offence.

In the case of West India Steel Company Ltd. v. Azeez (1988), a trade union representative protested against the delegation of a worker to another sector by blocking or stopping work inside the factory for five hours. It was decided that a worker in a factory had to obey the directives issued by his superiors. A trade union leader is not exempt from following the rules. There is no legal authority for a trade union official or any other employee to share managerial responsibilities.

Section 18 : immunity from civil suits in certain cases

Section 18 of the Act immunises the members of trade unions from civil or tortious liabilities arising out of any act done in furtherance or contemplation of any trade dispute. 

For example, in general, a person is subject to tortious liability for inducing any person to breach a contract. But, the trade unions and its members are immune from such liabilities provided such inducement is in contemplation or furtherance of any trade disputes. Further, the inducement should be awful and should not involve any aspect of violence, threat, or any other illegal activity.

Any authorised officer or member of a registered trade union is eligible for this immunity. No civil action may be brought against them for conduct related to a trade dispute on the grounds that it encourages another person to breach an employment agreement; or interferes with another person’s trade, business, or employment.

Furthermore, the incentive should be made via legal techniques that are not against the legislation of the state. There is no protection from physical harm, verbal abuse, or other illegal tactics.

The Kerala High Court ruled in the case of P. Mukundan and Ors. v. Mohan Kandy Pavithran (1991) that a strike by itself is not a legally actionable offence. Furthermore, it was determined that the provisions of Section 18 shield the trade union, its officers, and its members from legal actions related to the workmen’s strike.

In the landmark decision, Rohtas Industries Staff Union v the State of Bihar (1962) by the Patna High Court, it was decided that employers did not have the right to sue an employee who participated in an illegal strike and subsequently lost business and output.

In another case, Simpson & Group Companies Workers & Staff Union v. Amco Batteries Ltd. (1990) by the Karnataka High Court, the Court relied on the judgement in Chandrana Bros. & Others v. Venkata Rao (1976) to observe that workers’ protection under Section 18 of the Trade Unions Act is unaffected by “strike” or “lock-out” situations and remains unchanged. In both circumstances, the consideration and the principle are similar. Physically impeding the movement of management staff, contractors, goods, or trucks transporting raw materials is neither a trade union right nor a basic freedom protected by Article 19 of the Constitution. Section 18 immunity cannot be invoked for such actions. Picketing is a highly undefined right that only extends to other people’s freedom of movement. The only acceptable means of persuasion are vocal and visual; physical interference with people or objects is not permitted.

In the 2005 case of Shahdol Pipe Works v. Zala Loghu Udyog Kamgar Sangh, it was claimed that the employer had suffered a loss of Rs. 22,500 due to the strike that the defendant’s trade union had arranged. The Court dismissed the employer’s request for damages and determined that members of a registered trade union were exempt from being held accountable for any torts committed in advance of or in support of a trade dispute. Furthermore, it was not possible to conclude from the evidence in the current case that the loss was brought on by the defendant’s trade union members, officers, and supporters.

The provision puts an end to action against trade unions while looking at the right of trade unions to use and to be used. The union or its members are not prohibited from bringing a claim for wrongs done to the union. Unlawful threats and coercion are not protected since doing so would deprive the person of the Section’s protection.

In East India Hotels Ltd. v. Oberoi International Hotel Employees Union (1994), the Court emphasised that it is well established that no one has a basic right to stage demonstrations on company property if doing so will interfere with the office’s regular operations. The freedom of expression, organisation, and unionisation that citizens have does not grant them the right to use these rights wherever they wish. The moment someone else’s right to own their property interferes, the exercise of this freedom will terminate. The Court added that the law acknowledges both the existence of unions and the scope and ambit of legal activity. Such actions or acts may be protected under Section 18 of the Trade Unions Act of 1926, depending on the specifics of each instance. However, in order to obtain this safety net, the temptation and interference must be done so legally.

Torts are considered to be civil wrongs. It can be resolved by civil court action. It is different from breaking a contract, a quasi-contract, a trust, or other equitable obligations (like trespassing or creating a private nuisance). However, Section 18(2) grants an exemption from tort liability. The action of the parties must further result in a trade dispute in order to be eligible for exemption or immunity from tort liability. If an agent acts without the knowledge of the executive committee of the trade union or against the specific instructions of the executive committee, the registered trade union is not accountable for the torts committed by the agent in the advancement of the trade dispute.

Section 19 : enforceability of agreement

According to Section 25 of the Indian Contract Act of 1872, any agreement in restraint of trade is void. But under Section 19 of the Trade Unions Act, 1926, any agreement between the members of a registered trade union in restraint of trade activities is neither void nor voidable. However, such a right is available only to registered trade unions, as unregistered trade unions have to follow the general contract law.

Section 20 : right to inspect the books of trade union

According to Section 20 of the Act, the account books and the list of the members of any registered trade union can be subjected to inspection by the members of the trade union at such times as may be provided under the rules of the trade union.

Section 21 : rights of minors to membership of trade union

Section 21 provides that a person who is above 15 years of age can be  a member of any trade union, and if he becomes a member, he can enjoy all the rights conferred upon the members of the trade union, subject to the conditions laid down by the trade union of which he wants to be a member.

Section 21-A : disqualifications of office-bearers of trade union

Section 21A of the Act lays down the conditions, the fulfilment of which disqualifies a person from being a member of the trade union. The conditions laid down in the Act are as follows:

  • If the member has not attained the age of majority
  • If he has been convicted by any of the courts in India for moral turpitude and has been sentenced to imprisonment unless a period of five years has elapsed since his release. 

Section 22 : proportion of office-bearers to be connected with the industry

Section 22 of the Act mandates that not less than half of the members of the trade union should be employed in the industry or work with which the trade union is connected. For example, if a trade union is made for the welfare of agricultural labourers, then, as per this Section, half of the members of such a trade union should be employed in agricultural activities. 

The Calcutta High Court in the case of Kesoram Rayon Workmen’s Union v. Registrar of Trade Unions (1966) observed that if all officers and members of the executive were needed to be employees of the industry to which the union is related, Section 22 would have no purpose. Of course, Section 2(h) of the Act defines a trade union as a group of workers employed in a certain industry. However, Section 22 specifically states that a non-member of the union may be a member of the executive or another officer, as long as the required proportion is not exceeded.

Section 23 : change of name

Section 23 states that any registered union is free to change its name provided it does so with the consent of not less than 2/3rd of its members and subject to the fulfilment of the conditions laid down in Section 25 of the Act.

Section 24 : amalgamation of trade unions

Section 24 lays down that two or more trade unions can join together and form one trade union with or without dissolution or division of the fund. Such amalgamation can take place only when voting by half of the members of each trade union has been effectuated and that sixty per cent of the casted votes should be in favour of the proposal.

Section 25 : notice of change of name or amalgamation

Section 25 of the Act provides that: 

  • A notice in writing of every change of name and of every amalgamation which is duly signed by the Secretary and by seven members of the Trade Union changing its name, and, in the case of an amalgamation, by the Secretary and by seven members of each and every Trade Union which are a party thereto, should be sent to the Registrar.
  • If the Registrar feels that the proposed name is identical to the name of any other existing Trade Union or, it so nearly resembles such name as it is likely to deceive the public or the members of either Trade Union, the Registrar may refuse to register the change of name.
  • If the Registrar of the State in which the head office of the amalgamated Trade Union is situated is satisfied that the provisions of this Act have complied with the amalgamation shall be given effect from the date of such registration.

In D.C.M. Chemical Mazdoor Ekta Union v. Registrar of Trade Unions, Delhi (1978), the Delhi High Court held that according to Sections (3) and (4) of Section 25, the Registrar has the same authority to register a trade union as he or she does under Section 8. Regardless of whether the registration is made in accordance with Section 8 or Section 25, the Registrar must issue the certificate of registration. Therefore, it cannot be claimed that the revocation of the certificate of registration under Section 10 solely applies to the issuance of the certificate under Section 9, which is a result of an order made under Section 8. It cannot be argued that Section 25 does not include the grant of certificates, and as a result, anyone who is requesting the reversal of the Section 25 judgement cannot seek the remedy of cancellation of the certificates of registration. The Court further observed that Section 10 must be read to cover both situations where fraud or mistake were used to gain the registration itself as well as only the certificate of registration.

Section 27 : dissolution

Section 27 of the Act talks about the dissolution of a firm as follows:

  • If a registered trade union has been dissolved, a notice of such dissolution which must be signed by seven members and by the Secretary of the Trade Union should be served to the registrar within 14 days of such dissolution and if the registrar is satisfied that the dissolution has been effected in accordance with the rules laid down by the trade union may register the dissolution.
  • Where a union has been dissolved but its rules do not lay down the way in which the fund is to be distributed after its dissolution, the registrar may distribute the funds in any prescribed manner.

Section 28 : returns

Section 28 provides that each trade union should send the returns to the registrar annually on or before such a day as may be prescribed by the registrar. The return includes:

  • General statement 
  • Audit report
  • All the receipts and expenditures incurred by the trade union
  • Assets and liabilities of the firm on the 31st day of December

Sub-Section 2 of the Section provides that, along with the general statement, a copy of the rules of the trade union, corrected up to the date of dispatch thereof, and a statement indicating all the changes made by the union in the year to which the statement is referred, be sent to the registrar.

Whenever any registered trade union alters its rules, such alterations should be conveyed to the registrar within a period of not less than 15 days from making such alterations.

Regulations

Section 29 and Section 30 of Chapter 4 of the Act lays down the regulations which shall be imposed on the trade union.

Section 29 : power to make regulations

Section 29 of the Act confers the right on the appropriate government to make provisions in order to ensure that the provisions of the Act are fairly executed. Such regulations may provide for any or all of the matters, which are as follows:

  • The manner in which a trade union or its rules shall be registered;
  • The manner in which the registration of a trade union has to be transferred which has changed its head office;
  • The manner of appointment and qualification of the person who shall audit the accounts of the registered trade union; 
  • Circumstances under which the documents kept by the registrar shall be allowed to be inspected and also the fees that shall be levied in lieu of the inspection so made.

Section 30 : publication of regulations

Section 30 states that:

  • The power of making regulations conferred to the government is subject to the condition that such regulation has been made after the previous publication.; 
  • The date from which the regulation shall be given effect shall be specified in accordance with clause (3) of Section 23 of the General Clauses Act, 1897, and the date should not be less than three months from the date on which the draft of the proposed regulations was published for general information;
  • The regulations which are made must be specified in the official gazette of India and it shall have the effect of an enacted law.

Penalties and procedure

Section 31 to Section 33 of the Trade Union Act lays down the penalties and the procedure for their application to a trade union which is subject to such a penalty.

Section 31 : failure to submit returns

Section 31 states that:

  • If any trade union was required to send any notice, statement or any document to the registrar under the Act and if the rule did not prescribe a particular person in the union to provide such information then in case of default each member of the executive shall be imposed with the fine extendible to five rupees. In case of continuing default, the fine may be extended to five rupees a week.
  • If any person willfully makes or causes to be made any false entry or omission in the general statement required under Section 28 of the Act shall be punishable with a fine extendible to 500 rupees.

The Madras High Court observed in the judgement of Neyveli National Workers Union v. Additional Registrar II of Trade Unions and Deputy Commissioner of Labour II, Chennai (1998) that in addition, under Section 10(b) of the Act, the penalty of cancellation is applied if the Registrar determines that the registration certificate was obtained through deception, error, etc. All union members who violate the law will get punishment. However, the penalty outlined in Section 31 of the Act is only applicable to officeholders who are overdue in completing their returns. Because the union’s members or the entire body of the union cannot be punished, they alone must be punished when they fail to perform their duties. Section 10 of the Act, in summary, foresees the violation by the union. As a result, Section 10 is related to the offence of the union, whereas Section 31 is related to the offence of the office-holders. It’s important to keep this distinction in mind. Section 31 was specifically enacted to punish office bearers only for this reason. According to that interpretation, the first respondent is likewise ineligible to use the provisions of Section 10 of the Act to punish the entire union for the offences committed by the office-bearers.

Section 32 : supplying false information regarding trade unions

Section 32 states the following:

  • Any person who in order to deceive a member of any trade union or any other person who purports to be part of the trade union, 
  • Gives a copy of the document with the pretext of it containing the rules of a trade union. 
  • Which he knows or has reason to believe that it is not a correct copy of such rules and alteration and,
  • Any person with the like intent give a copy of any document purporting it to be a copy of the rules of a registered trade union which in reality is an unregistered union,
  • Shall be imposed with a fine which may extend to two hundred rupees.

Section 33 : cognizance of offences

Section 33 contains the provisions with respect to the cognizance of offences. It says that no court which is inferior to a presiding magistrate or a magistrate of the first class shall try an offence under the Act. The courts can take cognizance of the offences under the Act only in the following cases:

  • When the complaint has been made with the previous sanction of the registrar
  • When a person has been accused under Section 32 of the Act, he shall be tried within six months of the commission of the alleged offence.

Shortcomings of trade unions

Even though trade unions are very important for the well-being of workers, they also have some shortcomings, which are discussed as follows:

  1. The existence of competing unions and the abundance of unions in the same industry cause workers to become divided, which in turn leads to unhealthy trade union expansion and allows bosses to take unfair advantage of the working class during collective bargaining.
  2. Before the country gained its independence, there were only a few industries in existence, and employers—the managerial class—paid their employees very low wages, worsening their economic situation. In the current times, the same issue persists, and as a result, workers are unable to pay the subscription member fee for the trade union and never join it.
  3. The majority of trade unions in our nation are relatively small because their members are unable to effectively compel the government or companies to meet their requests and objectives.
  4. There is not a very strict implementation of the regulations relating to trade unions, which leads to its deteriorating the trust of the workers.
  5. Due to the fact that trade unions were founded as a result of disputes between employers and employees, the working class of trade unions must contend with employer resistance. As a result, the employers try to dissuade by offering bribes to union officials.
  6. The migrated workers are in need of economic facilities and the fundamental necessities for meeting their needs, so they do not try to join a trade union and cannot oppose the managerial class because they are completely dependent on the managerial class. Some migrated workers would obtain employment through contractors, and the contractors are supporters of industry or any establishment.

Collective bargaining and trade disputes

When an organised body negotiates with the employer and fixes the terms of employment by means of bargaining, this is known as collective bargaining. The essential element of collective bargaining is that it is between interested parties and not by third parties.

International labour organisation in its manual in the year 1960 defined the meaning of collective bargaining as:

“Negotiations about working conditions and terms of employment between an employer, a group of employees, or one or more employers’ organisations, on the other hand, with a view to reaching an agreement.” The terms of agreement are used to ascertain the rights and obligations by which each party is bound towards one another during the course of employment.

Section 8 of the Industrial Relations Act 1990 defines trade disputes. According to the Act, an industrial dispute refers to any dispute which arises between the employers and the workers, and it is usually in connection with any one of the following:

  • employment or non-employment, 
  • the terms or conditions of the employment,
  • Something which affects the employment of any person.

Essential conditions for collective bargaining

  • Favourable political and social climate: all the collective bargaining which took place in the past bears testimony to the fact that a favourable political and social climate is the prerequisite of collective bargaining. The reason for the same is quite obvious as almost all the trade unions in India subscribe to one or the other political view and therefore, trade unions usually favour the employees not on the basis of the merit of the issues they raise but on the basis of their political considerations.
  • Trade union: in any democratic country like India which recognizes the right to speech as a fundamental right, the right to form a trade union is a direct consequence of it and so all employers should recognize the trade unions and its representatives.
  • Problem-solving attitude: it means that both parties while negotiating a bringing up their relative concerns should adopt a problem-solving attitude and should aim at amicably solving the problem without trying to put the opposite party at a loss.
  • Continuous dialogue: the dialogue between the employer and the workers may sometimes end up without any fruitful negotiation or there may arise a bargaining impasse, in such a case the free flow of dialogue between the employer and employee should not be stopped and sometimes keeping aside the bone of contention helps bring up a better solution.

Purposes of collective bargaining

  • To provide an opportunity for the workers to voice their complaints and grievances regarding the working conditions.
  • To pave the way for the employer and workers to reach an amicable solution peacefully without having any ill will towards one another.
  • To sort out all the disputes and conflicts between the employer and worker.
  • To prevent any dispute which is likely to take place in the future by mutually agreeing on the contract.
  • To foster a peaceful and stable relationship between the workers and the organisation.

Position in India

In India, collective bargaining remains limited in its application and has been restricted by different labour legislation in India. Different labour laws make different provisions with respect to the working conditions of the workers. Some of the labour legislation in India is as follows:

  • The Factories Act of 1948 made provisions for the betterment of the workers in respect of their health, safety, welfare and other aspects while the workers are employed in factory work. However, all the provisions of the Act were not applicable in all the factories, for example, the provision for restrooms will be applicable only if there are 150 or more workers. 
  • The Employees Provident and Miscellaneous Provisions Act, the Maternity Benefit Act and the Payment of Gratuity Act.
  • The Industrial Disputes Act, of 1947, lays down the procedures by which the settlement of industrial disputes has to be done. Its procedural aspects are applicable to all enterprises for the settlement of industrial disputes.

A closer view of the labour laws in India indicates that most of the workers who are employed in the organised sectors of the economy are protected under various labour legislation. The Fifth Economic Census of 1999 revealed that more than 97 percent of enterprises employ less than ten workers, and most of these employ less than five workers. This clearly shows that labour laws apply to less than 3 percent of enterprises.

Further, the acceleration of the formalisation of the workforce with the onset of liberalisation has also changed the formal sector in terms of shifting jobs from the formal to the informal sector and, along with it, the formalisation of jobs. Today, in the formal sector, the number of formal workers is about 33.7 million, and the number of informal workers is about 28.9 million (2004-05). The increase in employment (in whatever amount) in the formal sector has largely been informal in nature. Which in turn has been reflected on the trade bargaining?

Agreements for collective bargaining

In India, the following types of agreements are prevalent for collective bargaining:

  • Bipartite agreement: These agreements usually result in voluntary negotiations between the employer and employees and are usually binding per se.
  • Settlements: Settlements usually arise out of the conciliation process and they are usually tripartite in nature as they involve three parties which are the employer, employee and conciliation officer.
  • Consent awards: When the parties reach an agreement while the dispute between them is pending before the adjudicatory body. Such agreements are incorporated in the authority’s award and are binding on the parties under the dispute.

Conclusion 

The Trade Union Act of 1926 is welfare legislation that has been enacted to protect workers in the organised and unorganised sectors from inhuman treatment and provide protection of their human rights. As such, the legislation contains  provisions for registration, regulation, benefits, and protection for trade unions. Therefore, the workers benefit. 

Trade unions are important organs for the democratic development of any country as they represent the needs and demands of the workers through collective bargaining. Collective bargaining is an important aspect of the employer-employee relationship. However, collective bargaining is not provided to all the trade unions but is only provided to those trade unions that are recognised. Therefore, the demand for mandatory recognition of trade unions, which has not been provided under the Trade Union Act 1926, has been raised time and again by the workers. Today, the growth of the media has resulted in the empowerment of trade unions, and they have turned into influential pressure groups not only in industrial sectors but also in agricultural and other allied sectors.

References


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Theories of international trade

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International Trade Law

This article has been written by Diksha Paliwal, a practising advocate in the High Court of Indore and a student of LL.M. (Constitutional Law). This article aims to provide an understanding of the concept of international trade and its theories. 

It has been published by Rachit Garg.

Introduction

International trade acts as a major contributing factor in global economic activity and a catalyst of economic growth in developing as well as developed countries. Differences in various conditions, like resource availability, natural climatic conditions, cost of production, etc., act as the motive behind trade between the countries. International trade has made it all possible and has provided a large number of employment opportunities as well as several goods and services for the consumer. Not just this, it has been a major reason for the rising living standards of people all over the globe. International trade has been a part of human civilization for a very long time; however, the past few decades have seen rapid development in cross-border trading. Imports and exports have largely contributed to the growth of GDP, and the credit for the same goes to imports and exports.

The article, in its first section, will deal with the concept of international trade and its historical development. Whereas, the next parts will deal with the different theories of international trade that have been formulated to deepen our understanding of this significant global phenomenon.

International trade: an overview

In layman’s language, international trade is the exchange of goods and services between different countries. The term “exchange” includes the import as well as export of goods and services. As quoted by Wasserman and Haltman, international trade can be connoted as transactions among the inhabitants of different countries. Edgeworth, an Irish-based statistician, defined the term as the phenomenon of trade between countries. The term ‘international trade’ is an example of economic linkage and can be referred to as an economic transaction between countries. 

International trade stands as a crucial determinant of openness among countries and has been a remarkable factor in economic growth. In recent years, overseas trade has become a strategy of paramount importance for the growth of the national economy. However, the significance of international trade is not just limited to this, it also helps in encouraging social and international relations among countries. Increased foreign trade has augmented the process of globalisation.

In the early years, political economists like Adam Smith and Ricardo were among the few people who acknowledged the significance of international trade, which has been practically affirmed by visible global growth and economic development. Global trade gives consumers the opportunity to experience and enjoy a variety of goods and services that, for whatever reason, are not available in their country or which might be a bit costly in their country compared to others. Foreign trade also, to a great extent, curbs the issue of irregular availability and distribution of resources all over the world by facilitating a smooth flow of raw materials as well as finished products. The optimum use of abundant raw materials is one more benefit expedited by trading globally. 

Classification of International trade activities

The activity of international trade has been broadly classified under 3 subheads, namely, international trade operations, strategic alliances, and direct foreign investments. They are discussed as follows:

International trade operations: This category specifically includes the operations constituting international business via import and export, import-export combined operations, and transit. Although the parties, in several instances, might have dissimilar interests, to gain a mutual advantage, they harmonise their differences and arrive at a mutual consensus by prioritising benefits. These international trade operations are legally considered under the category of bilateral contracts, which consist of international sales contracts as the legal instrument. In most cases, these transactions are short-term, however, the relationships between the parties can be long-term or short-term depending on their choice. 

Strategic alliances: This category mainly includes activities like franchising, sub-contracting, joint ventures (private or government), etc. It connotes the operation involving cooperation among the various partners from different countries, pertaining to the transfer of technologies globally. 

Foreign direct investment:  The strategy closely resembles the categories of involvement, risk, and profit, each one of them at its maximum potential. It is an alternative to stepping foot into the global market. It comes under the category of cross-border investment, wherein, the interested residents of one economy invest or influence significantly in enterprises based in another country.

History and evolution of theories of international trade 

Global trade has been a very crucial part of human civilization, and owing to its dynamic nature, the concepts involving trading have also evolved drastically. International trade has a long history. The simple concept of the exchange of goods and services between different countries has been interpreted in a number of ways by different philosophers and economists. These theories that provide different explanations and definitions of the concept of international trade are called international trade theories. These trade theories basically study the changing patterns of international trade, its origins, and its impact, along with its practicability. 

The study of international trade has been a subject of research from the ancient Greeks to the present governments of different countries, political economists, and intellectuals. The determinants and factors affecting trade among the countries and its pros and cons have been a subject matter of study. The most important question of the research is the determination of policies for different countries as per their situation, in order to have efficient and smooth global trade.

In the early period, theoreticians and philosophers did not have a very systematic approach towards the study of trade theories. Their theories were a bit clouded by ethical and political considerations. The four most remarkable periods of development in trade theories in the middle ages were:

  1. Ancient Greek ideas, 
  2. Scholastic and Christian thought, 
  3. Mercantilism and 
  4. Physiocracy. 

The crucial ideas relating to these trade theories were put forward by Plato, Xenophon, and Aristotle in the Greek period. They emphasised the benefits of the division of labour and the exchange of goods and stated that not limiting them within the boundaries of the city would be mutually beneficial to both parties. Plato, in his work, “The Republic”, talked about the fact that it is practically impossible to attain self-sufficiency in terms of goods and services for a city, and explained the benefits of division of labour and how it would result in higher output and productivity. Xenophon, in his various studies, has also talked about the benefit of expanding the trading system internationally. However, despite various attempts made by the Greek philosophers, the Greeks were not much of a supporter of international trade. Aristotle also argued that as a part of efficient ruling, the rulers must decide which imports and exports are necessary and, not only should they do this, but they should also maintain fairness in these exchanges, possibly by forming some treaties with the countries. 

The above-discussed ideas, mainly the Aristotelian philosophies, emerged as the basis of Scholastic and Christian thought, which came around the period of the 13th and 15th centuries. This period of intellectual legacy came to be known as the birth of economic science as a branch of ethics. Philosophers and theologians of this period were of the view that international trade could possibly be compatible with principles of moral philosophy. They acknowledged the possibility of differences in the availability of resources and accepted the fact that nature has not provided each region of the world with every possible resource and, hence, international trade, at least to a certain extent, is essential and unavoidable. But they were very much aware of the fact that this international commerce must be kept in check and that this might have adverse moral consequences. They acknowledged the possibility of fraud and other malicious practices in the event of global trading. However, with time, the importance of foreign trade was widely accepted and soon it became an established fact that this is an inalienable right that an individual has, and should not be snatched away from him, although a security check must be kept to avoid adverse consequences. 

With the passing of time and the origination of national states, increasing commercial relations became of prime importance for both scholars and statesmen. However, with this growing popularity and acceptance of international trade, the national movement of mercantilism spread, which stated that before everything else, priority must be given to the welfare of one’s own nation and that countries are often in conflict with each other, hence, we must first flourish our own nation. Thus, this aim could only be achieved by discouraging the welfare of other nations and focusing on oneself first. This aim was mainly achieved by collecting and increasing the country’s treasure by accumulating gold and silver. Promotion of exports, the balance between import and export, and prioritising only the import of essential raw materials, were some of the main strategies behind the movement of mercantilism. However, this doctrine gradually lost its popularity and was severely criticised by the liberals.

After the failure of mercantilism, the theory of Physiocrats emerged, who believed in the liberalisation of trade. They advocated the importance of free and equally free trade in all branches. 

Theories of international trade 

International trade theories were mainly developed under two categories, namely, classical or country-based theories and modern or firm-based theories, both of which are further divided into various categories. 

Let’s have a brief overview of the various theories of international trade.

Classical or country-based theories

The founders of the various theories of the classical country-based approach were mainly concerned with the fact that the priority should be increasing the wealth of one’s own nation. They were mainly of the view that focus should be on economic growth on a priority basis. The main classical theories in reference to international trade are discussed below.

Mercantilism

The Mercantilism theory is the first classical country-based theory, which was propounded around the 17-18th century. This theory has been one of the most talked about and debated theories. The country focused on the motto that, on a priority basis, it must look after its own welfare and therefore, expand exports and discourage imports. It stated that an attempt should be made to ensure that only the necessary raw materials are imported and nothing else. The theory also propounded the view that the first thing a nation must focus on is the accumulation of wealth in the form of gold and silver, thus, strengthening the treasure of the nation.  

To put it simply, it can be stated that the classical economists behind the theory of Mercantilism firmly believed that a country’s wealth and financial standing are largely demonstrated by the amount of gold and silver it holds. Hence, economists believe that it is best to increase the reserve of precious metals to maintain a wealthy status. For this theory to work, the aim to be fulfilled was that a country must produce goods in such a large quantity that it exports more and should be less dependent on buying goods and other materials from others, thereby strongly encouraging exports and strictly discouraging imports. 

A large number of countries in the past benefited from strictly following the theory of Mercantilism. History is evident that by implementing this theory, many nations benefited by strictly following the theory of Mercantilism. Various studies done by economists prove why this theory flourished in the early period. In the early period, i.e., around 1500, new nations and states were emerging and the rulers wanted to strengthen their country in all possible ways, be it the army, wealth, or other developments. The rulers witnessed that by increasing trade they were able to accumulate more wealth and, thus, certain countries became very strong because of the massive amount of wealth they stored. The rulers were focused on increasing the number of exports as much as possible and discouraging imports. The British colony is the perfect example of this theory. They utilised the raw materials of other countries by ruling over them and then exporting those goods and other resources at a higher price, accumulating a large amount of wealth for their own country. 

This theory is often called the protectionist theory because it mainly works on the strategy of protecting oneself. Even in the 21st century, we find certain countries that still believe in this method and allow limited imports while expanding their exports. Japan, Taiwan, China, etc. are the best examples of such countries. Almost every country at some point in time follows this approach of protectionist policies, and this is definitely important. But supporting such protectionist policies comes at a cost, like high taxes and other such disadvantages. 

Absolute advantage

In 1776, the economist Adam Smith criticised the theory of mercantilism in his publication, “The Wealth of Nations”, and propounded the theory of Absolute advantage. Smith firmly believed that economic growth in reference to international trade firmly depends on specialisation and division of labour. Specialisation ensures higher productivity, thereby increasing the standard of living of the people of the country. He proposed that the division of labour in small markets would not cater for specialisation, which would otherwise become easy in the case of larger markets. This increase in size fostered a more refined specialisation and thus increased productivity all around the globe.

Smith’s theory proposes that governments should not try to regulate trade between countries, nor should they restrict global trade. His theory also encapsulated the consequences of the involvement and restraint of the government in free trade. Also, he firmly believed that it is the standard of living of the residents of a country that should determine the country’s wealth and the amount of gold and silver that a country’s treasure has.  He states that trading should depend on market factors and not the government’s will. 

Smith was firmly against the mercantilist theory, and he argued that diminishing importation and just focusing on exports was not a great idea, and thus restricting global trade is not what needs to be done. He proposed that even though we might succeed in forcing our country’s people to buy our own goods, however, we may not be able to do so with foreigners, and hence it is better that we make it a two-way trade and just focus on exports.

In relation to the restrictions imposed on import, Smith stated that even though the restrictions on import may benefit some domestic industries and merchants when looked at from a broad spectrum, it will result in decreasing competition. Along with this, it will increase the monopoly of some merchants and companies in the market. Another disadvantage is that the increase in the monopoly will cause inefficiency and mismanagement in the market. 

Smith completely denied the promotion of trade by the government and restrictions on free trade. He reiterated that it is wasteful and harmful to the country. He proposed that free trade is the best policy for trading unless, otherwise, some unfortunate or uncertain situations arise. 

Comparative advantage

The theory of comparative advantage flourished in the 19th century and was propounded by David Ricardo. This theory strengthened the understanding of the nature of trade and acknowledges its benefits. The theory suggests that it is better if a country exports goods in which its relative cost advantage is greater than its absolute cost advantage when compared with other countries. For instance, let’s take the examples of Malaysia and Indonesia. Let’s say Indonesia can produce both electrical appliances and rubber products more efficiently than Malaysia. The production of electrical appliances is twice as much as that of Malaysia, and for rubber products, it is five times more than that of Malaysia. In such a condition, Indonesia has an absolute productive advantage in both goods but a relative advantage in the case of rubber products. In such a case, it would be more mutually beneficial if Indonesia exported rubber products to Malaysia and imported electrical appliances from them, even if Indonesia could efficiently produce electrical appliances too. 

What Ricardo proposed is that even though a country may efficiently produce goods, it may still import them from another country if a relative advantage lies therein. Similar is the case with export, even if a country is not very efficient in certain goods from other countries, it may still export that product to other countries. This theory basically encourages trade that is mutually beneficial. 

Heckscher-Ohlin theory (Factor Proportions theory)

The theories founded by Smith and Ricardo were not efficient enough for the countries, as they could not help the countries determine which of the products would benefit the country. The theory of Absolute Advantage and Comparative Advantage supported the idea of how a free and open market would help countries determine which products could be efficiently produced by the country. However, the theory proposed by Heckscher and Ohlin dealt with the concept of comparative advantage that a country can gain by producing products that make use of the factors that are present in abundance in the country. The main basis of their theory is on a country’s production factors like land, labour, capital, etc. They proposed that the approximate cost of any factor of resource is directly related to its demand and supply. Factors which are present in abundance as compared to demand will be available at a cheaper cost, and factors which are in great demand and less availability will be expensive. They proposed that countries produce goods and export the ones for which the resources required in their production are available in a much greater quantity. Contrary to this, countries will import goods whose raw materials are in shorter supply in their own country as compared to the one from which they are importing. 

For example, India has a large number of labourers, so foreign countries establish industries that are labour-intensive in India. Examples of such industries are the garment and textile industries.

Modern or firm-based theory 

The emergence of modern or firm-based theories is marked after the period of World War II. The founders of these theories were mainly professors of business schools and not economists. These theories majorly came up after the rising popularity of multinational companies. The Country based classical theories were mainly focused on the country, however, the modern or firm-based theories address the needs of companies. The following are the modern or firm based theories propounded by various business school professors: 

Country similarity theory

Steffan Linder, a Swedish economist, was the founder of this theory.  The theory marked its emergence in the year 1961 and explained the concept of in-train industry trade. Linder suggested that countries that are in a similar phase of development will probably have similar preferences. The suggestion proposed by Linder was that companies first produce goods  for their domestic consumption and later expand production, thereby exporting those products to other countries where customers have similar preferences. Linder suggested that most of the trade in manufactured goods, in most circumstances, will be between countries with similar per capita incomes, and that the in-train industry trade will thus be common among them. This theory is generally more applicable in understanding trade where buyers mainly decide on the basis of brand names and product reputations. 

Product life cycle theory

This theory was propounded by Raymond Vernon, a business professor at Harvard Business School, in the 1960s. The theory that originated in the field of marketing proposed that a product life cycle has three stages, namely, new product, maturing product, and standardised product. The theory has a presumption that the production of a new product will completely arise in the country where it was invented. This theory, up to a good extent, helps in explaining the sudden rise and dominance of the United States in manufacturing. This theory also explained the stages of computers, from being in the new product stage in the 1970s and thereby entering into their maturing stage in the 1980s and 1990s. In today’s scenario, computers are in a standardised stage and are mostly manufactured in low-cost countries in Asia. However, this theory has not been able to explain the current trading pattern where products are being invented and manufactured in almost all parts of the world. 

Global strategic rivalry theory

Paul Krugman and Kelvin Lancaster were the founders of this theory. This theory emerged around the 1980s. The theory majorly focused on multinational companies and their strategies and efforts to gain a comparative advantage over other similar global firms in their industry. This theory acknowledges the fact that firms will face global competition and prove their superiority. They must surely develop a competitive advantage over each other. The ways through which the firms can gain competitive advantage were termed as barriers to entry for that particular industry. These barriers are basically the obstacles that a firm will face globally when they enter the market. The barriers that companies and firms may try to optimise are 

  1. Mainly research and development,  
  2. The ownership of intellectual property rights,  
  3. Economies of scale,  
  4. Unique business processes or methods, 
  5. Extensive experience in the industry, and 
  6. The control of resources or favourable access to raw materials.

Porter’s national competitive advantage theory

The theory emerged in the 1990s with the aim of explaining the concept of national competitive advantage. The theory proposes that a nation’s competitiveness majorly depends upon the capability and capacity of the industry to come up with innovations and upgrades. This theory attempted to explain the reason behind the excessive competitiveness of some nations as compared to others. The main determinants proposed in this theory were local market resources and capabilities, local market demand conditions, local suppliers and complementary industries, and local firm characteristics. The theory also mentioned the crucial role of government in forming the competitive advantage of the industry.

Conclusion 

For years, theories concerning international trade have been the subject of intense research and debate. Growing international trade has its own pros and cons. The analysis of the system of international trade by way of various theories has enabled a systematic framework for better understanding. International trade contributes to the economic growth of a country, thereby increasing the standard of living of its people, creating employment opportunities, a greater variety of choices for consumers, etc. The development of trade theories has seen a major shift from the view of restricting free trade as stated in the theory of mercantilism to the various modern theories providing a better understanding to facilitate smooth international trade with increasing benefits. 

Frequently Asked Questions (FAQs) 

Why are international trade theories important?

The study of these theories caters to smooth and efficient trading by explaining the pits and falls, dos and don’ts to be kept in mind while trading. A vague or misguided view on such an important topic might affect a country’s financial position and its standing in the world. Hence, it is important to properly understand the theories pertaining to international trade for the benefit of the country as a whole. 

Which trade theory mainly focuses on decreasing imports?

The theory of mercantilism emphasises the point that primarily the country must focus on increasing the country’s export and restrict the import to only products that are absolutely necessary.

Why was the theory of Mercantilism slowly losing popularity?

The reason behind the gradual loss is very simple as we cannot force a country to buy our exported products. Also, in the absence of relative advantage no country would accept products from countries which are themselves not acknowledging the concept of free trade.

Which is the most popular international trade theory?

International trade theories have emerged as a great helping hand in understanding the changing pattern of trade in the past few years. Even though not every theory may be applicable to every country and every situation,  each one of them still has its own significance. Thus, we can say there is no particular theory that was the most popular of all the others. Instead, every single theory, in some way or another, has helped in the improvement of the tactics of international trade.

References 


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Section 60 of the Code of Civil Procedure, 1908

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This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article discusses Section 60 of the Code of Civil Procedure, 1908 which deals with property liable to attachment and sale in execution of decree. 

It has been published by Rachit Garg.

Introduction 

Every civil lawsuit has three stages, beginning with the filing of the lawsuit, followed by the decision on the lawsuit, and then the actual litigation itself. The litigation’s implementation phase, also known as the execution phase, is where the decision’s outcomes are put into practice. A court may order the transfer of certain debtor property to a creditor or the sale of such property for the benefit of the creditor through the legal process of attachment. Any property that belongs to the judgement debtor, or any property over which he has disposing authority that he may exercise for his own benefit, is subject to attachment and sale in the course of carrying out a judgement. The subject matter of property attachment is covered in Sections 60 to 64 and Rules 41 to 57 of Order 21 of Code of Civil Procedure, 1908 (CPC). This article discusses Section 60 of CPC, 1908 specific alongside judicial reasoning concerning the same. 

All about Section 60 of CPC, 1908

Property that can be attached and property that cannot be attached are both covered under Section 60 of CPC, 1908. All movable property belonging to the judgement debtor, excluding assets that are expressly excluded, including lands, houses or other buildings, goods, money, bank notes, checks, bills of exchange, hundis, promissory notes, government securities, bonds or other securities for money, debts, and shares in a corporation, may be attached and sold in fulfilment of a judgement against him. The decree described in this Section is not a mortgage decree; it is merely a money decree. It is crucial that the property not only belongs to the judgement debtor but also that he has the ability to dispose of it in his favour. 

The proviso covers the property excluded from attachment and sale to Section 60(1). Agriculture products are partially excluded from the attachment under Section 61. It comprises necessities like clothing, bedding, kitchenware, animal husbandry instruments, dwellings for farmers, wages, pensions, and gratuities, as well as deposits that are required and the right to future maintenance. Regarding whether the judgement-debtor has the option to forego the advantage granted by this proviso, there are two opposing views.

As such, Section 60 of the Civil Procedure Code is not exhaustive by nature, as have been rightly observed in the case of Ramesh Himmatlal Shah v. Harsukh Jadhavji Joshi (1975). It also includes any other saleable property, both movable and immovable, whether it is held in the judgement debtor’s own name or on his behalf by a third party. Right to occupy a flat is tangible property that can be sold or attached. Therefore, if a particular species of property is otherwise marketable, its specific exclusion from inclusion under Section 60 has no bearing on its marketability.

The Delhi High Court’s observation in the 2019 case of Ms. Sujata Kapoor v. Union Bank Of India And Ors had further summarised that the main clause of Section 60 CPC lists several properties owned by the judgement-debtor that is subject to attachment and sale in order to carry out a judgement, including lands, homes, and other structures. However, the addendum to Section 60(1) makes exceptions for certain types of properties that are not subject to attachment and sale. Evidently, the Parliament included an exemption for the poorest classes of people, including farmers, labourers, and domestic helpers, in Clause (c) of the proviso to Section 60(1).

Structure of Section 60 CPC, 1908 

Section 60 of the CPC, 1908 lays down a list of properties that are to be liable for attachment and sale in the execution of a decree. As have been discussed previously, the properties are:

  1. Lands,
  2. Houses or other buildings,
  3. Goods,
  4. Money,
  5. Bank-notes,
  6. Cheques,
  7. Bills of exchange,
  8. Hundis,
  9. Promissory notes, 
  10. Government securities,
  11. Bonds or other securities for money,
  12. Debts,
  13. Shares in a corporation. 
  14. All other saleable property, whether movable or immovable, that belongs to the judgement debtor or over which, or the profits of which, he has a disposing power that he may exercise for his own benefit, regardless of whether the property is held in the judgement debtor’s name or by another person in trust for him or on his behalf. 

Followed by this, Section 60 of CPC, 1908 also lays down a list of items that shall not be liable to the above-mentioned attachment or sale. The same has been discussed in the heading below. 

Items not eligible for attachment or sale under Section 60 CPC, 1908

  1. The essential clothing, cooking utensils, beds and bedding of the judgement debtor, his wife, and children, as well as any personal adornment that, according to religious custom, no lady should be allowed to part with.
  2. Tools of artisans, and, if the judgement debtor is an agriculturalist, his implements of husbandry, such cattle and seed-grain as may, in the court’s opinion, be necessary to enable him to earn his living as such, as well as a such portion of agricultural produce or of any class of agricultural products that may have been declared to be exempt from liability under the provisions of the section that follows this one.
  3. Books of account.
  4. Dwellings and other structures belonging to an agriculturist or a labourer of a domestic worker and occupied by him, along with the materials, sites, and land directly adjacent to and necessary for their enjoyment. 
  5. A mere right to sue for damages.
  6. Political pensions, as well as stipends and gratuities permitted to pensioners of the government, a local government, or any other employer, or due from any service family pension fund thus announced in the Official Gazette by the Central Government or the state government;
  7. The salary for domestic workers and labourers, whether it is payable in cash or in kind;
  8. Salary in the execution of any decree, excluding a decree for maintenance, up to the first 1,000 rupees and two-thirds of the remaining amount.
  9. The salaries and benefits of individuals are covered by the Air Force Act of 1950, the Army Act of 1950, or the Navy Act of 1957.
  10. The Provident Funds Act of 1925 currently applies to all mandatory deposits and other sums in or derived from funds, insofar as those monies are proclaimed by the aforementioned Act to be exempt from attachment.
  11. Any sums due under a life insurance policy on the judgement debtor;
  12. The interest of a lessee of a residential structure to whom the requirements of the law relating to the management of rents and accommodations are now applicable;
  13. Any allowance included in the pay of any government employee, an employee of a railroad, or employee of a municipal government that the appropriate government has declared free from attachment, as well as any subsistence grant or allowance given to that employee while they are on suspension.
  14. Any right of personal service. 
  15. A hope for succession through survivor’s rights or another merely hypothetical or potential right or interest;
  16. A claim to maintenance in the future;
  17. Any allowance determined to be exempt from attachment or sale in fulfilment of a decree by any Indian legislation, and
  18. Any movable property that is exempt from payment of land revenue under any current law that applies to the judgement debtor is not considered to be part of that obligation.
  19. Sale in order to make up for revenue arrears. 

Explanations provided to Section 60 CPC, 1908

Section 60 of the CPC, 1908 provides 6 explanations, which have been explained in simple terms hereunder: 

  1. Before or after they are actually paid, the funds related to the items listed in clauses (g), (h), I (ia), (j), (l), and (o) are exempt from attachment or sale, and, in the case of salary, the attachable component thereof is subject to attachment before or after it is actually paid.
  2. In Sections I and (ia), “salary” refers to the whole monthly emoluments received by a person from his employment, whether on duty or on leave, except any allowance designated exempt from attachment under the rules of clause (1).
  3. “Appropriate Government” in paragraph (1) means: 
  1. With regard to any employee of the Central Government, any employee of the railway administration, the cantonment authority, or the port authority of a major port; 
  2. In regards to any additional government employees or employees of any other local authorities, the state government. 
  1. The terms “wages” and “labourer” both refer to skilled, unskilled or semi-skilled labourers for the purposes of this proviso.
  2. For the purposes of this proviso, an “agriculturist” is a person who personally cultivates land and who relies heavily on the revenue from agricultural land, whether as an owner, tenant, partner or agricultural labourer, in order to make ends meet.
  3. An agriculturalist will be considered to personally cultivate the land for the purposes of Explanation V if he cultivates land—
  1. Through his own work, or
  2. Through the labour of any family member, or
  3. By employees who are paid in cash, in kind (rather than as a part of the produce), or both, as servants or labourers.

An agreement by which a person undertakes to forfeit the advantage of any exemption under this Section shall be void, regardless of anything else stated in any other legislation currently in effect. Nothing in this section shall be construed as releasing from attachment or sale in fulfilment of decrees for rent any such dwelling, building, site, or property, including the materials therein and the sites thereof and the lands immediately appurtenant thereto and necessary for their use. 

All you need to know about property liable to attachment and sale in execution of decree

A clause (kb) was added to Section 60(1) of the CPC in the year 1973 on the recommendation of the 54th Law Commission Report, which states that “property subject to attachment and sale in execution of the decree.” This clause exempted “all money payable under a policy of insurance on the life of the judgement-debtor” from attachment in the proceedings for the execution of the decree. The explanation under Section 60(1) of CPC further explains that the amounts payable in relation to the matters mentioned in clauses (g), (h), I (ia), (j), (l), and (o) are exempted from attachment or sale, whether before or after they are actually payable. In the case of salary, the attachable portion thereof is subject to attachment whether before or after it is actually payable.

The aforementioned explanation makes it clear that pension payments made to government employees or political pensions, wages paid to domestic workers and labourers, the first INR 1,000 of a salary or the remaining two-thirds of a salary, allowances for members of the armed forces or the air force, etc., covered by clauses (g), (h), I (ia), and (l) of Section 60(1) of CPC, regardless of whether they are payable or paid, are kept outside the list of assets that can be attached by the court executing the decree against the judgement-debtor.

Judicial decisions on property liable to attachment and sale in execution of the decree

  1. In Parasram H. Bhojwani v. Pravinchand Sehgal (2021), the Bombay High Court adopted an intriguing stance regarding the question of whether the sum of money paid to the judgement-debtor during his lifetime under the life insurance policy on the life can be attached under Section 60 of the Civil Procedure Code, 1908, in order to satisfy a decree that is still pending against the said judgement-debtor. 
  2. In Federal Bank Ltd. v. Indiradevi Kunjamma (1984), a similar Section 60 CPC problem involving the attachment of funds paid under a life insurance policy to the judgement-debtors’ lawful heirs was brought before the Bombay High Court in 1984. The Bombay High Court referred to the Supreme Court’s ruling in the case of Sarbati Devi v. Usha Devi (1983), in which to assert that it is no longer conceivable to retain the belief that funds payable under an insurance policy do not form a part of the decedent’s estate, the highest court of appeal considered it as a subject of attachment. 

The money payable or paid under the life insurance policy in the possession of the lawful heirs of the deceased judgement-debtor, however, was not subject to attachment by the Bombay High Court, who instead extended the protection granted by clause (kb) of Section 60(1) CPC. In order to provide some security to the heirs and legal representatives of the deceased judgement-debtor, the Bombay High Court reasoned that the legislature intended to exempt from attachment the funds payable under a policy of insurance on the life of the judgement-debtor by enacting clause (kb) of Section 60(1) CPC.

Given this circumstance, the exemption outlined in clause (kb) of Section 60(1) CPC applies to the same funds even though they are gradually becoming a part of the decedent’s estate. Due to the aforementioned clause (kb) of Section 60(1) CPC, funds payable under an insurance policy on the life of a judgement-debtor are completely exempt from attachment and sale regardless of whether the insurance policy matures during the assured’s lifetime or the funds become due after his death.

In the case of Parasram H. Bhojwani v. Pravinchand Sehgal (2021), the Bombay High Court cited its own decision in Federal Bank (1984) and reasoned that it was rendered in connection to a dispute where the issue concerned the attachment of the judgement-life debtor’s insurance policy beyond its lifetime. The Court stated that clause (kb) of Section 60(1) CPC completely exempts the proceeds of an insurance policy on the life of a judgement debtor from attachment and sale, regardless of whether the insurance policy matures during the assured’s lifetime or the proceeds become due after his death.

The Bombay High Court noted the differences between the facts of the Federal Bank case and the Parasram H. Bhojwani case, stating that the fact in the latter related to the payment of the money upon policy maturity during the insured person’s lifetime, whereas the issue in the former was limited to the payment of the life insurance policy upon the insured person’s death. The Court is, therefore, inclined to consider the facts of the case of Parasram H. Bhojwani when determining whether clause (kb) of Section 60 CPC is applicable.

Unquestionably, the Court recognised the Federal Bank ruling, implying that the purpose was always that any future amounts due, including insurance policies, could not be attached because the beneficiaries of an insured person’s death are their heirs. The Court cited the explanation provided under Section 60 CPC in stating that the items mentioned in clauses (g), (h), I (ia), (j), (l), and (o) of the provisions are exempted from attachment regardless of whether the amount is paid before or after the explanation’s reference.

  1. In the case of Canara Bank v. N. Palani (1995), the parties went before the Madras High Court to appeal the lower court’s decision to allow attachment of the fixed deposit receipt containing the funds received from the deceased judgement debtor’s life insurance policy. They argued that this was illegal under Section 60 CPC’s clause (kb), which states that the funds payable under a life insurance policy cannot be attached to carry out a judgement.

According to the Madras High Court, the term “due,” with regard to the protection provided by clause (kb) of Section 60 CPC, can no longer be extended to money once the policy matures and it has been paid as long as it still has the character of being payable under a life insurance policy. The Madras High Court took the decision in the Federal Bank case under consideration but determined that it would not apply in this case because the issue in the Federal Bank case concerned the attachment of money payable under an insurance policy, whereas the issue in the current case relates to the attachment of a fixed deposit receipt.

Referring to the case of Sebastian Jose v. Indian Overseas Bank Ltd. (2009), the Madras High Court in the present case held that so long as money is received as amounts payable under life insurance, it is protected by clause (kb) when received by the policyholder while he is still alive. However, when money is received by the policyholder’s legal representative after his death, it becomes his estate and is subject to attachment.

  1. In Radhey Shyam Gupta v. Punjab National Bank (2008) and Union of India v. Wing Commander R.R. Hingorani (1997), the Supreme Court held that the money is protected from attachment under Section 60 CPC as long as it retains the character of a pensionary benefit converted into a fixed deposit. Using the same reasoning in the case of insurance policies, the Apex Court observed that the exemption under clause (kb) will only be effective as long as the amount is still in the pensionary benefit. Once received, the sum would no longer be considered “payable,” eliminating the possibility of exemption.

If the policy matures within the insured’s lifetime, the funds would no longer be protected by Section 60(1)(kb) of CPC, 1908 after the insurance firm has paid the maturity value and distributed the assets. The safe confines of provident funds, pensions, and required deposits, which are highlighted in the explanation to Section 60 CPC, do not include payments received at the maturity of a life insurance policy. As the Federal Bank’s judgement did not take the explanation to Section 60(1) of the Code into account, the aforementioned decision stands out.

  1. In the case of Pulugu Karnakar Reddy v. Shreya Financiers and Hire Purchase (2006), a party challenged the lower court’s ruling attaching the sum payable under the life insurance policy to the legal heirs of the deceased judgement-debtor, before the Andhra Pradesh High Court. Referring to the 54th Law Commission Report, the Court noted that the main goal of enacting clause (kb) of Section 60 is to encourage thrift and the habit of owning a life insurance policy. However, in order to take a liberal stance, an exemption for life insurance policies is required. Taking into consideration the Federal Bank Ltd. ruling from the Bombay High Court, an exception was made under clause (kb) of Section 60 for the non-attachment of the money payable under the insurance policy and therefore the Andhra Pradesh High Court acknowledged that the legislative objective was to offer exemption to the insurance policy.
  2. In the case of V.P. Arora v. Punjab National Bank (1991), one OP Arora was the subject of a judgement which made him liable for payment, and his son VP Arora served as a judgement debtor and guarantor. OP Arora passed away; his execution was carried out, and his primary residence was attached. Shanti Devi, the wife of OP Arora, along with VP Arora were listed as legal representatives. Shanti Devi submitted objections invoking the defence provided by Section 60(1)(ccc) of the CPC, 1908. Shanti Devi left VP Arora the benefit of her bequest when she passed away.

The home that had previously belonged to OP Arora was afterwards acquired by VP Arora. It is important to note that VP Arora participated in the proceedings as a judgement debtor. The division bench of the Delhi High Court was asked to decide whether the judgement debtor could take advantage of proviso (ccc) of Section 60(1) of the CPC, 1908 if he acquired ownership of a home after a decree or attachment and it happened to be his primary residence. 

When deciding what would happen to the suit property, the Court considered the facts of the case, the relevant provisions of the Hindu Succession Act, 1956 that applied following the death of OP Arora, and proviso (ccc) of Section 60(1) of CPC. The Court concluded its ruling by holding, “It barely matters if he held the house when the decree was enacted or acquired ownership of it after it was sought to be sold or attached. For this reason, the phrase “or” was used by the law’s drafters between attachment and sale.” In the end, the Court had determined that VP Arora must remain a judgement debtor and continue to own the property as his primary residence before it may be sold.

  1. In the matter of Bomminayana Nirmala v. Rachapathu Krishnamurthy (2010), the Andhra Pradesh High Court was entrusted with interpreting the validity of clause (kb) of Section 60 CPC, 1908 for the attachment of money payable under the insurance policy. In this instance, a creditor sued the legal heirs of the judgement debtor who passed away prior to the filing of the suit in order to reclaim the debt. A judgement was rendered against the legal heirs, and the Court enforcing the judgement mandated the attachment of the sum due to the legal heirs under the dead debtor’s life insurance policy.

The party filed a revision petition in opposition to the executing court’s order attaching funds due under the insurance policy. The Court determined that the sum payable under the insurance policy on the life of the deceased debtor is free from attachment for any amount due by the insured under clause (kb) of Section 60 CPC by referring to the judgement in the Federal Bank case.  Therefore, under Section 60 CPC, the insurance amount is immune from attachment before judgement by the executing court if the lawsuit was brought against the legal heirs as the policy successors. 

Frequently Asked Questions (FAQs)

What are the attachable properties?

The attachable properties are categorised by Section 60 of CPC, 1908 as follows: 

  1. Land, houses, buildings, goods, money, banknotes, checks, bills of exchange, promissory notes, bonds, or other securities convertible into money, government securities, debts, and shares.
  2. Any other sellable property that JDR owns or has the authority to dispose of for his own gain.

Whether mangalsutra of women is attachable?

The necessary clothing, cooking utensils, beds, and bedding for the judgement debtor, his wife, and children, as well as any personal adornment that, according to religious custom, no woman should be allowed to part with, are listed in Section 60 (1) proviso (a). Therefore, since the mangalsutra are ornaments used in Hinduism, no lady can part with them and they are not subject to attachment.

Whether musical instruments of musicians are attachable?

Tools for artisans, husbandry implements, and other items described in proviso to Section 60(1) of the CPC, 1908 cannot be attached. However, a musician is not an artisan, as the term “artisan” refers to someone who performs manual labour. Similarly,

  1. Surgeon’s instruments.
  2. Laundry appliances.
  3. A company that employs artisans is not eligible for exemption.

Is there any exemption for a particular category of houses?

Section 60(1)’s proviso’s clause c provides that houses owned by farmers are exempted from CPC. An “agriculturist” is someone whose livelihood is entirely or primarily derived from farming land. He doesn’t have to be an owner; he could be a tenant or a worker for this type of land cultivation.

Whether a right to sue for damages can be attached?

Section 60’s proviso’s clause (e) (1) provides that a right to claim for damages is free from attachment under CPC, 1908 because it cannot be sold or transferred as property. A judgement or award of damages, however, may be affixed because it is transferable.

Is a pujari’s right to accept contributions in a temple exempt from attachment?

The “Right of personal service” is immune from attachment under sub-section (f) of the proviso to Section 60(1) CPC, 1908. However, an offering is attachable when the right to accept it at a temple is distinct from the requirement to perform a service of a personal kind.

Does any clause completely exempt “wage” from attachment?

The proviso to Section 60(1) CPC’s clause (h) states that domestic workers’ and labourers’ pay are completely immune from attachment. Personal manual work is the requirement for being referred to as a labourer, not prior education or training in a particular skill.

Conclusion 

Section 60 of the Code of Civil Procedure,1908, states that all properties that can be sold are subject to attachment and sale in order to carry out the judgement. The property listed therein is likewise free from attachment and sale during the execution of a decree, according to the provision. As a general rule, all property, both movable and immovable, including shares of companies, buildings, and agricultural land, as well as movable goods like cash and other items, is considered to be property, owned by the judgement debtor, who has the exclusive right to hold and process it.  

References 

  1. https://districts.ecourts.gov.in/sites/default/files/attachment%20of%20property%20in%20execution%20-%20Sri%20D%20Vishnu%20Prasada%20Reddy.pdf.

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