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Information Technology Act, 2000

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This article is written by Monesh Mehndiratta, a law student at Graphic Era Hill University, Dehradun. The article explains various terminologies and gives an overview of the Information Technology Act, 2000. It further describes the offences given in the Act and the punishment related to them.

This article has been published by Sneha Mahawar.

Table of Contents

Introduction 

One day, you wake up in the morning and check your phone. You are shocked to see that every piece of data of yours stored in different applications like your phone’s gallery, Facebook, Instagram and Whatsapp has been hacked. You then check your laptop and observe that it has been hacked. What will you do? Will you sue these social media for not protecting your data or search the hacker?

This is where the Information Technology Act of 2000 comes into the picture. The Act defines various offences related to breach of data and privacy of an individual and provides punishment or penalties for them. It also talks about intermediaries and regulates the power of social media. With the advancement of technology and e-commerce, there has been a tremendous increase in cyber crimes and offences related to data and authentic information. Even the data related to the security and integrity of the country was not safe, and so the government decided to regulate the activities of social media and data stored therein. The article gives the objectives and features of the Act and provides various offences and their punishments as given in the Act. 

Background of Information Technology Act, 2000

The United Nations Commission on International Trade Law in 1996 adopted a model law on e-commerce and digital intricacies. It also made it compulsory for every country to have its own laws on e-commerce and cybercrimes. In order to protect the data of citizens and the government, the Act was passed in 2000, making India the 12th country in the world to pass legislation for cyber crimes. It is also called the IT Act and provides the legal framework to protect data related to e-commerce and digital signatures. It was further amended in 2008 and 2018 to meet the needs of society. The Act also defines the powers of intermediaries and their limitations. 

Schedule of Information Technology Act, 2000

The Act is divided into 13 chapters, 90 sections and 2 schedules. The following are the chapters under the Act:

  • Chapter 1 deals with the applicability of the Act and definitions of various terminologies used in the Act. 
  • Chapter 2 talks about digital and electronic signatures. 
  • Electronic governance and electronic records are given under Chapters 3 and 4 respectively. 
  • Chapter 5 is related to the security of these records and Chapter 6 deals with regulations of certifying authorities. 
  • Chapter 7 further gives the certificates needed to issue an electronic signature. 
  • Chapter 8 gives the duties of subscribers and Chapter 9 describes various penalties. 
  • Chapter 10 provides sections related to the Appellate Tribunal. 
  • Chapter 11 describes various offences related to breach of data and their punishments. 
  • Chapter 12 provides the circumstances where the intermediaries are not liable for any offence or breach of data privacy. 
  • The final chapter, i.e., Chapter 13 is the miscellaneous chapter. 

The 2 schedules given in the Act are:

  • Schedule 1 gives the documents and data where the Act is not applicable. 
  • Schedule 2 deals with electronic signatures or methods of authentication. 

Applicability of Information Technology Act, 2000

According to Section 1, the Act applies to the whole country, including the state of Jammu and Kashmir. The application of this Act also extends to extra-territorial jurisdiction, which means it applies to a person committing such an offence outside the country as well. If the source of the offence, i.e., a computer or any such device, lies in India, then the person will be punished according to the Act irrespective of his/her nationality. 

The Act, however, does not apply to documents given under Schedule 1. These are:

Objectives of Information Technology Act, 2000

The Act was passed to deal with e-commerce and all the intricacies involved with digital signatures and fulfill the following objectives:

  • The Act seeks to protect all transactions done through electronic means. 
  • E-commerce has reduced paperwork used for communication purposes. It also gives legal protection to communication and the exchange of information through electronic means. 
  • It protects the digital signatures that are used for any sort of legal authentication. 
  • It regulates the activities of intermediaries by keeping a check on their powers. 
  • It defines various offences related to data privacy of citizens and hence protects their data.
  • It also regulates and protects the sensitive data stored by social media and other electronic intermediaries.
  • It provides recognition to books of accounts kept in electronic form regulated by the Reserve Bank of India Act, 1934

Features of Information Technology Act, 2000

Following are the features of the Act:

  • The Act is based on the Model Law on e-commerce adopted by UNCITRAL. 
  • It has extra-territorial jurisdiction. 
  • It defines various terminologies used in the Act like cyber cafes, computer systems, digital signatures, electronic records, data, asymmetric cryptosystems, etc under Section 2(1)
  • It protects all the transactions and contracts made through electronic means and says that all such contracts are valid. (Section 10A)
  • It also gives recognition to digital signatures and provides methods of authentication. 
  • It contains provisions related to the appointment of the Controller and its powers. 
  • It recognises foreign certifying authorities (Section 19). 
  • It also provides various penalties in case a computer system is damaged by anyone other than the owner of the system. 
  • The Act also provides provisions for an Appellate Tribunal to be established under the Act. All the appeals from the decisions of the Controller or other Adjudicating officers lie to the Appellate tribunal. 
  • Further, an appeal from the tribunal lies with the High Court. 
  • The Act describes various offences related to data and defines their punishment. 
  • It provides circumstances where the intermediaries are not held liable even if the privacy of data is breached. 
  • A cyber regulation advisory committee is set up under the Act to advise the Central Government on all matters related to e-commerce or digital signatures. 

Overview of Information Technology Act, 2000

The Act deals with e-commerce and all the transactions done through it. It gives provisions for the validity and recognition of electronic records along with a license that is necessary to issue any digital or electronic signatures. The article further gives an overview of the Act. 

Electronic records and signatures 

The Act defines electronic records under Section 2(1)(t), which includes any data, image, record, or file sent through an electronic mode. According to Section 2(1)(ta), any signature used to authenticate any electronic record that is in the form of a digital signature is called an electronic signature. However, such authentication will be affected by asymmetric cryptosystems and hash functions as given under Section 3 of the Act. 

Section 3A further gives the conditions of a reliable electronic signature. These are:

  • If the signatures are linked to the signatory or authenticator, they are considered reliable. 
  • If the signatures are under the control of the signatory at the time of signing. 
  • Any alteration to such a signature must be detectable after fixation or alteration. 
  • The alteration done to any information which is authenticated by the signature must be detectable. 
  • It must also fulfill any other conditions as specified by the Central Government. 

The government can anytime make rules for electronic signatures according to Section 10 of the Act. The attribution of an electronic record is given under Section 11 of the Act. An electronic record is attributed if it is sent by the originator or any other person on his behalf. The person receiving the electronic record must acknowledge the receipt of receiving the record in any manner if the originator has not specified any particular manner. (Section 12). According to Section 13, an electronic record is said to be dispatched if it enters another computer source that is outside the control of the originator. The time of receipt is determined in the following ways:

  • When the addressee has given any computer resource,
    • Receipt occurs on the entry of an electronic record into the designated computer resource. 
    • In case the record is sent to any other computer system, the receipt occurs when it is retrieved by the addressee. 
  • When the addressee has not specified any computer resource, the receipt occurs when the record enters any computer source of the addressee. 

Certifying authorities

Appointment of Controller

Section 17 talks about the appointment of the controller, deputy controllers, assistant controllers, and other employees of certifying authorities. The deputy controllers and assistant controllers are under the control of the controller and perform the functions as specified by him. The term, qualifications, experience and conditions of service of the Controller of certifying authorities will be determined by the Central Government. It will also decide the place of the head office of the Controller. 

Functions of the Controller

According to Section 18, the following are the functions of the Controller of certifying authority:

  • He supervises all the activities of certifying authorities. 
  • Public keys are certified by him. 
  • He lays down the rules and standards to be followed by certifying authorities. 
  • He specifies the qualifications and experience required to become an employee of a certifying authority. 
  • He specifies the procedure to be followed in maintaining the accounts of authority. 
  • He determines the terms and conditions of the appointment of auditors. 
  • He supervises the conduct of businesses and dealings of the authorities. 
  • He facilitates the establishment of an electronic system jointly or solely. 
  • He maintains all the particulars of the certifying authorities and specifies the duties of the officers.
  • He has to resolve any kind of conflict between the authorities and subscribers. 
  • All information and official documents issued by the authorities must bear the seal of the office of the Controller. 

License for electronic signatures 

It is necessary to obtain a license certificate in order to issue an electronic signature. Section 21 of the Act provides that any such license can be obtained by making an application to the controller who, after considering all the documents, decides either to accept or reject the application. The license issued is valid for the term as prescribed by the central government and is transferable and heritable. It is regulated by terms and conditions provided by the government. 

According to Section 22 of the Act, an application must fulfill the following requirements:

  • A certificate of practice statement. 
  • Identity proof of the applicant. 
  • Fees of Rupees 25,000 must be paid. 
  • Any other document as specified by the central government. 

The license can be renewed by making an application before 45 days from the expiry of the license along with payment of fees, i.e., Rupees 25000. (Section 23)

Any license can be suspended on the grounds specified in Section 24 of the Act. However, no certifying authority can suspend the license without giving the applicant a reasonable opportunity to be heard. The grounds of suspension are:

  • The applicant makes a false application for renewal with false and fabricated information. 
  • Failure to comply with the terms and conditions of the license. 
  • A person fails to comply with the provisions of the Act. 
  • He did not follow the procedure given in Section 30 of the Act. 

The notice of suspension of any such license must be published by the Controller in his maintained records and data. 

Powers of certifying authorities

Following are the powers and functions of certifying authorities:

  • Every such authority must use hardware that is free from any kind of intrusion. (Section 30)
  • It must adhere to security procedures to ensure the privacy of electronic signatures. 
  • It must publish information related to its practice, electronic certificates and the status of these certificates. 
  • It must be reliable in its work. 
  • The authority has the power to issue electronic certificates. (Section 35)
  • The authority has to issue a digital signature certificate and certify that:
    • The subscriber owns a private key along with a public key as given in the certificate. 
    • The key can make a digital signature and can be verified.
    • All the information given by subscribers is accurate and reliable. 
  • The authorities can suspend the certificate of digital signature for not more than 15 days. (Section 37)
  • According to Section 38, a certificate can be revoked by the authorities on the following grounds:
    • If the subscriber himself makes such an application.
    • If he dies. 
    • In case, the subscriber is a company then on the winding up of the company, the certificate is revoked. 

Circumstances where intermediaries are not held liable

Section 2(1)(w) of the Act defines the term ‘intermediary’ as one who receives, transmits, or stores data or information of people on behalf of someone else and provides services like telecom, search engines and internet services, online payment, etc. Usually, when the data stored by such intermediaries is misused, they are held liable. But the Act provides certain instances where they cannot be held liable under Section 79. These are:

  • In the case of third-party information or communication, intermediaries will not be held liable. 
  • If the only function of the intermediary was to provide access to a communication system and nothing else, then also they are not held liable for any offence. 
  • If the intermediary does not initiate such transmissions or select the receiver or modify any information in any transmission, it cannot be made liable. 
  • The intermediary does its work with care and due diligence. 

However, the section has the following exemptions where intermediaries cannot be exempted from the liability:

  • It is involved in any unlawful act either by abetting, inducing or by threats or promises. 
  • It has not removed any such data or disabled access that is used for the commission of unlawful acts as notified by the Central Government. 

Penalties under Information Technology Act, 2000

The Act provides penalties and compensation in the following cases:

Penalty for damaging a computer system

If a person other than the owner uses the computer system and damages it, he shall have to pay all such damages by way of compensation (Section 43). Other reasons for penalties and compensation are:

  • If he downloads or copies any information stored in the system. 
  • Introduces any virus to the computer system. 
  • Disrupts the system. 
  • Denies access to the owner or person authorised to use the computer.
  • Tampers or manipulates the computer system. 
  • Destroys, deletes or makes any alteration to the information stored in the system. 
  • Steals the information stored therein. 

Compensation in the case of failure to protect data

According to Section 43A, if any corporation or company has stored the data of its employees or other citizens or any sensitive data in its computer system but fails to protect it from hackers and other such activities, it shall be liable to pay compensation. 

Failure to furnish the required information

If any person who is asked to furnish any information or a particular document or maintain books of accounts fails to do so, he shall be liable to pay the penalty. In the case of reports and documents, the penalty ranges from Rupees one lakh to Rupees fifty thousand. For books of accounts or records, the penalty is Rs. 5000. (Section 44)

Residuary Penalty 

If any person contravenes any provision of this Act and no penalty or compensation is specified,  he shall be liable to pay compensation or a penalty of Rs. 25000.   

Appellate tribunal 

According to Section 48 of the Act, the Telecom dispute settlement and appellate tribunal under Section 14 of the Telecom Regulatory Authority of India Act, 1997 shall act as the appellate tribunal under the Information Technology Act, 2000. This amendment was made after the commencement of the Finance Act of 2017.

All the appeals from the orders of the controller or adjudicating officer will lie to the tribunal, but if the order is decided with the consent of the parties, then there will be no appeal. The tribunal will dispose of the appeal as soon as possible but in not more than 6 months from the date of such appeal. (Section 57

According to Section 62 of the Act, any person if not satisfied with the order or decision of the tribunal may appeal to the High Court within 60 days of such order.

Powers 

According to Section 58 of the Act, the tribunal is not bound to follow any provisions of the Code of Civil Procedure, 1908 and must give decisions on the basis of natural justice. However, it has the same powers as given to a civil court under the Code. These are:

  • Summon any person and procure his attendance. 
  • Examine any person on oath. 
  • Ask to discover or produce documents. 
  • Receive evidence on affidavits. 
  • Examination of witnesses. 
  • Review decisions. 
  • Dismissal of any application. 

Offences and their punishments under Information Technology Act, 2000

S.no. Offences Section Punishment 
Tampering with the documents stored in a computer systemSection 65Imprisonment of 3 years or a fine of Rs. 2 lakhs or both.  
Offences related to computers or any act mentioned in Section 43.  Section 66Imprisonment of 3 years or a fine that extends to Rs. 5 lakhs or both.
Receiving a stolen computer source or device dishonestlySection 66BImprisonment for 3 years or a fine of Rs. 1 lakh or both.
Identity theftSection 66CImprisonment of 3 years or a fine of Rs. 1 lakh or both
Cheating by personationSection 66DEither imprisonment for 3 years or a fine of Rs. 1 lakh or both.
Violation of privacySection 66EEither imprisonment up to 3 years or a fine of Rs. 2 lakhs or both
Cyber terrorism Section 66F Life imprisonment 
Transmitting obscene material in electronic form.Section 67Imprisonment of 5 years and a fine of Rs. 10 lakhs.
Transmission of any material containing sexually explicit acts through an electronic mode. Section 67A Imprisonment of 7 years and a fine of Rs. 10 lakhs.
Depicting children in sexually explicit form and transmitting such material through electronic modeSection 67BImprisonment of 7 years and a fine of Rs. 10 lakhs.
Failure to preserve and retain the information by intermediaries Section 67CImprisonment for 3 years and a fine. 

Amendments to Information Technology Act, 2000

With the advancement of time and technology, it was necessary to bring some changes to the Act to meet the needs of society, and so it was amended. 

Amendment of 2008 

The amendment in 2008 brought changes to Section 66A of the Act. This was the most controversial section as it provided the punishment for sending any offensive messages through electronic mode. Any message or information that created hatred or hampered the integrity and security of the country was prohibited. However, it had not defined the word ‘offensive’ and what constitutes such messages, because of which many people were arrested on this ground. This section was further struck down by the Supreme Court in the case of Shreya Singhal v. Union of India (2015)

Another amendment was made in Section 69A of the Act, which empowered the government to block internet sites for national security and integrity. The authorities or intermediaries could monitor or decrypt the personal information stored with them. 

The 2015 Amendment Bill

The bill was initiated to make amendments to the Act for the protection of fundamental rights guaranteed by the Constitution of the country to its citizens. The bill made an attempt to make changes to Section 66A, which provides the punishment for sending offensive messages through electronic means. The section did not define what amounts to offensive messages and what acts would constitute the offence. It was further struck down by the Supreme Court in the case of Shreya Singhal declaring it as violative of Article 19. 

Information Technology Intermediaries Guidelines (Amendment) Rules, 2018

The government in 2018 issued some guidelines for the intermediaries in order to make them accountable and regulate their activities. Some of these are:

  • The intermediaries were required to publish and amend their privacy policies so that citizens could be protected from unethical activities like pornography, objectionable messages and images, messages spreading hatred, etc. 
  • They must provide the information to the government as and when it is sought within 72 hours for national security. 
  • It is mandatory for every intermediary to appoint a ‘nodal person of contact’ for 24×7 service.
  • They must have technologies that could help in reducing unlawful activities done online.
  • The rules also break end-to-end encryption if needed to determine the origin of harmful messages.

Information Technology (Intermediaries Guidelines and Digital Media Ethics Code) Rules 2021

The government of India in 2021 drafted certain rules to be followed by the intermediaries. The rules made it mandatory for intermediaries to work with due diligence and appoint a grievance officer. They were also required to form a Grievance Appellate Tribunal. All complaints from users must be acknowledged within 24 hours and resolved within 15 days. It also provides a “Code of Ethics” for the people publishing news and current affairs, which makes it controversial. Many believe that the rules curtail freedom of speech and expression and freedom of the press. 

The intermediaries were also required to share the information and details of a suspicious user with the government if there was any threat to the security and integrity of the country. As a result of this, writ petitions were filed in various high courts against the rules. Recently, the Bombay High Court stayed in the case of Agij Promotion of Nineteenonea Media Pvt. Ltd. vs. Union of India (2021) and Nikhil Mangesg Wagle vs. Union of India (2021) the two provisions of the rules related to the Code of Ethics for digital media and publishers. 

Landmark judgments on Information Technology Act, 2000

Shreya Singhal v. Union of India (2015)

Facts

In this case, 2 girls were arrested for posting comments online on the issue of shutdown in Mumbai after the death of a political leader of Shiv Sena. They were charged under Section 66A for posting the offensive comments in electronic form. As a result, the constitutional validity of the Section was challenged in the Supreme Court stating that it infringes upon Article 19 of the Constitution. 

Issue 

Whether Section 66A is constitutionally valid or not?

Judgment 

The Court, in this case, observed that the language of the Section is ambiguous and vague, which violates the freedom of speech and expression of the citizens. It then struck down the entire Section on the ground that it was violative of Article 19 of the Constitution. It opined that the Section empowered police officers to arrest any person whom they think has posted or messaged anything offensive. Since the word ‘offensive’ was not defined anywhere in the Act, they interpreted it differently in each case. This amounted to an abuse of power by the police and a threat to peace and harmony. 

M/S Gujarat Petrosynthese Ltd and Rajendra Prasad Yadav v. Union of India (2014)

Facts 

In this case, the petitioners demanded the appointment of a chairperson to the Cyber Appellate Tribunal so that cases can be disposed of quickly and someone can keep a check on the workings of CAT. The respondents submitted that a chairperson would be appointed soon.

Issue 

Appointment of the chairperson of CAT. 

Judgment 

The Court ordered the appointment of the chairperson and must see this as a matter of urgency and take into account Section 53 of the Act. 

Christian Louboutin SAS v. Nakul Bajaj and Ors (2018)

Facts 

In this case, a suit was filed by a shoe company to seek an order of injunction against the defendants for using its trademarks and logo. 

Issue 

Whether the protection of “safe harbour” under Section 79 of the Act be applied in this case?

Judgment

The Court in this case observed that the defendant was not an intermediary as their website was a platform for the supply of various products. It used third-party information and promoted vendors in order to attract consumers for them. The Court held that e-commerce platforms are different from the intermediaries and the rights granted to them in Section 79 of the Act. It ordered the intermediaries to work with due diligence and not infringe the rights of the trademark owner. They must take steps to recognise the authenticity and genuineness of the products while dealing with any merchant or dealer. 

The Court added that if the intermediaries act negligently regarding IPR and indulge in any sort of abetment or incitement of unlawful or illegal activity, they will be exempted from the protection of safe harbour under Section 79 of the Act. Any active participation in e-commerce would also lead to the same. It also referred to the intermediaries guidelines, which state that no intermediary must violate any intellectual property rights of anyone while displaying any content on its website.

Loopholes in Information Technology Act, 2000

The Act provides various provisions related to digital signatures and electronic records, along with the liability of intermediaries, but fails in various other aspects. These are:

No provision for breach of data 

The provisions of the Act only talk about gathering the information and data of the citizens and its dissemination. It does not provide any remedy for the breach and leak of data, nor does it mention the responsibility or accountability of anyone if it is breached by any entity or government organization. It only provides for a penalty if an individual or intermediary does not cooperate with the government in surveillance. 

No address to privacy issues 

The Act failed in addressing the privacy issues of an individual. Any intermediary could store any sensitive personal data of an individual and give it to the government for surveillance. This amounts to a violation of the privacy of an individual. This concern has been neglected by the makers. 

Simple punishments 

Though the Act describes certain offences committed through electronic means, the punishments given therein are much simpler. To reduce such crimes, punishments must be rigorous.

Lack of trained officers

With the help of money and power, one can easily escape liability. At times, these cases go unreported because of a social stigma that police will not address such complaints. A report shows that police officers must be trained to handle cybercrimes and have expertise in technology so that they can quickly investigate a case and refer it for speedy disposal. 

No regulation over Cyber Crimes

With the advancement of technology, cyber crimes are increasing at a greater pace. The offences described in the Act are limited, while on the other hand, various types of cyber crimes are already prevailing, which if not addressed properly within time, may create a menace. These crimes do not affect any human body directly but can do so indirectly by misusing the sensitive data of any person. Thus, the need of the hour is to regulate such crimes. This is where the Act lacks. 

Conclusion 

The Act is a step toward protecting the data and sensitive information stored with the intermediaries online. It gives various provisions which benefit the citizens and protect their data from being misused or lost. However, with the advancement of e-commerce and online transactions, it is necessary to deal with problems like internet speed and security, transactions that are struck, the safety of passwords, cookies, etc. Cyber crimes are increasing at a great pace, and there is a need to have a mechanism to detect and control them. 

Frequently Asked Questions (FAQs)

What is the main purpose of the Information Technology Act, 2000?

The aim of the Act is to :

  • Protect all the transactions done through electronic means.
  • Recognise the digital signatures that are used for any sort of legal authentication. 
  • Regulate the activities of intermediaries and protect citizens from cybercrime. 

What will happen if any of the offences given in the Act is committed by a company?

According to Section 85 of the Act, if any of the offences is committed by a company, then all the people involved in the commission of the offence shall be liable and proceedings will be initiated against them.

What is the constitution of the Advisory Committee under the Act?

The Act under Section 88 talks about an advisory committee called the Cyber Regulations Advisory Committee formed by the Central Government. The committee consists of a chairperson and other officers having expertise in the subject matter of the Act. It will give advice to the government on all matters related to the Act. 

References 


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Section 320 CrPC

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This article is written by Samiksha Madan, a law student at Symbiosis Law School, Hyderabad. This article analyzes the provisions of compoundable offences under Section 320 of the Criminal Procedure Code, 1973.

It has been published by Rachit Garg.

Introduction 

‘Interest reipublicae ut sit finis litium’, a Latin legal maxim, means that it is in the State’s best interest for litigation to come to a close. For a long time, various matters have been pending before the courts of law. The law gave the criminal justice system a powerful instrument that, when used, can significantly reduce the time it takes to conclude a case. Such a provision has been laid down in Section 320 of the Criminal Procedure Code, 1973, entailing the compoundable offence. This article aims to explain what compoundable offences are and on what grounds can non-compoundable offences be compounded under Section 320.

What is compounding of an offence

If there is a settlement between the accused and the crime victim, it may be prudent in some cases to permit the compounding of offences and to end the legal proceedings. Sometimes, the public prosecutor or the complainant may decide it is preferable to drop the case; the court may then approve this withdrawal, ending the criminal trial. The Criminal Procedure Code permits stopping the proceedings in specific situations, subject to certain restrictions if the magistrate himself deems it desirable. In specific circumstances, the non-appearance or death of the complainant may mandate the closure of the proceedings; and, subject to specific exceptions, the death of the accused person himself may result in the abatement of the case. For some compelling reasons, it may be necessary to grant the accused person a conditional pardon for his claimed involvement in the crime. The prosecution of the accused individual would have to be dropped in the event that such a pardon was granted. 

To compound means “to settle a matter by a money payment, in lieu of other liability.” In criminal law, the victim has the capacity to compound the offence. Section 320 of the Code of Criminal Procedure, 1973, provides legal provisions for the compounding of offences. The purpose of Section 320 of the Code is to promote amicable relations between the parties in order to restore peace.

Compounding of offences under Common Law

Compounding a felony was considered a misdemeanor under common law. There are laws that penalize the offence as a felony in several states. Misdemeanor compounding is not illegal. An agreement not to prosecute a misdemeanor, however, is unenforceable since it violates public policy. Under this principle, compounding is a crime that is practically all across American law. The compounding of a crime may be tried as a common law crime in two states and as a statutory offence in forty-five states. Compounding has been outlawed in England and Wales, Northern Ireland, and the Republic of Ireland.

Constituents of Section 320 CrPC

Section 320(1) – Compounding without the court’s permission 

The law provides for the compounding of offences without the court’s permission under Section 320(1) of the Criminal Procedure Code. These offences are punishable by certain sections of the Indian Penal Code, 1860, which may be compounded by the individuals listed in the third column of that table.

Here are a few examples of such offences:

Section of the I.P.C. applicableOffencesPersons by whom the offences may be compounded 
298Uttering words, etc. with deliberate intent to wound the religious feelings of a person.The person whose religious feelings are intended to be wounded.
323, 334Voluntarily causing hurt, voluntarily causing hurt on provocation.The person to whom the hurt is caused.
341, 342Wrongfully restraining or confining any person.The person is restrained or confined.
352, 355, 358Assault or use of criminal force.The person assaulted or to whom criminal force is used. 
426, 427Mischief, when the only loss or damage caused is loss or damage to a private person.The person to whom the loss or damage is caused.
447Criminal trespassThe person in possession of the property trespassed upon.
448House-trespassThe person in possession of the property trespassed upon it.
451House-trespass in order to commit an offence punishable with imprisonmentThe person in possession of the offence (other than theft) punishable house trespassed upon
482Punishment for using a false property markThe person to whom loss or injury is marked. caused by such use.
483Counterfeiting a property mark used by anotherThe person to whom loss or injury is marked. caused by such use.
486Knowingly selling, or exposing or possessing for sale or for manufacturing purpose, goods marked with a counterfeit propertymark.The person to whom loss or injury is mark. caused by such use.
491 Criminal breach of contract of service.The person with whom the offender has contracted.
497AdulteryThe husband of the woman.
498Enticing or taking away or detaining with criminal intent a marriedThe husband of the woman and the woman.
500 Defamation against the President or the Vice-President or the Governor of a State or the Administrator of a Union territory or a Minister in respect of his public functions when instituted upon] a complaint made by the Public Prosecutor.The person defamed.
501Printing or engraving matter, knowing it to be defamatory.The person defamed.
502Sale of printed or engraved substance containing defamatory matter, knowing it to contain such matter.The person defamed.
504Insult intended to provoke a breach of the peaceThe person insulted.
506Criminal intimidation.The person intimidated.
508Inducing person to believe himself an object of divine displeasure.The person induced.

Section 320(2) – Court’s permission is required before compounding an offence 

The law provides for the compounding of offences wherein the court’s permission is a pre-requisite under Section 320(2) of the Criminal Procedure Code. These offences are punishable by certain sections of the Indian Penal Code, 1860, which may be compounded by the individuals listed in the third column of that table.

Here are a few examples of such offences:

Section of the I.P.C. applicableOffencesPerson by whom offence may be compounded 
312Causing miscarriageThe woman to whom miscarriage is caused.
325Voluntarily causing grievous hurtThe person to whom hurt is caused.
337Causing hurt by doing an act so rashly and negligently as to endanger human life or the personal safety of others.The person to whom hurt is caused.
338Causing grievous hurt by doing an act so rashly and negligently as to endanger human life or the personal safety of others.The person to whom hurt is caused.
357Assault or criminal force in attempting wrongfully to confine a person.The person assaulted or to whom the force was used.
381Theft, by clerk or servant of property in possession of master.The owner of the property was stolen.
406Criminal breach of trust.The owner of property in respect of which a breach of trust has been committed.
408Criminal breach of trust by a clerk or servant.The owner of the property in respect of which the breach of trust has been committed.
418Cheating a person whose interest the offender was bound, either by law or by legal contract, to protect.The person cheated.
420Cheating and dishonestly inducing delivery of property or the making, alteration or destruction of valuable security.The person cheated.
494Marrying again during the life-time of a husband or wifeThe husband or wife of the person so marrying.
500Defamation against the President or the Vice-President or the Governor of a State or the Administrator of a Union territory or a Minister in respect of his public functions when instituted upon a complaint made by the public prosecutor.The person is defamed.
509Uttering words or sounds or making gestures or exhibiting any object intending to insult the modesty of a woman or intruding upon the privacy of a woman.The woman whom it was intended to insult or whose privacy was intruded upon.

In addition to the aforementioned provisions, certain state amendments were made, such as the Andhra Pradesh Act of 2003 (Section 2), which resulted in the inclusion of Section 494A of the IPC, which provides for cruelty against a woman by her husband or any of his relatives. 

Section 320(3) 

It states that if an offence is compoundable in nature, as outlined by this section, then aiding or abetting the commission of such an offence, or an attempt to do so, or where the accused is held liable under Section 34 or Section 149 of the Indian Penal Code, is likewise compoundable in nature. In other words, if a person has attempted to conduct a compoundable offence or assisted in the execution of a compoundable offence, the attempt or assistance is also compoundable in character. This is only accurate for offences for which aiding and abetting and attempting to commit are offences in and of themselves. For instance, if person ‘A’ has uttered words with deliberate intent to wound the religious feelings of another person, it is a compoundable offence, and the parties might reach an agreement among themselves. Similarly, if ‘A’ has attempted to commit theft, or abetted/helped another person to commit the offence of theft, then this attempt and abetment are also compoundable in nature.

Section 320(4) 

This sub-section states the circumstances in which the victim is a minor, of unsound mind, or deceased. This provision asserts that when a victim is a minor (18 years) or of unsound mind, a guardian representing such a person can compound the offence on their behalf. However, before a guardian may compound an offence on behalf of a minor, the court must grant approval. This provision further indicates that if the individual who had the authority to compound the offence is deceased as defined in the Code of Civil Procedure, 1908 (5 of 1908), a legal representative of that person may compound an offence on his or her behalf if prior authorization is obtained from the court.

Section 320(5) 

It states that when the accused is on trial for a compoundable offence or when the accused has been convicted by a court and an appeal against the conviction is pending, compounding of such an offence is not permitted at that stage without the permission of the court. It makes no difference whether the offence is classified as class 1 or class 2 as entailed under Section 320(1) and (2).

Section 320(6) 

It allows the High Court, under Section 401 of the CrPC, and the Sessions Court, under Section 399 of the CrPC, to grant permission to compound offences, provided the individual requesting the permission is competent to do so. Sections 401 and 399 of the CrPC entail the High Court’s and Sessions Court’s respective revisionary powers.

Section 320(7) 

It lays down that if the accused is liable either to additional punishment or to a punishment of a different kind for any previous conviction shall not be permitted to compound an offence.

Section 320(8) 

This Section discusses the consequences of compounding an offence. The outcome of compounding an offence is that the accused is acquitted. It makes no difference whether the FIR was filed or whether the trial had begun; as long as the offence was compounded with the court’s approval, the offender is exonerated of all accusations. Hence, it has been deduced in the case of Yesudas v. Sub-Inspector of Police, Kalamassery (2007) that the expression ‘accused’ under Section 320(8) and ‘prosecution’ under Section 320(2) of the Code used cannot lead to the conclusion by the court that composition can only be a post-cognizable event. 

Section 320(9) 

This Section states that no offence would be considered as compounded except as entailed under this Section. Furthermore, it has been stated in the case of Gurcharan Singh Bhawani v. State (2002) that offences not compoundable under Section 320(9) cannot be dealt with under Section 482 of the Code.

What are non-compoundable offences 

Non-compoundable offences are those that cannot be compounded, but can only be quashed. The rationale for this is that the nature of the offence is so heinous and unlawful that the accused cannot be let off the hook. The notion of the complainant entering into a compromise does not come up in this situation because, in general, it is the ‘state,’ or the police, who brought the case. These are more significant and heinous offences that damage society as a whole rather than just an individual. The reason for not allowing such offences to be compounded is that getting away with grave offences would set a negative precedent in society. Non-compoundable offences are against public policy, and hence settlement is not permitted by a regular court. All offences that are not specified in the list under Section 320 of the CrPC are non-compoundable. Even the court lacks the jurisdiction and capacity to compound such an offence. A full trial is held, which concludes with the offender’s acquittal or conviction depending on the evidence presented.

Some of the examples of non-compoundable offences – Where the court’s permission is required: 

  • Voluntarily causing hurt by dangerous weapons or means – Section 326
  • Fraudulent execution of a deed of transfer containing a false statement of consideration – Section 423
  • Wrongfully confining a person for three days or more – Section 343
  • Assault or criminal force on a woman with the intent to outrage her modesty – Section 352
  • Dishonest misappropriation of property – Section 403
  • Mischief by killing or maiming cattle, etc. of any value of fifty rupees or upwards – Section 429
  • Counterfeiting a trade or property mark used by another – Section 483
  • Cauing grievous hurt by doing an act so rashly and negligently as to endanger human life or the personal safety of others – Section 338
  • Cheating and dishonestly inducing delivery of property or the making, alteration or destruction of valuable security – Section 420
  • Uttering words or sounds or making gestures or exhibiting any object intending to insult the modesty of a woman or intruding upon the privacy of a woman – Section 509

Difference between compoundable and non-compoundable offences

Nature of crime

The nature of the offence is not as serious in the instance of a compoundable offence. While the nature of the offence is serious in the non-compoundable offence. For example, criminal breach of trust, voluntarily causing grievous hurt, etc. are compoundable offences, whereas assault or criminal force on a woman with intent to outrage per modesty, dishonest misappropriation of property, etc. are non-compoundable offences.

Withdrawal of charges 

Charges brought against the accused for a compoundable offence may be dropped or withdrawn. However, charges against the accused cannot be dropped while they are pending for a non-compoundable offence.

Affected parties

A private person is the only one who is impacted by a compoundable offence. In contrast, a non-compoundable offence has an impact on both private individuals and society as a whole.

Compoundability

In a compoundable offence, a settlement may be reached with the permission of the court as entailed under Section 320(1) of the CrPC, or without the court’s approval as mentioned under Section 320 (2) of the CrPC. In contrast, a non-compoundable offence may only be quashed; it cannot be compounded as the court does not have the power to allow for settlement of these offences.

Case filing

In compoundable offences, cases are often filed by an individual. However, the state brings cases for non-compoundable offences.

Basis of DistinctionCompoundable OffencesNon-Compoundable offences
Nature of crimeThe nature of the offence is not as serious in the instance of a compoundable offence. For example, criminal breach of trust, voluntarily causing grievous hurt, etc. are compoundable offences.While the nature of the offence is serious in the non-compoundable offence. For example, assault or criminal force on women with intent to outrage per modesty, dishonest misappropriation of property, etc. are non-compoundable offences.
Withdrawal of charges Charges brought against the accused for a compoundable offence may be dropped or withdrawn.Charges against the accused cannot be dropped while they are pending for a non-compoundable offence.
Affected partiesA private person is the only one who is impacted by a compoundable offence.A non-compoundable offence has an impact on both private individuals and society as a whole.
CompoundabilityFor a compoundable offence, a settlement may be reached with or without the court’s approval.A non-compoundable offence may only be quashed; it cannot be compounded.
Case filingIn compoundable offences, cases are often filed by an individual.Cases are brought by the state in the non-compoundable offence, however.

What is plea bargaining and how is it different from compounding an an offence

Plea bargaining is the result of negotiations between the prosecution and the accused prior to the trial, in which the accused confesses guilt in exchange for a benefit or less punishment. India’s criminal procedure code addresses plea bargaining under sections 265A to 265L. It applies to crimes that carry a sentence of up to 7 years in prison and is not applicable to crimes committed against minors or women under the age of 14.  If the court gives a ruling on plea bargaining, there cannot be an appeal against that decision. The charges are reduced, and other charges are withdrawn. 

The differences between the two are as follows: 

  • Plea bargaining involves admitting guilt, whereas a compounding offence is guilt-free.
  • Contrarily, the idea of compounding crimes has been around since 1974. The notion of plea bargaining was first introduced in 2006.
  • Plea bargaining just negotiates the accusations and penalties; it does not result in the offender’s acquittal. On the other hand, compounding offences result in the acquittal of the offender.
  • Under a plea bargain, the offender cannot make use of Section 300, which prohibits an accused from being tried for the same or a different charge based on the same circumstances after being found guilty or not guilty, however, an accused under a compounding of offences arrangement may. 

On what ground can non-compoundable offences be compounded under Section 320 CrPC 

“Merely because an offence is compoundable under Section 320 CrPC, the court can nonetheless use discretion in light of the nature of the offence.”

In Bhagyan Das v. The State of Uttarakhand & Anr.(2019), the Supreme Court concluded that a court has the discretion to dismiss a plea to compound an offence even though the charge is compoundable under Section 320 of the Code of Criminal Procedure.

The Supreme Court cited many decisions, notably Gian Singh v. State of Punjab (2012), in which the Supreme Court declared that the High Court must refrain from quashing criminal proceedings where the act is heinous and serious or when the public interest is implicated. The proceedings may be annulled if the offence is only a civil issue, offences deriving from commercial activities, when the harm is personal in character, and the parties have resolved their disagreement. The criminal proceedings may be halted by the High Court if the likelihood of conviction is remote and the continuation of the criminal case would result in grave injustice to the accused.

The Gian Singh Case was taken into consideration by the Supreme Court in the Narinder Singh case (1947), and it was noted that where the parties have reached a settlement, the High Court can utilise its inherent authority under Section 482 of the CrPC to halt criminal proceedings even in cases of non-compoundable offences. This power, however, should be used cautiously. The Supreme Court stated that, while an offence under Section 307 of the IPC is against society, the high courts might consider whether the inclusion of Section 307 of the IPC is only for spectacle or if there is sufficient evidence to prove it. Finally, the Supreme Court ruled that the judgement in the Narinder Singh case must be interpreted holistically and as a whole in the context of the case.

The Supreme Court has been cautious in declaring which criminal matters are to be compoundable, and the High Court has put down sufficient standards to quash criminal offences. In the case of Rameshchandra J, Thakkar v. A.P. (1972), the Supreme Court established that if an offender is acquitted based on compounding and it is later discovered that the compounding was invalid, the acquittal can be reversed by the High Court exercising its revisionary power. Furthermore, if a non-compoundable criminal is acquitted on improper grounds, the High Court might overturn the acquittal.  The Supreme Court in Y. Suresh Bahn v. State of A.P. (1987) allowed compromise in a non-compoundable offence, i.e., Section 326 IPC. The Court termed it a special case and observed that it should be treated as a precedent.

Provisions of compounding offences under other laws

The Companies Act, 2013 

 Compounding of offences is a procedure for settlement in which the offender is offered the choice to pay money rather than face prosecution, preventing a drawn-out legal battle. The compounding of offences is addressed under Section 441 of the Companies Act, 2013. Compounding of offences is covered under Section 441 of the Companies Act of 2013. According to Section 441(1), an offence that is only punished by a fine may be compounded. Compounding offences is not a novel concept under company law; Section 621A of the Companies Act of 1956 already had comparable provisions.

Companies had a number of difficulties in complying with the legislative, administrative, and technical requirements imposed by the 2013 Companies Act during the COVID-19 pandemic. In order to ease the burden of compliance on corporations under various sections of the Act during the COVID-19 Pandemic, the Indian government has stated that several offences that are compoundable in nature would be decriminalized.

The Income Tax Act, 1961 

The term ‘competent authority’ will be used to refer to the entity with the authority to compound an offence. According to Section 279(2), any Act-related offence may be compounded at any moment, whether before or after the initiation of legal action.

The Legal Services Authorities Act, 1987 

According to Section 19(5) of the Legal Services Authorities Act, 1987, the Lok Adalat has the power to evaluate and reach an agreement between the parties to a dispute over any matter linked to a crime that is punishable under any law.

The Foreign Exchange Management Act (FEMA), 1999

A breach of any of the guidelines, directives, instructions, notifications, or orders made under the FEMA Act is referred to as a contravention of the Act. Compounding such violations entails voluntarily acknowledging the violation, admitting blame for it, and requesting restitution. It is permitted for the Reserve Bank of India (RBI) to compound any violation of the Act’s definition of that term under Section 13. This is a voluntary practice used by a person or organization to try and compound a breach. Compounding violations under FEMA has other advantages, such as avoiding litigation, delaying the start of additional actions, and alleviating the load on the judicial system.

Decriminalization of compoundable offences

Compounding offences also operate under the decriminalisation principle because it clears the accused of the charges. The guilty party may have paid the complainant back, or the parties’ attitudes toward one another may have completely changed. To recognize these situations and to provide a way to end criminal investigations for particular types of crimes, criminal law must be changed. That is the justification for compounding offences. The victim may have received compensation from the offender, or the parties’ perceptions of one another may have changed for the better. The question of which offences should or should not be considered compoundable is one that legislators frequently face. The issue has been looked at from a variety of perspectives, the benefits and drawbacks have been evaluated, and a rational and reasonable choice has been made. In general, it is not permitted to compromise crimes that jeopardize state security or have a significant impact on the community. Furthermore, compounding is not an option for heinous crimes. The offender is declared innocent after the offence is compounded, and the court loses jurisdiction over the case.

Judicial pronouncements 

  1. Mahalovya Gauba v. Punjab State and Others (2021) – According to the Court’s ruling in Mahalovya Gauba v. State of Punjab and Others, criminal cases involving compoundable offences can be divided into two categories:
  • Settlements of criminal cases pursuant to Section 320(1) of the CrPC without the court’s approval, and
  • Criminal cases that can be resolved with the court’s permission under Section 320(2) of the CrPC may be heard by the Lok Adalat. These cases may be resolved without the court’s permission under Section 320(1) of the CrPC or with the court’s permission under Section 320(2) of the CrPC.
  1. B.S. Joshi v. State of Haryana (2003) – The accused in this case were charged with offences that couldn’t be compounded. However, after amicably settling their disputes, the parties asked the High Court to quash the case. However, the Court declined to do so, and the case was taken to the Supreme Court where the ruling was overturned and the case dismissed. According to the Apex Court’s line of reasoning, Section 482 gives the High Court some inherent powers to further the interests of justice. Even though the offence is not compoundable in some circumstances, the High Court may nonetheless quash the case under Section 482 in order to uphold the law. Serving justice cannot be hindered by Section 320. Allowing a compromise between the parties in the event of non-compoundable offences is much more precise and is based on the specifics of each case.
  2. Nikhil Merchant v. CBI (2008) – This case saw a reaffirmation of the decision taken in the B.S. Joshi case. Charges against the accused, in this case, included both compoundable and non-compoundable offences. However, prior to the filing of the charge sheet, the parties had reached an agreement and wished to have the criminal proceedings against the defendant quashed. The criminal proceedings were overturned by the Supreme Court after the High Court refused to quash them. The Supreme Court ruled that the interests of justice cannot be disregarded simply because of the technicality afforded by Section 320 about when a party can move for the quashing of proceedings and when a party can reach a settlement. There is no use in continuing the criminal procedures when the parties have already reached an agreement, the validity of which has been formally verified by the court.
  3. Biswabahan Das v. Gopen Chandra Hazarika & Ors.(1966) – In Biswabahan Das v. Gopen Chandra Hazarika & Ors., the three-judge bench decided that the proper remedy for such a crime may be compounded if it affects the complainant in their personal capacity.
  4. Shiji @ Pappu v. Radhika (2011) – The Supreme Court reaffirmed in the recently decided case of Shiji @ Pappu vs. Radhika that just because an offence is not compoundable in nature does not preclude the High Court from quashing the prosecution of the accused using its inherent authority under Section 482.

Conclusion

A crime is a fundamental wrong committed against society and the state. As a result, any agreement reached between the accused and the specific victim of the crime should not exonerate the accused of criminal guilt. However, where the offences are primarily of a private character and are not particularly serious in nature, the Code finds it appropriate to recognize some of them as compoundable offences and others as compoundable only with the court’s approval. The majority of compoundable offences are non-cognizable, although not all non-cognizable offences are compoundable. However, the offences that can only be compounded with the court’s consent is typically cognizable, albeit not all cognizable offences can be compounded. To fall under the purview of compoundable offences, the nature of the crime must not be overly grave. In general, the offences should be private in nature. Private offences are defined as those that have a detrimental influence on a person’s competence or identity. Such offences should not endanger the general public or be detrimental to the state’s well-being. Rape, murder, and dacoity are all heinous offences that cannot be compounded.

Frequently Asked Questions (FAQs) 

According to the CrPC, who has the authority to compound the offence?

According to Section 320, compounding may be done by the victim of an offence. The parents and legal representatives of the accused child, deceased person, or disabled person may compound with the court’s approval.

Who can compound an offence under Section 320 if the person who would otherwise be competent to do so is deceased?

When a person who would otherwise be able to compound an offence under Section 320 is deceased, Section 320(4)(b) states that the legal representative of that person may, with the Court’s approval, compound that offence.

What result does compounding under Section 320 have?

The compounding of the offence shall have the same effect as an acquittal of the accused, as stated in Section 320(8).

References 


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Interim bail

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This‌ ‌article‌ ‌has‌ ‌been‌ ‌written‌ ‌by‌ ‌‌Sujitha‌ ‌S‌,‌ ‌pursuing‌ ‌law‌ ‌at‌ ‌the‌ ‌School‌ ‌of‌ ‌Excellence‌ ‌in‌ ‌Law,‌ Chennai.‌ ‌This article tries to elaborate on the concept of interim bail, a short-term bail, its conditions and grounds, along with relevant judgments and practical nuances.

It has been published by Rachit Garg.

Introduction 

“The issue of bail is one of liberty, justice, public safety, and the burden of the public treasury, all of which insist that a developed jurisprudence of bail is integral to a socially sensitised judicial process”. —Justice V.R. Krishna Iyer

With a strong history and roots in both English and American law, the law of bail is a significant area of procedural law. Now, what is bail? The term ‘bail’ has not been defined in the Criminal Procedure Code (1973), but it has been used there nonetheless. In all, the phrases ‘bail’, ‘bailable’, and ‘non-bailable’ have been used in the Criminal Procedure Code, 1973, numerous times. As such, bail is the release of a person who has been arrested by his sureties in exchange for their guarantee that he will come before the court and submit to its ruling at the designated location and time. Bail simply means a guarantee that a prisoner will appear in court before being released. 

Sections 436 to 450 of the Criminal Procedure Code include the provisions relating to bail and bonds. Additionally, the bails are divided into three categories: normal, anticipatory, and interim bail, based on the severity of the crime. Let’s read the article in detail to learn more.

Bail : an overview 

The word ‘bail’ comes from the old French word ‘baillier’, which means to give or deliver. The concept of bail is one of the core ideas behind the criminal justice system, in line with the fundamental values upheld in Parts III and IV of the Constitution, as well as the preservation of human rights as outlined in international treaties and covenants. For further understanding, consider the following:

  • As per Wharton’s Lexicon and Stroud’s Judicial Dictionary, bail is described as the setting free of the defendant by releasing him from the custody of the law and entrusting him to the custody of his sureties, who are obligated to produce him to appear for his trial on a certain day and time.
  • The Supreme Court of India in Kamalapati Trivedi v. State of West Bengal (1979) emphasised that the right of the accused to enjoy his or her personal freedom and the public interest are two fundamental human values that must be balanced. The release of the accused is contingent upon the surety’s production of the accused in court to face the trial.

Classification of bail

Regular bail 

Regular bail is given in situations where a person has already been detained or arrested. A regular bail application may be submitted in accordance with Sections 437 and 439 of the CrPC. According to Section 437, the court or a police official has the option of releasing an accused person on bail in a non-bailable case wherein there is no possibility of punishment such as  death or life imprisonment. However, even if the crime of which they are accused carries a death or life sentence, a person under the age of 16, a woman, or a sick or infirm person may be freed on bail.

According to Section 439, the High Court or Court of Sessions has exclusive authority to grant or modify bail. The aforementioned courts have the authority to order the arrest and detention of a person who is accused of committing an offence and is being held in custody. They can also impose conditions on the accused’s release on bail and can set aside or modify any conditions that the magistrate placed on the accused’s release on bail. In the case of Manoj Kumar v. State of Himachal Pradesh (2019), the High Court of Himachal Pradesh determined that giving bail to an accused person serves to ensure their appearance at the trial.

Anticipatory bail 

A person may submit an anticipatory bail application if they believe they will be detained by the police for an offence for which there is no possibility of bond. Section 438 of the Code contains provisions pertaining to anticipatory bail. In Rahna Jalal v. the State of Kerala (2020), the defendant was guilty according to the Muslim Women (Protection of Rights on Marriage) Act, 2019. The Supreme Court discussed the awarding of anticipatory bail in a case involving Muslim women’s protection. It held that anticipatory bail may only be given after the Court granting bail has heard the complainant themselves.

Interim bail

Before the hearing for the grant of regular or anticipatory bail, a short-term bail is given to the accused. Such short-term bail is called ‘interim bail’. In Prahlad Singh Bhati vs. NCT, Delhi (2001), the deceased, the accused’s wife, is said to have been abused as a consequence of the demand for dowry. On 18.3.1999, the accused is said to have taken the deceased to his parent’s home where, in front of his parents, he poured kerosene on her and set her afire. According to Section 438 of the CrPC, the accused petitioned for the grant of anticipatory bail. The investigative agency did not make a genuine effort to resist the bail application, thus the Sessions Judge granted interim bail. However, the Sessions Judge noted that the State shall be free to arrest the accused if a case under Section 302 of Indian Penal Code (1860) is made out on the facts while rejecting a motion for cancellation of the anticipatory bail.

Default bail

It is commonly referred to as default bail, compulsive bail, or statutory bail. This right to bail is granted when the police or investigating agency fails to submit a full charge sheet, challan, or police report within a specified period of time. This right to bail is given regardless of the case’s merits because it results from the investigating agency’s failure to complete the investigation within the specified period of time. In M. Ravindran vs. The Intelligence Officer, Directorate of Revenue Intelligence (2020), the Supreme Court held that the applicant will not be eligible for default bail if the accused fails to submit the application and the police file the charge sheet in the meantime. 

Detailed overview of interim bail 

Prior to hearing the bail petition, the court may set interim bail for an accused person, which it may later confirm or even revoke. The ability of the High Court and Sessions Court to grant anticipatory bail is covered under Section 438 of the CrPC. The court may make an interim order of anticipatory bail as described in Section 438 while the application is pending. Final decisions must be made upon notification and hearing from the public prosecutor and the superintendent of police. If the accused’s request for anticipatory bail or interim bail is denied by the court, the police may detain him without a warrant. 

According to Section 438(1), anybody who has a reason to suspect that they are being arrested for a crime may file a petition with the High Court or Court of Sessions. As a result, the application may be rejected or approved by the court after a thorough review. If the application is accepted, the individual will be freed on bail after being arrested. The requirement that the offence being considered be one that cannot be released on bail is the most crucial part of this provision. This clause makes it very apparent that the court’s discretion alone governs whether or not to issue anticipatory bail; it does not constitute a right. On the other hand, Section 438(2) outlines specific requirements the applicant must meet in the event the High Court issues a directive under Section 438(a). They are: 

  • The subject must be accessible for questioning whenever it is necessary.
  • The individual shall refrain from threatening, coercing, or promising anybody who is aware of the relevant circumstances to divulge or expose any information to the police officer.
  • Without the court’s previous approval, the individual may not leave India.
  • It will be as if the bail was granted in accordance with Section 437(b) and the individual will likewise be subject to the restrictions listed there.

Last but not least, Section 438(3) makes it plain that if the application is approved, the individual who was arrested without a warrant would be freed on bail right away. In addition, any subsequent warrant issued if the magistrate takes cognizance must likewise be bailable.

Additionally, it complies with the idea of the fundamental right to life and liberty as stated in Article 21 of the Indian Constitution. When the court is certain that the charge against the defendant is intending to harm his reputation and degrade him, interim bail may be granted. It serves as a strong deterrent to the police using their arrest power dishonestly.

Characteristics of interim bail

Subject matterFeature
TimeIt is given for a short time.
ApplicationWhen an application for anticipatory bail or regular bail is pending in court, it is granted.
ArrestWithout a warrant, the accused will be taken into custody when the bail term has expired.
CancellationNo special procedure is required to cancel an interim bail.

Grounds for granting interim bail 

General grounds for granting interim bail 

The Hon’ble Delhi High Court stated in Parminder Singh and Ors. v. The State of Punjab, (2001), that interim bail should be permitted in the following cases:

  • When there is no chance that the accused will escape prosecution,
  • When there is no chance that the defendant may tamper with the evidence
  • When there is no justifiable reason to conduct a confined interrogation, and
  • When the hearing on the anticipatory bail claim must be postponed.

Special grounds with regard to COVID-19 

Following extensive deliberations, the Supreme Court of India issued a decision in 2020, outlining the guidelines for bail during the COVID-19 epidemic. A High Power Committee (HPC) was mandated by the Supreme Court to be created in each state and the union territories (UT). In order to maintain correct social distance and prevent overcrowding of the convicts, the committee established will discuss and have total authority over all things relating to the award of interim bail or parole for a set period of time. There are several instances when the COVID-19 pandemic was a factor in the decision to grant interim bail. 

In the case of In Re: Contagion of COVID-19 vs. Unknown (2020), the Delhi High Court extended interim bail for around 3,499 undertrial prisoners for an additional 45 days to relieve overcrowding in jails caused by the ongoing coronavirus outbreak. The High Court’s ruling was based on the high power committee’s recommendation.

In Natasha Narwal v. State of Delhi NCT (2021), the petitioner who was detained in February 2020 in accordance with the Unlawful Activities and (Prevention) Act, 1967 was given a three-week interim bail on humanitarian grounds when her father passed away as a result of COVID-19.

Conditions for granting interim bail

General conditions

  • The accused will be granted interim bail on a 2 lakh bail bond with two sureties. The accused must appear in front of the C.B.I. when necessary for questioning and additional investigation.
  • In the case of Mohammed Zubair v. State of NCT of Delhi, (2022), the SC observed that the accused must not interfere with the witnesses or the evidence, and they must also refrain from speaking to the media about the ongoing case.
  • The court has the ability to grant temporary bail, but its judgments must be reasonable and based on the law. This was emphasised in the case of Gudikanti Narasimhulu v. Public Prosecutor, High Court of Andhra Pradesh (1977), wherein the court ruled that it must be regulated by law as well as by humour and fancy rather than being arbitrary or vague. It must be consistent.
  • After being arrested, the accused has frequently been granted interim bail. However, he escaped arrest, disregarded the rules, and failed to show up in court. As a result, numerous courts have ruled that in certain situations, no release should be given of any kind, even interim bail, and the matter should be handled severely. This has been observed in several rulings. The major cases include Niranjan Singh v. Prabhakar Rajaram Kharota (1980) and Gurbaksh Singh Sibbia Etc v. State of Punjab (1980). The Hon’ble Supreme Court in these cases rules that neither Section 438 Cr. P.C. nor interim bail should be used to give bail until the defendant surrenders to the Court. 

Specific conditions

  • These are laid in accordance with Section 438(2) of the Code of Criminal Procedure. The court has the authority to set restrictions on how one may interact with witnesses, whether directly or indirectly. 
  • The subject must also show up in person for police interrogation.
  • He also cannot threaten or entice the individual who is aware of the facts in any way, whether it be direct or indirect.
  • Additionally, he is not permitted to leave the country or the court’s jurisdiction without the court’s consent.
  • Other specific conditions may be laid in case of granting of bail on special grounds such as on the basis of health marriage or the passing of his loved one.

Relevant judgements

Lal Kamlendra Pratap Singh vs. State of UP (2009)

In Kamlendra Pratap Singh vs. State of U.P. (2009), the Supreme Court reaffirmed that a judge considering a regular bail application has the inherent authority to grant interim bail while the bail case is being decided on in its entirety. When someone requests regular bail, the court usually lists that request after a few days so it may review the case diary, which must be received from the police authorities. In the meanwhile, the applicant must remain in custody. Even if the applicant is subsequently freed on bond, his image in society may have already been irreversibly damaged. A person’s reputation is a significant asset of his and one of the aspects of his right under Article 21 of the Constitution. Consequently, the Court noted that the court involved has the inherent authority to grant interim bail to a person until the ultimate disposition of the bail application.

Atik Ansari (In Jc) vs. The State, NCT Delhi (2006)

In this case, the applicant allegedly had 2.5 kg of heroin when it was taken from him, and he was asking for interim bail release on the grounds that his wife was ill. The Supreme Court’s ruling in Hori Lal v. State (2009) regarding the granting of bail on the ground that the petitioner’s wife’s impending surgery was verified and also that, apart from the aged father of the petitioner’s wife, there was nobody else to look after her, was taken into consideration. Therefore, the petitioner was given interim bail on a personal bond of Rs. 20,000 for two weeks by the Court.

Poonam Rani vs. the State of Haryana (2012)

In this case, the issue was the granting of interim bail in accordance with Sections 21 and 29 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS). On the basis of his health, the petitioner was given two-week interim bail. There was no one to take care of the petitioner’s wife while she was about to undergo surgery. His wife would lose the ability to get treatment if temporary bail was not granted. Furthermore, the petitioner had no prior criminal background. He was thus given temporary bail.

Arnesh Kumar vs. Government of Bihar (2014)

On July 1st, 2007, Arnesh Kumar and Sweta Kiran had their wedding. After several years of marriage, Sweta Kiran claimed that her in-laws sought eight lakh rupees, a Maruti car, an air conditioner, a television set, etc. When her husband was confronted with the situation, he also supported his family and was pressured to wed a different woman. She further claimed that she was expelled from the home as a result of the dowry demand not being met. Eventually, a lawsuit was filed against Arnesh Kumar.  

Arnesh Kumar requested anticipatory bail and denied all of the allegations made against him by his wife. Both the Session Court and the High Court rejected the bail. He filed a Special Leave Petition with the Supreme Court of India after being unsatisfied with the court’s ruling. In addition to granting bail, the Supreme Court also addressed the abuse of Section 498-A of the Indian Penal Code. By establishing eight golden directives for arresting individuals under Section 498-A of the Indian Penal Code, the Court came to its conclusion and rendered its verdict. They are:

  • When an offence under Section 498-A of the Indian Penal Code is reported, every state government should appropriately direct its police officers not to immediately arrest a person. When the case falls within the guidelines of Section 41 of the Code of Criminal Procedure (CrPC), an arrest becomes necessary.
  • Section 41 (1) (b) requires that the checklist with the specific clauses be made available to all police personnel.
  • When presenting the defendant before the magistrate for additional detention, the police officer must send the properly completed check list along with the information that led to the arrest.
  • The magistrate should keep in mind that when approving the order for additional detention, he or she must depend on the report provided by the police officer and only after properly documenting the justification on the police report. The Magistrate will approve a new detention order after being satisfied.
  • The decision not to arrest an accused person must be sent to the Magistrate within two weeks from the date of the institution of the case. This deadline may be extended by the district’s superintendent of police (SP) for a reason that must be documented in writing.
  • Within two weeks of the case’s institution, the accused must be served with a notice of appearance pursuant to Section 41-A of the Code of Criminal Procedure. The Superintendent of Police may extend this time period if the justification for doing so is provided in writing.
  • If the police officer violates the aforementioned instructions in any way, the High Court with jurisdiction has the authority to penalise him or her for contempt of court.
  • If a Judicial Magistrate orders the imprisonment of an accused without noting the reason, the Judicial Magistrate will be held accountable by the High Court for Departmental Proceedings.

Sharjeel Imam vs. The State of NCT of Delhi (2020)

The interim bail request submitted by Sharjeel Imam in this sedition case involving the alleged inflammatory statements he delivered in Delhi’s Jamia neighbourhood and Aligarh Muslim University against the Citizenship Amendment Act, 2019 was given notice by the Delhi High Court. Sharjeel Imam was denied interim bail by Additional Sessions Judge Amitabh Rawat of the Karkardooma Courts, who also noted that Imam could not submit a new bail application or make new arguments regarding the merits of the application since the Court had already issued an order denying him regular bail and framing charges against him on the basis of the merits.

Priya Ranjan vs. State of Odisha (2021)

In this case, the issue was the application for interim bail. It was claimed that the petitioner’s mother passed away at S.C.B. Medical College and Hospital, Cuttack, and that he was the only son permitted to officiate at his mother’s funeral. Additionally, it is claimed that the application’s claims have been confirmed by the inspector in charge of Mahanga Police Station. After reviewing the case’s documents and circumstances, the Court granted the petitioner’s interim bail in exchange for a Rs. 50,000 bail bond.

Faster scheme

The COVID-19 epidemic has prompted the Supreme Court to take deliberate action to reduce jail overcrowding. The Court took a humane stance toward the approximately 4 lakh prisoners confined in overcrowded jails as a swelling second wave caused significant fatalities. To avoid overcrowding in jails, a bench chaired by Chief Justice Ramana had earlier directed the police to restrict arrests during the epidemic. The Bench also recommended courts avoid automatically ordering detention in situations where the penalty was less than or equal to seven years in jail. The majority of states and union territories had High-Powered Committees set up to examine inmates and release them on interim bail.

The Chief Justice of India then unveiled the FASTER programme to speed up prisoner release. The new programme, known as FASTER, or “Fast and Secure Transmission of Electronic Records,” will make it easier to electronically send orders to jails, leading to the release of prisoners. The FASTER system development process got underway after the SC took suo motu notice of a case involving the delay in the release of convicts after being granted bail. In addition to guaranteeing quick justice delivery on the ground, the FASTER System will make up for this injustice against undertrials. The Supreme Court’s important rulings, including directives on bail and stays of arrest, may be transmitted electronically and securely to prison administrations and law enforcement organisations using the FASTER system.

Conclusion

The concept of the accused being innocent until proven guilty is highlighted through bail, which plays a significant part in the Indian legal system. One of the most essential fundamental rights that each individual has is the right to liberty and dignity. These rights also apply to those who are charged. These rights may not be denied to anyone. Thus, the granting of bail preserves the accused’s fundamental rights. The idea of interim bail is crucial because an accused person may be in danger of being detained even before the outcome of the hearing on his bail is known. Interim bail is therefore granted when the court is certain that doing so will prevent the accused from being unjustly imprisoned or detained. In general, the magistrate or court should use the ability to grant interim bail whenever it is practical. Such an exercise of authority will successfully dissuade abuse of the criminal justice system for purposes unrelated to its purpose.

Frequently asked questions (FAQs)

What is the difference between interim and regular bail?

A person requests regular bail after being arrested. He must seek bail because he has already been detained by the police and is in their custody. A court may issue interim bail, which is similar to temporary bail, while your application for anticipatory bail or regular bail is being processed.

Can an accused person get an interim bail?

However, an accused person or convicted person can request interim bail to avoid going to jail at that time until the higher court receives the necessary paperwork from the lower court.

What distinguishes anticipatory bail from interim bail?

Interim bail is not the same as anticipatory bail because the former is given while a bail application is still ongoing. Only those who believe they may be set up for the crime they are charged with and are keen to leave custody can benefit from interim bail.

Can interim bail be extended?

The interim bail may be extended, but if it isn’t and the accused person doesn’t pay the court to affirm and/or continue the interim bail, his or her freedom will be forfeited, and they will either be taken into jail or a warrant will be issued for their arrest.

Reference 


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Are Indian laws protecting the online interests of children

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This article is written by Athira R a 10th sem BBA LLB (h) student of Government law college thriss pursuing a Diploma in Technology Law, Fintech Regulations and Technology Contracts at Lawsikho. This article has been edited by Ojuswi (Associate, Lawsikho). 

This article has been published by Sneha Mahawar.

Introduction 

Recently, children have become more and more reliant on the internet, especially during the covid-19 pandemic. As a result of the lockdown, closure of schools and online education most children have started spending more time on the internet. India has witnessed an increased 50%  internet usage as an aftereffect of the pandemic. The Internet can be considered a double-edged tool as it can be both a boon and a bane to children. The Internet serves as a platform for quick access to information as everything is accessible at the fingertips. The Internet, on one hand, ensures access to knowledge and entertainment for children and on the other hand, provides potential exposure to harmful and inappropriate content. Such exposure leads to various online offences including child pornography, cyberbullying, cyber sexual harassment, loss of privacy, cyber grooming and enticement to illegal behaviour. The increasing number of children using social media and other platforms for sharing videos and daily activities necessitated regulations for monitoring the children’s online activities and protecting them from harm.  

The Convention on the Rights of the Child Council, Optional Protocol on the Sale of Children, Child Prostitution and Child Pornography, Europe Convention on Cyber Crime and Council of Europe Convention on the Protection of Children Against Sexual Exploitation and Sexual Abuse are important international conventions and policies for the protection of children online. India ratified the Convention on the Rights of the Child and acceded to the Second Optional Protocol to the Convention on the Right of Children. Hence India is obliged to make regulations and policies for the protection of children from both online and offline offences. India has a wide range of laws for protecting children and their online interests. The Indian government formulated many legislations to protect children online. Information technology act 2000, national policy for children 2013, national policy of ICT in schools 2012, national cyber security policy 2013, indecent representation of women(prohibition) act 1986, and protection of children from sexual offences 2012 have been important legislations in India for protecting the children online. 

Need for protecting the children and their online interest

The Internet can be a very useful tool if used properly as it is a quick and easy method to access knowledge and information. Through the internet, children learn, imagine and develop their social networks. The Internet is a very useful tool that can at the same time lead to many kinds of exposure which can cause harm to children both physically and mentally. Offence against children through the internet is mushrooming at an alarming rate. Some of the offences are:

Cyber bullying/ Cyber harassment 

Cyberbullying or cyberharassment is also known as online bullying. It is a form of bullying through online media. Cyberbullying or harassment is an act of a person, particularly a teenager that leads to harassment of other persons online or on any digital platform like social media. Posting of rumours, pejorative labels, sexual remarks, threats, victims’ personal information etc. is some of the bullying practised against children. Many times students who are bullied via the internet may also be bullied physically or verbally and at other times students may be exclusively bullied online. The children who are victims of cyberbullying may experience a feeling of suicidal ideation, lower self-esteem, and increased negative emotional responses. There are different types of cyberbullying. They are:-

Trolling 

Internet trolling is the most common form of cyberbullying which is performed on online platforms including social media. Internet trolling is an act by which a person intentionally provokes another person to elicit a reaction. Internet trolling may or may not lead to cyberbullying. Some trolls may lead to cyberbullying while others may be considered harmless mischief.

Cyberstalking 

Is another form of cyber harassment in which a person uses electronic means to stalk a victim. It leads to a threat to the safety of the victim as the person performing the act of cyberstalking may send repeated messages with the intention of threatening or harassing the victim and they may also encourage others either explicitly or by impersonating the victim. Many times children are victims of cyberstalking. 

Hate raids 

In live streaming platforms a situation may be created whereby the stream will be raided by multiple viewers which will lead to flooding of the chat with hateful and harassing messages. Such a situation prevents the streamer from executing the stream. This is called hate raids. This type of cyberbullying may not affect children in the same way it affects adults. 

Child pornography 

Child pornography has been defined under section 2(da) of the protection of children from sexual offences act, 2012 (POSCO). According to Section 2(da), child pornography means any visual depiction of sexually explicit conduct involving a child. Such depiction may be in the form of photographs, videos or computer-generated pictures. When an act of child pornography is committed there is the likelihood that the child has actually suffered the sexual abuse or repeated acts of sexual abuse while making such images, videos or pictures. Such acts of child pornography only aggravate the physical and mental sufferings of the child victim. Child pornography deteriorates the mental and physical well-being of the child victim pushing them into a state of trauma and also making a grave impact on society. Fear, humiliation and lack of confidence are some other sufferings of the child victim apart from physical and mental trauma. 

Loss of privacy 

Children being minors may not understand the term online privacy. They may understand it to mean privacy from parents while using websites and other platforms. They being minors might easily give consent to the big data stakeholders for storing their data identities. But the consent of the parents is necessary for storing the data of minor children. Hence lack of knowledge of the children about online privacy and their low consciousness leads to exposing children to offences such as cyber threats and cyberbullying.

Cyber grooming 

Cyber grooming is an act committed by a person often adults by which they befriend a child and try to establish an emotional connection with the child to exfoliate the child from sexual abuse, sexual harassment or immoral trafficking. It may be done by gaining the trust of the child and then obtaining personal or intimate information about the child and using this information for threatening the child in the future. 

Laws for protecting children and their online interests in India

The constitution of India provides for the enactment of special legislation and regulations for the protection of children. The state is responsible for providing special legislation for the protection of children. In India various legislation deal with the protection of children and their online interests. 

Information And Technology Act 2000

Information technology act 2000 is one of the important pieces of legislation that provide for protection in online activities. The information and technology amendment act 2008 gave a more clear definition to the term “communication device”. Section 2(1) (ha) defines the term communication devices. Section 2(1)(ha) now brings within its ambit mobile phones. Now it equally applies to mobile phones, iPad, tablets, laptops etc. as it applies to computers. The act recognizes online offences against children. The act treats the following offences as offences against children

  1. Publication and transmission of child pornographic material or any other obscene content, and content depicting children as engaged in a sexual act in any electronic form.  Section 67B of the Act provides punishment for the same. 
  2. Intentionally or knowingly publishing or transmitting pictures of private persons with or without their consent amounts to a violation of privacy.
  3. Alluring a child to enter into a relationship to sexually exploit the child by connecting with the child online.
  4. Securing access to computers or any other electronic devices without authority, in turn, leads to violation of privacy, committing data theft, tampering with electronic devices, corrupting the device by introducing a virus and damaging a computer program. This act is only specifically against the children; it can be against any person who in turn includes children in their ambit. Causing identity theft by using someone else’s password or electronic signature without their consent, and dishonestly receiving any electronic device impersonation.
  5. Privacy violation of children by any other form.  

The IT act further provides certain mandatory guidelines for cybercafé. It includes insisting on documents of identity, adult along with the child, use of available filtering software to avoid access to pornographic websites or any other obscene content, displaying a clear and visible board prohibiting access to pornographic websites and other websites prohibited in the IT act as well as copying or downloading any content prohibited under the IT (Guidelines for cybercafé) rules, 2011. 

POCSO Act, 2012 

Protection of children from sexual offences is legislation enacted to protect children below 18 years of age from all forms of sexual offences including sexual assault, sexual abuse, sexual harassment, and child pornography. 

  • Section 11 of the POCSO Act provides instances of sexual harassment. A few instances involving electronic media are 
  • A person with sexual intent who shows any material to the child on any electronic media for pornographic purposes is said to commit sexual harassment of the child. 
  • A person who constantly contacts a child through any electronic media is said to commit sexual harassment. 
  • If a person threatens a child through any electronic form to use any body of the child or the child involved in a sexual act whether real or fabricated commits sexual harassment
  • Allures a child for pornographic purposes.
  • Section 12 of the POCSO Act provides punishment for sexual harassment. Any person committing an offence of sexual harassment shall be punished with imprisonment for a term which may extend to three years and with a fine.
  • Section 13 of the POCSO Act explains the use of children for pornographic purposes that are prohibited under law. Section 13 provides that any person who uses the child for sexual gratification in any electronic media either for his personal use or for distribution can be said to have used that child for a pornographic purpose. It includes obscene representation of the child, display of sexual organs of the child, and display of a child engaged in a sexual act.
  • Section 14 of the Act provides punishment for using the child for pornographic purposes. A person committing an offence under section 13 of the Act shall be punished with imprisonment for a term not less than five years and with a fine. On second or subsequent conviction for a term not less than seven years and with a fine. If the person also commits an offence under section 3 or section 5 or section 7 or section 9 by himself participating in the act of pornography shall be punished under section 4 or section 6 or section 8 or section 10 respectively in addition to the punishment under section 14. 
  • Section 15 of the Act provides punishment for storing pornographic material which involves a child. If a person stores or possesses the material with the intention to transmit or distribute the same without reporting it to the authority will be liable to pay a fine of not less than rs.5000. On second or subsequent conviction with a fine of not less than rs.10000. If a person stores or possesses the material for transmitting or displaying or distributing the same except in a manner prescribed under law for reporting the same will be punished with imprisonment for a term which may extend to three years or fine or both. If a person stores or possesses the material for a commercial purpose shall be punished with imprisonment for a term not less than three years but may extend to five years or a fine or both. On second or subsequent conviction for a term not less than five years but may extend to seven years or fine or both. 
  • Section 16 of the Act provides that abetment to commit any of the above offences shall be punishable. 

Indian Penal Code 

Indian Penal Code applies to offences of criminal intimidation, Hate speech, and defamation committed online. 

  • Section 153 A of IPC deals with hate speech. If any person commits an act which leads to promoting enmity between different groups on different grounds and which are prejudicial to the maintenance of harmony. 
  • Section 419 of IPC deals with cheating by impersonation. Under the section, any person who commits cheating by impersonation will be punished with imprisonment for a term which may extend to three years or fine or both.
  • Section 500 deals with defamation. Any person who commits defamation will be punished with simple imprisonment for a term which may extend to two years or with a fine or both. 
  • Section 506 deals with criminal intimidation. A person who commits criminal intimidation will be punished with imprisonment for a term which may extend to two years or with a fine or both.
  • Section 292 prohibits the possession, sales etc. of obscene material. 

Indian Penal code deals with these in general and not specifically the children. But these can be applied even in cases of these offences when committed against children. 

Data Protection Bill 2021

The bill provides various safeguards for the protection of the privacy of the children. One of the most important provisions is the specification of the age of consent as 18 years. The bill provides that for processing a child’s personal data a data fiduciary must obtain consent from the guardians. It also recommends that the data fiduciary exclusively dealing with children must mandatorily register with the data protection authority. For determining a significant data fiduciary, processing children’s data and providing them services is considered a qualifying factor. Significant data fiduciaries have to comply with additional obligations specified in the bill. Data fiduciaries are prohibited from monitoring or tracking the children’s data or processing personal data in such a manner that it causes harm to the children. 

This bill, which is a draft bill on the report of a joint parliamentary committee suggesting necessary changes to the data protection bill 2019 focuses on the protection of online privacy of the children. 

National Cyber Security Policy 

National cyber security was enacted with various objectives by the government of India. One of the objectives of the policy is the prevention and proper investigation of cybercrimes including those committed against children. It provides for an appropriate legislative framework for enhancing enforcement capability. It aims to create awareness about cyber security in society. In addition, the bill protects citizens’ data, prohibits violations of their privacy, and protects them from any losses caused by cyber crimes, like data thefts, that occur due to privacy violations. 

Limitation of laws in protecting the children and their online interest

Lacunae in Indian laws

Although Indian laws criminalise many offences against children it fails to identify certain acts as an offence. Cyberbullying which is criminalised in many countries is still a serious offence in India. The same is the case with sexting. Cyberbullying and sexting are not treated as serious offences in India and it is mainly because Indian laws do not provide for any legal provision for punishment for these offences. Even though the laws criminalise the offence of child trafficking done with the intention of sexual exploitation, it remains silent on the act of child trafficking with the intention to produce pornographic or obscene material. It is also silent about cyber grooming which is also done with the intent of sexual exploitation and it is one of the offences that are happening at an alarming rate against children in our country which in the end might result in the children committing suicide. Therefore Indian laws do not touch every aspect of the protection of children online. It still needs to develop and legislate on this aspect and provide complete legislation for the protection of children and their online interests.

The conflict between protection and privacy 

Children’s right to privacy conflicts with their right to protection. Children like every other citizen of India do have the right to privacy. There are many laws in India protecting the right to privacy of children. Protection of children involves proactive measures such as monitoring and sometimes intruding on the right to privacy of children. Protection of children should be in such a law that it should not conflict with the right to privacy of the children. Legislators should formulate provisions which deal with the protection of children online without intruding on their privacy. Protection and privacy must go hand in hand.

Lack of clarity in interpretation

Law enforcement agencies are not very well acquainted with handling digital evidence. In the absence of proper guidelines as to the handling of electronic or digital evidence to law enforcement agencies, there will be subjectivity in interpreting these digital pieces of evidence and the related legal provisions. There needs to be a balance between the freedom of speech and expression as well as protecting the children. As a result of these subjective interpretations, it may often lead to violation of freedom of speech and expression. Therefore law should provide proper guidelines and provisions for interpreting the digital evidence and connected legal provisions. 

Conclusion 

In light of the growing dependence of children on the internet especially with the beginning of online Education has made it important to create a safe online environment for children. Along with offences being committed against children through the internet the privacy violation of the children also needs to be addressed efficiently. The existing policies and laws provide for protecting children against both online and offline abuse. The advantages of the existing laws can only be realised if there is proper enforcement of the laws as well as monitoring of recent technological developments. 

These laws to a great extent protect children online still there are a lot of issues these laws fail to address. There is a need to create awareness about the protection of children online. The government needs to provide proper legislation which addresses all the issues relating to the protection of children online and also look into the proper implementation of these laws. The government must take extra care while protecting the children so that the laws do not lead to violation of the right to privacy of children. Children’s rights to privacy need to be considered equally important as that of adults. 

Thus though the Indian laws are equipped to protect children and their online interest to a great extent there is still lacunae that need to be filled by providing complete and full legislation to protect children and their online interest. 

References


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

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

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Software patenting regime in India

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This article is written by Pranav Wadhawankar. This article has been edited by Ojuswi (Associate, Lawsikho) and Indrashish. 

This article has been published by Sneha Mahawar.

Introduction 

What software and intellectual property have in common is an intangible presence. The software is the set of instructions that collectively run the code of the operating hardware which executes the function. Software is different from other traditional intellectual property forms as they are intangible assets. When software is sold, unlike other traditional common goods, the customer gets a licence to use the specific software along with some other specific rights that tell the licensee what to do and what not to do.

Software patents in India mostly resonate with computer programs, algorithms, logarithms, etc. In software patents, the person who makes the code that provides the instruction or the customer who buys it, the IP of that software resides with them. Patents are filed for innovations touching on computer programs, software programs, and mobile functions to shield the novel and resourceful elements of such innovations from being copied by competitors. Software Patents in India are granted for embedded software programmes in cellular applications and/or software plus hardware combinations.

India has adopted multinational agreements like TRIPS, Berne Convention, WIPO, etc. and has also integrated laws on the safeguard of IP of software. The primary statutes governing software protection in India are the Copyrights Act, 1957, and the Patents Act, 1970. This article focuses on the evolution of the regime of software patenting in India.

Software patents

Patents that are linked to technology but have no relation to hardware are usually classified as software patents. An invention means “a new product or process involving an inventive step and capable of industrial application.” Such innovation is directed to be patented as per Section 2(j) of the Indian Patents Act, 1970 (hereinafter referred to as the Act). Whereas “computer programs” are excluded from the category of being patented under Section 3 (k) of the Act. The said section is a barrier that makes it hard to protect software that has to do with computers. Regardless of section 3 (k), there exist circumstances under which software can be patented in the Indian regime. The computer programme has to pass a certain test before it qualifies for a patent grant. It should possess qualities such as:

Novelty or non-obviousness 

In order to be patentable, an invention must be novel or non-obvious. A new idea isn’t obvious if a “person with ordinary skill in the art” wouldn’t be able to figure out how to solve the problem by using the same method.

Industrial Applicability

Another core requirement for an invention to be patentable is industrial applicability. The Patents Act, 1970, clearly defines the concept as the invention is capable of being made or used in industry.

Should be patentable subject matter

Sections 3 and 4 of the Patent Acts of 1970 clearly define what is and is not patentable. Any invention that does not fall under any of the criteria mentioned in sections 3 and 4 is a patentable subject matter.

Should have an inventive step involved

Once the invention fulfils the novelty prerequisite, the next challenge is to demonstrate originality in the invention. Section 2(1)(ja) of the Indian Patents Act defines an inventive step to be “a feature of an invention that involves a technical advancement as compared to the existing knowledge or has economic significance or both, and that makes the invention not obvious to a person skilled in the art”.

Disclosure in a patent application

In a computer-related invention, the patent application may disclose a computer processor or hardware. The specification must be illustrated, in particular, by using a flow chart, the procedure of carrying out the function mentioned in the claims.

Falling short of copyright

Section 2(o) of the copyright act grants protection to software under “Literary Works”, which includes what can be copyrighted, such as computer programmes, tables, and compilations, including computer databases. The source code is what makes up the work and functions of a computer program. The code can be protected under the ambit of copyright law.

Under copyright law, the source code of the programme that has been embedded in a transcript will be protected. Taking into consideration that if the code is known by an individual, and he modifies the code to accomplish the identical result, then it would not be constituted as a breach of the copyright act since the source code for both entities is different. Furthermore, as the process is covered as protection, two different source codes could constitute the same program. This is another grey area of software beneath the ambit of copyright law.

The copyright act does not have far-reaching limitations for the protection of computer programs. There needs to be a scope of copyright protection that covers protecting the functional elements of computer programs. The protection of the functionality of working software is available under the Indian Patent Act, as opposed to only source code and object code protection under the copyright act. If the author wishes to solely shield the source code, then he may blindly apply for copyright protection.

The Paradigm Shift

2013

These were the first ever guidelines released by the Indian Patent Office vis-a-vis Computer Related Inventions (CRIs) on June 28, 2013. This guideline stated procedures led to alleviating the patentability bar concerning the novelty of the hardware element as it permitted the patent on CRIs to have a novel software/program with known hardware. The hardware goes further than normal interaction with its hardware and affects changes in functionality and/or performance of the existing hardware.

2015

August 21, 2015, is the day when the second set of guidelines was issued by the IPO. 2015’s guidelines expanded the scope of what can be patented. Clause 5 of the rule includes determinants such as :

” 5.1 To be deemed patentable, the subject matter should implicate either novel hardware, or novel hardware with a novel computer programme, or a novel computer programme with known hardware that goes beyond the normal interaction with such hardware and simulates a change in the functionality and/or performance of the existent hardware. “

2017          

The final set of CRI guidelines were released on January 19, 2016. The 2017 guidelines gave a broader view of the examinations that need to be qualified by the CRIs. Its further tests and enhancements are mentioned below.

  • The IPO accepted the patentability of CRI.
  • CRI should have an inventive step.
  • CRI should be original.
  • CRI should provide a means of functioning.

Although the CRI guidelines issued by the IPO lack legal backing, They are just a set of instructions that the IPO has given to the patent examiners/controllers that need to be followed while examining a patent. They can only be referred to in patent prosecution.

The Ferid Allani case was a gamechanger

Ferid Allani filed a writ petition challenging the order of the IPAB in which the Board dismissed the appeal. Allani had challenged the order of the Patent Office which rejected his patent application. The patent by the applicant was for a “method and device for accessing information sources and services on the web”. The reason provided by the IPAB was that the patent application failed to reveal any technical effect or technical advancement. The Hon’ble Justice set aside the order of the Patent Office that denied a patent application by Ferid Allani for “Method and Device for Accessing Information Sources and Services on the Web” and granted a patent.

The Hon’ble Chairman for the first time defined technical effect and held that the Computer Related Inventions, 2013 issued by the Patent Office “provide legible in terms of the indicators of technical effect”, which comprise higher speed, more additional economic use of memory, and more efficient database strategy.

Software patents and the economic boom

Intellectual property is based on a central theme to foster innovation. Additionally, innovation is associated with more competition in the market to assert a dominant position in the market. To become competitive, businesses in developing countries generally must embrace new management and corporate systems and techniques for quality control, which can markedly extend productivity. Countries with strict enforcement of IPR have shown a surge in economic contribution. Patent claims are published, allowing rival businesses to use their knowledge of them to develop inventions. This might make them more willing to trade and licence their technologies and developments, which would help them spread through the economy.

Expansion of a sector in terms of revenue would mean more players in that specified sector. According to International Data Corporation (IDC), the Indian software market is worth $8.2 billion USD. Furthermore, IDC estimated the subject market to show a surge of 14% during the 2020–2025 cycle. As per the Reserve Bank of India, Indian software exports were commercially evaluated at 133.7 billion USD in the 2020–2021 Financial Year. The export market showed a growth of 4%. This thoroughly signifies how IP protection for the software has pushed them to go abroad and compete with global products. Software is a key economic factor moving forward, therefore a uniformity to grant IP protection should be specified for it.

Conclusion 

Today, software plays an important role in the advancement of our society. IP is of the type that promotes innovation by securing the rights of the inventions. Be it a smartwatch or a railway metro, both run on their designated computer programs. Software is a vital aspect of the fast-changing digital area, along with which the judicial acts regarding it should be amended to bring in feasibility for its full protection of it. To summarize, such a computer programme can be protected under the patent act if it is more than just an algorithm-based software and is an invention.

It is the need of the hour for the laws to evolve with the ecosystem surrounding them. A call for a simplified approach for patenting software is to be laid out. The Indian market has attracted tech giants like Google, Microsoft, Facebook, Amazon, etc. to invest huge sums in India. Although the CRI guidelines issued by the IPO have wiped out the fog surrounding software patents to a great extent, Software patents give original ideators a competitive advantage over other creators, who will then have to expend additional resources to deal with the risks of infringing on existing patents. Simply put, the patent gives the owner the right to tell its competitors to stop competing in the marketplace.

For a startup or solo inventor, the patent right is crucial because, without the right to exclude, larger companies can develop competing software better than startups and solo inventors. This is especially true for software. Larger companies typically have a better distribution channel, thereby being able to out-compete the startups. With a patent, the startup may be able to force the larger company to stop competing in the marketplace and equalise the playing field with larger companies. India has undoubtedly made great strides in the protection of computer software through copyright law, but the protection through patent law remains at a nascent stage. As the strength of protection offered by Patent Law is much higher than that offered by Copyright Law, it would be in the greater interest if attempts to strengthen the former for software protection are made.

References 


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Defamation law in India

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This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article discusses defamation law in India and judiciary’s take on the same. 

It has been published by Rachit Garg.

Table of Contents

Introduction 

A simple net surfing on defamation makes it clear that it involves any kind of activity that aims to damage or cause harm to the good reputation of an individual. But the term ‘defamation’ has both explanations and exceptions attached to its definition when seen through the lenses of Indian laws. The prime reason for knowing the laws governing the statutorily recognised offence of defamation is to protect one’s dignity, as has been guaranteed by Article 21 of the Indian Constitution. With changing times, defamation has been a misused offence in the hands of many, thereby causing a rise in debate on it with respect to the limitation on free speech. What calls for in this regard is the need for progressive thinking with the changing needs of Indian society. This article aims to explore the legal side attached to defamation in India, judicial upbringing on the same, and the road ahead for it.

What is defamation

An accused individual must have created or disseminated defamatory content for an offence to be proven. While ‘creating’ typically refers to authorship, someone who intentionally or knowingly duplicates or copies defamatory content (with intent, for example) may also be held accountable. A person who is not the author or publisher can claim that the defamatory text was distributed accidentally if intent cannot be shown. The purpose of defamation law is to safeguard a person’s interest in their reputation. However, it has been significantly changed to ensure that public figures cannot use defamatory activities to avoid being held accountable for their actions and public responsibilities.

‘Making’ and ‘publishing’ have been considered additional terms by courts. As per the case of Rohini Singh v. State of Gujarat (2018), the offence of defamation may not be committed if someone only types defamatory material without publishing it or disseminating it to others. Therefore, the individual making the defamation claim must prove that the defamatory material was intended for an audience.

According to the case of Mrs. Pat Sharpe v. Dwijendra Nath Bose (1963), the author of the article (and not the source of the information) becomes liable if the recipient of defamatory material from an anonymous source creates and publishes an article based on that information.

Normally, there must be a connection between the allegedly defamatory content and the person who created or published it. If the owner of a newspaper, for example, is held vicariously liable, it must be determined in each instance whether the owner had the necessary power, knowledge, or approval to publish the defamatory material.

Essentials of defamation 

The statement must be defamatory, and the validity of the statement is determined by how the general public as a whole will perceive the subject of the statement: 

In the case of Ram Jethmalani v. Subramanian Swamy (2006), the Delhi High Court ruled that Swamy’s claims as to the fact that Ram Jethmalani had received funding from a prohibited organisation to support Tamil Nadu’s Chief Minister in the Rajiv Gandhi assassination case were defamatory.

The statement must be about the plaintiff, and it must demonstrate that it is falsely disparaging them:

For instance, in the case of T.V. Rama Subba Iyer v. A.M.A. Mohindeen (1971), the Madras High Court determined that although the defendants were held responsible, they had no intention of doing so because it was stated that a specific individual transporting goods from Agarbathis to Ceylon had been detained for the offence of smuggling. The plaintiff was one of those operating a similar business, and his reputation was seriously damaged as a result of this comment.

That assertion must be made public: 

In the case of Mahendra Ram v. Harnandan Prasad (1958), the defendant was found responsible for the letter that he sent to the plaintiff in Urdu while being aware that the plaintiff was not versed in Urdu. The notice was therefore read by one individual named Kurban Ali in presence of several other persons. The notice contained defamatory and false allegations against the plaintiff which had resulted in causing pain thereby leading to a substantial case of defamation as the assertions were made public. 

Defamation under the Indian Penal Code, 1860

Defamation is both a criminal (which carries a prison sentence) and a civil offence (punishable through the award of damages) in India. The Indian Penal Code, 1860 (IPC) codifies the criminal law on defamation, whereas defamation is penalised as a civil offence under the law of torts.

Defamation is defined in Section 499, and the punishment is outlined in Section 500. The offence of defamation is defined as any spoken, written, or visual statement about another person designed to damage that person’s reputation. The conduct of any person addressing any public issue or expressing comments on a public performance an example of exceptions to this rule, as well as any imputation of truth required for the public benefit.

Section 499 of the Indian Penal Code, 1860

Section 499 of the Indian Penal Code, 1860 reads as follows, “Whoever, by words either spoken or intended to be read, or by signs or by visible representations, makes or publishes any imputation concerning any person intending to harm, or knowing or having reason to believe that such imputation will harm, the reputation of such person, is said, except in the cases hereinafter expected, to defame that person.”

Consequently, the fundamental components of defamation are:

  1. The dissemination of spoken, written, sign, or other visible material.
  2. With the goal that such an imputation would reduce the person’s opinion.
  3. Such slander is committed in front of society’s upstanding citizens.

Libel and slander

The major form of communication and publication becomes one of the most crucial elements in a defamation case. A third party learns or becomes aware of the alleged defamatory imputations through publishing. Defamation is the publication of a remark that tends to diminish a person’s reputation among other people in society. Libel occurs when a statement is made permanently, whereas slander occurs when only a few inconsequential words or gestures are used. 

  1. Libel: Defamation caused by means of words written.
  2. Slander: Defamation caused by means of words spoken thus temporary in nature.

The distinction between libel and slander was drawn by the Andhra Pradesh High Court in the case of S.T.S. Raghavendra Chary v. CheguriVenkatLaxma Reddy (2018). The tort of ‘slander’ (a hurtful statement in a temporary form, notably speech), which gives rise to a common law right of action, is where defamation originated in the common law. Libel is the broad term for defamation in the international context. Slander and libel both demand publishing. Libel and slander are fundamentally different from one another only in how the defamatory material is published. 

Therefore, publishing false information about a person with the intent to hurt that person’s reputation is defamation. The prosecution must categorically show that the accused published the libel, and the defamatory statements must have been published within the territorial jurisdiction.

Explanation 1 of Section 499 of the Indian Penal Code, 1860

Explanation 1 of Section 499, which talks about defamation of the deceased, reads as follows, “Explanation 1.- It may amount to defamation to impute anything to a deceased person, if the imputation would harm the reputation of that person if living, and is intended to be hurtful to the feelings of his family or other near relatives.”

Therefore, blaming something on a deceased person may likewise be considered slander. Two postulates are established in the explanation, namely: 

  1. The imputation must be designed to hurt the feelings of the family or other close relations, and
  2. Must be of a character that would have damaged the reputation of the deceased individual if he or she were still alive.

Both requirements must be met under the circumstances (Explanation 1) in order for the defamation claim to be upheld. Additionally, there should be actual injury done rather than harm that was planned to be done. This is due to the fact that the latter criteria do not apply in cases involving deceased individuals.

Defamation of a deceased person and the ‘Gangubai Kathiawadi’ fiasco

Defamation of a deceased person comes within the ambit of Section 499 of the Indian Penal Code, 1860. According to the law, “an imputation would amount to defamation of a deceased person if it would damage the person’s reputation if he/she were still alive and is done with the intent to inflict grievance onto his family or relations.”

The Supreme Court recently rejected a request for a stay on the release of the film ‘’Gangubai Kathiawadi’’ made by an individual who claimed to be Gangubai’s adopted son in a defamation lawsuit involving a deceased person who is Gangubai herself. The man claimed that the portrayal of his adopted mother as a prostitute, brothel owner, and mafia queen in the film damaged the reputation of his mother. The authors of ‘’Mafia Queens of Mumbai,’’ the novel on which the movie is based, served as respondents in this lawsuit.

The Supreme Court noted that in order to maintain a defamation action, the applicant for interim relief would need to demonstrate to the Court that: 

  1. They were close relatives or members of the family of the person who was being slandered.
  2. The statements made about the deceased family member or relatives were false, and
  3. The statements would damage the deceased’s reputation and character. 

If the individual who is being accused of being defamed is not hurt in terms of his reputation or worth in the eyes of others, then it is not defamation. However, the petitioner was unable to establish his relationship with Gangubai through family or close relatives. 

Additionally, the Supreme Court ruled that the movie is, at least on the surface, an artistic expression within the bounds of the law. To recognise remarks and content that can be interpreted as defamatory, it is important to grasp the elements that make up a defamation offence.

Explanation 2 of Section 499 of the Indian Penal Code, 1860

Explanation 2 of Section 499, which deals with defamation of a company or collection of persons, reads as follows; 

“Explanation 2.- It may amount to defamation to make an imputation concerning a company or an association or collection of persons as such.”

Consequently, a company has a reputation of its own.  Defamation would result from making claims about how the firm or association conducts its business, accusing them of fraud or managerial errors, or criticising their financial situation. In order to be able to claim certainty that a specific group of people, as opposed to the rest of the community, stood defamed, it is also crucial that the group of people be an identifiable body.

Illustration: A business that has been in operation for the past 20 years is now being charged with producing unfit products for human consumption. The declaration is founded on false claims. Even though the company was cleared of the charges, the report about the accusations was published in a newspaper, giving the impression that the product was still unsafe for eating. Any such articles would be defamatory in character since they were false and damaged the company’s reputation because the company’s product was labelled safe for ingestion.

Explanation 3 of Section 499 of the Indian Penal Code, 1860

Explanation 3 of Section 499 deals with defamation by innuendo and reads as follows:

“Explanation 3.- An imputation in the form of an alternative or expressed ironically, may amount to defamation.”

The passage or content, in this case, is prima facie not defamatory, and the injured party must establish that the words that initially seem innocent are in reality defamatory in light of the relevant facts and the nature of the publication.

Explanation 4 of Section 499 of the Indian Penal Code, 1860

Explanation 4 of Section 499 answers what harms the reputation. The explanations state that:

“Explanation 4.- No imputation is said to harm a person’s reputation, unless that imputation directly or indirectly, in the estimation of others, lowers the moral or intellectual character of the person, or lowers the character of that person in respect of his caste or his calling, or lowers the credit of that person, or causes it to be believed that the body of that person is in a loathsome state, or in a state generally considered disgraceful.”

This explanation’s length and breadth are overly broad and also cover remarks made on caste, community, or indecent behaviour. Defamation would result from the indiscriminate distribution of a flyer accusing the plaintiff of being a sinner. In the case of Shatrughan Prasad Sinha v. Rajbhau Surajmal Rathi (1996), the Marwari Community was the target of injurious and defamatory allegations made in an interview. Along with disparaging the community, the incident also inflamed their religious sentiments. However, the case was dismissed since no such specific allegations were made in it regarding the imputations that damaged the complainant’s reputation in the eyes of others. Therefore, it follows that in order to proceed with the lawsuit, there must be a precise allegation in the complaint about how the imputation has affected the complainant’s reputation.

Forms of publication under Section 499 IPC

As publication is the notable ingredient of the offence of defamation under the Indian Penal Code, 1860, it is necessary to know the forms of publication that can contribute to defamation. There are majorly two kinds of publication, namely,

  1. Direct communication to the defamed.
  2. Repetitive publication. 

Direct communication to the defamed

  1. Back in 1884, the Allahabad High Court, while hearing the case of Queen-Empress vs. Taki Husain observed that direct communication to the defamed should not be considered a publication under the Indian Penal Code, 1860. 
  2. Further, the Bombay High Court, in the case of Sukdeo Vithal Pansare v. Prabhakar Sukdeo Pansare (1974), decided that publication is the act of making a defamatory remark and transmitting it to a person other than the target of the statement. It is only when the accused is versed with the fact that his communication will be made known to others, in usual business courses, that he will be held liable for the same. 
  3. A letter containing defamatory imputations is considered to be published when it is sent to a business rather than an individual and is intended for all of the business partners to read. Similar defamatory material printed on postcards or delivered via broadcast is considered publishing. Defamatory material transmitted via postal mail but not published, however, does not necessitate the conviction of the accused for defamation. Such an observation was made by a Delhi court in the 1987 case of S.Mohinder Singh Saluja v. Vansan Shoes Delhi

Repetitive publication 

  1. Repetition or republication of a previously published libel falls under the definition of publishing. Therefore, a newspaper is responsible for all consequences associated with publishing a libellous story that it has copied from another source and made its own. The penalty or damages levied would, at most, be reduced or mitigated by the fact that the piece was only a reprint.
  2. The Bombay High Court, while deciding the case of In Re: Howard v. Unknown (1887), which involved republishing an extract from an article classed as defamatory by the accused, observed that the fact that the same information was published in another journal could not serve as a defence to avoid responsibility. Hence in this regard, the accused was held guilty of republication. 
  3. It is necessary to note that the Indian Penal Code, 1860 does not provide any exception in relation to second and third publications, when compared with the first publication. The sole ground for convicting a person on grounds of defamation is the publication of defamatory matters. The fact that it is republished is irrelevant to charge an individual under Section 499 of the Indian Penal Code, 1860. 

Sections 501 and 502 of the Indian Penal Code, 1860

While Section 501 of the Indian Penal Code, 1860 deals with the printing or engraving of matter known to be defamatory, Section 502 of the Code talks about the sale of printed or engraved substances containing defamatory matter.

A recent case that appeared before the Supreme Court of India, recognised by the name of Mohammed Abdulla Khan v. Prakash K (2017), involved the Apex Court setting aside the Karnataka High Court’s order that quashed the defamation case against the owner of Kannada Daily Newspaper.  A bench comprising of Justices J. Chelameswar and S. Abdul Nazeer stated that it is necessary to critically examine whether the owner of the printed defamatory content can be heard to claim that he cannot be held vicariously accountable for the defamatory material conveyed by his newspaper, book, etc. when such printed defamatory material is sold or offered for sale.

Furthermore, it stated that the existence of the circumstances necessary to establish an offence under Sections 500, 501, or 502 of the IPC will determine whether an accused person who is the subject of a complaint will be found guilty of such an offence. The bench elaborated, saying that first, it must be proven that the printed and offered for sale matter is defamatory within the sense of the expression under Section 499 of the IPC. If this is established, the next step is to determine whether the accused committed the acts that make up the offence for which he is accused with the necessary intention, knowledge, etc. to make those acts guilty.

The respondent would be subject to punishment under Section 500 of the IPC if he is the one who made or published the defamatory imputation. If he was the one who ‘printed’ the document in the sense that the term is used in Section 501 of the IPC, then the person would come within the ambit of the provision. It must also be proven that the respondent is not just the newspaper’s owner but also sold or offered it for sale in order for there to be a violation of Section 502 of the IPC. 

Setting aside the ruling of the High Court, the Apex Court noted that the High Court had not considered whether the complaint’s content constituted an offence punishable under any one of the aforementioned sections, or all of them, or some of them, in order to dismiss the case against the respondent. The bench noted that “whether there is adequate evidence to prove the respondent’s guilt for any one of the three offences listed above is an issue that can only be reviewed after evidence has been recorded at the time of trial. The subject of a proceeding under Section 482 of the Code of Criminal Procedure, 1973 cannot ever be such.” The Court further stated that it is important to carefully consider whether the owner of the printed defamatory content can be considered to claim that he cannot be held vicariously accountable for the defamatory material contained in his newspaper, book, etc. Thus, by means of this 2017 case, the Apex Court clarified Section 500-502 of the Indian Penal Code, 1860 as far as their ambit and application are concerned. 

Punishment for defamation under the Indian Penal Code, 1860

Anyone who defames another person is subject to punishment under Section 500 of the IPC, which includes fine, simple imprisonment for a time that may not exceed two years or both.

Defamation under the Code of Criminal Procedure, 1973

The Code of Criminal Procedure, 1973 being a procedural law, comes into play after the offence of defamation has been proved and the accused has been prosecuted for the same. A list of related sections has been discussed hereunder: 

Section 199 CrPC (Prosecution for defamation): 

Section 199 relates to prosecution for defamation in general terms. This provision comes into play only after an aggrieved party files a complaint on grounds of defamation as recognised by Chapter XXI of the Indian Penal Code, 1860. A Court of Session can take cognizance in situations involving high dignitaries when the defamation relates to behaviour while performing public duties after receiving a written complaint from the public prosecutor. Within six months of the alleged crime’s commission, the complaint must be filed.

Section 203 CrPC (Dismissal of complaint):

A magistrate may dismiss a complaint summarily in accordance with Section 203 of the Code if, in his judgement, there is insufficient justification for proceeding after reviewing the affidavits of the complainant and witnesses as well as the outcome of the investigation conducted in accordance with Section 202.

Section 204 CrPC (Issue of the process):

Section 204 of the 1973 Code provides that the magistrate will be issuing process under the provision if sufficient ground for proceeding in the same holds substance. If there is a lack of sufficient grounds, then in such a case, the complaint can be dismissed under Section 203 of the Code. 

Section 205 CrPC (Magistrate may dispense with personal attendance of accused):

A magistrate issuing a summons may forego the accused’s personal appearance under this Section. Every situation in which a summon is issued has been covered in this section. It is not limited to cases involving summonses. At any point throughout the proceedings, the magistrate may order the accused to appear in person. However, if a warrant is issued for an accused person, it is necessary for him to appear in person.

Section 207 CrPC (Supply to the accused of copy of the police report and other documents):

Under Section 207 of the 1973 Code, it is the duty of the magistrate to furnish the accused with necessary documents in relation to the offence he is charged with, namely, the police report, the confessional statements, etc., so as to let the accused know the charges that have been brought against him and the suitable grounds for bringing the same. 

Section 357 CrPC (Order to pay compensation):

According to this Section, a trial court, appellate court, high court, or the Court of Session in revision may issue an order of compensation out of the fine imposed at the time of passing judgement in the following four cases:

  • To the complaint for correctly covering expenditures.
  • To anybody who experienced loss or harm.
  • To a person who is qualified to get compensation for damages.
  • To a genuine buyer of real estate.

Section 357 A CrPC (Victim compensation scheme):

According to Section 357A, each state government must develop a plan for allocating funds to compensate victims or their dependents who have experienced loss or injury and need rehabilitation, in conjunction with the Central Government.

Section 358 CrPC (Compensation to persons groundlessly arrested):

As per Section 358, if it appears to the magistrate hearing the case that there was insufficient justification for the arrest, the magistrate may award the person who caused the arrest compensation, not to exceed one thousand rupees, to be paid by the person who caused the arrest to the person who was arrested, for his loss of time and expenses in the matter, as the magistrate thinks fit.

Section 359 CrPC (Order to pay costs in non-cognizable cases): 

According to Section 359, whenever a complaint of a non-cognizable offence is brought before a court, the court may, if it finds the accused guilty, order him to pay the complainant’s costs associated with the prosecution, either in full or in part, and may further order that, if he fails to do so, the accused shall be sentenced to simple imprisonment for a period not to exceed thirty days. These costs may include any fees associated with the legal process.

Civil defamation under civil and tort law 

Defamation is mostly used in the context of libel in civil law. The person’s reputation in the eyes of society is damaged as a result of the comment being published against him. If the following criteria are met, a person may be sued for paying damages to the aggrieved party:

  1. It must be a derogatory comment.
  2. The plaintiff alone must be the subject of the statement.
  3. Such a statement needs to be made public.

In the case of Bonnard v. Perryman (1891), it was decided that the court has jurisdiction to restrain by injunction, and even by an interlocutory injunction, the publication of a libel. An interlocutory injunction should only be given in the most obvious circumstances, preferably situations in which, if a jury did not find the matter complained of to be libellous, the court would set aside the decision as unreasonable. However, the use of the jurisdiction is discretionary. When the defendant testifies that he will be able to defend the libel and the court is not convinced that he may not be able to do so, an interlocutory injunction shouldn’t be issued.

Further, it is necessary to note that the legality of civil defamation was at issue in R. Rajagopal v. State of Tamil Nadu (1994). The US Supreme Court’s landmark decision in New York Times v. Sullivan (1964), which stated that a government official performing his or her official duties can only be entitled to damages when the truth claim is false and made with reckless disregard for the truth, was cited by the Supreme Court of India in this case. The bench looked for the connection between free expression and civil defamation in this case. According to the Court, common law defamation was unjustly constrained by Article 19(1)(a) of the Indian Constitution since it unfairly pushed no-fault liability.

Defamation and freedom of speech and expression under the Indian Constitution 

All citizens have the Right to Freedom of Speech and Expression under Article 19(1) of the Constitution. According to Article 19(2), the State must restrict the right in a way that serves the interests of eight different categories, including public order, morality, and decency. Defamation is one of these categories. The Constitution states that the State must censor expression in a ‘reasonable manner,’ not necessarily in the best interests of one of the eight classifications listed in Article 19(2). The Supreme Court’s legal precedent on the topic of what qualifies as a fair restriction has grown over the years. The Court has time and again ruled in various judgments that the requirement of the restriction be ‘narrowly drawn’, is one of the essential elements of reasonableness.

Through judicial interpretations, this Article has been broadly interpreted to include “freedom of the press.” However, Article 19(2) permits the State to pass laws that place ‘reasonable constraints’ on such liberties; therefore, this right is not unrestricted. The limits cover a wide range of situations, such as those involving defamation or contempt of court, as well as situations involving national interests and maintaining public order.

Due to the latitude provided by Article 19(2) and the criminal provisions (under Sections 499 and 500 of the Indian Penal Code, 1860), defamation cases can be contested in India on both a civil and a criminal level. Defamation occurs when someone “makes or publishes” a statement about another person with the intent, knowledge, or reasonable belief that doing so will damage the other person’s reputation.

Due to the media frenzy that has developed over Article 19(1) (a)’s guarantee of Freedom of Speech and Expression, defamation has recently become a contentious and notorious subject. The fundamental right to Freedom of Expression guaranteed by Article 19(1)(a) of the Indian Constitution is restricted by defamation laws in India. People worry about saying something that might cause upset or get them into trouble, whether they are speaking in private or in public. Therefore, the State must design its laws so that they impose speech restrictions only to the amount necessary to further legitimate goals. If the law is more expensive than that, it must be declared unconstitutional because it is too wide. This will guarantee that the State is held severely accountable if it chooses to curtail individual liberties and guard against the ‘chilling effect’ of broad and ambiguous laws that enable people to practice self-censorship in order to maintain their moral integrity.

Case laws in relation to defamation and Article 19(1) of the Indian Constitution

Shreya Singhal v. Union of India (2015)

The major question was whether the Right to Freedom of Expression protected by Article 19(1)(a) of the Indian Constitution was breached by Section 66A of the Information Technology Act, 2000 (IT Act) was raised before the Supreme Court of India in the landmark case of Shreya Singhal v. Union of India (2015). The Court had to also take into consideration that the Union Government is allowed to impose ‘reasonable restrictions in the interests of the sovereignty and integrity of India, 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 as an exception (Article 19(2)) to the right guaranteed in Article 19(1). 

Supreme Court’s decision 

  1. The Court stated that ‘damage to reputation is the primary component of defamation when considering whether Section 66A of the IT Act was a legitimate endeavour to shield people from defamatory claims made through online communications. It was decided that the law does not apply to this objective because it also forbids insulting remarks that may irritate or inconvenience a person without harming his reputation.
  2. Because “the mere causing of annoyance, inconvenience, danger, etc., or being grossly offensive or having a menacing character are not offences under the Penal Code at all,” the Court further held that the government had failed to demonstrate that the law intends to prevent communications that incite the commission of an offence.
  3. The bench further stated that the restriction’s reasonableness and proportionality must be evaluated from the standpoint of the public interest rather than the perspective of the person subject to the restriction. The Court concluded that the criminal defamation statutes were just and reasonable after applying this criterion. The majority’s assertion that defamation is simply a concept that restricts free speech and expression was rejected by the Court as being too nebulous to serve as a standard for judging whether the limitation is reasonable.

Based on the foregoing reasons, the Court invalidated Section 66A of the IT Act in its entirety as it violated the Right to Freedom of Expression guaranteed under Article 19(1)(a) of the Constitution of India.

Subramanian Swamy v. Union of India (2016)

Dr. Subramanian Swamy accused Ms. Jayalathitha of corruption in 2014. The Tamil Nadu State Government responded by accusing Dr. Swamy of defamation. Following that, Dr. Swamy and other well-known politicians contested the legitimacy of Sections 499 and 500 of the Indian Penal Code, 1860, which constitute India’s criminal defamation laws. The case was determined by a two-judge Supreme Court panel made up of Justices Dipak Misra and P. C. Pant. The Court was asked to decide whether criminalising defamation is an unreasonable restriction on free speech, as well as whether Sections 499 and 500’s criminal defamation laws are arbitrarily worded and therefore unclear and ambiguous.

Decision of the Supreme Court 

  1. The Court on May 13, 2016, ruled that Section 499 is not an undue restriction under Article 19(2). According to this ruling, society is made up of different people, and whatever affects one person also impacts society as a whole. As a result, it was decided that treating defamation as a public wrong is acceptable. As reputation preservation is both a fundamental and a human right, it was decided that criminal defamation does not disproportionately restrict free speech.
  2. The Court reiterated that the right to reputation is a component of the Right to Life under Article 21 based on the rulings of other nations. The Court, while using the principle of ‘balance of fundamental rights, opined that the Right to Freedom of Speech and Expression cannot be ‘’given so much latitude that even the reputation of an individual, which is a constituent of Article 21, would have no entry into that region’’.
  3. Furthermore, the Court determined that Sections 499 and 500 of the IPC are not ambiguously or vaguely stated. The Court found that the word ‘defamation’ constitutes its own separate identity, using the Constituent Assembly Debates to understand what the Constitution’s drafters meant by the word in Article 19(2). Defamation laws must be understood as they were when the Constitution entered into force since it stands alone.

Cyber defamation in India

Cyber defamation is the publication of false information about another individual using computers or the internet in general. Cyber-defamation occurs when someone makes false statements about another person and posts them online or sends emails to other individuals that contain false information with the intent to harm the aggrieved party. The damage done to a person by posting a defamatory comment about them on a website is extensive and irreparable because the material is public and accessible to everyone. 

Users of the internet are far less restrained than they once were, especially when it comes to the content of their messages, thanks to accessibility, anonymity, privacy, and the isolation of one’s own place. Soniya Gandhi-Manmohan Singh jokes and drawings are regularly posted as Facebook updates. The internet has made it far simpler than ever before to spread false information to a global audience without repercussions. Now, anyone can publish anything online, thereby targeting individuals with libellous material.

For publication to be proven, a defamatory accusation needs to be disclosed to one person. Every time an email is forwarded to a different person or offensive content is shared on Facebook, it gets published once more and spreads farther due to the internet’s ability to reach an essentially infinite number of people, giving rise to further causes of action. This has made the internet a very vulnerable place for libel. There is no doubt that a John Doe order (injunction) is always present in cyberspace. The difficulty in locating the offender and the extent to which Internet Service Providers (ISPs) should be held accountable for supporting defamatory acts makes the problem worse.

Cyber defamation laws in India

A person in India may be held accountable for defamation both civilly and criminally. When enlarged, Section 499 of the Indian Penal Code, 1860, which addresses defamation, also addresses instances of cyber defamation. However, India now has an explicit prohibition on cyber-defamation thanks to a recent revision to the Information Technology Act, 2000. 

  1. Section 66A of the Information Technology Act, 2000 states that anyone who sends something using a computer resource or a communication device is prohibited if:
  • Any content that is egregiously insulting or threatening.
  • Any false information that he repeatedly disseminates through a computer resource or a communication tool with the intent to irritate, inconvenience, danger, obstruction, insult, cause harm, criminally intimidate, sow enmity, hatred, or ill will.
  • Any electronic mail or electronic mail message sent with the intent to irritate or inconvenience the addressee or recipient, to deceive the addressee or recipient, or to mislead the addressee or recipient about the origin of such messages is punishable by up to three years in prison and a fine.
  1. Section 79 of the Information Technology Act, 2000 provides that ISPs are exempted from liability for any information, data, or communication link made available or maintained by them that belongs to a third party as long as:
  • Their role is restricted to merely granting access to the communications infrastructure; 
  • They do not:
  1. Start the transmission;
  2. Choose the transmission’s receiver, and
  3. Choose or alter the information contained in the message.
  • They exert due diligence in their tasks and follow any rules that may be specified. 
  1. However, the following circumstances give rise to ISP liability:
  • If they were complicit in the criminal act or helped to make it happen,
  • If they are aware or are alerted by the appropriate government agency that certain information, data, or communication links are being used to perform illegal acts without tampering with the evidence, they must promptly remove or disable access to those information, data, or communication links.

The IT Act, 2000 differs curiously from the commonwealth countries’ legal framework in that it shares some legal principles with American laws regarding cyber defamation. Although the new amendment does not change the burden of proof from the plaintiff to that of the defendant, it does make it simpler for defendants to establish their innocence if they acted honestly and adhered to their obligations under Section 79 of the Act and Rule 3 of the IT Rules, 2011, provided that they did so. However, despite the fact that ISPs are not legally responsible for posting and distributing defamatory information, they are routinely added as defendants in defamation lawsuits due to their greater financial resources.

The new cybersecurity legislation in industrialised nations like China and the USA is overly severe and imposes limitations on international businesses operating there, which protects the nations and lowers the incidence of cybercrime. However, India is also working hard to improve its efficiency so that it can offer better services and protection in the cyber domain. The Indian government unveiled a National Cyber Security Policy in 2013 with the goal of securing the nation’s information infrastructure, lowering its vulnerability, boosting its capabilities, and defending it against cyberattacks. India is now working to improve the IT Act, which still needs some changes but could be made soon. Additionally, our nation will compete with other developed nations in the field of cyber and IT protection.

Case laws in relation to cyber defamation in India

SMC Pneumatics India Pvt. Ltd. v. Jogesh Kwatra (2014)

In India, the first cyber defamation lawsuit in Asia was initiated in 2001. The case was SMC Pneumatics India Pvt. Ltd. v. Jogesh Kwatra (2014). In this case, the defendant, Jogesh Kwatra, a worker for the plaintiff’s company, began sending slanderous emails to his employers and the company’s several international branches. Following that, the plaintiff filed a lawsuit seeking a permanent injunction barring the defendant from making such defamatory statements. 

Observation by the Delhi High Court

The Hon’ble Delhi High Court, in this case, permitted an ex-parte ad interim injunction, finding that the plaintiff had established their case beyond a reasonable doubt, and forbade the defendant from publishing similar comments.

Avnish Bajaj vs. State (2008)

Avnish Bajaj v. State (2008), also known as the DPS MMS Scandal case, was another noteworthy case in the context of cyber defamation. Ravi Raj, a student at IIT Kharagpur, posted a listing on the website baazee.com with the identity “aliceelec” offering an offensive MMS video clip for sale. The listing appeared with the description “Item 27877408 – DPS Girls having fun!!! full movie + Baazee points,” despite the fact that baazee.com has a filter for publishing undesirable content. The item was removed at about 10 am on November 29, 2004, after being listed online around 8.30 pm on November 27, 2004. The Delhi Police’s Crime Branch took notice of the situation and filed an FIR. Following an inquiry, a charge sheet was submitted, listing Ravi Raj, Avnish Bajaj, the website’s owner, and Sharat Digumarti, the person in charge of processing the content, as the accused individuals (the defendants in this case). Avnish Bajaj filed the appeal after Ravi Raj fled, asking for the criminal proceedings to be stopped.

Observation of the Delhi High Court

  1. In this case, the Court noted that a prima facie case for the offence under Section 292 (2) (a) and (d) of the Indian Penal Code, 1860 is made out against the website in relation to the listing and the video clip, respectively. The Court held that under Section 292’s strict liability requirements, knowledge of the listing can be imputed to the company because the website “ran a risk of having knowledge that such an object was in fact obscene imputed to it by not having appropriate filters that could have detected the words in the listing or the pornographic content of what was being offered for sale.”
  2. The author respectfully asserted that there was no good basis in this case to exonerate the director, Avnish Bajaj. The idea of corporate criminal culpability may have been used to assess the director with the proper punishment. The argument also finds support in Article 12 of the European Convention on Cyber Crime, which imposes criminal liability on any legal entity with the capacity to act as a representative, make decisions, or exert control. According to Clause 2 of Article 12 of the Convention, a legal person can be held accountable where a criminal offence was made possible because a natural person working under his authority lacked supervision or control.
  3. Surprisingly, the Court determined that Avnish Bajaj might be exonerated under Sections 292 and 294 of the Indian Penal Code, 1860 since the legislation does not recognise the idea of an automatic criminal obligation attaching to the director when the corporation is an accused. Avnish Bajaj was ultimately found not guilty in this case.
  4. Although India has not yet joined this Convention, the aforementioned provision may have served as a guide to hold Avnish Bajaj accountable. Furthermore, because the Court did not particularly go into these questions and establish the law on this, the position it took in this case does not even help determine the amount of culpability of ISPs and their directors.

Vyakti Vikas Kendra, India  Public Charitable Trust Through Trustee Mahesh Gupta & Ors vs. Jitender Bagga & Anr (2012)

In this case, the Delhi High Court first determined that Google qualified as an ‘intermediary’ under Section 2(1)(w) and Section 79 of the Information Technology Act, 2000. The Court subsequently emphasised that, in accordance with Section 79(3)(b) of the IT Act, 2000, Google was required to remove illegal content if it received real notification from the person who was being harmed of any illegal content being circulated or published through its service. The Information Technology (Intermediaries Guidelines) Rules of 2011 must also be followed by Google.

Observation of the Delhi High Court

  1. The Court noted that Rule 3(3) of the IT Rules, read in conjunction with Rule 3(2), requires an intermediary to exercise due diligence or refrain from publishing any information that is gravely damaging, defamatory, libellous, derogatory, or otherwise illegal. An intermediary is required by Rule 3(4) of the Rules to delete such defamatory content within 36 hours of receiving actual knowledge.
  2. As a result, in the current case, Google was instructed to take down any defamatory information about the plaintiffs posted by the defendant from its website www.blogger.com as well as all links to such information within 36 hours of learning of the order issued by this Court. The defendant was also forbidden from sending any emails of this nature or from putting anything online that made reference to the plaintiffs, the Art of Living Foundation, a member of the Art of Living Foundation, or His Holiness Sri Sri Ravi Shankar, directly or indirectly.

Conclusion 

The concept of defamation is confusing and continues to be divisive, being utilised and abused by some while having a significant negative influence on the lives of others. Even while judicial precedent has made an effort to clarify this mess and sort out certain concerns, there are still some fundamental constitutional questions about both the criminal offence and the civil offence of defamation that have not yet been addressed. The Freedom of Free Speech and defamation laws should coexist in harmony. Both the former and the latter shouldn’t be sacrificed for either of them. Perception of the legislators on what constitutes defamation in present times should be subjected to progressive changes and the legislators should therefore encourage flexible provisions in this regard instead of a rigid legal framework. 

Frequently Asked Questions

What is civil and criminal defamation in India?

Defamation is a recognised civil and criminal offence in India. The law of torts governs civil defamation remedies, and the individual who has been defamed may seek damages. Criminal defamation is an offence that is punishable under the Indian Penal Code, 1860. Under Sections 499 and 500 of the 1860 Code, slander is a crime. Criminal defamation is a compoundable and non-cognizable offence that is subject to bail. If someone commits criminal defamation, they may receive a fine, a term of simple imprisonment of up to two years, or both.

What is required to prove defamation?

Defamation essentially must fulfil the following requirements:

  • The statement must be published.
  • The statement must lower the estimation of the person.
  • Defamation must have happened before ‘right-thinking’ members of society.

Is defamation bailable or non-bailable?

Defamation is bailable. The only issue is that one needs to make sure at trial that the witness shall be in the petitioner’s favour.

Is defamation a criminal offence?

Defamation is both a criminal (which carries a prison sentence) and a civil offence in India (punishable through the award of damages). While the criminal law on defamation is regulated under the Indian Penal Code, 1860, defamation as a civil offence is penalised under tort law. 

How do I file a defamation case in India?

The complaint regarding defamation can be filed to the magistrate who will direct the police officer to initiate the investigation and then the criminal trial will start. For a civil suit, the plaint must be filed by the plaintiff before the civil court under Section 19 of the Civil Procedure Code, 1908.

What is not defamation?

Section 499 includes a definition of defamation as well as specific instances in which making a false remark about another person does not constitute defamation. Defamation is exempt from the following situations:

  • Imputation of truth which the public good requires to be made or published

It is not defamation if a factual imputation or accusation is made about a person. However, it must be done in the public interest.

  • Public conduct of a public servant

It does not constitute defamation when an opinion is made in good faith on how public employees behave while doing their duties.

  • Conduct of any person approaching any public question

It is not defamation when an opinion is held in good faith about the behaviour of someone who engages in public discourse or performs official duties.

  • Publication of reports of proceedings of courts

Publication of a substantially accurate account of a court’s proceedings or the outcome of those proceedings is not considered defamation.

  • Merits of a case decided in court or conduct of witnesses and others related to the case

Publication of a substantially accurate account of a court’s proceedings or the outcome of those proceedings is not considered defamation.

  • Merits of public performance

This exception includes critiques of published books on music, art, and other subjects. Having an honest opinion about the merits of a performance that its creator has let the public judge is not considered slander.

  • Censure is passed in good faith by a person having lawful authority over another

It does not constitute defamation when someone with legal or contractual responsibility over another person criticises that person’s actions in good faith.

  • Accusation desired in good faith to the authorised person

He won’t be held accountable for defamation when someone who has legal control over another person makes accusations against him. The complaint must, however, be legitimate.

  • Imputation made in good faith by a person for the protection of his or others’ interests

This exception is used when someone makes a defamatory comment about someone else while acting in good faith to safeguard their own interests.

  • Caution intended for the good of a person to whom conveyed or the public good

Any caution or warning that is given in good faith to another individual or to the general public does not constitute defamation.

Is name-calling defamation?

Insulting someone is against the law. The legal term for insulting someone is libel if it was done in writing and slander if it was done verbally. You could get into legal trouble if you say or write something that is false and damages someone’s reputation.

Can a person defame without writing words?

Until the person’s reputation has been hurt, simply saying or writing anything, imagining something, or gesturing something does not constitute defamation. The only negative outcome that can result from defamatory conduct is harm to reputation.

What is verbal defamation?

Verbal defamation is the other term that is generally used for slander. 

References

  1. https://www.researchgate.net/publication/354326435_A_Critical_Study_on_Cyber_Defamation_and_Liability_of_ISPS.
  2. S.Mohinder Singh Saluja v. Vansan Shoes Delhi, (1987)1Crimes 57 (61) (Del).
  3. http://www.ijim.in/wp-content/uploads/2019/06/Vol-4-Issue-II-14-17-Paper-4-Deffermation-iadian-context-Sujata-Dahiya.pdf.

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Section 92E of Income Tax Act, 1961

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This article is written by Daisy Jain, a student at the Institute of Law, Nirma University. This article gives you an overview of Section 92E of Income Tax Act, 1961. This article also deals with the applicability of Section 92E. 

It has been published by Rachit Garg.

Introduction 

The Indian enterprises now face a lot of problems as a result of the economy’s accelerating globalization. One of these concerns is Transfer Pricing (TP), which refers to the cost of selling tangible or intangible assets and providing services to connected businesses. Transfer pricing provisions were added to Chapter X of the Income Tax Act of 1961 by the Finance Act of 2001 in accordance with international standards.

Chapter X of the Income Tax Act, 1961 (hereinafter referred to as the “IT Act”) covers the provisions pertaining to specific provisions which deal with tax exemptions. It consists of Sections 92 to 94B. The IT Act of 1961, Section 92E mandates that individuals engaging in certain domestic or international transactions obtain a report from an accountant.

Meaning of Section 92E of Income Tax Act 

Any person who engaged in a stipulated domestic transaction or an international transaction during the preceding year is required to get a report from an accountant and submit it on or before the given date in the predefined format, validly signed and authenticated in the required form by the accountant, and containing any prescribed details. 

As per the transfer pricing regulations, anyone who participated in international or specified domestic transactions in the preceding year is required to obtain a report from an accountant. According to the Chartered Accountants Act of 1949, the accountant must be a Chartered Accountant (CA) with a current certificate of practice and the required credentials. You must submit this report in Form 3CEB in accordance with Section 92E at least one month before the deadline for submitting Income Tax Returns (ITRs) under Section 139. The deadline under Section 92E is 30th November 2021 to 31st January 2022 of the applicable assessment year. The report must be verified and signed by all chartered accountants engaged in its creation, and contain all the necessary information. To undertake an audit under Section 92E, the taxpayer must provide a letter of invitation to the chartered accountant. A person who can authenticate the return of income or someone appointed by the company to make the appointment must sign this appointment letter.

Applicability of Section 92E of Income Tax Act

Section 92E is only applicable to specified domestic transactions and international transactions. International transactions involving two or more associated enterprises are subject to the provisions of Section 92E. Such transactions must incorporate either one or both non-resident applicants. Specific domestic transactions are also covered under Section 92E of the Income Tax Act, 1961. All types of transactions that qualify as international transactions have been clarified under the Finance Act, 2012. Below are a few of these transactions:

  • Buying, selling, or renting any kind of material or immaterial property.
  • Agreement for division of costs and expenses for any gain, service, or facility between two or more Associated Enterprises (AE) obtaining or lending money. 
  • Any transaction that results in a loss or gain in income or in the asset(s).
  • Agreement-based transaction between a corporation and a party other than an AE.

Section 92(3) states that the rules of Section 92E do not apply in cases where there are chances of higher losses or lower income taxes in India. 

What are international and specified domestic transactions under Section 92E of Income Tax Act

In regard to transfer pricing regulation, a transaction between two or more associated enterprises in which tangible or intangible property is sold, bought, leased, or provided as a service, or where money is lent or borrowed, may be referred to as an ‘international transaction’ if one or both parties are non-residents. It is crucial to remember that an agreement by a company with someone other than the associated enterprise will be regarded as an international agreement by two associated enterprises provided the following conditions are met:

  1. Such other party and the associated enterprise have a previous agreement in connection to the applicable transaction, or
  2. Regardless of whether the other person is a non-resident or not, the conditions of the applicable transaction are in essence decided between the other party and the associated enterprise when the party, the associated enterprise, or both of them are non-residents.

Contents of the report

Every individual who participates in an international transaction or a specified domestic transaction during the preceding year must get a report from the chartered accountant in Form No. 3CEB and submit it to the tax authorities by November 30 of the applicable evaluation year. Kindly refer to the latest draft of Form No. 3CEB to get to know the structure and all the requisite details that are needed to be filled in the report of Form No. 3CEB.

The first part of Form No. 3CEB  

The auditor must declare in the first part of this report that he has reviewed the assessee’s financial statements and other documents that pertain to the overseas transactions the assessee carried out during the reporting year. Also required is a statement from the auditor about whether the assessee has preserved the required transfer pricing papers.

The second part of Form No. 3CEB 

The auditor must provide information about international transactions in the second section of the report, including:

  • A list of affiliated businesses; 
  • Information on and a description of any transactions involving purchases, sales, service provision, mortgages, developments, etc.
  • The arm’s length price of the aforementioned transactions which is calculated using the transfer pricing method. Arm’s length price is defined as a price that is applied or intended to be used in a transaction between parties other than associated firms under unregulated circumstances
  • The overall sum of the transaction which is determined according to the books of accounts. 

Form No. 3CEB

Below mentioned is the format of Form No. 3CEB. This is a specimen of Form No. 3CEB. It is always advisable to seek professional help while filling out such a form.

Report from an accountant to be furnished under section 92E relating to the international transaction(s) and specified domestic transaction(s) (see rule 10E of Income Tax Rules)

  1. *I/We have examined the accounts and records of…………………………………………… (name and address of the assessee with [Permanent Account Number or Aadhaar Number]) relating to the international transaction(s) and the specified domestic transaction(s) entered into by the assessee during the previous year ending on 31st March, ……………. 
  2. In*my/our opinion proper information and documents as are prescribed have been kept by the assessee in respect of the international transaction(s) and the specified domestic transactions entered into so far as appears from *my/our examination of the records of the assessee. 
  3. The particulars required to be furnished under section 92E are given in the Annexure to this Form. In*my/our opinion and to the best of my/our information and according to the explanations given to *me/us, the particulars given in the Annexure are true and correct. 

Place: ……………… **Signed …………………………………………………. 

Date: ……………….. Name: ……………………………………………………. 

Address:……………………………………………….. ………………………………………………………………… 

Membership No. : ………………………………… 

Notes: 

  1. *Delete whichever is not applicable.
  2. **This report has to be signed by—

(i) a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or

(ii) any person who, in relation to any State, is, by virtue of the provisions in sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), entitled to be appointed to act as an auditor of companies registered in that State.  

Penalties for not furnishing the report under Section 92E of Income Tax Act

If a situation arises where the person fails to submit the report for its furnishing, then that person shall be held liable to be charged for the penalties. Section 271BA deals with the penalty provisions for the failure to furnish the report under Section 92E. Section 271BA, which imposes a fine of Rs. 1 lakh on anyone who fails to provide a report from an accountant as considered necessary by Section 92E, and Section 271AA, which imposes a fine on anyone who fails to maintain and keep information and documents related to international transactions, are the sections that encompass the penalty provisions for international transactions in general.

In the case of Ajit Singh Rana v. Assistant Commissioner of Income Tax (2021), an issue was raised that ignorance of the law by the accountant cannot be a reasonable cause for levying a penalty under Section 271BA. It was ruled that the assessee’s chartered accountant’s ignorance of the law was not a valid excuse for failing to submit the audit report about its international transactions and for not imposing a fine under Section 271BA. The Assessing Officer discovered that the assessee had not provided the audit report about its international transactions as needed to be produced under Section 92E in the case at hand for the assessment years 2003-2004 and 2006-2007, and as a result, the Assessing Officer instituted the penalty proceedings. It was additionally argued that the initiation of penalty proceedings was done after the limitation period of 4 years. The Commissioner disagreed with the contentions of the assessee and thereby upheld the Assessing Officer’s decision. Ignorance of the law is no defence, and it is particularly unlikely that the chartered accountant who reviewed the assessee’s accounts and whom the assessee claims procured the audit report from but who failed to submit the audit report together with the return of income, could be a legitimate excuse under Section 92E for failing to file the audit report.

Conclusion 

Now we shall conclude Section 92E of the Income Tax Act, 1961. Anyone engaging in international and specified domestic transactions is required by Section 92E of the Income Tax Act to acquire and provide an audit report from a chartered accountant. A minimum of two Account Executives, one of which must be a non-resident, must be covered by Section 92E’s provisions. As stated in Section 92BA, the Section also applies to specified domestic transactions.

Frequently Asked Questions

What are the remedies available if the report is not furnished under Section 92E?

Penalties for not furnishing the report under Section 92E of Income Tax Act, 1961, have been duly stated under Section 271BA of the Act. According to Section 271BA, the assessing officer may impose a fine of Rs. 1,000,000 if an individual fails to submit the report required by Section 92E.

What is the role of Form 3CEB?

A chartered accountant’s report, Form 3CEB, must be provided in cases of overseas transactions and certain domestic transactions regulated by Section 92E. It is delivered electronically and demands DSC’s signature. Rule 10E specifies that Form 3CEB is necessary. 

What is the meaning of ‘specified domestic transaction’?

Every Section 80A-covered transaction is regarded as a specific domestic transaction (SDT). It relates to business transactions covered by Sections 80IA(10), 10AA, or 115BAB(4), as well as transfers of goods and services under Section 80IA(8). Taxpayers must conduct these transactions with associated enterprises at a just market value in order to be eligible for deductions under various sections.

References  


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Mahatma Gandhi National Rural Employment Guarantee Act, 2009

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This article is written by Anjali S. Fad, an L.L.M. student at the Department of Law, University of Mumbai. This article provides a brief overview of MGNREGA including its objectives, features, and shortcomings.

This article has been published by Sneha Mahawar.

Introduction

The National Rural Employment Generation Act, 2005 later renamed the Mahatma Gandhi National Rural Employment Guarantee Act or MGNREGA in 2009, is an Indian law and social security measure aimed at guaranteeing the “right to work”. This law was passed on August 23, 2005, under the UPA government of Prime Minister Manmohan Singh after Minister of Rural Development Raghuvansh Prasad Singh presented the bill to Parliament. It applies to all of India except for districts that have a 100% urban population. The goal is to improve livelihoods in rural areas by providing at least 100 days of paid employment in a financial year to at least one member of each household whose adult members volunteer to do unskilled manual work. Women are guaranteed one-third of the jobs available under MGNREGA.

Another goal of MGNREGA is to create sustainable assets (such as roads, canals, ponds, and wells). The employment must be within 5 km of the applicant’s place of residence and the minimum wage must be paid. If no work is provided within 15 days of the application being submitted, the beneficiaries are entitled to an unemployment allowance. In other words, if the state does not provide employment, it must provide certain unemployment benefits to these people. Employment according to MGNREGA is, therefore, a legal right. In addition to economic security and rural asset building, other elements that are believed to benefit NREGA are that they can help protect the environment, empower rural women, reduce rural-urban migration and promote equity.

The law was first proposed by P.V. Narasimha Rao in 1991. It was eventually adopted by Parliament and implemented in 625 districts of India. Based on this pilot experience, the NREGA was expanded to all districts in India from April 1, 2008. The government hailed the law as “the most comprehensive and ambitious social security and public works system in the world.” In 2009, the World Bank censured the law and others for undermining development through policies that restrict internal movement. However, in its 2014 World Development Report, the World Bank called it “an excellent example of rural development”. The MGNREGA is mainly conducted by the Gram Panchayats (GPs). The law notes that it offers many safeguards to encourage its effective administration and implementation. The law specifically mentions the implementing principles and authorities, the list of approved works, the model for funding, monitoring, and evaluation, and detailed measures to ensure transparency and accountability.

Objectives of Mahatma Gandhi National Rural Employment Guarantee Act

  • MGNREGA is a powerful tool to ensure inclusive growth in rural India through its impact on social protection, livelihood security, and democratic empowerment. The specific objectives are;
  • Social protection for the most vulnerable people living in rural areas of India by providing employment opportunities.
  • Livelihoods for the poor through the creation of sustainable assets, improved water security, and soil.
  • Maintaining and increasing soil productivity.
  • Empowerment of socially disadvantaged people, especially women, Scheduled Castes (SC) and Scheduled Tribes (ST), through rights-based legislative processes.
  • Strengthening of decentralised and participatory planning through the convergence of different poverty alleviation and livelihood initiatives.
  • Deepening local democracy by strengthening Panchayati Raj institutions. 
  •  Strengthening transparency and accountability in governance.

Features of Mahatma Gandhi National Rural Employment Guarantee Act

Registration

  • Provides a legal guarantee of paid employment for adult members of rural households who agree to perform unskilled manual labour for a maximum of 100 days per household.
  • Applicable to all district villages.
  • Every rural household has the right to register with MGNREGA

Job card

  • Job cards are issued to each household registered under MGNREGA
  • Job cards are issued within 15 days of receipt of the application for job card registration

Application for work

  • Registered job card holders can seek employment by making a group/individual application
  • At least 10 job seekers must apply to be approved for new employment under MGNREGA
  • Employment is provided by sanctioning one of the works under the “Shelf of Works” as identified and prioritised by the village community within 15 days of receiving job applications within the MGNREGA
  • The Municipality has the right to select works from 8 categories of approved works
  • The village community will establish a 5-year “Shelf of Works” to be carried out in their villages based on needs and approved man-days.
  • The works proposed by the community of the municipality cannot be modified by anyone unless they do not comply with the guidelines of the MGNREGA

Provision and execution of works

  • The works will be carried out within 5 km of the village’s jurisdiction
  • If the work provided is more than 5 km away, job seekers receive 10% of the minimum wage as an additional amount

Unemployment insurance

  • The state government pays 25% of the minimum wage for the first 30 days as a compensatory daily unemployment benefit for being out of work to families applying for work under the MGNREG Act and half the wage for the rest of the year

Wages and other facilities

  • Wages are paid according to the state minimum wage rate set under the 1948 Minimum Wage Act. 
  • According to revised wages, 21 states had an increase of less than 5% and 10 states had an increase of more than 5%.
  • However, there have not been any changes in wage rates in Manipur, Mizoram, and Tripura.
  • The highest increase is recorded in Goa, at 7.14%
  • and the lowest increase of 1.77% in Meghalaya.
  • Equal pay for men and women
  • 1/3 of the beneficiaries must be women
  • Wages to be paid within a fortnight
  • Amenities such as creche (child care), drinking water, and shade should be provided in the workplace.
  • A 60:40 wage and material ratio must be maintained for all work performed under NREGA.
  • No contractors or machines are allowed 

Grievance redressal

  • A grievance mechanism will be put in place to ensure a responsive implementation process.

Social audit

  • Social audit is essential to all work carried out under the MNREGA.

Public disclosure

  • The provisions of the Right to Information Act,2005 are applied in letter and spirit to ensure transparency and accountability.
  • All accounts and records relating to the scheme must be made available to the public and to any person who desires a copy of those records upon request and payment of a specified fee.

An overview of Mahatma Gandhi National Rural Employment Guarantee Act

  • The main purpose of the MGNREGA is to provide guaranteed wage employment in a fiscal year to every household in rural areas whose adult members volunteer to do unskilled manual work for at least 100 days.
  • The main objectives of MGNREGA are :
    • To provide at least 100 days of unskilled manual work as guaranteed in a fiscal year to every rural household, resulting in the creation of productive assets of specified standard and imperishability.
    • To strengthen the livelihoods of the poor.
    • To proactively ensure social inclusion.
    • To institutionally strengthen the Panchayati Raj.
  • The goals of MGNREGA are :
    • Social protection of the most vulnerable people living in rural areas of India through guaranteed wage employment opportunities.
    • Improving the livelihoods of the poor rural population through the creation of wage employment opportunities at work leads to the creation of sustainable assets.
    • Rejuvenation of the natural resource base of rural areas.
    • Creation of a sustainable and productive rural wealth base.
    • Empowerment of socially deprived individuals, especially women, Scheduled Castes (SC) and Scheduled Tribes (ST), through rights-based legislative processes.
    • Strengthening of decentralised and participatory planning through the convergence of different anti-poverty and livelihood initiatives.
    • Deepening grass-roots democracy by strengthening the institutions of the Panchayati Raj.
  • MGNREGA was passed by the Indian Parliament on August 23, 2005.
  • MGNREGA was notified on September 7, 2005 through the Gazette of India and it came into force on February 2, 2006.
  • An amendment to the National Rural Employment Guarantee Act was made to change the nomenclature of the Act from NREGA to MGNREGA on 2nd October 2009.
  • MGNREGA was implemented in the first phase in February 2006 in 200 districts and later expanded to 113 and 17 additional districts. The remaining districts were included in the Act on April 1st, 2008. Currently, the Act is applied in 644 districts in the country with a large rural population.
  • According to Section 29 of the MGNREGA, if the Central Government is satisfied that it is necessary to make an amendment to the schedules of MGNREGA, Central Government may by notification amend Schedule I or Schedule II, as the case may be.
  • According to Section 32 (1) of the MGNREGA, the State Government may by notification make rules for effective implementation to carry out the provisions of the Act subject to the conditions of consistency with MGNREGA and rules made by the Central Government.
    • The Central Government may delegate powers (excluding the power to make rules) for implementation to state governments or subordinate officers by notification, and state governments can delegate the powers to subordinates (Section 26).
  • Key stakeholders of MGNREGA are:
    • Wage seekers
    • Gram Sabha (GS)
    • Three Tier Panchayati Raj Institutions (PRI)
    • Block Level Program Officer
    • District Program Coordinator (DPC)
    • State Government
    • Ministry of Rural Development (MoRD)
    • Civil Society
    • Other stakeholders [i.e., operations departments, convergence departments, self-help groups]
  • Rights and entitlements of wage seekers in MGNREGA are:
    • An application for registration.
    • Obtaining a Job Card (JC).
    • Applying for employment and receiving a dated receipt of the request.
    • Choosing the time and duration of the work applied for.
    • Obtaining work within 15 days of the request or from the date the work is sought in the case of advance application, whichever is later.
    • Amenities such as creche (child care), drinking water, shade, first aid, etc. should be provided on the worksite.
    • Eligible for a 10% wage supplement if employed beyond a 5 km radius.
    • Right to inspect their Muster Rolls (MR) and receive all the employment information registered on their Job card.
    • According to Section 3(3) MGNREGA, workers are entitled to a weekly wage, and in any case within fifteen days of the execution of the work.
    • Entitlement to unemployment benefits if employment is not provided within fifteen days of the application or from the date the work is sought in the case of an advance application, whichever is later.
    • Right to compensation for delay in the amount of 0.05% of the unpaid wages per day beyond the 16th day of the closure of muster roll.
    • Medical treatment for injuries sustained during employment, including hospital expenses if applicable, and ex gratia benefit in the event of disability or death in the course of employment.
  • Rights and responsibilities of the Gram Sabha in MGNREGA:
    • It determines the order of priority of business at Gram Sabha meetings with consideration of the potential of the local area, its needs, and local resources (paragraph 4 (2), Schedule I)
    • Monitor the execution of the work within the Gram Panchayat.
    • It is the main forum for conducting social audits. It provides a platform for all residents to seek and get all relevant information from all carriers, including in connection with the MGNREGA work carried out in the Gram Panchayat area.
  • Activities for which Gram Panchayat (GP) is responsible are:
    • Receiving Registration Requests.
    • Review of Registration Requests.
    • Household registering.
    • Issue of job cards (JC).
    • Receiving applications for job/work.
    • Issuing dated receipts for these work requests.
    • The assignment of work must be completed within fifteen days of the submission of the application documents or from the date on which in the case of an advance request, whichever is later, regardless of the request agency
    • Conduct regular surveys to assess demand for work.
    • Identification and planning of works, preparation of specifications, including the determination of the order of priority. Forward the list of works to the program officer for review and preliminary evaluation.
    • Carry out work according to the technical standards and necessary measures.
    • Maintain records in accordance with MGNREGA Operational Guidelines 2013
    • Maintain accounts and provide certificates of use in formats prescribed by the Central/state government.
    • Prepare an annual report with facts, figures, and achievements related to the implementation of the scheme in your jurisdiction and a copy of it must be provided to the public upon request and upon payment of the fees specified in the scheme.
    • Generation of awareness and social mobilisation in the rural areas.
    • Convening the Gram Sabha for planning and social audit.
    • Provide all relevant documents, including muster rolls, invoices, receipts, measurements, books, copies of sanction orders, and other books and records related to the Gram Sabha for the purpose of conducting a social audit.
    • Monitoring of implementation at the village level.
    • Proactive disclosure: Details of completed and ongoing work (including wages paid and material components) in the workplaces and the names of the people (with JC numbers) who have work performed, days worked and wages paid, quantity and price of each material purchased project with the name of the agency that provides the equipment and other prominent places.
    • Provide all the information specified in the system audit standards to the social audit unit.
    • Organising events like Rozgar Diwas at the Gram Panchayat level once a month in each district.
  • Executive agencies such as Tehsildar/Block Development Officer are often located at the block level and referred to as the Program Officer. For blocks that have a high concentration of SC/ST/landless workers, they are likely to have greater demand for MGNREGA work and must have a firm/dedicated Program Officer for MGNREGA. The Program Officer should not be given any responsibilities that are not directly related to MGNREGA.
  • The state government appoints a DPC who may be the executive director of the District Panchayat (DP), the District Collector (DC), or other district-level officer of appropriate rank. According to the information provided, the DPC is responsible for the implementation of the system in the district with the provisions of the MGNREGA 2005 and the rules and guidelines issued under it.
  • The State Employment Guarantee Council has the following functions and responsibilities:
    • Advising State Government (SG) on the implementation of the program.
    • Review oversight and redress mechanisms and propose improvements.
    • Evaluation and monitoring of the program within the state.
    • According to Paragraph 4 (IV) (ix) of Schedule I of the MGNREGA, recommend working proposals for submission to the Central Government (CG).
    • Promote the widest possible spread of information about the MGNREGA and its regulations. 
    • Preparation of the annual report for the state governments for submission to the state legislature.
  • The powers/responsibilities of the state governments are:
    • Frame provisions on state responsibilities under Section 32 of the Act.
    • Development and publicity of the National Program for Safeguarding Rural Employment.
    • Setup the SEGC.
    • Establishment of a Mahatma Gandhi National Rural Employment Guarantee Act implementation agency at the state level with a sufficient number of high-calibre professionals
    • Establish a state-level Social Audit Office/Directorate of the MGNREGS with a sufficient number of people with knowledge of MGNREGA processes and a demonstrated commitment to social audits.
    • Establishment and administration of a State Employment Guarantee Fund (SEGF).
    • Ensure that the government share of the MREGGS budget is planned and approved by SEGF at the beginning of the year so it can be used as working capital.
    • Ensure that dedicated full-time staff is available for implementation if required by MGNREGA, specifically Employment Guarantee Assistant (Gram Rozgar Sahayak), PO, and staff at state, district, cluster, and GP levels.
    • Delegate financial and administrative authority to the DPC and program officer, as deemed necessary for the effective implementation of the program.
    • Establishment of a network of professional agencies for training, technical support, and quality control measures.
    • Periodic review, collection, monitoring, and evaluation of MGNREGA processes and outcomes.
    • Ensure accountability and transparency of the scheme at all levels.
    • Raise as much awareness as possible about MGNREGA across the state.
    • Ensure that civil society organisations involved in mobilising MGNREGA workers are able to meet at least once a month in a formal setting with state, district, and block officials.
    • Ensure compliance with all processes provided by laws, regulations, and policies.
  • Roles and responsibilities of the Ministry of Rural Development are:
    • Frame provisions of the Act.
    • Issue operational guidelines for the effective implementation of the Act.
    • Review of the List of Permitted Works under MGNREGA in response to the request of the state governments.
    • Establishment of the Central Employment Guarantee Council and organisation of council meetings.
    • Establishment and operation of the National Employment Guarantee Fund.
    • Establishment of the National Management Team (NMT) within the Department of Rural Development to perform functions at the national level within the framework of MGNREGA.
    • Make budget allocation and ensure timely release of central share.
    • Maintaining and operating an MIS to collect and track data on critical aspects of implementation and evaluate resource usage through a set of performance indicators.
    • Supporting and facilitating the use of information technology (IT) to increase efficiency and transparency in the enforcement of the Act.
    • Facilitate technical support and capacity building to improve outcomes.
    • Support innovations that contribute to the improvement of processes to achieve the goals and objectives of the Act.
    • Monitoring, evaluating, and conducting surveys on the performance of MGNREGA.
    • Panel agencies that can be used by state governments as PIAs to implement the work of MGNREGA and determine the percentage of funding that can be granted to cover administrative costs
  • Role of Civil Society Organisations (CSOs) and Self-help Groups (SHGs) in MGNREGA:
    • CSOs working at the local level can play a very important role in raising awareness among wage seekers and in supporting the capacity-building of GPs and state governments in planning, implementation, and social audit of MGNREGA. 
    • Self-help groups (SHGs) can play a direct role in spreading awareness, organising work, ensuring access to rights, assisting with door-to-door surveys, and guaranteeing social responsibility. The MGNREGA operating guidelines provide the framework for the participation of CSOs and support for the operationalization of the CFT project in convergence with NRLM.
  • Other stakeholders in MGNREGA:
    • Other key stakeholders are – Members of the Social Audit, Monitoring and Control Unit Bodies, technical staff of implementing agencies, and departments with which an MoU has been signed for convergence with MGNREGA, namely the Ministry of Agriculture, Ministry of Forests and Environment, Ministry of Water Resources, Directorate of Rural Development, Directorate of Land Resources, and Ministry of Drinking Water and Sanitation and departments that will benefit from MGNREGA such as agriculture, water resources/irrigation, forests, etc.
  • Gram Panchayat Development Plan under MGNREGA:
    • According to Section 16 (3) and (4) of the MGNREG Act, each Gram Panchayat must draw up a development plan and maintain a work shelf to meet employment needs. A development plan is a yearly work plan that includes a shelf of projects with administrative and technical approvals for each village. 
    • The development plan is an ongoing plan as the approved shelf of the project may carry forward according to the useful life of the project from one financial year to the next.
  • District Perspective Plan under MGNREGA:
    • A District Perspective Plan will be developed for five years, which will identify needs and gaps in the districts in all the sectors. The District Perspective Plan is a multi-year plan for various departmental projects.
    • District Perspective Plans should be made in such a way that they can be subdivided into different annual plans.
  • Types of works carried out under MGNREGA:

Paragraph 4, Schedule I provides for the work under MGNREGA

Category A: Public works related to the management of natural resources-

  • Water protection and harvesting structures to expand and improve groundwater, such as underground dams, earth dams, stop dams, and check dams with special emphasis on recharging groundwater, including drinking water sources;
  • Watershed management activities such as contour trenches, terracing, contour bunds, boulder controls, gabion structures, and spring shed development lead to a comprehensive treatment of a watershed;
  • Micro and small-scale irrigation works and construction, renovation, and maintenance of irrigation canals and drains;
  • Restoration of traditional water bodies, including removal of sediment from irrigation reservoirs and other water bodies;
  • Afforestation, tree planting, and horticulture in common and forest land, road margins, canal bunds, tank foreshores, and coastal belts that properly grant usufruct rights to households fall under paragraph 5; and
  • Land development works on common land.

Category B: Individual assets for vulnerable sectors (only for households that fall under paragraph 5 of Schedule I)-

  • Improving the land productivity of the households referred to in paragraph 5 through land development and providing adequate infrastructure for irrigation, including dug wells, agricultural ponds, and other water harvesting structures;
  • Improving livelihoods through horticulture, sericulture, plantations, and agricultural forestry;
  • Development of vacant or undeveloped residential land in accordance with paragraph 5 of Schedule I to bring it under cultivation;
  • Wage component for unskilled workers in housing approved by Indira Awaas Yojana or any other state or central government plan;
  • Creation of infrastructure for livestock farming, e.g. poultry houses, goat houses, pig houses stables, cattle houses, and fodder troughs for livestock; and
  • Creation of infrastructure to promote fisheries, e.g. fish drying yards, storage facilities, and promoting fishing in seasonal waters on public lands

Category C: Common infrastructure for NRLM-compliant support (self-help)  groups-

  • Work to promote agricultural productivity by creating the necessary sustainable infrastructure of bio-fertilizers and post-harvest facilities, including Pucca storage facilities (Pucca housing – designed to be solid and permanent) for agricultural use; and
  • Common work sheds for livelihood self-help group activities.

Category D: Rural infrastructure-

  • Works related to sanitation on rural lands, such as individual household latrines, school toilets, and ‘Anganwadi’ toilets, either independently or in convergence with other government programs to achieve the status of “open defecation free” and disposal of solid and liquid waste according to prescribed standards;
  • Provide all-weather rural road connectivity to identified unconnected and connected villages and rural manufacturing centers to the existing Pucca road network; and construction of roads or streets within the Pucca, including lateral drains and culverts within a town, village;
  • Construction of playgrounds;
  • Work to improve disaster preparedness or road restoration or restoration of other essential public infrastructure, including flood protection and control works, providing for drainage in flooded areas, deepening and repair of flood channels, and construction of stormwater drains for coastal protection;
  • Construction of buildings for Gram Panchayats, the establishment of women’s self-help groups, Cyclone Temporary shelters, Anganwadi centres, village shepherds, and crematoria at village or block level;
  • Construction of food grain storage structures to implement the National Food Safety Act 2013 (20 of 2013);
  • Manufacture of building materials is required for construction work under the Act.
  • Preservation of rural public property created under the law.
  • Any other work which may be declared by the Central Government in consultation with the state government in this sense.
  • Negative works under MGNREGA

Negative works include works not included in the list of permitted works and works that are not tangible, not measurable, not quantifiable, or repetitive in nature, e.g., removing grass, stones/pebbles.

  • List of negative works
    • Work that is not tangible, not measurable, not quantifiable, or repeated like removing grass, rocks, and farms, will not be allowed.
    • Works such as applying mud, removing shrubs or stones, and similar activities are not included as stand-alone activities. However, these can be part of the project tasks to convert uncultivable land into cultivable land.
    • Agricultural inputs and operations are not permitted. Removal of weeds and watering can only be considered for forestry plantations and horticulture for a period of 2-3 years. This should also be part of the consolidated project to be supported by MGNREGA.
    • Expenses incurred to fund unauthorised activities will be reimbursed by the individual responsible for such costs.
    • Pilot activities within the framework of MGNREGA are discouraged. Pilots using MGNREGA funds, which concern only a few panchayats, can only be accessed with the approval of the ministry.
    • MGNREGA funds cannot be used for land acquisition.
    • Specified criteria to be considered when executing dug wells under MGNREGA.
  • Special category of workers (vulnerable groups) under MGNREGA

The special categories of workers are:

  • People with disabilities
  • Primitive tribal groups
  • Nomadic tribal groups
  • Denotified tribes
  • Women in special circumstances
  • Persons over 65 years of age
  • People with HIV positive
  • Internally displaced people
  • Rehabilitated bonded labour
  • Disabled persons under MGNREGA

Persons with disabilities are defined under the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) as persons with disabilities with a severity of 40% or more who would be considered a special category of people for the purpose of MGNREGA.

  • Specific works identified for people with disabilities within MGNREGA

Many works are marked exclusively for people with disabilities. In addition, suggestive works are provided for the category of people with disabilities.

Some of the works are:

  • Drinking water systems;
  • Irrigation of the newly built wall with water;
  • Construction of embankments on the farm;
  • Childcare;
  • Planting;
  • The method used to arrive at the estimate of the Labour Budget (LB) 
    • The estimate of the LB under MGNREGA is based on the total cost (i.e., labor, material, and administrative costs) required to create paid jobs per person per day. The expenditure per person per day for the creation of wage employment will have wage and material costs in the ratio of 60:40. For example, if the project cost is 100 rupees, the minimum salary cost is 60 rupees and the maximum material cost is 40 rupees. Additionally, a maximum of Rupees 6 can be used for administrative expenses beyond wage and material expenses.
  • Procedure for approving the budget
    • The LB must be submitted to the Government of India by December 31 of each year for the following financial year. Rural development secretaries of the state should ensure that budgets for all districts in their state are submitted in a timely manner to avoid delays in the release of funds. In doing so, it is important that the states or districts meet the deadlines prescribed in the MGNREGA operational guidelines. Labour budgets received online are reviewed by the Ministry and any issues are reported to the State for clarification/review. States will respond to the issues raised so the budget approval process can begin. An approved committee, chaired by the Secretary of the Department for Rural Development, will assess and approve each state’s specific budget in consultation with the Secretaries of State responsible for rural development. The authorised committee decides on the person-days to be sanctioned according to the expected employment generation.
  • The approved budget can be revised
    • The budget is an estimate and MGNREGA is a demand-driven program, states/UTs may request the department to review their existing budget based on actual performance at any time of the year. The procedure prescribed for the creation of the budget also applies to the creation of the revised budget.

Shortcomings of Mahatma Gandhi National Rural Employment Guarantee Act

  • A decade after the enactment of the Mahatma Gandhi National Rural Employment Guarantee Act, the rural economy has suffered from declining employment, budget caps, wage delays, widespread workers’ rights violations, the lack of a strong grievance system, weak financial institutions, a severe shortage of officials and the indiscriminate use of technology. However, some current state government and civil society initiatives are opening up new opportunities to improve the program.
  • The MGNREGA has been in crisis for a number of years. Rural workers are finding it increasingly difficult to find work and be paid on time. Most of them are also deprived of their other legal rights, such as workplace facilities, unemployment benefits (if work is not delivered on time), and late payment compensation.
  • MGNREGA is slowly dying despite strong government claims of “record allocations” and 92% on-time payment generation. The central government issued a press release stating that 92% of MGNREGA payments this fiscal year were generated on time.

10 reasons why Mahatma Gandhi National Rural Employment Guarantee Act is failing 

Ridiculously low wage rates

  • Currently, MGNREGA wage rates in 17 states are lower than the corresponding state minimum wages. Various decisions have ruled that the MGNREGA wage rate cannot be lower than the state agricultural minimum wage. Ridiculously low wage rates have resulted in workers’ lack of interest in working for MGNREGA programs, and contractors and intermediaries taking control on the ground level.

Inadequate budget allocation

  • The success of MGNREGA at the local level depends on an adequate and uninterrupted flow of funds to the states. Three times in the past year and once this year, state funds have dried up due to a lack of the central government’s “mother sanctions” that hamper peak-season work. Almost every year, more than 80% of the funds are used in the first six months. Therefore, the government’s claim of a “record allocation” is not true in real terms. On the contrary, it has fallen because last year’s unpaid debts are also included in the current budget. In addition, the allocation of funds is not sufficient to ensure proper implementation on the ground.

Regular late payments

  • The Union Ministry of Rural Development accounts for wages paid after the second signatory signs the FTO (Funds Transfer Order). However, there are also delays in processing signed FTOs for which the Management Information System (MIS) does not calculate compensation. Despite the Supreme Court decision and initiatives and government order, provisions have not yet been made in the MIS for calculating full salary arrears and paying compensation for the same. The government claims that 92% of payments are generated on time is incorrect. Even a quick field investigation shows that payments are regularly late.

Workers penalised for administrative errors

  • The Department withholds wages from workers who fail to meet administrative requirements by the deadline, e.g., submission of the previous year’s audited fund statements, utilisation and bank reconciliation certificates, etc. There is no logical or legal explanation for this strange arrangement, that is why workers should be penalised for administrative errors.

The banking headache

  • Rural banks have a severe lack of staff and infrastructure and are therefore always very crowded. Workers typically have to visit banks more than once to withdraw their wages. Due to the high rush and poor infrastructure, bank books are not updated in many cases. Often workers don’t get their wages when they need them.

Faulty MIS data

  • Increased corruption and weakened accountability are rooted in the MGNREGA implementation’s over-reliance on technology (real-time GIS is one of them). There is mounting evidence of how real-time MIS has made MGNREGA less transparent to workers, reduced accountability for frontline officials, and helped centralise the program. It is necessary to think about delinking the implementation of the MGNREGA from the real-time MIS. Data can be uploaded to the MIS post-implementation. It can still be a transaction-based MIS.

Non-Payment of unemployment benefits 

  • A large number of unemployment benefits are currently shown in the MIS. But the Central Government’s inaction to guarantee its payments shows that the government wants to use the MIS as it pleases and does not respect its own database. It raises the question, why would an MIS based on real-time transactions be needed if it is not used to defend the provisions of the Act and improve enforcement processes? 

Real job cards are removed to achieve 100% DBT targets

  • Real job cards are randomly removed due to the enormous administrative pressure to achieve 100% implementation targets for Direct Benefit Transfer (DBT) in MGNREGA. In states such as Jharkhand, there are several examples where districts later requested the reinstatement of job cards following civil society intervention on the matter. While the government is boasting about Aadhar-based savings, the reality is that large numbers of genuine job and ration cards are being removed, and real people have been deprived of their due rights.

Too much centralization weakens local governance

  • An implementation based on a real-time MIS and a centralised payment system left the representatives of the Panchayati Raj institutions with literally no role in the implementation, monitoring, and resolution of MGNREGA schemes. It has become a liability as they have little power to resolve issues or make payments. The excessive centralization of the scheme has completely depoliticised the implementation of MGNREGA and local responsibilities have completely declined.

An administration that does not respect local priorities

  • MGNREGA could be a tool to establish decentralised governance. But since the administration hardly dictates its implementation, it is now literally a burden on the people and especially on the elected local representatives. Governments always use a bottom-up people’s planning strategy to gain political advantage but never respect local priorities when implementing schemes. MGNREGA’s continued involvement in the construction of Pradhan Mantri Awas Yojana (PMAY), individual household toilets, Anganwadi centres, and rural “Haats” has destroyed the spirit of the program, and the plans of the Gram-Sabhas and Gram-Panchayats are never followed through. It’s also a flagrant violation of the law.

Conclusion

The MGNREGA is a milestone in the history of social security legislation in post-independence India. Passed after a successful fight for employment guarantee legislation, it is a partial victory toward full-fledged employment rights in every developing country’s context. The key feature of this legislation that distinguishes it from all other public service provisioning schemes is its adoption by the Indian Parliament.

This legislation sparked a quiet revolution in the country’s rural areas. The MGNREGA Act puts the role of the state as a provider of livelihood within the reach of the beneficiaries themselves. By its very nature, it differs from any employment generation program undertaken to date. It requires a different approach to employment generation plans and the overall involvement of the state in granting the right to employment to its beneficiaries.

Frequently asked questions

What are the main objectives of MGNREGA?

Providing at least 100 days of the unskilled manual as guaranteed employment in a fiscal year to every household in rural areas on demand, resulting in the creation of productive assets of prescribed quality and durability, strengthening the livelihoods of the poor; proactively ensuring social inclusion and, institutional strengthening of the Panchayati Raj.

What are the main goals of MGNREGA?

Social protection of the most vulnerable people living in rural areas of India through guaranteed wage employment opportunities, Improving the livelihoods of the poor rural population through the creation of wage employment opportunities at work that leads to the creation of sustainable assets, rejuvenation of the natural resource base of rural areas, creation of a sustainable and productive rural wealth base, empowerment of socially disadvantaged people, especially women, Scheduled Castes (SC) and Scheduled Tribes (ST), through rights-based legislative processes, strengthening of decentralised and participatory planning through the convergence of different anti-poverty and livelihood initiatives, deepening grass-roots democracy by strengthening the institutions of the Panchayati Raj.

Is MGNREGA restricted to particular states or districts?

No, MGNREGA is implemented by all the country’s rural districts. MGNREGA was implemented in the first phase from February 2006 in 200 districts and later expanded to 113 and 17 additional districts, effective from April 1, 2007, and May 15, 2007, respectively. The remaining districts were included in the Act on April 1st, 2008. Currently, the Act is applied in 644 districts in the country with a large rural population.

Can the state government make rules for the effective implementation of MGNREGA?

The State Government may by notification make rules for effective implementation to carry out the provisions of the Act subject to the conditions of consistency with MGNREGA and rules made by the Central Government [Section 32(1)].

What types of work is carried out under MGNREGA?

Paragraph 4, Schedule I provides for the types of work carried out under MGNREGA:

  • Category: A: Public works related to the management of natural resources, 
  • Category B: Individual assets for vulnerable sectors (only for households that fall under paragraph 5 of Schedule I), 
  • Category C: Common infrastructure for NRLM-compliant support (self-help) groups, and
  • Category D: Rural infrastructure.

References


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Computable contracts : bane or boon

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This article is written by Dhrubajyoti Das pursuing a Diploma in Advance Contract Drafting at Lawsikho. This article has been edited by Ojuswi (Associate, Lawsikho). 

This article has been published by Sneha Mahawar.

Introduction

Nearly every unit of today’s worldwide various operational pursuits is coming under the influence of the booming digital revolution – so why not the legal field? We are living in a world of technology, one cannot deny it! Technology is making our life easier once we get a hold of its way of functioning. So to proceed with this point we should consider that the burden of day-to-day computation of this huge transactional business world where a huge number of Contracts and Agreements are executed daily, is gradually shifted to the definitive hands of Artificial intelligence hoping for a more accurate and explicit computable outcome effortlessly. The age-old practice of drafting a contract or an agreement in any natural speaking language is always legally comprehensive but one cannot guarantee, especially in a financial scenario, an unambiguous output, (especially in terms of financial contracts) without a strenuous human effort – which when executed computably gives an exact calculated result effortlessly.

What is a computable contract

 Harry Surden, University of Colorado Law School in his article cited the definition of ‘Computable Contract’ as “a contract in which the parties have expressed one or more terms or conditions of their agreement in a manner designed to be processable by a computer system” to be a ‘Data-oriented contract’. In a broader sense, Data-orientation of a contract makes the contract Computable. A Contract where one or few conditions are computable is “Partially Computable” when all the clauses are computable the contract is “Fully Computable”.

But at the maximum level, the main target is the Computer Automation of business terms as a whole.  The maximum digital orientation for logical understanding should be the goal for the vision of computable contracting. However, it envisages broader scope than Insur-tech, Fin-tech, or Legal-tech where these industries successfully automate only a few supplementary facets of their day-to-day operations and their larger contractual obligations are mostly on a natural-language-based approach. 

Thus, it is to say that a Contract is made computable by automation of particular terms and conditions as a whole which is understandable by a computer, and also it holds up the legal enforceability of the contractual obligations through safe and secure tamper-proof computer cryptography. A computable contract is a contract that is intelligible by both humans and computers. 

The working method : how a computable contract is made computable through semantics and advanced semantics

Most importantly it has to be understood that there is no means to make the computer comprehend the conceptual logic that lies behind any human-made terms. The closest possible way to establish conformity between any deep conceptual meanings of something related to a human understanding with computer logic is to make the computer deliver an output similar to the conceptual meaning of the natural term. To exemplify what it is tried to establish here we can think of a word, say “Recycle Bin” featured in every computer; now we get here two different words, viz: “Recycle” and “Bin” which have two different meanings to understand conceptually; by the word “Recycle” we mean “Re-use” of something and “Bin” stands for “A receptacle of trash”, but a computer needs not to understand even a single meaning of either of these two words to function accordingly to comply with this phrase; we can observe that if we delete a file initially it gets stored in the Recycle Bin of the computer from where it can be restored if necessary, which is conforming the meaning of the phrase. The computer acts as if it has understood the conceptual meaning of these two words, but this is not the fact. It is just a processing of some computer programs which enables the computer to function in that way, concluding an output that conforms to the conceptual meaning of the phrase. In Computer Science, the theory of conveying meaning to computer systems through programming languages is known as Semantics. It is the mathematical study of the programming languages which makes the computer function following a command. 

 This function of conveyance, as time is proceeding, goes through more advanced semantic systems, making more complex terms transmutable by computer syntaxes, thus processing automation of a vast logical part of many contemporary computable contracts through rigorous programming languages. E.g. when HDFC tied up with IPPB (Indian Posts Payment Bank) allowing the IPPB customers of having access to HDFC Bank’s Products and Services the HDFC Banking system had to have a strong computer Database to distinguish IPPB customers from other banking customers so that the legal terms of the contract are affirmed, even during computable automation, while dealing with customer service or other banking protocols as contracted. Now, this is not just basic numerical reasoning that is to be computably performed by the HDFC banking database; rather, it includes many complex obligations like; financial access to its customers, leveraging customer convenient digital technologies, and other citizen-centric services. This needs a serious identification of its customers and following the contractual terms and obligations at a more cognitive level, not just any superfluous functioning method automating a few contracted terms will deliver the intended outcome.  This is what the advanced semantics methodology does. 

Similarly, one can seek for the legal implication to be asserted computably through advanced semantics. Like, to identify “senior citizens” for certain Financial Schemes or Medical Schemes the particular Database has to recognize distinctly persons above the age of “60” to confirm the Legal assertion of the policy contracts. For this, various documents, age-proof have to be reviewed by the computer and evaluate all the policy-related data stored to compute the age of the customer and apprehend the word “Senior Citizen”; the whole process is a result of rigorous computer programming; where under advanced semantics methodology the meaning of the contractual terms are conveyed through strings of programming languages to the computer systems and we can get the desired result without human intervention.    

DLT and BlockChain technology : a way ahead to computability

After Harry Surden of Colorado University devised the thought of “Computable Contract” in 2012, it can be propounded that the scope of self-executable or automation of consensus has been broadened from what Nick Szabo suggested as “Smart Contracts” in the 1990s. As Smart Contracts are mere implementation of consensus of protocols through a computer network or in other digital forms but the thought of Computable Contracts has graduated to a wider scope where one may think of the whole contract to be obligated computably. This computable implementation needs validation of faithful computer codes; these codes may be considered similar to the language used in a traditional natural contract. A traditional natural language contract may be drafted in different languages for different parties without varying the obligations and interpretation of the contract; but, if we try to automate the contract computably there will be a conversion of the natural language to computer understandable codes, through computer semantics as discussed earlier. 

Partial automation of a contract at different counterparties by different codes may alter the interpretation of the contracted terms and can have separate semantic errors for which interference of human resolution may require, thus disrupting the computable feature of the contract. Christopher Clack from UCL at Fintech Week while pointing out the gradual ascent of Contract terms towards computability; that is from Traditional Natural Contracts to Smart Contracts and then to Computable Contracts; put forth the requirement of the mechanism of common codes underneath the execution of Smart and Computable Contracts at different levels. So, this problem has been addressed, by the onset of Distributed Ledger Technology (DLT) now. DLT refers to the technology that allows access and validation of a common code simultaneously by different users in an immutable manner, through a distributed network that’s spread across multiple entities or locations as a decentralized database.

The institution of BlockChain Technology has emerged as the first instance of distributed ledger system by Bitcoin, and it has tiled the pathway where recording transactions and tracking assets can be done in a decentralized system without human interference, i.e. not requiring relying on a different authority. Bitcoin, considered to be progressive transmigration of Nick Szabo’s BitGold, in its ecosystem has the rewarding process just as long before BitGold was theorized to have, that is ‘value based on proof of work’. Such as, in mining, the one which solves the hash puzzle first receives BitCoin in reward as the value based on ‘Proof of Work’ after which a new block is created and the whole resolution is saved in the previous block immutably, and more of it the whole process is decentralized from any human authority. As every transaction recorded in a block is immutable and so it is safe from any fabrication.

Now with the rise of the Ethereum Network, the ambit of Distributed Ledger Technology broadened to make self-executable programming reach the extent where Smart and Computable Contracts can be materialized.  Applications in Ethereum are written in a programming language such as Solidity, which is far superior in terms of the features offered compared to Bitcoin’s scripting language. Both users and contracts can store money (ether) and send/receive ether to other contracts or other users through DLT.  Many industries and national governments have started utilizing DLT with significant investments. More specifically, DLTs have been prototyped in different use cases. These use cases include digital currencies, cross-border payments, syndicated lending, know your customer (KYC), insurance marketplaces, voting platforms to secure votes, etc. The French Insurer ‘AXA’ is the first major insurer to use Blockchain technology to compensate their customers for delayed flights – a significant example where the computable contract is executed through DLT.  

So with the rise of Blockchain and DLT, computable contracts have found renewed prominence. We find the applications of computable contracts in a few recent industries, for now, smoothing the way forward for more enterprises in integrating computable contracts to achieve greater transparency and higher process efficiencies.

Why is computable contract a boon

One may argue about lacking the advocate’s craft of drafting when a contract is set on computer codes other than the natural language. But, as in the modern era computability is another world we cannot stay out of its scope. From the view of today’s thriving entrepreneurship automation of business is the need of the hour to save time and expense. Every sector is looking to obliterate all third-party interference for smooth operation which nourishes the customer and seller relationship. If we examine the power of Computational Contracting then the online computerized market in the pandemic era recently provides a very significant example. In February 2021 Forbes published on its website that in 2020 Amazon’s reported revenue increased 38% to $386 billion, a yearly increase of over 100 billion up by 84% compared to last year. It is further added that the company’s strengths of integrated digital platforms allowed Amazon to pivot swiftly and adeptly to meet shifting consumer demands amidst the pandemic. Thus the evolution of human reliance on computability has taken place. 

Though it is great to observe the advancement of effortless automation of today’s entrepreneurship in a gradual process, still few implementation challenges have to be encountered thoroughly to increase the potential feasibility of computability in business.

Divergence of legal and computer languages 

Till now human intelligence is familiar with the drafting of their contracted terms and conditions in any natural language – comprising a variant form of legal vagueness. So, the challenge is faced when the terms and conditions of such a contract, drafted in a natural and legal language, are to be transformed into a computer-understandable language. This is mainly a technical challenge. This challenge can be solved by using prominent programming languages which lays out clear-cut terms and conditions of the contract understandable to the computer – realizing the crux of the material and obliterating the dispensable vagueness of the original language without altering the intended output. The importance of implication of DLT and BlockChain Technology has already been gone through in this article, is significant for this purpose where individual implementation of separated codes is substituted by a distributed system of common codes through a single network, a step forward to meet this challenge.

Legal compliance 

A contract is always intended to be legally binding when both parties set their terms and conditions to safeguard their legislative right.  Now, as the final automated output is through a computer programming language other than the legally set natural language, the execution of Contractual terms may raise the question of Legal assertion and compliance. Now this challenge should be overcome by a comprehensive database to implement positive output complying with the legal terms and obligations that are set in the contract. This comprehensive database is needed by appropriate programming of the system interface to be used. For example; few food-delivering apps prohibit consumers below the permissible age to order alcoholic beverages. To assert this legal compliance the app has its methods of verification by scrutinizing photo-id proofs and valid documents; the process should be précised by a comprehensive database to secure from fraudulence and forge of self-identity.  

Promoting new method

It can be a challenge to convince leaders and other parties attached to the business that they should embrace a new way of administration where the computable implementation of their Contracted terms will be set up. A productive approach to managing this change may involve finding a particular way where such an approach can be taken by educating every concerned person with the skill to advance along a technical approach and then adopt the Computability terms of business for the enterprise. 

Technical security

When the whole business is approaching computability then technical security is a crucial concern. All data transmissions should be defended from bugs and other web attacks.  A dream of computability can be materialized in terms of a secured and safe computable sphere with a compact data privacy system.  With huge strides towards technicality, it can be assumed that more effective technical security can be devised. 

The contemporary and future world of such a huge number of contracted transactions would be facilitated through the revolution of Computability in Contracts as a boon for society. It will make the policy more transparent and understandable for the consumers and other users; the vagueness of the natural legal language sometimes fails to do so. Automated calculation of certain contracted matters will make the outcome hassle-free for consumers and a broader marketplace for inter-company transactions can be generated. 

Conclusion 

The implementation of computability has increased the need for computer expertise alongside the legal aptitude of a drafter. But, it doesn’t mean that the legal quotient with the ascent of computability is reduced by any means. Rather a lawyer today has to look forward to achieving the technicality in drafting contracts that are to be made understandable by Artificial intelligence. Domain-specific language has to be used in place of sophisticated natural language for drafting contracts for different sectors. Like, a lawyer has to be aware of the terms of an insurance sector while drafting a contract of that specific domain. This technical progress in the field of Legal Contracts by holding the hands of technology is worthy of acknowledgment as a boon to society rather than a bane.   

References


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What are civil rights

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This article is written by Shiwangi Singh, a law student from Banasthali University. This article talks about basic human rights as well as how a human right gets converted into a civil right. It deals with various civil rights movements held in India and how legislation was introduced for civil rights violations.

it has been published by Rachit Garg.

Introduction 

To lead a meaningful and dignified life, one needs to get access to certain rights so that they can carry out their basic actions and fulfil their demands and needs which are required for their survival. One is always entitled to use certain rights, and this entitlement is known as human rights. Human rights can be defined as moral entitlements that are applicable and available to every human being by virtue of their human condition, irrespective of their origin, nationality, caste, or gender. Some rights can never be snatched away from anybody, which are naturally given to people, naturally born rights. No matter how superior someone is, they can never cut off someone from using these rights.

What are civil rights 

Civil rights are the protections and privileges of personal power and rights given to all citizens by law. Civil rights are the rights that are bestowed by the nation on its citizens who are within its territorial boundaries. When the government or the state gives their will to bring certain human rights into action and provides them with a legal authorization, then that right is said to be a civil right. These rights ensure equal opportunities for everyone, irrespective of their race, religion, or gender. Civil rights vary from time to time and they also differ from place to place because different places have different forms of administration, and therefore, rights are suitably provided to them.

Philosopher John Locke argued that natural rights to life, liberty, and property should be converted into civil rights and protected by the sovereign state. Other philosophers have argued that people acquire rights as an inalienable gift from the deity and at a time when nature was formed before the government could start to rule.

Civil rights are a set of laws established by law that protect the freedoms of individuals from being wrongly denied or limited by governments, social organisations, or other private individuals. Examples of civil rights include the rights of people to work, study, eat, and live where they want. Turning a customer away from a restaurant solely because of his or her race is a civil rights violation.

Human rights and civil rights hold some differences, like:

  • Human rights are basic fundamental rights that one has simply because one is a human being, but a civil right arises under citizenship in a particular nation or state by a legal grant to a specific right.
  • Civil rights are born from the constitution or laws of the country, while human rights are universal to all human beings.
  • International organisations which work for the protection of rights across the globe and security are less likely to take any action against civil rights violations in a particular nation but are more likely to take action against human rights violations.
  • Civil rights can be different in different nations as granted by the government but human rights are universal in all countries.

Timeline on the history of civil rights around the world

1950

  • The U.S. Supreme Court strikes down the segregation of ‘black people’ in graduate and law schools.

1954

  • Linda Brown, an 8-year-old girl from Topeka Kansas had to travel a long distance for schooling even though a school was present in close vicinity but it was only for whites, due to segregation she had to travel a longer distance. After this, her father sued the school board of Topeka and the U.S. Supreme Court agreed to hear the case.
  • The Supreme Court decided Brown v. Board of Education on May 17, 1954, and stated that school segregation is unconstitutional and “separate but equal” schools are inherently unequal. It mentioned that racial segregation in public schools violated the 14th Amendment of the Constitution, which prohibits the states from denying equal protection of the laws to any person within their jurisdictions.

1955

  • An African American civil rights activist, Rosa Parks, refused to give up her seat on a public bus to a white passenger. After that, she was arrested, and this led to a sustained bus boycott in Montgomery, Alabama. This protest was led by Martin Luther King Jr. and began on December 5. This protest went on for a year, known as the Montgomery Bus Boycott, and during this period, the protestors faced threats, arrests, and termination from their jobs. Finally the Supreme Court heard the case and stated that segregational seating was unconstitutional.

1957

  • Nine African-American students attended their first day at Little Rock Central High School, which was a white school until this point. These students were called the Little Rock Nine and faced violence at the entrance of the school from a large white mob and soldiers from the Arkansas National Guard. They were continuously harassed. Eight of the nine completed their academic year. This entire confrontation drew international attention to the civil rights movement in the United States.
  • It led to the formation of the Student Non-Violent Coordinating Committee.

1960

  • A group of four freshmen from the Agricultural and Technical College of North Carolina sat at a “whites only” lunch counter and were refused service and asked to leave. They were called the ‘Greensboro Four’. Later, many protestors joined them and occupied lunch counters in different cities and protested in the same pattern. Later, the facilities began to desegregate throughout the country.

1964

  • The Civil Rights Act of 1964 was introduced, which eliminated legalised segregation in the U.S. The legislation made it illegal to discriminate against blacks or other minorities in hiring, public accommodations, education, or transportation.

Apartheid in South Africa

This was a massive civil rights movement in South Africa that fought against racial segregation known as apartheid. This movement started in the 1940s and intensified in the 1950s and 60s. At that time, black people were deprived of many social needs based on their colour. They didn’t even have the right to vote. The Major Black party in South Africa- African National Congress came into power and Nelson Mandela became the first Black president of South Africa, in 1994.

History of civil rights movements in India

The British ruled India for around 200 years and exploited us economically for the betterment of their nation. The Britishers had liberal traditions in Britain but believed that backward nations like India needed to depend on a much stronger nation for their survivability, and hence the principles of liberty were not applicable in India. They had full control of the people and took over every business in India. They not only drained India economically but also deprived the people of their basic rights to equality, justice, and dignity. Nationalists and social reformers like Raja Ram Mohan Roy and Mahatma Gandhi were concerned with the denial of civil liberties. They led many movements to take up the issue of civil liberties. Various incidents from history show how masses of people came together either to eradicate a senseless practice or to enforce their basic rights. Some of them are:

The Civil Disobedience Movement

Civil disobedience simply means not standing by the sayings of the government because one does not find it for the well-being of the people. One requires passive resistance, refusing to obey the commands of the government. It has been a major tactic and philosophy of nationalist movements in Africa and India.

In India, the Civil Disobedience Movement was started by Mahatma Gandhi by breaking the salt law by producing salt from seawater. It was a peaceful and non-violent procession, but it didn’t stand with the unjust policies of the British Government. The movement marked its beginning by Salt Satyagraha on 12th March 1930 led by Mahatma Gandhi accompanied by 78 other trusted volunteers, in which he started a march called ‘the Dandi march’ starting from Sabarmati Ashram at Ahmedabad to Dandi, a village on the western sea-coast of India, at a distance of about 385 km from Ahmedabad. They reached Dandi on 6th April, 1930. After reaching there, Gandhi made salt from the seawater and broke the salt law because it was only under British authority that salt was manufactured. They had an absolute monopoly over it.

This movement impacted the whole nation, and similar marches were led by different leaders in other parts of the country. It united the nation as one against British rule.

The Mahad Satyagraha, 1927

One of the less talked about civil rights movements in India was led by B.R. Ambedkar. It was held against the practice of the Brahmin’s so-called upper caste, who suppressed the lower castes. It was a fight within the different classes of the country, it wasn’t about any external influence but an Indian harming another Indian.

Thousands of Dalits rallied behind Dr. Ambedkar, using water from public tanks, which was prohibited for them, at Mahad in Maharashtra. The Dalits struggled for their right to  have access to the very basic need of mankind, i.e. water, which shows that it was indeed an uncivilised society at that time. It was India’s first civil rights movement. It wasn’t just a movement for a class of people, but a civil rights movement.

Fundamental rights in India

Fundamental rights are divided into six categories namely- Right to Freedom, Right to Equality, Right against Exploitation, Right to Freedom of Religion, Cultural, and Educational Rights, and the Right to Constitutional Remedies. These fundamental rights are present in Part III, from Article 12 to Article 35 of the Indian Constitution.

Fundamental Rights are the basic human rights in the Constitution of India guaranteed to all citizens. Fundamental rights are enforceable by the courts. These rights are available to every citizen without any discrimination based on race, religion, gender, etc.

Article 12 – It defines the composition of ‘State’ which includes the Government of India, the Parliament of India, the government and legislature of each state, and all other local authorities within the territory of India that are under the control of the Government of India.

Article 13 – It states that:

  • The state shall not make any law against any right which is mentioned in this Part of the Constitution. Any law made in contravention of this Part shall be considered void.
  • Nothing in this Article shall apply to any amendment of the Constitution made under Article 368.
  • Article 14 – It represents the idea of equality and states that the state shall not deny any person equality before the law or equal protection of the laws within the territory of India. All people can seek justice before the law irrespective of their race, colour, or religion.

Article 15 – It has the following provisions:

  • Discrimination on the grounds of caste, color, religion, place of birth, or sex shall be strictly stopped.

The state shall not discriminate against anyone based on these grounds.

  • No citizen shall be restrained from going to any place like shops, restaurants, hotels, and other public places of entertainment or use of wells, tanks, or roads because of their religion, caste, sex, or place of birth.
  • This Article shall not prevent the state from making any special provision for women and children.
  • Nothing in this Article, or 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 the Scheduled Castes and the Scheduled Tribes.

Article 16 – There shall be equal opportunities for every citizen in matters of public employment.

  • Equality of opportunity in terms of employment or appointment at any office under the State.
  • No citizen shall be restrained from getting employment in any office under the State based on caste, color, sex, place of birth, or religion.
  • Nothing in this Article shall prevent the State from making provisions for backward classes if the State feels they are not well represented.

Article 17 – This Article talks about the abolition of untouchability.

  • The practice of untouchability is forbidden in any form. If it is found that untouchability is being practised and hampering people’s lives, then it shall be considered a punishable offence in accordance with the law.

Article 18 – This Article deals with the abolition of titles.

  • No title, except military titles or academic titles shall be conferred by the state.
  • No citizen of India shall accept any title from a foreign state.
  • Any person who is not a citizen of India, holding any office under the state shall not acknowledge any title from a foreign state without the consent of the President.
  • No citizen of India shall acknowledge any kind of offer or office by another foreign state without the consent of the President.

ARTICLE 19 – This Article talks about the protection of rights like freedom of speech, expression, etc.

  • All citizens have the right:
  1. To freedom of speech and expression.
  2. To assemble peacefully without arms.
  3. To form associations and unions in their interests.
  4. To move freely throughout the territory of India.
  5. To reside and settle in any part of India.
  6. To carry out any trade, occupation, profession, or business of their interest.

Article 20 – This Article talks about protection from offences.

  • No person shall be prosecuted and punished for the same offence more than once.
  • No person accused of any offence shall be compelled to be a witness against himself.
  • A person can be convicted of only the offences that have occurred due to the violation of the law in force at the time of the commission, and shall not be charged with a penalty greater than that mentioned in the law in force at the time of the commission of the offence.

Article 21 – This Article talks about the protection of life and personal liberty.

  • No person shall be deprived of life and personal liberty except according to the procedure laid down by the law.

Article 22 – This Article states about the protection against arrest and detention.

  • No person shall be detained in custody without being informed.
  • Any person who is detained shall be allowed to defend himself by choosing his legal practitioner.
  • Every person arrested and detained in custody shall be presented before the nearest magistrate within twenty-four hours.
  • No person shall be detained for a period greater than that ordered by the magistrate.
  • Nothing in the points mentioned above would apply to a person who is an enemy alien or a person who is arrested on the grounds of preventive detention.
  • No person who is arrested on the grounds of preventive detention can be kept for a period longer than three months unless an advisory board consisting of present judges or retired judges reports before the expiration of the period that there are sufficient reasons to keep the person under arrest.
  • The person arrested under preventive detention shall be informed as soon as possible about the grounds on which he has been arrested and should be allowed to make representation against the order.

Article 23 – This Article talks about the prohibition of human trafficking and forced labor.

  • Trafficking of men, women, children, beggars and such types of forced labour shall be prohibited, and the practice of such things will be considered a punishable offence.

Article 24 – This Article mentions that children below the age of fourteen shall not be forced to work in hazardous environments like mining or railways.

Article 25 – This Article mentions freedom of conscience and freedom to profess and propagate the religion of one’s choice.

Article 26 – This Article mentions freedom to manage religious affairs.

  • To establish and maintain institutions for religious and charitable purposes.
  • To manage their religious matters.
  • To own and acquire immovable and movable property.

Article 27 – This Article states that no person shall be forced to pay taxes for the promotion and maintenance of any particular religion.

Article 28 – This Article states the prohibition of religious instruction in educational institutions wholly maintained by the state.

Article 29 – This Article deals with the protection of interests of minorities

  • A group of people residing in any part of Indian territory having a distinct culture, language or script have the right to preserve their identity.
  • No educational institution running on state funds or doesn’t receive funds from the state has the right to deny admission on the grounds of religion, caste, race, language, or any other.

Article 30 – This Article deals with the rights of minorities to establish and administer educational institutions.

  • All minorities based on religion or language have the right to establish and maintain educational institutions of their choice.
  • The state shall not deny granting funds to such institutions just because they are managed by a minority group.

Article 31 – This Article deals with the fundamental right to property, which has been abolished after the 44th amendment, 1978.

Article 32

  • One can move to the Supreme Court for the enforcement of their rights by proper proceedings.
  • The Supreme Court can issue writs for the enforcement of rights, which are:
  1. Habeas Corpus – To get a person released who was arrested unlawfully.
  2. Mandamus – To direct a public authority to do its duty.
  3. Quo Warranto – To direct a person to vacate an office who acquired it unlawfully.
  4. Prohibition – To prohibit a lower court from proceeding on a case.
  5. Certiorari – This is the power of the high court to remove a proceeding from a lower court and bring it before itself.

Article 33 – This Article empowers the Parliament to restrict the fundamental rights of the members of the armed forces, parliamentary forces, police forces, and intelligence agencies.

Article 34 – It provides restrictions on fundamental rights while martial law (military law) is in force.

Article 35 – It empowers the Parliament to make laws on fundamental rights.

Fundamental rights play a very pivotal role because they are important for the attainment of the full intellectual, moral, and spiritual status of an individual. Civil rights are the primary requirement in a democratic world, and it works against systems like dictatorship. The freedom struggle of India was for the implementation of civil rights.

Civil rights available to every citizen

Right to life

Everyone has this right to live peacefully in a dignified manner, and the government has formed many laws to protect this right.

Right to have a family life

One can marry the person of their choice and start a family. This right is significant for the continuation of the human race.

Right to education

Every government allows its citizens the opportunity to get an education because educated people can actively participate in the workings of society and government.

Right to profess the religion of your choice

The government does not force anyone to follow any particular religion; they are free to choose their religion and abide by it.

Right to freedom of thought and expression

Everyone has the right to express their thoughts without being restrained by any means.

Freedom of press

Citizens have the right to get their thoughts and expressions printed in newspapers and periodicals to reach a greater number of people.

Right to justice

Every citizen has the right to seek justice from the court if they feel any right of theirs is being restrained or obstructed by anyone.

Right to freedom of movement

Every citizen has the right to move freely throughout the country and abroad.

Civil rights are the primary requirement in a democratic world, and it works against systems like dictatorship. The Indian struggle for freedom was for the implementation of civil rights.

How are civil rights different from civil liberties 

Civil rights and civil liberties are quite similar, but the difference lies in the action of the government and how they implement it.

Civil liberties are the freedoms guaranteed to the citizens or residents of a country by an overriding legal covenant, such as the U.S. Bill of Rights. It tends to restrict the government in specific areas like freedom of speech, and expression. For example – if a person is stopped from expressing his or her views on a matter, then he can file a complaint against the official who restrained him and can caution the government that no one can restrain him from exercising his rights while a civil right ensures equal opportunities for everyone, it does not discriminate against anyone on grounds like employment, housing, education, etc.

For example – In the U.S, everyone has the right to marry. This is a civil liberty that cautions the government that they can’t stop anyone from marrying. But if the government disagrees with issuing a marriage certificate to a couple then it restrains the civil right of the person and he can now take action because he has the full right to get a certificate.

Examples of civil rights include the right to vote, equal access to public education and affordable housing, the right to a fair trial, and the right to use public facilities.

Violation of civil rights

Any offence that causes a threat to people belonging to the ‘protected category’ is known as a civil rights violation. Civil rights violations occur when the rights or freedoms of a person are taken away or discriminated against based on race, color, gender, age, nationality, disability, or sexual orientation.

Some examples of civil rights violations are:

  • Sex and gender discrimination

It talks about negative employment outcomes because of sex or gender, which means someone being passed over for a promotion, being passed over for a raise, being paid less than other co-workers, not being given responsibilities, being assigned extra work or tasks or transfers, or changes in job duties.

Sex discrimination means treating someone unfavorably because of their sex or sexual orientation, like transgenders. It is unlawful to mock a person for their sexual identity.

  • The selling of men, women, or children for illegal purposes is known as human trafficking. The three most common types of human trafficking are sex trafficking, forced labor, and debt bondage. Human trafficking often involves women being forced into prostitution. Men and children are also exploited in several ways, like being forced into prostitution, domestic servitude, or construction.
  • Sexual assault towards minors and women without their consent includes rape, forcible object penetration, marital rape, unwanted sexual touching, sexual intercourse with family members, possession of child pornography, or any unwanted sexual contact.
  • Unemployment of people because of their ethnic origin, lower caste.
  • Discrimination of students at any educational institution based on religion or caste.
  • Bad behaviour towards people based on their colour.
  • Denying voting rights.

Protection against civil rights violation in India

Whenever a right is violated, a proper remedy has to be available for the injury caused by it. A proper legal procedure is adopted by our country for the redressal of civil rights violations. The upper-caste Indian society has always been very rigid with its caste system and harmed the people of the lower caste. The practice of untouchability was to a greater extent in early Indian society, where the lower caste people weren’t allowed to use public toilets, tanks, or wells, and were not allowed to enter temples by the so-called high caste people. To eradicate such useless practices, the Indian government came up with ‘The Protection of Civil Rights Act of 1955.’

The Protection of Civil Rights Act, 1955

  • This Act came into force on May 8, 1955, and applies to the whole of India.
  • This Act was enacted for the punishment of preaching and to stop the practice of untouchability. It deals with all kinds of offences caused by the practice of untouchability and matters concerned with it.
  • The Act stated that civil rights mean a person has the right to sue the one who has followed untouchability with him.
  • The Court can also suspend the licence of various occupations for a while by looking over the gravity of the offence committed.
  • Public servants who won’t cooperate in the investigation of such offences will be punished under this Act.
  • Committees will be set up to survey and determine the places where such practices are carried out.
  • Public places of worship, which are privately owned, shall be allowed to be used by everyone along with the land and apartments.
  • Forcing any person to do sweeping is also a punishable offence.
  • The Central government will coordinate with the state government to carry out the provisions of this Act.
  • The Central Government keeps a check and asks for statistical records of the cases dealt with by the state government and also the steps they took to deal with the case.
  • Section 3 of the Act states that any person not allowing someone to enter a religious place will be imprisoned for not less than a month and not more than six months. He will also be fined not less than 100 rupees and not more than 500 rupees.
  • Section 4 of the Act states that whosoever based on untouchability prevents someone from entering into places like shops, public restaurants, hotels, or public places of entertainment or stops someone from using utensils and other articles kept at hotels, dharamshalas, for public usage will be imprisoned for not less than a month and not more than six months and also be fined not less than 100 rupees and not more than 500 rupees.
  • Section 6 of the Act states that any person who refrains from selling goods or rendering any service to a person on grounds of untouchability will be imprisoned for not less than one month and not more than six months with a fine of not less than 100 rupees and not more than 500 rupees.
  • Section 7 of the Act deals with the punishments for other offences arising due to untouchability, whoever – 
  • Prevents any person from exercising the rights mentioned in Article 17.
  • Molesting, causing injury, annoyance, insult or attempt to insult a person on the grounds that he or she is using his or her rights under Article 17 will be imprisoned with a fine.
  • Refuses any person to occupy any house or land for business or work or abstains from social, professional, or business relationships then he would be punished with imprisonment and a fine.
  • Section 7A of the Act states that whoever compels a person on the ground of untouchability to do works like, scavenging, sweeping, to flay any animal, or removing an umbilical cord shall be considered to have enforced a disability arising out of untouchability, and he shall be imprisoned for not less than one month and not more than six months with a fine of not less than 100 rupees and not more than 500 rupees.

The social gaps created by the people of the upper caste by using such beliefs have always affected the people of the lower caste. It made them feel isolated, degraded, and violated. This Act however, helped them to raise their voice for their rights and lead a normal life like any other person in society. This Act not only helped the lower caste but also made people aware of the social injustices happening in society. With the introduction of this Act, these social injustices were curbed and made Indian society a better place to live in.

Conclusion 

Civil rights are the backbone on which a democratic country functions. It is an essential component of democracy. These rights confer certain power to the citizens to help themselves from any wrongdoing. History has shown us how people suffered when their rights were suppressed, which eventually led to extreme exploitation. Their rights make them strong and responsible enough to take up action for themselves. The legislation that introduced the punishments imposed by the government for civil rights violations also helped people to use their rights effectively, therefore safeguarding their rights.

Frequently Asked Questions (FAQs) 

What does Article 18 of the Constitution deal with?

Article 18 abolishes all titles and prohibits the state from giving titles to anybody, whether a citizen or a non-citizen. However, military and academic distinctions are exempted from the prohibition.

Protection of life and personal liberty is mentioned in which Article of fundamental rights?

Article 21 states that no person should be deprived of his or her life and personal liberty except according to a procedure laid down by the law.

References


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