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Consumer rights and responsibilities that everyone needs to know about

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Consumer Protection

This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article provides a detailed analysis of the possible consumer rights and consumer responsibilities that are available in an open market with respect to the Consumer Protection Act, 2019. 

This article has been published by Sneha Mahawar.

Introduction 

Many people complain that they were given substandard or contaminated goods for which they paid full price. Similarly, some customers have been seen muttering that despite paying full money, the bus and train seats supplied were extremely uncomfortable. People frequently do not receive the full worth of their money because they do not have the right to receive the full value of the money they spend on the goods and services they desire. People are sometimes to blame for the goods and services that are offered to them that are improper. They frequently lack complete information about the products or services they are considering. They sometimes accept deliveries of goods or services without regard for their quality. This article provides a guide for its readers who are in one way or the other a consumer on an everyday basis, thereby letting them know the rights and responsibilities that are vested on them and need to be followed so as to let the Consumer Protection Act, 1986 function effectively. 

What is the Consumer Protection Act, 1986

Consumer complaints are easily and quickly compensated under the Consumer Protection Act, which was enacted in 1986. It protects and encourages customers to speak up about inadequacies and defects in products and services. This statute protects consumers’ rights if traders and manufacturers engage in illicit trade. The main purpose behind the formulation of this legislation is to provide assistance to both parties (consumer and seller) and to avoid lengthy lawsuits. Except for those exempted by the Central Government, this Act covers all goods and services from the public, private, and cooperative sectors. The Act provides a venue for consumers to raise complaints, after which the forum takes action against the offending supplier and compensates the customer for the inconvenience he or she has experienced.

Who is a consumer

Simply put, a consumer is someone who consumes or uses a wide range of goods and services. While goods comprise both consumable products (such as wheat flour, salt, sugar, fruits, and so on) and durable consumer goods (such as televisions, refrigerators, toasters, mixers, bicycles, and so on), services consist of electricity, telephone service, transportation service, theatre service, and other services. A consumer is someone who purchases products or services to be utilized or consumed by themselves or by someone else on their behalf.

A person who buys products for resale, a retail trader who buys goods like stationery items from a wholesaler is not a consumer but a dealer. The consumer can also be defined as anyone who picks goods and services, pays money to obtain them, and uses them to satisfy their wants. 

Consumers who become aware and take a collective stand against malpractices surrounding their purchased goods and services may be able to reduce the severity of their exploitation. A term that was coined from this understanding was ‘consumerism’ which refers to consumers’ efforts to protect themselves. Consumerism is a consumer movement that seeks to ensure that producers, traders, dealers, and service providers treat customers fairly and honestly. The movement might be viewed as an endeavour by individual consumer activists and consumer organisations to raise consumer awareness of market malpractices and discover solutions to safeguard their interests. This movement will be successful if consumers are aware of their rights and responsibilities while using goods and services.

Basic questions related to the term ‘consumer’ that people generally ask

  1. One who buys goods may or may not be a consumer. Is it true?
  • Yes
  1. Is it correct to say that anyone who consumes food must be its buyer?
  • No
  1. Can a shopkeeper be regarded as a consumer if he buys ready-made T-shirts for his own use?
  • Yes
  1. I have paid a membership fee to a public library and use it for reading books and journals. Am I a consumer of services?
  • Yes
  1. Your friend bought a storybook and after reading it, sold it to a bookseller selling secondhand books at a lower price. Is your friend a consumer?
  • Yes

Consumer of goods vs consumer of services

As “consumer of goods” is a frequent term that is used in our everyday lives, confusion gathers when we talk about services and what comprises the same. Transportation services, such as when we hire a cab or auto-rickshaw, travel by public bus, or travel by rail to visit any location, are examples of services that we purchase for our benefit. 

If you own a bicycle, scooter, or motorcycle, it may require maintenance, which you can obtain at a repair shop. You are responsible for paying for the repair person’s services. As a result, you are a service user. Electricity and telephones, which we use on a daily basis at home or at work, are two examples of services for which we pay. A movie show seen in a theatre for entertainment is also an example of service. The two significant differences between the consumer of goods and that of services have been provided hereunder:

  1. The major distinction between commodities and services used is that the quality of goods can be physically inspected prior to purchase, whereas the reliability and regularity of services cannot. For example, you can have a demonstration of a television’s operation, picture quality, sound, and so on, but you can’t guarantee that the voltage of power supplied will be stable all the time. You can taste a sample of a food item before purchasing it, or check whether fruits are overripe before purchasing them, but you can’t guarantee that a scooter or taxi driver will be cautious enough to prevent accidents, or that a movie’s sound and the picture will remain clear during the show.
  2. Furthermore, the products we purchase can be eaten immediately or over time. Cereals can be stored for a week or a month, and a refrigerator can be used for several years with minor repairs. However, we are unable to do so in the case of transportation, maintenance, electricity, telephone service, or a film screening.

Who is a responsible consumer

To be an effective consumer and further your interests, as well as to make the best decision, you must be informed and empowered. The market can be influenced by customer intervention. As a result, the consumer must act responsibly. The customer should be able to:

  1. Keep an eye on the market.
  2. Constantly double-check the accuracy of weights and measurements.
  3. Keep in mind the date of manufacturing and the expiration date.
  4. Pay close attention to the pricing and ingredient labelling.
  5. Look for certification labels such as ISI, Agmark, and Eco-mark.
  6. Before making a purchase, read the warranty and guarantee terms and conditions.
  7. When seeking value for money in market transactions, consumers should express, but not abuse, their consumer rights.
  8. Know what questions to ask and when to ask them.

How to file a complaint

  1. Within two years of purchasing the product or services, the complaint should be filed.
  2. In the complaint, the consumer should mention the details of the problem. This can be an exchange or replacement of the product, compensation for mental or physical torture. However, the declaration needs to be reasonable.
  3. All the relevant receipts, bills should be kept and attached to the complaint letter.
  4. A written complaint should be then sent to the consumer forum via email, registered post, fax, or hand-delivered. Acknowledgement is important and should not be forgotten to receive.
  5. The complaint can be in any preferred language.
  6. The hiring of a lawyer is not required.
  7. All the documents sent and received should be kept.

What are consumer rights and responsibilities

You are aware that today’s consumers confront a variety of issues as a result of market competition, deceptive advertising, the availability of low-quality goods and services, and so on. As a result, consumer protection has become a top priority for the government and other public institutions. The government has recognized certain consumer rights in order to protect their interests. In other words, if consumers are to be protected from being exploited or defrauded, they must be given specific rights that enable them to ensure that sellers of goods and service providers treat them with greater care. 

One of the rights of consumers, for example, is the right to choose. If you are aware of this right, you may ask the merchant to show you other versions of the same product so that you can choose what you want. Shopkeepers will sometimes strive to sell a specific brand of product in order to earn a bigger amount. It might not be of good quality, or it might be available for a reduced cost. This practice can be avoided if you use your right to choose the goods and shop in other stores if the one you are in does not offer a broad selection.

‘There can be no rights without obligations,’ says a well-known adage. After gathering an idea about consumer rights and the purposes they serve, it is necessary for us to assess whether customers should be held responsible enough to use their rights. Consumers, for example, should take advantage of chances to learn about and be educated about consumer issues in order to exercise their right to be heard. Consumers must take all precautions to buy the correct goods at the right price and learn how to use the items to avoid injury or loss in order to exercise their right to seek redress of complaints. Thus along with rights, responsibilities play an equally important role in ensuring consumer protection from malpractices and unfair trade tactics of the seller.  

Rights of a consumer

The Consumer Protection Act, 1986 enshrines the following rights to the consumer: 

  1. Right to safety,
  2. Right to be informed,
  3. Right to choose,
  4. Right to be heard,
  5. Right to redress,
  6. Right to consumer education,
  7. Right to satisfaction of basic needs,
  8. Right to a healthy environment.

Right to safety

A consumer has the right to insist on the items’ quality and guarantee before making a purchase. They should ideally choose an ISI or AGMARK approved product. Because of technological advancements, there is a large variety of products and services accessible on the market, which necessitates careful handling. Some of these products necessitate technical expertise to utilize. Many people may be unaware of the goods’ safe use. They may also lack the technical understanding necessary to determine the safety of products and services. As a result, from the standpoint of the consumer, product safety is critical. The Consumer Protection Act of 1986 established the right to safety as a consumer right.

Legislations for consumer safety

  1. The Prevention of Food Adulteration Act, 1954
  • The Act establishes a central council for food standards, as well as a central food laboratory. Manufacturing certain food products have been forbidden. Public analysts assess adulterated food, and food inspectors are appointed to execute the legislation. 
  • Food manufacturers, distributors, and dealers must provide assurances about the quality and substance of their products. The name of the individual from whom the food was initially acquired must be disclosed by sellers.
  • The Prevention of Food Adulteration Rules, 1955 was also drafted to enable the Act’s provisions to be implemented. These rules cover topics such as food quality requirements, the roles of public analysts and food inspectors, the sealing and delivery of samples, the use of colouring materials in food, food packaging, labelling, and more.
  1. The  Drugs  and  Cosmetic Act,  1940
  • The Drugs  and  Cosmetic Act,  1940 as amended in 1964, governs the importation, manufacturing, sale, and distribution of drugs and cosmetics. Its primary goal is to safeguard consumers against inferior pharmaceuticals and cosmetics. 
  • The Act requires that a list of components or formulas must be published in the prescribed manner on the label or container for patented or proprietary medications. If the government determines that any of the pharmaceuticals pose a risk to humans or animals, or that they lack the therapeutic efficacy stated, the government may prohibit their use. 
  • The Drugs and Cosmetics Act of 1940 has given rise to the Drugs and Cosmetics Rules. They include procedures for obtaining licences for the import, sale, distribution, packaging, stocking, and labelling of pharmaceuticals and cosmetics, among other things.
  1. General legislation on product safety
  • In India, there is no comprehensive product safety legislation. The Insecticide Control Order, the Environmental Protection Act, 1986, the Consumer Protection Act, 1986, and the Monopolies and Restrictive Trade Practice Act, 1969 (MRTP Act) are all pieces of legislation that deal with the compensation part of an injury or harm.
  • If a consumer’s right to safety is violated, the Consumer Protection Act of 1986 allows them to file a complaint with a redressal agency. The consumer has the right to seek remedies for any unfair trade practices or faulty goods or items that, when utilized, pose a risk to life and safety.

Right to choose

Consumers should be able to select from a wide range of items at a reasonable price. The right to be chosen signifies the right to be assured of access to a diverse range of products and services at a reasonable cost wherever possible. It means the right to be assured of adequate quality and service at a reasonable price in the case of monopolies. The right to essential goods and services is also included under the right to choose. This is because a minority’s unlimited ability to choose can result in the majority’s fair share being denied. In a competitive market, where a wide range of goods is accessible at competitive rates, this right can be better exercised.

When are choices restricted?

When the market is devoid of a diverse range of items at comparable pricing, the consumer is left with minimal options except to purchase the product that is accessible. In such circumstances, the trade can:

  1. Fix a price that they like.
  2. Generate fictitious scarcity and raise prices.
  3. Modify the delivery circumstances.
  4. Having an impact on the movement of goods into the market.

Restrictive trade practices are a type of circumstance in a market like this. At any point, before they reach the hands of the end consumer, restrictive trade practices block the free flow of money or resources into the stream of production or of finished commodities into the stream of distribution.

The reason behind enacting the Monopolies and Restrictive Trade Practice Act, 1969 (MRTP)

The MRTP was enacted to:

  1. Ascertain that the economic system’s operation does not result in the concentration of economic power to the detriment of the general public.
  2. Prohibit monopolistic, restrictive, and unjust business activities that are harmful to the public good.

The Government of India formed the Monopolies and Restrictive Trade Practices (MRTP) Commission as a result of this Act.

Right to be informed

Buyers should be provided with all required product details in order for them to act wisely and amend their purchasing decisions. To protect consumers from unfair trade practices, consumers have the right to be informed about the quality, quantity, potency, purity, standard, and price of goods. Before making a choice or a decision, the consumer should insist on receiving all available information about the product or service. This will allow them to act sensibly and ethically while also preventing him from succumbing to high-pressure sales tactics.

Sources of information 

Consumers can get information from a variety of places. The source of information may differ depending on the type of product or service. The major sources are provided hereunder: 

  1. Labels: A label is a basic tag that is applied to products and contains the brand name, a lot of information, or a complexly created graphic that is part of the packaging. The label’s information aids the consumer in making an informed decision. The current food labelling rules, which are governed by the Prevention of Food Adulteration Act of 1954, specify the information that must be included on the label.
  2. Advertisements, print media, electronic media: The producer may utilise a variety of channels to disseminate information about a newly launched product. Advertising is an effective strategy for introducing a product. Today, producers and traders see advertising as a need for marketing new items and keeping customers informed about market availability and options. Aggressive advertising, on the other hand, pushes new products into people’s lives by portraying them as more efficient, trendy, or handy to use. Advertisers, advertising agencies, newspapers, journals, and others engaged in advising have formed the Advertising Standard Council of India (ASCI). The consumers should be given information regarding the product safety aspects, nutritional value for money, and so on. 
  3. Citizen’s charter of organization: Every citizen has the right to request information from any government agency. Every public authority is required to keep all of its records in accordance with its operating requirements and to provide information to any person who requests it. It is also the responsibility of the officer in charge to explain decisions to individuals who are affected and to share important facts and analyses when key policies or decisions are published. To make an informed decision, consumers should be given accurate information. They have a right to information about how to utilize certain consumer products properly and the risks that come with them. There should be an unrestricted flow of information on consumer concerns. Appropriate information allows the customer to make intelligent and responsible decisions.
  4. Official records of public and private undertakings: Through its citizen’s charter/gazette, public undertakings that provide services to the public are required to keep information transparent to consumers. It is a written document and a declaration by the service provider regarding the service provider’s standards, accessibility, and transparency. The consumer can learn about the rules and procedures that are followed in providing the services, as well as the costs and other requirements. It is critical to be a responsible consumer. With the right knowledge, consumers should be able to make informed decisions. Before making a choice or a decision, consumers might insist on receiving all available information about a product or service.

Right to consumer education

Consumers should be aware of their rights in order to avoid being exploited. Ignorance may end up costing them even more. The right to gain the knowledge and skills necessary to be a well-informed consumer throughout one’s life. Consumer ignorance, particularly among rural customers, is largely to blame for their exploitation. They should be aware of their rights and should be able to exercise them. Only then can genuine consumer protection be possible.

Benefit of the right to consumer education

Consumers are encouraged by the right:

  1. To have the knowledge and skills necessary to be a well-informed consumer throughout one’s life.
  2. Thinking critically.
  3. Teaches life skills.
  4. Promotes comprehension by increasing the consumers’ understanding. 

Consumers’ naivety is primarily to blame for their exploitation. The Consumer Protection Act, 1986 guarantees consumers the right to receive consumer education. As a result, it is the government’s responsibility to keep consumers informed about their rights. Customer education enables a consumer to protect themselves from deceptive, fraudulent, and highly misleading information, as well as other behaviours. Consumer education instills vigilance and the ability to question prices and the quality of items. The right to consumer education is a crucial tool for exercising other consumer rights. Therefore, the right to consumer education should be given due importance.

Right to be heard

The consumer’s right to be heard means that they will be given adequate time to air their issues in a relevant forum. This means that the interests of consumers will be taken into account in relevant forums. It also involves the right to be represented in various forums established to look after the interests of consumers. Consumers should organize non-political, non-commercial consumer organizations that can be represented on various government and non-governmental committees dealing with consumer issues.

The right to be heard can also be referred to as a consumer’s right to communicate their thoughts, observations, and grievances at a time and place that is convenient for them. Whenever a consumer has a complaint, they have a right to be heard and also to be guaranteed that their interest will receive adequate attention. The Consumer Protection Act, 1986 has established a highly effective quasi-judicial framework to deal with such complaints and ensure that consumers’ interests are protected in a fair, cost-effective, and timely manner. 

Platforms for consumer representation 

Various platforms have been created for consumer representation. Some of them are:

  1. Consumer protection councils at district, state, and national levels.
  2. Advisory committees at the district, state, and national levels.
  3. Grievances and redressal cells of public utility departments.
  4. Consumer Care Centres.

The need for consumers to be organized to be heard

Consumers must organize themselves in order to be heard. Consumer groups can unite to make a stronger statement. They are able to:

  1. Establish/provide a public forum.
  2. Take up problems that are of public concern.
  3. Initiate public debates on topics of national importance.
  4. Insist on consumer product safety.
  5. People can be organized using media.
  6. Organize consumer forums to debate a variety of topics of interest to consumers.

Right to basic needs

The right to basic needs assures that consumers have access to essential commodities and services that ensure their survival. To live a decent life, one must have enough food, clothing, shelter, health care, education, and cleanliness. For different civilizations and countries, the right to basic needs satisfaction has diverse meanings. Basic consumer requirements in the developing world would be regarded as adequate food, clothes, and shelter, but basic consumer needs in the United States or Europe would be interpreted as fair quality of consumer goods or timely, assured, and accountable services. In a more general meaning:

  1. Every consumer has a right to basic requirements and services that provide a dignified life.
  2. Appropriate food, clothing, shelter, healthcare, drinking water, education, sanitation, energy, and transportation are all part of it.

How can the right to basic needs be enforced?

Some of the measures that can be undertaken to ensure enforcement of the right to basic needs are:

  1. Adoption of food safety measures, such as safety criteria, food standards, and dietary restrictions, as well as effective monitoring, inspection, and assessment methods.
  2. Food standards from the Food and Agricultural Organization (FAO), the World Health Organization (WHO), CODEX Alimen tarius, or other universally acknowledged international food standards.
  3. Integrated national drug policies are improving the quality and appropriate use of medications.
  4. Developing national drug policies that address procurement, distribution, licensing arrangements, registration systems, and the availability of trustworthy pharmaceutical information, while taking into account relevant WHO work and recommendations.
  5. Developing, sustaining, and bolstering national policies to improve drinking water supply, distribution, and quality

Right to a healthy environment 

The right to a healthy environment entails the right to a physically healthy environment that improves one’s quality of life. It includes safeguarding against environmental threats over which people have no control. It recognizes the importance of preserving and improving the environment for current and future generations. In reality, the right to a healthy environment is implied in all human rights in every element of life. It is everyone’s right to live a healthy lifestyle free of pollution of water, air, soil, and noise. The term ‘healthy environment’ refers to both global and local environmental factors. At local levels, ozone depletion, global warming, and an increase in hazardous wastes are causing significant violations of the right to a healthy environment, such as dirty groundwater supplies or air laden with poisonous gases.

The right to a safe and natural environment is now being demanded by consumers because: 

  1. Consumers have the right to live and work in an environment that is neither unsafe nor threatening, but that allows them to enjoy a life of dignity and well-being.
  2. They should be protected from environmental hazards or negative consequences of contamination of the air, earth, and water, among other things.

Right to seek redressal 

Right to seek redressal means the right to seek redress in the event of unfair trade practices or consumer abuse. It also involves the right to a just resolution of a consumer’s real grievances. Consumers must file a complaint if they have legitimate grievances. Their complaint may be minor in nature, but its influence on society as a whole can be significant. They can also seek redress of their problems with the support of consumer organizations.

As markets become more global and the direct contact between the maker and the end-user becomes more remote, post-purchase complaints must be addressed through a robust redress system. Consumer dispute redressal agencies (also known as Consumer Forums or Consumer Courts) are established at the district, state, and national levels under the 1986 Act to enable simple and inexpensive speedy redress of consumer concerns. The District Forum hears complaints where the amount claimed in compensation is less than 23 lakhs rupees. This limit is referred to as the Consumer Redressal Forum’s ‘pecuniary jurisdiction.’

Types of grievances

For numerous types of issues, the customer might seek redress. If a consumer is dissatisfied with a product or service, he or she can file a complaint before the competent consumer forum for the following grievances:

  1. A dealer engages in unequal or restricted business practices,
  2. Purchased items are substandard,
  3. Any type of service suffers from a lack,
  4. The merchant collects a price that is higher than the fixed price, or the price on the items or package, or the price on the price list,
  5. The sale of things that are dangerous to one’s health and safety is being promoted,
  6. Life-threatening services are being offered for sale.

Remedies available to a consumer 

Once the Consumer Forum has heard the complaint and determined that the company is at fault, it might require the company to take the following actions:

  1. Correct any flaws in the goods that aren’t in line with their claims.
  2. Free of charge defect repair.
  3. Replace the product with one that is equivalent or better.
  4. Provide a complete refund of the purchase amount.
  5. Damages, costs, and inconveniences must be compensated.
  6. Remove the product from the market entirely.
  7. Discontinue or refrain from engaging in any unfair or restrictive trade conduct.
  8. Make a public apology for any previous misrepresentation.

Responsibilities of a consumer

Customer protection should be actively pursued by a responsible consumer. Consumer International, a global federation of consumer groups, has listed the following consumer obligations:

  1. Critical awareness
  • Should be vigilant and inquisitive about the products and services used.
  • Not to be swayed by deceptive and misleading commercials that make exaggerated claims about items and services, but to critically assess the utility of the product or service, as well as the assurances and warranties that come with it.
  • Examining items and making a service offer.
  • Wherever such a choice is available, exercising choice based on an assessment of relative merits of products and services.
  • Adopting a no-compromise approach when it comes to the quality of goods and services to ensure that the money spent is well spent.
  1. Being prepared to act

To raise one’s voice and protest against any sort of exploitation by trade and industry, or any infringement of a consumer’s right to fair and just demands in regard to the quality of goods and services, one must be willing to take action to enforce fair and just demands.

  1. Social responsibility 

To be conscious of the impact of their consumption on other people, particularly disadvantaged groups, in the local, national, and worldwide environment.

  1. Environmental awareness 

To be aware of environmental degradation and contamination in order to avoid waste and maintain natural resource conservation.

  1. Solidarity 

To be prepared to join forces and act cooperatively to boost consumer movement and consumer protection measures through internet collaboration, campaigning, and advocacy programmes on a variety of consumer issues.

Responsibility to be aware

Consumers have a responsibility to be aware of the safety and quality of products and services before acquiring them. The prime responsibility of every customer is to obtain and retain the proof of purchase and other documents related to the purchase of durable goods. For example, getting a cash memo on a purchase of goods is vital since the proof of purchase will assist you to substantiate your claim for repair or replacement of the products if you have to make a complaint about faults in the goods. Similarly, dealers give warranty/guarantee cards for durable consumer products such as televisions and refrigerators should be kept diligently for future purposes. Further, during a specified period following purchase, the cards entitle you to free service for repairs and replacement of parts.

Responsibility to think independently

Consumers should be concerned about what they want and need and should be able to make independent decisions as a result. It is usually preferable for a consumer to rely as little as possible on the seller for information and decision. You have a responsibility as a consumer to protect yourself against being fooled by acting responsibly. A well-informed customer can always look after his or her own interests better than anyone else. Furthermore, it is always preferable to be forewarned and forearmed rather than receiving treatment after a loss or harm.

Responsibility to speak up

Buyers should not be afraid to air their problems and tell sellers exactly what they want. When you believe a corporation, organization, or seller has harmed you, one of your fundamental legal rights is to speak up and defend yourself. This is ethical decision-making with the aim of protecting other customers from the same company’s wrongdoing. Most businesses offer a complaint department that you can contact if you believe you have been wronged.

Responsibility to complain

It is the consumer’s responsibility to voice and register a sincere and fair complaint about their discontent with goods or services. Consumers are also urged to remember that when filing complaints and requesting compensation for loss or harm, they should not make claims that are excessively large. Consumers are frequently forced to use their right to seek remedy in court. There have been instances where consumers have sought large sums of money for no apparent reason. This is considered a reckless act that should be avoided.

Responsibility to be an ethical consumer

Consumers should be honest and not engage in any misleading practices. Some customers, particularly during the warranty time, abuse the device in the mistaken belief that it will be replaced during the warranty term. This is not a fair situation for them to be in. They should always make correct use of the merchandise. 

Aside from the responsibilities listed above, customers should be aware of a few others. They must adhere to the terms of the agreements reached with manufacturers, traders, and service providers. In the case of credit purchases, they should pay on time. They must not tamper with service media such as electric and water meters, bus and train seats, and so on. They should keep in mind that they can only utilize their rights if they are willing to accept responsibility.

Consumer rights vs consumer responsibilities 

As we now have an idea about the possible rights and responsibilities vested on consumers to be effectively exercised, it is now time for us to compare the rights with that of the responsibilities that follow in its footsteps. 

Right to be heard

A consumer has the right to advocate for their own interests in order to receive complete and sympathetic attention in the formation and implementation of economic and other policies. It encompasses the right to be heard in government and other policy-making organizations, as well as the right to participate in the development of products and services before they are manufactured or established. It is the consumer’s job to provide sound suggestions. A responsible consumer should: 

  1. Verify that the company has provided you with the consumer grievance handling system’s contact information, which is easily accessible.
  2. Do not buy items or services from a company that does not offer contact information for the consumer grievance officials who will handle consumer complaints.
  3. Attempt to correct the marketplace’s erroneous behaviours.
  4. Help others express their consumer rights.
  5. Support efforts to improve consumers’ ability to engage effectively in government decision-making processes.

Right to redressal

A consumer’s right to compensate for misrepresentation of poor goods or disappointing services is protected by law. It is the consumer’s responsibility to seek restitution if a trader or manufacturer has defrauded them. The consumer must respond quickly. They must not allow the trader to take them for granted. It is the responsibility of a consumer to do the following: 

  1. Ignoring the loss incurred as a result of defective goods and services purchased and failing to file a complaint encourages dishonest businessmen to provide substandard or defective goods and services. As a result, even if the loss is minor, submit a complaint. Only file a legitimate complaint.
  2. If a customer is dissatisfied with the quality of a product or service, he or she must make a complaint.
  3. Make a claim for the penalties/compensation set forth in the rules and regulations to ensure that the quality of the delivery system improves.
  4. Carefully read all terms and circumstances pertaining to defective items return/replacement, refund policies, and warranty policies.

Responsibilities in association with the right to basic needs 

Consumers have a right to essential products and services that are necessary for survival, such as food, clothing, shelter, health care, education, and sanitation. On the other hand, it is the consumer’s responsibility to:

  1. Become aware of products and services that ensure a fair standard of living.
  2. Learn about the quality of the goods and services available.
  3. Collect information about the availability of various items and services.
  4. Demand for reliable, timely, and responsible services.
  5. Demand for sanitary conditions to be met.

Responsibilities  in  association  with the right  to a healthy environment

Consumers have a legal right to a physical environment that improves their quality of life. It encompasses safeguarding against environmental threats over which individuals have no control. It recognizes the importance of protecting and improving the environment for current and future generations. Responsible consumers should ensure that their actions have no negative environmental consequences. It is their obligation to:

  1. Become knowledgeable about environmental issues.
  2. Learn about the environmental consequences of different product/service options..
  3. Compare products that are evaluated for their environmental impact.
  4. Create a consumption decision that is both sensible and environmentally friendly.
  5. Reward sellers who follow good environmental policies.
  6. Support initiatives to reduce the usage of environmentally hazardous consumer products and to increase the availability of environmentally friendly goods.

Right to safety

A customer has the right to be protected from products, manufacturing processes, and services that are harmful to their health or life. For ensuring the same, the consumer should abide by the following responsibilities:  

  1. Consumers should check for standard quality marks such as ISI, Hallmark, Agmark, ISO, FSSAI, and others when purchasing goods or services.
  2. Use products with caution and care, and report any flaws.
  3. Read product labels carefully and use items as directed and the instruction booklet attentively and follow the instructions.
  4. If there are any warning labels, read them.
  5. Inquire about the product’s safety features from the seller.
  6. Do not purchase any phoney/fake/duplicate/dangerous things.

Right to consumer education/ Right to be informed

Every customer has the right to acquire the knowledge and skills necessary to be a well-informed shopper throughout their lives. The right to consumer education includes access to the knowledge and skills needed to intervene in variables that influence consumer decisions. A responsible consumer must abide by the following: 

  1. Do not be swayed solely by marketing or rely on the seller’s claims. Consumers should read reviews and opinions on the market. Similarly, notify offers if a company’s goods or service is of poor quality.
  2. The consumer must insist on receiving complete information about the product or service’s quality, quantity, utility, pricing, and so on.
  3. Obtain complete contact information for the company’s consumer grievance system from which the consumer wants to purchase.

Right to choose

A consumer should be able to choose from a wide range of products and services at reasonable pricing. The consumer should be given a choice and therefore the following responsibilities must be abided by: 

  1. Gather information on the many options available for the product and services being considered for purchase.
  2. Before making a purchase, compare the specifications, competition, and fair prices of the goods and services.
  3. Examine various product/service feedback/reviews.

Conclusion 

As the frequency of deceptive techniques and market anomalies is rising, governments must intervene to protect consumers’ interests by recognizing and upholding their rights under a variety of legal instruments, including consumer protection legislation. The combined participation of consumers, sellers, government, and other state actors will help fulfill the intention behind drafting legislation that aims to safeguard consumers and their movement in the market. 

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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The process involved in venture capital due diligence

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This article is written by Akansha Srivastava. This article has been edited by Ruchika Mohapatra (Associate, Lawsikho). 

This article has been published by Sneha Mahawar.

Introduction

The start-up industry has seen a boom in 2021. Several startups have come up with proposals and funding requirements, and we have seen venture capitalists like Accel and Sequoia invest in these businesses. The process of due diligence is a very crucial step in  Venture Capital financing as it determines the prediction regarding the success or failure of the investment. The Investor always makes sure that it conducts sufficient verification before making a final investment decision. The venture capital firm always wants to invest in a company that has a good future and will sustain future competition. Venture capital is the capital invested by a wealthy investor and the investor gets benefits from the same in different forms like equity shares, conditional loans, etc.; all of which will be discussed further. There are various steps involved in the process of raising venture capital financing and due diligence is one of the steps. There are various steps involved in the process of due diligence such as Screening Due Diligence and Business Due Diligence. There are various areas of due diligence such as management team, product, legal, etc. we will discuss legal due diligence in detail and the role of legal counsels in the legal due diligence in the article. 

What is venture capital

Wealthy people invest their money into businesses and those businesses return a profit to those investors.  The capital that such investors invest is known as Venture Capital. Such investors are known as Venture Capitalists. Such investors invest in the business which they believe in and find to be capable of growing and making profits in the future. Some Venture Capital firms are Sequoia Capital, Accel, Blume Venture, etc. 

Methods of venture capital financing

Equity financing

A new company is not capable enough to return the money to investors on time as it is still at the stage of a growing startup. Thus, they take money from the investors via equity financing through which they give a certain percentage of the equity to the investors, which cannot be more than 49% of the total stake. Thus, the company manages to retain its ultimate power and get finance from investors in return for the equity shares of the company itself. This is the most used method in Venture Capital financing. 

Conditional loan

They are different from bank loans. There is no fixed rate of interest attached to these loans. There is no predetermined schedule for payment. When the venture capital undertaking starts making revenue, they repay the finance provided by the investor in terms of royalty, which varies from 2% to 15%.

Income note 

Venture Capital firm gets payment in terms of both royalties as well as interest as it combines the features of both traditional and conditional loans.

Participating debentures

The firm pays the interest to the investor firm on distinct rates for different stages of its operations. The interest is nil before the commencement of business, low-interest rate after the commencement, and higher interest rate after a particular level of operations. 

Convertible loans

A time is fixed for payment of interest on the loan and in case it is not paid within that stipulated time, the loan gets converted into equity shares method in which the investor is given a certain percentage of equity in the Venture Capital Undertaking. 

Process of raising a venture capital financing

The process of getting funds from a start-up is very complex. There are various steps involved in the process of financing which is discussed below:

Term sheet 

It is a technical document that is not always binding but acts as a guideline to be followed by both startups and investors. They do have certain clauses like exclusivity and confidentiality which are binding as they are a very crucial element of any deal.

Due diligence 

Before going to the next step of entering into a definitive agreement, the company does prior research to analyze the risk involved in such investment and growth expected from the company. There are various steps involved in this which we will discuss in the next part of the article.

Definite agreement 

It is binding in nature and it can be explained as an elaborate form of the term sheet. It contains the detailed mechanism for the implementation of the terms made in the term sheet. 

Condition precedent

It contains the key items which need to be fulfilled before the investors wire the amount into the company’s account. 

Closing

This is called the last stage of the transaction in which the amount of investment is wired and the certificate of confirmation regarding condition precedent is given to the investor. 

Post-closing

It is an internal process of the company where the meeting is held and various compliances of RBI are completed by them. 

What is due diligence

Due diligence is a precautionary measure taken by the investors before deciding to invest in a particular startup or business. They conduct detailed research to evaluate the risk involved in such investment and understand the prospects of the company. Any investor would prefer to invest in a company in which risk is minimum and profit is maximum because the ultimate purpose of an investor is to make money. To prevent loss incurred due to the failure of startups, investors conduct a prior evaluation of the potential of such occurrences. 

Process of due diligence

This process is conducted by the investors before moving forward to other stages of valuation and deal structure. There are two types of due diligence i.e. Screening Due Diligence and Business Due Diligence. 

Screening due diligence 

There are certain criteria of investors which need to be fulfilled to proceed with the funding process. Screening of business proposals is done on the prior stage if the business meets the criteria of the investor. All the investor firms have a different approach toward the screening process criterion for investment. It is subjective. They look into the factors discussed below:

Investment fit 

There are various factors involved that help to determine if an investor would want to invest in the business or not. Such factors include the Stage of the business, geography location, Size of the business, and the sector of the industry. It depends on the philosophy of the investment firm. There are two types of investors:  Generalists and Specialists. Generalists invest in various sectors in different geographical locations and different stages of operation while the specialists have certain specified one or two sectors in which they prefer to invest. Specialists prefer to invest in a business at a particular location as it helps them to easily manage the investment and take part in the strategic decision-making of the business. 

Investment potential 

The investors check the viability of the deal they are making. There are several factors with the help of which the investor decides if they will invest in a particular business or not which are as follow:

  • Management 
  • Market
  • Product/Service
  • Business Model

Business due diligence 

The investor makes a verification about the potential of the deal. The factors which are investigated during initial screening are looked into in-depth at this stage. The investors check if the business has the potential of surviving by investigating in depth. They conduct research in detail. They look into the market, product, team, and business model. 

Management 

The management team must be capable enough to survive in the competition and changing environment. They look into the questions like:

  • Who are the founders and their backgrounds?
  • Their previous track record and experience?
  • How good are they in evaluating risk and survival?
  • How much capacity do they have and sustained effort?

Market

They look into the kind of market the business is going to target and how effective a plan they have as mapping out the competitive landscape is essential for the development with minimum competitive threats. They look into the questions like:

  • Who are the people that are going to use the product/service?
  • What are the existing boundaries in the market?
  • What is the existing competition?
  • What are the regulatory measures of the market space?

Product/Service

The product must deliver some additional value to the user and possess a sustainable differentiation. . Technological advancement and excellent user experience are required to sustain in the market. They look into questions like:

  • What problem will be solved by the product/Service?
  • What are regulations related to Intellectual property protection for that particular product?
  • How is the technology creating additional value for the customer?
  • Why is the product superior to the existing competition in the market?

Business Model

The investor will check if the company has the required potential for high gross margins and potential for recurring revenue streams. They will look into questions like:

  • Whether the business model is scalable or not?
  • What are the margins anticipated by the company?
  • How will the company sell its product/service?
  • What is the exit strategy of the company and whether it is feasible or not?

Area of due diligence

There are various aspects of a company responsible for success or failure and thus due diligence is required in all such areas which will be discussed below:

Management team 

At the early stage of a startup, investors make sure that the team of the startup is good as the future of the startup depends upon that. There are various significant factors such as the track record of the members, their credentials, and experience which indicates to the investor if the management team is worth investing in or not. 

Market 

They check the type of market in which the startup is going to work in. They check if the market is large or small, growing or still, etc. 

Product 

They look into the product or service that the startup is going to offer as it should have the potential to survive in the current competitive market. The product must be differentiated from the other similar products already available in the market. The differentiation must also be sustainable which means that even if the product is copied by others in the future, the company can provide some uniqueness which may be due to exceptional user experience or another technological advancement. 

Traction 

It is the measurement of the progress of the company. The investors measure how far the company has progressed so that they can decide if the company has such potential for growth or not. It also helps them to decide how much the product is mature in the development cycle of the product or service. 

Legal 

Both investors and the owner of the company want to get more power in the company in matters of right to take business decisions. Thus due diligence in legal terms is necessary to evaluate the investment’s legal worthiness with the matter of control. A rigorous investigation is required into the legal aspects of the company to identify if there exist any outstanding liabilities and legal claim against the company as such aspects helps the investor to make a wise decision as to whether to invest or not in the company. 

Financials 

The investors need to investigate the financial metrics of the company to evaluate the worthiness of the deal. They look into the current revenue, revenue growth rate, type of revenue, free cash flow, product margin, etc. 

Process of legal due diligence and the role of legal counsels in the process

The company informs the legal aspect of the company to the investor but the investor must verify those legal terms and confirm the same before making any investment decision. They make sure that the contracts of the company are matching with the information provided to them at the earlier stage. They look into the outstanding liabilities of the company and check if any competing claims exist to the company. It is generally done by the investor’s legal team but in cases where the legal aspects are complex, a third-party law firm is hired for conducting the process of legal due diligence. 

Legal Counsels are also appointed by the companies and startups to anticipate issues that might arise later and guide them in the correct direction. They help the companies to ensure that such terms are made with the investor so that the power of the owner is retained in his hand. Common Legal Issue that arises in due diligence in the legal area is related to certain agreements and documents which are mentioned below:

  • The start-ups must have Service agreements, Employment Agreements, or Manager Agreements.
  • Transfer of full ownership of the Intellectual Property under the Intellectual Property transfer agreements and they  must not be restrained as to how the IP can be used in a case such a loophole exists, the agreement gets renegotiated which is time-consuming in the process of due diligence
  • The structure of the company must not be complicated. This refers to a situation in which a founder sets up different companies and merges them with other companies. In such cases, they must provide an overview chart and information like a financial statement to make the process of due diligence convenient for the Investor company. 
  • Negotiation relating to the shareholder agreement between investor and startup company. 

Conclusion

Venture capital requires the process of due diligence so that investors can minimize the risk that is generally very high when an investor invests in a company especially when the company is at the seed stage. Legal due diligence is very important to make sure that the company is complying with all the compliances that are required by the agreement between them and the company has terms that are beneficial for them and they have some power and control in the decision making of the business. They try to acquire such power to ensure that the business in which they are investing grows and provides them with certain benefits.  All the investors want is profit and power and they want to avoid any loss and failure. 

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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Equality before law and equal protection of law

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This article is written by Adhila Muhammed Arif, a student of Government Law College, Thiruvananthapuram. This article seeks to explore the meaning of the expressions “equality before law” and “equal protection of law” and the scope of Article 14 of the Indian Constitution, which carries these expressions. 

It has been published by Rachit Garg.

Introduction 

A fair and just system of judiciary is a characteristic of every modern democratic state. In such a state, the law of the land must be enforced in a manner that puts all citizens on the same footing. If the law favours any citizen on any unreasonable ground such as class, status, gender, etc., the law is unfair and fails to perform its purpose, which is to uphold justice. Every subject of a state must be considered an equal before law and no subject must be treated with some special consideration on an unreasonable ground such as gender, race, class, religion, etc. This concept can be summed up in the phrases “equality before law” and “equal protection of law”. This idea forms a core part of the concept of rule of law according to A.V. Dicey. The phrases ‘equality before law’ and ‘equal protection of law’ can be found in Article 14 of the Indian Constitution, which ensures every citizen that they shall not be discriminated against in any application or enforcement of law on any unreasonable ground. It is also provided in Article 7 of the Universal Declaration of Human Rights

Rule of Law 

The expression rule of law derives its origin from the French phrase ‘la principe de legalite’ which means the principle of legality. It was first propounded by Sir Edward Coke. This principle implies a government that is run by the principles of law and not by the arbitrariness of men who rule. The concept was further expanded by A.V. Dicey in his book ‘The Constitution of England’. According to him, the concept of rule of law consists of three principles, which are the following: 

  1. Supremacy of law
  2. Equality before law
  3. The predominance of legal spirit 

According to Dicey, equality before law and equal subjection of all people to the ordinary jurisdiction is necessary to fulfil the concept of rule of law. As per A.V. Dicey, no class of persons must be subject to a separate or special jurisdiction. He criticised the French legal system of Droit Administrative which established separate tribunals for deciding disputes between public officials and citizens. 

The rule of law forms the basis of the Indian Constitution. The Indian Constitution is regarded as supreme and no one can go against it. 

This concept can also be found in Article 7 of the Universal Declaration of Human Rights, of which India was a signatory. This provision states that “All are equal before the law and are entitled without any discrimination to equal protection of the law. All are entitled to equal protection against any discrimination in violation of this Declaration and against any incitement to such discrimination”

Article 14 of the Indian Constitution : equality before law’ and ‘equal protection of law’

Article 14 of the Indian Constitution guarantees that no person shall be denied the right to equality before law or the equal protection of law in the territory of India. This is a right that can be claimed by any person, whether a citizen or a non-citizen, on Indian soil. Here, we can find that Article 14 comprises two expressions, which are ‘equality before law’ and ‘equal protection of law’. The first expression ‘equality before law’ is borrowed from the English common law. The expression ‘equal protection of law’ is borrowed from the Constitution of the United States of America. Section 4 of the 14th Amendment to the American Constitution states that no person shall be denied the equal protection of law by any state within its jurisdiction. Additionally, the concept of equality of law forms a part of the concept of equality of status as laid down in the preamble of the Indian Constitution. As quoted by Justice Bhagwati in Maneka Gandhi v. the Union of India (1978), equality is a dynamic concept that cannot be limited to our traditional understanding and knowledge. Article 14 curbs the arbitrariness of state actions and ensures that there is justice and equality in the treatment of all subjects. 

Meaning of ‘equality before law’

According to Dr. Jennings, the concept of equality before law simply means that law must be enforced and administered equally among those who are equals. The right to sue and to be sued for the same action must be the same for all subjects of the age of majority and maturity without any distinction on the grounds of race, religion, caste, social status, wealth, influence, etc. Article 14 guarantees similarity of treatment and not identical treatment through the phrase ‘equality of law’. It simply means that there is an absence of special privilege on the basis of birth or class or any such grounds that favours any subject. It also implies that everyone shall be subjected to the same jurisdiction. 

Exceptions to equality before law 

However, this concept is not absolute as it has several exceptions. 

  • Some of these exceptions are laid out in Article 361 of the Indian Constitution, which are the following: 
  1. The President or a Governor of any state is not answerable to any Court for the exercise of their duties or powers. 
  2. The President or a Governor of a state shall be immune from having any criminal proceedings instituted against them. 
  3. No Court shall issue a process for arrest or imprisonment to the President or the Governor of a state during their term. 
  4. No civil proceedings in which relief is claimed can be initiated against the President or the Governor of a state during their term without giving a prior notice of 2 months.
  • Additionally, as per Article 361 A, no member of Parliament or State Legislature is obliged to appear before the Court in any case of criminal or civil while the session is ongoing. 
  • As per Articles 105 and 194, no member of Parliament or State Legislature is answerable to any court for the speeches, opinions or votes given in the House. 
  • Additionally, foreign sovereigns, diplomates, and ambassadors cannot have any civil or criminal proceedings instituted against them. This is something that is accepted on a global level.  

Meaning of ‘equal protection of law’

The expression ‘equal protection of law’ is a positive one unlike ‘equality before law’. It simply means that all persons in similar circumstances shall be given the same rights and liabilities. It essentially means that equals are to be treated equally and there must be no discrimination amongst them. Equals and unequals cannot be put in the same footing and be treated without discrimination. 

Distinction between equality before law and equal protection of law

The following are the differences between the expressions ‘equality before law’ and ‘equal protection of law’: 

  1. The expression ‘equality before law’ is a negative concept as it implies an absence of special privileges that favour any individual. However, the expression ‘equal protection of law’ on the other hand, is a positive concept as it simply means that there should be equality of treatment of individuals in similar circumstances. 
  2. The expression ‘equality before law’ stems from the English Common Law and the expression ‘equal protection of law’ stems from the American Constitution. 
  3. The concept of ‘equality before law’ lays more emphasis on subjecting all persons to the ordinary law of the land administered by ordinary law courts. It implies that no person is above the law. However, the concept of ‘equal protection of laws’ implies that all persons who are in similar circumstances must be subjected to a similar application of the law.The emphasis is more on treating the like people alike. 

Additionally, this distinction was also elucidated in a few cases. In the case of Sri Srinivasa Theatre v. Government of Tamil Nadu (1992), it was held that the expressions ‘equality before law’ and ‘equal protection of law’ do not carry the same meaning though there is a lot in common between them. The word ‘law’ in the first expression was more general in sense and in the second expression it was more specific. It was also observed that ‘equality before the law’ is a dynamic concept having multiple facets. And, one of the facets denotes the absence of any privileged class or person who was above the law and the other denotes the obligation of the state to make the society more equal as envisaged in the Preamble and Part IV of the Indian Constitution. In the case of State of West Bengal v. Anwar Ali Sarkar (1952), it was held that the concept of equal protection of law is simply a part of the concept of equality before law. When the ‘equal protection of law’ is violated, it is difficult to imagine the ‘equality before law’ being maintained in such a situation. 

Reasonable classification – an exception to Article 14

The word ‘class’ means a homogenous group of people who are grouped together because they share some characteristics. Though Article 14 does not allow any legislation that provides for a classification, sometimes it is permissible for reasonable objects. The following are the criteria laid down in the cases of Budhan Chaudhary v. the State of Bihar (1955) and Vajravellu Mudaliar v. Special Deputy Collector for Land Acquisition (1965) for class legislation to be considered reasonable or rational: 

  1. The classification must not be arbitrary. There has to be some rational or substantial reasoning behind the distinction drawn between the people who fall into the class and the people who do not. 
  2. There has to be some rational object behind the classification that the legislation seeks to achieve. The classification can be on the basis of various factors like geography, age, or occupation. It is only required for the object of the legislation to match with the classification. 

Grounds of reasonable classification

The following are some of the grounds that are deemed to be reasonable in many class legislations: 

Geography

Sometimes geographical or territorial boundaries can be found to be the basis of classification in many reasonable class legislations. In the case of Clarence Pais v. the Union of India (2001), the Supreme Court held that “historical reasons may justify differential treatment of separate geographical regions provided it bears a reason and just relation to the matter in respect of which differential treatment is accorded. Uniformity in law has to be achieved, but that is a long drawn process”

In the Arms Act, 1878, it is necessary to seek the permission of the Central Government to try an offence under the Act. However, this is not a requirement for trying an offence committed in the North of the Ganga and Yamuna rivers. This differentiation is a result of the political situation existing in 1857. But in the case of Jia Lal v. Delhi Administration (1962), it was held that such differentiation is not sustainable in the present scenario. 

Age 

The Indian Contract Act, 1872 for instance, does not permit individuals below the age of eighteen to enter into contracts. This is to protect minors from being bound by contractual obligations which they may not have the capacity to understand. 

In the case of Gautam Kapoor v. the State of Rajasthan (1987), the Court held that the criteria that a candidate must be at least 17 years old to get entry into medical colleges are reasonable as a certain amount of maturity is necessary. 

Sex

The State is allowed to make provisions that discriminate between men and women for reasonable purposes. For instance, Section 497 of the Indian Penal Code, 1860 criminalises adultery and only men were punished for it and not women. In the case of Yusuf v. the State of Bombay (1954), the constitutional validity of this section was challenged. The provision was held to be valid as it was based on a valid classification. However, the provision of adultery was later decriminalised in the case of Joseph Shine v. the Union of India (2018) on the reasoning that it assumes the husband to be in control of his wife’s sexuality. The Court further stated that women have their own identities and stand on the same footing as men. As a result, it was held that the classification made by this provision is arbitrary and unreasonable and hence violates Article 14

Single body or individual 

In the case of P.V. Sastri v. the Union of India (1974), it was held that the position of the Prime Minister is a class in itself. Hence, it was observed that permitting the Prime Minister to use the aircraft of the Indian Air Force for non-official purposes as well such as elections is not violative of Article 14. 

Nature of occupation

Sometimes the government can enact laws that put some restriction on certain businesses or occupations for rational causes. This also includes laws that confer the government with the monopoly of some businesses. In the case of Amarchandra v. Excise Collection (1972), the law that imposed some restrictions on liquor business was held to be valid. 

Tax laws 

The legislature can classify people for the purpose of taxing and not taxing, prescribing incentives, benefits, etc. Thus, they can exempt some properties from being taxed, or impose special taxes on certain properties, etc. In the case of Western India Theatres v. Cantonment Board (1959), it was held that imposing higher taxes on bigger cinema halls in well-off localities is a valid classification and not violative of Article 14. 

Other grounds 

Apart from the grounds mentioned above, there are some other reasonable classifications as well such as citizens and non-citizens, juvenile offenders and other offenders, ordinary suits and suits on negotiable instruments, etc. 

Conclusion 

The expressions ‘equality before law’ and ‘equal protection of law’ are found in Article 14 of the Indian Constitution. The concepts of equality before law and equal protection of law are slightly different. However, the latter forms a part of the former. Wherever there is no equal protection of law, there is no equality before law. It is also noteworthy that this concept is not absolute as we can only apply it among those who are equal and not among the unequals. The Constitution also permits the State to enact laws that apply to only certain classes of people for achieving certain reasonable objects. 

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:

https://t.me/lawyerscommunity

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What is domestic violence : a comprehensive guide

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The article is written by Ansruta Debnath, a law student of National Law University Odisha. This article is a comprehensive guide for anyone interested to know what domestic violence is, its types, effects, causes, influences, key affected groups and unique challenges of domestic violence. Further, this article also includes how to report domestic violence in India and the important helpline numbers. 

It has been published by Rachit Garg.

Introduction – what is domestic violence

Any sort of violence or abuse that occurs within the house, such as in a marriage or cohabitation, is known as domestic violence (also known as domestic abuse or family violence). Domestic violence and intimate partner violence are often used interchangeably. Intimate partner violence happens when one spouse in an intimate relationship acts aggressively against the other. It can happen in heterosexual or same-sex relationships, as well as in relationships between former spouses or partners. Aggression towards children, parents, and the elderly are included in the definition of domestic violence in its broadest sense. Domestic violence can take many forms, including physical, verbal, emotional, economic, religious, reproductive, or sexual assault. From subtle persuasion to marital rape and other forms of violent physical assault, it can take various forms. Stoning, bride burning, honour killing, and dowry death are all examples of domestic homicide.

For both men and women, domestic violence is one of the most underreported crimes in the world. Domestic abuse awareness, perception, description, and documentation vary greatly from country to country. Many people do not see themselves as abusers or victims since their experiences are viewed as out-of-control family conflicts.

There may be a cycle of abuse in abusive relationships, with tensions rising and an act of violence being done, followed by a period of reconciliation and peace. Isolation, power, and control, traumatic bonding with the abuser, cultural acceptability, lack of financial means, fear, and shame, or protecting children may keep victims imprisoned in domestic violence situations. Physical limitations, dysregulated aggressiveness, chronic health problems, mental illness, restricted resources, and a poor ability to form good relationships are all possible outcomes of abuse. Victims may suffer from significant psychological problems, such as post-traumatic stress disorder (PTSD).

Types of domestic violence

According to a report by UN Women, verbal abuse is the most common kind (50 per cent), followed by sexual harassment (40 per cent), physical abuse (36 per cent), denial of basic necessities (35 per cent), and denial of communication (35 per cent), (30 per cent). Seven out of ten women polled felt that violence against women is frequent in their neighbourhood.

Source:https://www.unwomen.org/en/news-stories/feature-story/2021/11/covid-19-and-violence-against-women-what-the-data-tells-us 

Physical abuse

Domestic violence through physical abuse is the most recognised form of domestic violence. It involves physical hurt being caused to the victim. It can also include physical contact that is done to cause fear of injury, harm etc, to the victim. Physical violence is all about showing and asserting control. Other abusive behaviours, such as threats, intimidation, and restrictions on victim self-determination through isolation, manipulation, and other limitations of personal freedom can lead to physical violence. Physical abuse can also include denial of medical care, sleep deprivation, and forced drug or alcohol usage. It can also include inflicting physical violence on other people, such as children or pets, in order to harm the victim emotionally. Common types of physical abuse include punching, choking or strangulation, hitting, slapping etc. Forceful restraint or throwing objects and smashing walls during arguments also come under physical abuse. Physical abuse during pregnancy can negatively impact the woman and the foetus and cause long-lasting consequences.

Emotional or psychological abuse

Abuse need not always be physical. Emotional and psychological kinds of abuse have very little recognition in society, especially since mental health is hardly given importance. Even in the 21st century, people do not consider mental well-being as a crucial part of the overall well-being of the human body. The psychological consequences of domestic violence can be huge from absolute deprecation to self-worth to even the belief that a person deserves the violence. Emotionally berating the victim, persistent insults and humiliation all fall under this category. Former or present intimate partners are the most common perpetrators of stalking, which is a common kind of psychological intimidation. Victims often believe their spouse has complete control over them, which has a significant impact on the power dynamic in a relationship, elevating the perpetrator while disempowering the victim. Victims frequently suffer from depression, which puts them at risk for eating disorders, suicide, and drug and alcohol misuse. Because there is no physical proof of this kind of abuse, people do not consider this type of domestic violence worthy of attention.

Sexual abuse

Sexual abuse is any sexual act, effort to obtain a sexual act, unwanted sexual comments or approaches, or acts to traffic, or otherwise aimed, against a person’s sexuality using coercion. Inspections for virginity and female genital mutilation are also a method of sexual abuse. Sexual abuse happens when a person is verbally forced into consenting when they are unable to understand the nature or condition of the act, when they are unable to deny participation, or when they are unable to articulate their refusal to engage in the sexual act. This could be owing to immaturity, illness, disability, or being under the influence of alcohol or other substances, or it could be due to intimidation or pressure. Another type of sexual abuse is reproductive coercion. Forcing the victim to abort a pregnancy and refusing to use contraceptives are examples of sexual abuse.

Forcibly having sexual intercourse with one’s spouse without their consent is marital rape. However, marital rape is not a criminal act almost throughout the world including India. This is because women are considered the husband’s property after marriage with no personal and sexual autonomy and dignity. Currently, the Supreme Court of India is hearing petitions to criminalize marital rape. However, the petitions have been publicly opposed by certain groups of people who have stated that criminalising marital rape would lead to the “breakdown of marriage in India”. Such statements showcase the state of marriages in India today and necessitate criminalizing marital rape even more.

Financial abuse

Economic abuse (or monetary abuse) is a form of abuse where one spouse manipulates the other partner to get access to the latter’s economic resources. Marital assets are used as a way of asserting control. Economic abuse can also include stopping a spouse from resource acquisition, limiting what the sufferer might also use, or otherwise exploiting the monetary assets of the victim. Economic abuse diminishes the victim’s capability to assist themselves, increasing dependence on the wrongdoer. Further, there is reduced access to education, employment, career advancement, and asset acquisition. Economic abuse includes forcing or persuading a family member to sign documents, sell items, or amend a will.  The victim can be put on an allowance, for close monitoring of how much money is spent, stopping spending without the abuser’s consent etc. In marriages where the victim is completely financially dependent on their spouse, the problem gets aggravated as the victim has no option but to suffer.

A study on types of domestic violence in the European Union showed the following results:

Source: https://www.womensaid.ie/assets/files/pdf/eurobarometer.pdf 

Reasons behind domestic violence in India

In a National Family Health Survey, it was recently reported that Telangana led the way with 83.8 per cent of women thinking it is acceptable for men to abuse their wives, while Himachal Pradesh had the lowest percentage at 14.8%. Karnataka leads among men, with 81.9 per cent thinking such behaviour is permissible, compared to 14.2 per cent in Himachal Pradesh. The most common reason that was given to justify domestic violence was disrespect to in-laws, neglecting the house and children. “Being suspected of being unfaithful” got the least number of justifications for beating. Only women (21%) in Mizoram choose it as the main reason for physical abuse over the other two options.

Intergenerational violence

One thing that almost all abusers have in common is that they were victims of abuse as children. Understanding and breaking intergenerational abuse patterns could help reduce domestic violence even further. According to research, the more physically punished children are as adults, the more likely they are to act aggressively toward family members. Spanking and smacking youngsters predict a lack of internalisation of values like empathy, generosity, and temptation resistance, as well as greater antisocial behaviour, such as dating violence.

Biological and psychological theories

Psychological theories focus on the personality traits and the mental characteristics of the offender. Correlation has been found between juvenile delinquency and domestic violence in adulthood. Some theories suggest that psychopathology is a factor and that abuse experienced as a child leads some people to be more violent as adults. Studies have found a high incidence of psychopathology among domestic abusers. An evolutionary psychological explanation of domestic violence is that it represents male attempts to control female reproduction. Domestic abusers display higher than average mate retention behaviours, which are attempts to maintain their relationship with the partner.

Social theories

Social theories, which include rational choice theories, look at external aspects in the offender’s environment such as family structure, stress, and social learning. According to social learning theory, people learn through seeing and modelling other people’s behaviour. The behaviour is maintained by positive reinforcement. When aggressive behaviour is observed, it is more likely to be imitated. If there are no negative consequences (e.g., the victim submits to the violence), the conduct is likely to persist.

In 1971, William Goode proposed the resource theory. Women who are financially most reliant on their husband (e.g., homemakers/housewives, women with disabilities, unemployed women) and who are the major caregivers for their children believe that if they leave their marriage, they will face a greater financial burden. They have fewer options and resources to cope with or change their spouse’s behaviour because they are dependent.

When a person lives in a family, stress levels may be higher. Poverty-stricken families and couples are more prone to encounter domestic violence. Internalized homophobia has been connected to violence in same-sex partnerships. Internalised homophobia appears to be a stumbling block for victims seeking assistance.

Non-subordination theory

The non-subordination theory is a branch of feminist legal thought that focuses on the male-female power dichotomy. It has been stated that it is better suited to issues that primarily impact women. It also provides a foundation for comprehending domestic violence and the reasons for its occurrence. Domestic violence, according to non-subordination theory, is a kind of subordination. Domestic violence victims are frequently mistreated in a variety of ways, including looking for and destroying valuable items, as well as striking her in places where she would be embarrassed to exhibit bruises.

This school of thought mainly counteracts the popular notion that domestic violence occurs in a fit of rage. Because domestic violence is so widespread, it seems unfathomable that rage is the only contributing factor to persisting domestic violence. This theory is also criticised because it fails to give a solution to rectifying and preventing domestic violence.

Substance abuse

Domestic violence is frequently associated with alcohol misuse. Two-thirds of domestic abuse victims say alcohol is a part of their abuse. Moderate drinkers are more likely than light drinkers and abstainers to engage in intimate violence; nevertheless, heavy or binge drinkers are more likely to engage in the most chronic and serious types of aggressiveness. Alcohol consumption increases the likelihood, frequency, and severity of physical attacks. As a result of behavioural marital alcoholism treatment, violence lessens.

Patriarchy

The fundamental aspect that can facilitate domestic violence and ancillary to all the reasons mentioned above, especially against women is domestic violence. In the survey mentioned at the beginning of this section, it is important to note that both men and women thought it was justified to beat wives if they disrespected the in-laws or ‘neglected’ the house and children. These reasons especially the latter showcase the highly ingrained gender roles across everyone to such an extent that it can justify crimes like assault and battery, even by the victim of the same. Patriarchy, that perpetuates these gender roles is thus the root cause and reason of domestic violence.

Social influences on domestic violence

Domestic violence against women affects around 25% of women worldwide at some point in their lives. This does not even take into account the other categories of people affected by domestic violence.  A deeper understanding of the elements that influence public perceptions of domestic violence would add to the body of information about the social environment that encourage or discourage it. Public perceptions of domestic abuse have a significant impact on the social milieu in which the victims live. In some cases, a social milieu that accepts or even enables domestic violence contributes to the development of a climate of tolerance. This makes it simpler for abusers to continue their aggressive conduct while also making it harder for women to report abuse. The following diagram shows the structural framework within which domestic violence functions:

Source: How does domestic abuse differ in other cultures? | Next Chapter 

Cultural view

A majority of the people in various countries believe that wife-beating is justified in some circumstances. It occurs most frequently in cases of actual or alleged adultery by wives, as well as their ‘disobedience’ to a husband or partner. Extreme acts such as honour killings are legal in many jurisdictions. Victim blaming is a common occurrence almost everywhere through which the victims are taught that they deserve the violence because of their fault. “Provocative behaviour of women,” has also been shown as an acceptable cause of domestic violence.

The problem is continuously perpetuated by cultural conventions. For example, the tradition of not intervening in private family problems has led to a reluctance on the part of the government, the criminal justice system, and other systems to respond to domestic abuse, even after it became illegal. Domestic violence homicides-suicides are still portrayed in music and the media as “lover’s quarrels” and “crimes of passion” by jilted men who believe, “If I can’t have her, no one else will.” Domestic violence can be “romanticised,” allowing it to be ignored or explained away in a way that no other sort of assault and battery can.

It’s critical to recognise and respect the cultural traditions that victims carry with them. These expectations shape how they encounter what discourages them from seeking assistance from ‘outsiders’ or metropolitan programmes. People of colour may follow a code created through historical experience that teaches them not to trust “white” society and the institutional help structures it provides (e.g., the criminal justice system, the social service system and domestic violence programs). Elderly persons may have been conditioned to avoid discussing “personal” matters with outsiders, making them hesitant to participate in “self-help” programmes that require them to divulge abusive experiences. When people in same-sex relationships disclose domestic violence, they risk being labelled “evil” by society and being targets of hate crimes.

Religion

Religion and faith play a massive role in influencing domestic violence. While people find solace in their religion, the same can propagate dangerous ideals that can propagate the social and individual acceptance of domestic violence. For example, almost all faiths recognise the sanctity of marriage and accordingly, find it unfathomable that anything can lead to its breakdown. Thus, victims of domestic violence in marriages are made to believe that they should suffer in silence rather than risk the “wrath of God” by choosing to leave that marriage.

Abusers may exploit religious texts and principles to cause harm to the victim. This can be accomplished by using religious scriptures selectively or interpreting religious ideals to assert masculine entitlement and privilege or otherwise justify the abuse. This dynamic frequently presents itself in the abuser informing the survivor that they are not living up to their religion’s ideas of what a spouse should look like. Abusers from faiths that emphasise marriage may utilise the victim’s respect for a religious union to pressurise her to stay in the relationship to maintain the religious community’s respect. An abuser may also put pressure on a victim by teaching them about dating, sexual relationships, gender norms, or reproductive choices.

Despite these complications, faith and religion can play an important role in the healing process. Spirituality or belief in God was “a source of strength or comfort” for the majority of domestic abuse survivors, according to one study. After experiencing abuse, nearly half of survivors sought religious or spiritual treatment, according to another study. Many survivors find strength in their religious practices and engagement in their religious groups to escape and heal from abuse. Furthermore, research shows that religious participation improves psychological well-being and increases a survivor’s sense of social support.

Relation to forced and child marriage

A forced marriage occurs when one or both partners are married without their permission or consent. In many cultures (especially in South Asia, the Middle East, and parts of Africa), marriages are prearranged, often as soon as a girl is born; the idea of a girl going against her family’s wishes and choosing her future husband is not socially acceptable; there is no need to use threats or violence to force the marriage; the future bride will submit. Domestic violence is commonly related to forced and child marriages. These weddings are associated with violence, both spousal violence within the marriage and violence associated with the customs and traditions of these marriages: violence and trafficking related to the payment of dowry and bride price, honour killings for refusing to marry.

Ability to leave

The cultural and religious factors together contribute to the inability to leave. The social stigma concerning divorces is somehow far more than domestic violence. It is considered a far greater sin to dissolve a marriage than commit atrocious crimes on one’s spouse. All these impeded the victim’s inability to leave an abusive relationship. The social stigma involved also makes the victim’s family pressure the victim to not leave the marriage. Further, the victim’s financial capabilities also stop them from leaving, especially for the sake of their children. When the victim is financially dependent on their spouse, the former chooses to rather suffer in silence. In cases of women, they also do not have anywhere to go as women are given ‘away’ during marriages and their parental home is hardly considered as their home after marriage. The social stigma attached to women returning to their parent’s house after marriage also makes them reluctant to accept the victim.

COVID-19 and its effect on domestic violence

COVID-19 and the subsequent lockdown brought in new challenges which highlighted the increased cases of domestic violence. A report by UN Women, an organisation dedicated to gender equality gave the following data-

  1. Although the figures vary by country and population, the pandemic has increased women’s experiences of violence and damaged their emotions of safety.
  2. During the epidemic, violence against women has had a substantial influence on women’s mental health.
  3. Women’s experiences of violence are heavily influenced by socioeconomic variables.
  4. When it comes to violence against women, age is no barrier.
  5. Women, particularly in cases of domestic violence, rarely seek outside assistance.

The pandemic and subsequent lockdown isolated and extracted a huge emotional and psychological toll from everyone. Instances of domestic violence further exacerbated the mental consequences of the pandemic. Many women lost their jobs during the pandemic, further making them dependent on their abusive spouses. The stress of jobs itself triggered instances of abusive behaviour. 

Key groups that are affected by domestic violence

The most widespread nature of marriages being heterosexual and the continuous projection of women being the weaker sex, the largest group affected by domestic violence is women. According to the United Nations Population Fund, violence against women and girls is one of the most common human rights abuses in the world, with “one in three women experiencing physical or sexual abuse in her lifetime.” Domestic violence occurs everywhere and across all cultures but socio-economic factors play important roles as key stressors that can trigger instances of domestic violence.

Unique challenges

Men

Domestic violence against men is hardly ever considered, something that is reflected in the fact that there are absolutely no surveys on the same. Yet, it cannot be denied that men may also be victims of domestic violence. But laws on domestic violence are mainly gender-biassed and focused on women. Even social recognition of domestic violence against men if done threatens to rupture the carefully crafted notions of toxic masculinity by patriarchy and thus is vehemently opposed by large sections of the society.

The LGBTQ+ community

Same-sex couples already receive so much discrimination and stigma against them for being homosexual. So, they find it hard to come out further on issues of domestic violence. Giving legal recognition to same-sex relations can somewhat ease the problem. In India, previously the same was not done. But after the decriminalization of homosexuality in 2018, some positive changes did happen. However, social acceptance of homosexuality has a long way to go. Laws also do not recognize transgender people who might be sufferers of domestic violence.

Elderly

The older generations are much proportionally more imbibed with cultural and religious beliefs that might lead them to suffer in silence than talking about domestic violence. 

Effects of domestic violence

After surviving physical, mental, and emotional abuse, survivors of domestic violence may endure long-term and difficult consequences. It might take a long time for a survivor to adjust to living in a safe environment, especially if the perpetrator was extremely violent and/or committed the crimes over a long period.

Health Issues

Apart from physical injury, other physical effects of domestic violence include chronic fatigue, shortness of breath, muscle tension, involuntary shaking, changes in eating and sleeping patterns, sexual dysfunction and menstrual cycle and fertility issues (in women). 

Mental effects of domestic violence include post-traumatic stress disorder (PTSD- which include nightmares, severe anxiety and uncontrollable thoughts), depression including prolonged sadness, low self-esteem, suicidal thoughts and attempts, alcohol and drug abuse. 

Emotional effects

Common emotional and spiritual effects of domestic violence include hopelessness, feeling unworthy, apprehensive and discouraged about the future, inability to trust, lack of motivation etc.

Financial Issues

Because of the victim’s economic abuse and isolation, they usually have very little money and few people to turn to for aid. This has been found to be one of the most difficult challenges for domestic violence victims to overcome, as well as the most powerful element that can deter them from leaving their abusers.

Victims of domestic abuse and violence frequently lack the financial resources and specialised skills needed to find work. One of the leading causes of homelessness is domestic abuse. One in every three women is homeless as a result of leaving a domestic violence relationship.

Effects on children

Children also are negatively impacted by domestic violence either when they are the victim of it or when they witness it. Certain effects on them include anxiety, depression, academic problems and fearfulness. Another major effect of witnessing or suffering from domestic violence is that children, being as impressionable as they are, feel they have the right to perpetuate the same as they become adults. Learning from their parents or family triggers a cycle of violation and abuse that can go on for generations.

Combating domestic violence

Combating domestic violence should have a two-pronged approach. First, prevention and other cure. Prevention involves fundamentally altering the mindset of people. But that is easier said than done. Norms that validate domestic violence are strongly rooted in cultural and religious beliefs, something that cannot be changed easily. If the mindset cannot be changed, at least the victims should be empowered with the ability to leave. We saw before how even the victims, mainly the women can whole-heartedly justify the fact that they were beaten. Thus, educating them enough so they can distinguish between what is a harmless belief and what is not and have the financial ability to take care of themselves and their dependents might ease this plague of domestic violence.

Legislations

With respect to cure, legislation aids. Legislations that provide relief to victims of domestic violence are found throughout the world. In India, the primary law on domestic violence is the Protection of Women against Domestic Violence Act, 2005. An aggrieved woman can seek relief under this act. Some important features of this Act are:

Definition of domestic violence

This Act defines, in Section 3, domestic violence in an extensive manner and includes physical, verbal or emotional, sexual, and economic abuse. Consequently, it provides redress for all the various types of abuses and is cognizant of the fact that domestic violence is not always limited to physical violence.

Institution of Protection Officers

The 2005 Domestic Violence Act created a post of Protection Officers. Section 8 says that these officers may be appointed by the State Government and should, as far as possible, be women. Their duties range from guiding a victim of domestic violence through redressal mechanisms as well as aiding them in gaining access to shelters or medical facilities. A Protection Officer may also present an application of litigation to the Magistrate on the aggrieved’s behalf.

Measures for relief

The Act talks about the ways in which Courts might be approached and the measures of relief provided. Section 17 guarantees the right to residence in the shared household. The Act also provides for temporary custody of a child. Further, the Courts are allowed to appoint welfare experts (Section 15) and counsellors (Section 14) for the aggrieved parties.

A decision is supposed to be rendered within 60 days. In a single case, there can be multiple judgments. Even if other litigation between the parties is pending, cases under the PWDV Act can be initiated. Both the petitioner and the respondent also have the option of appealing.

While Indian laws do not punish the act of domestic violence in general, any crime committed through it is punished under the Indian Penal Code, 1860. For example, Section 498A is on cruelty while Section 340B punishes dowry death. Concerning dowry death, India also has a separate statute called the Dowry Prohibition Act, 1961 which aims to prevent giving or receiving dowry.

Redressal mechanisms 

How to report

Domestic violence may be reported in the following ways-

  1. Seeking support and help from NGOs who will be able to guide the victim in legal recourse as well.
  2. At the police station. One can dial 100 or the NCW helpline (011 2694 4805).  
  3. A Protection Officer (PO) in the victim’s area can also be approached.

Helpline Numbers

  • Police – 100
  • Women’s helpline number – 181 or 1091
  • Domestic violence helpline number by the National Commission For Women – +91 7217735372
  • Single emergency helpline number for immediate assistance to services such as the police and women’s helpline – 112
  • The emergency number for transgender and men who have sex with men (MSM) community – 1800-2000-113

Conclusion

Domestic violence is of four types- physical, emotional, financial and sexual. Domestic violence can be caused by intergenerational violence, socio-economic issues, biological and psychological issues, and other social issues. However, the fundamental reason for domestic violence that contributes to the above-mentioned reasons is patriarchy. While women are the biggest sufferers of domestic violence, there can be various unique challenges that can come up with regards to the elderly population, the LGBTQ+ community and men. Thus, steps must be taken not only to combat domestic violence against not only women but every sufferer of the same, regardless of their gender and sexuality. 

References

  1. Types of Domestic Violence
  2. Effects of Domestic Violence | Joyful Heart Foundation
  3. How does domestic abuse differ in other cultures? | Next Chapter
  4. https://www.womensaid.ie/assets/files/pdf/eurobarometer.pdf 
  5. Domestic Violence and Faith – NNEDV
  6. Domestic violence – Wikipedia
  7. Is the husband justified in beating the wife? The survey has telling responses | India News, The Indian Express
  8. Domestic Violence And What You Can Do About It | MissMalini
  9. SOCIAL WELFARE DEPT | PROTECTION OF WOMEN FROM DOMESTIC VIOLENCE ACT, 2005

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All you need to know about the writ of prohibition

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This article is written by Michael Shriney from the Sathyabama Institute of Science and Technology. This article explains the writ of prohibition, its grounds, the method of issuing it, as well as other countries’ prohibition writs, the difference between certiorari and prohibition writs and relevant case laws.

This article has been published by Sneha Mahawar.

Introduction 

The Constitution of India has given inherent fundamental rights to all the Indian citizens mentioned under Article 12-35 of the Indian Constitution. If any Indian citizen’s fundamental rights are violated by the State or by a private body, they can receive remedies by filing writ petitions to the High Court or Supreme Court under Articles 226 and 32 of the Indian Constitution.

This article covers the writ of prohibition, sometimes known as the ‘Stay Order.’ The purpose of the writ of prohibition is to prevent or forbid an act. It is a writ that stops lower courts or tribunal courts from issuing orders or from carrying out an act ordered by the higher courts. In the following article, the reasons for issuing this writ, the distinction between certiorari and prohibition writs, case law, and writ of prohibition in various nations are briefly discussed.

A brief introduction to writs

Writs are written orders issued by the Supreme Court or a High Court that direct constitutional remedies for Indian citizens who have been violated of their fundamental rights. It is also a formal written order or command from one of the courts mentioned in the Indian Constitution. Writs are issued by the Supreme Court or the High Court under Articles 32 and 226 of the Indian Constitution.  It is issued when citizens of India violate their fundamental rights. There are five kinds of writs: Habeas Corpus, Mandamus, Prohibition, Quo Warranto, and Certiorari.

Habeas Corpus: Habeas Corpus is a Latin term, which means ‘to produce the body.’ For example, if a person is wrongfully held in jail, the court issues a writ of habeas corpus ordering the corpse to be produced within 24 hours to allow the detained person to prove his innocence. He should be released if he is judged to be innocent. Otherwise, he will be imprisoned.

Mandamus: Mandamus is a Latin word that means ‘command.’ It cannot be granted against a private person or company. The higher courts issue writs of mandamus to check on public officials to see if they are carrying out their obligations properly. If they do not, they are requested to execute their task or to refrain from performing some conduct. It is issued against a public authority, company, tribunal, or lower court.

Prohibition: Prohibition is a legal term that implies ‘to prohibit, restrain, prevent, or forbid.’ A higher court issues a writ of prohibition against the lower court to prevent it from exceeding its authority or going beyond its required jurisdiction. It cannot be enforced against administrative agencies, statutory authorities, or private persons or enterprises. It is exclusively applicable to judicial and quasi-judicial bodies. 

Quo-Warranto: The precise meaning of quo- warranto is “by what authority or warrant.” This writ grants the right to obtain a remedy to anybody other than the offended party. It cannot be issued against the ministerial office. This writ is used to settle a dispute over a public office, whether he or she has the legal right to hold that position.

Certiorari: Certiorari is a Latin word that means ‘certified.’ This writ will be issued by the High Court or Supreme Court against a lower court or tribunal in order to switch the matter to another superior body for proper thought. In other words, it is an appeal from the lower court or a review of the decision of the lower court.

Grounds on which the writ of Prohibition can be issued

A writ of prohibition is issued under particular conditions when the lower or subordinate court or tribunal-

  1. Acts without its jurisdiction or exceeds its jurisdiction, i.e., jurisdictional error;
  2. Goes against its powers, i.e., acted as invalid law;
  3. Violates natural justice standards, i.e., failure of natural justice which is equity and equality;
  4. Acts ultra vires or unconstitutionally;
  5. Acts in violation of basic rights;
  6. Behaves as an error on the basis of the record; 
  7. Truthful judgments are not supported by evidence.

How is the writ of Prohibition issued

Any High Court or the Supreme Court of India dealing with Articles 226 or 32 of the Indian Constitution respectively issues a prohibition writ. It is issued against lower courts, tribunals, inferior courts, or quasi-judicial bodies to restrict or prevent these courts from acting against jurisdiction or from exercising powers that violate basic rights. This form of writ is issued when these Courts’ jurisdictions are exceeded or their powers are breached. It can only be issued against judicial and quasi-judicial bodies, not against private individuals or entities and administrative bodies. It is also known as a ‘Stay Order.’ This writ limits or prevents them from doing an act from happening. 

Case laws regarding the writ of Prohibition

Brij Khandelwal v. India (1975)

The Delhi High Court refused to issue a prohibition against the Central Government from engaging in a boundary dispute agreement with Sri Lanka. The judgment was founded on the basis that there is no bar against the government performing executive or administrative duties. With the idea of natural justice and the growth of the concept of fairness, there is no longer a tolerable view, even in administrative tasks. The stiffness about certiorari or prohibition writ has also been softened. If any of the grounds on which the writ of prohibition is issued is present, the writ can now be issued to anybody, regardless of the nature of the duty fulfilled by it. Prohibition is currently considered as a broad remedy for judicial control of impacting quasi-judicial as well as administrative actions.

S. Govind Menon v. Union of India (1967) 

A writ of prohibition can be issued in both circumstances of excess jurisdiction and absence of jurisdiction. Writ of prohibition was issued by a higher court, namely the Kerala High Court, to a lower court in order to take over jurisdiction that was not initially vested, or in other words, to compel lower courts to retain their jurisdictional limitations. The writ can be issued when there is an excess of jurisdiction as well as when there is an absence of jurisdiction.

Hari Vishnu v. Syed Ahmed Ishaque (1955) 

The case dealt with distinctions between writs of prohibition and certiorari. The verdict, in this case, distinguished between certiorari and prohibition writs and said that when the lower court issues a decision, the petitioner must file a certiorari petition since prohibition writs can only be submitted when judgment has not yet been given.

Prudential Capital Markets Ltd v. The State of A.P. and others, (2000)

In this case, it was questionable whether the prohibition writ could be issued against the district forum/state commission which had already passed judgments in the depositors’ consumer cases. The Court held that after the execution of the order, the writ of prohibition cannot be issued, the judgment can neither be prevented nor stopped.

Writ of Prohibition in other countries

Writ of Prohibition in Australia:

The writ of prohibition is a discretionary remedy used as a judicial review in administrative action available in the original jurisdiction of the High Court under Section 75 (v) of the Constitution in the Federal Court and under Section 39B (1) of the Judiciary Act 1903 and, to a lesser extent, in some state courts in Australia and the United Kingdom. It prevents a public entity from exceeding its authority or exceeding jurisdiction that it does not have. It prevents the decision-maker and others who rely on the decision from doing whatever they are about to do or from continuing a course of action they have already begun, such as taking steps in proceedings.

Writ of prohibition in Philippines:

In the Philippines, the writ of prohibition has its own jurisdiction, which cannot be used in place of quo warranto. It is not only permitted in the Philippines against courts and tribunals to restrict their own jurisdictions and prevent them from intruding on the jurisdiction of other tribunals, but also in proper instances against an official or person whose actions are without or beyond his authority. 

Writ of prohibition in United States:

An appellate court has issued a written ruling prohibiting a lower court from operating because it lacks jurisdiction. It stops the proceedings of any tribunal, corporation, board, or individual where such proceedings are outside or beyond the authority of such tribunal, corporation, board, or individual. It may be given when a lower court is acting beyond the regular norms and processes in the assessment of a matter or is on the approach of destroying a legal right. It is the counterpart to the writ of mandamus.

Difference between writ of certiorari and prohibition

Writ of CertiorariWrit of Prohibition
The writ of certiorari is issued by the higher Courts to reconsider lower Court decisions. The writ of prohibition is issued by the higher Courts to prevent or stop lower Courts from exceeding their jurisdiction and acting against their powers.
It is issued after the lower Courts have declared their judgments.It is issued before the lower Courts have completed their proceedings.
The writ of certiorari is employed more as a preventive measure, quashing a judgment previously rendered by the lower Court.The writ of prohibition is intended to prevent rather than cure.
It means ‘to be certified’.It means ‘to forbid or to prevent’.
It is both preventative and remedial.It is only a preventive measure. 
It can prevent and also act as a cure to the judgment given. It can prevent the lower authority from proceeding further.
It is a later stage.It is the starting stage.
It is a review of a case tried in a lower court.It prohibits the lower Court from issuing a decision.
It is the quashing of judgment.It prevents judgments.

Conclusion

As a result, the prohibition writ serves as a preventive measure rather than a remedy. It will be issued when the reasons are met, most notably when there is an excess of authority or lack of jurisdiction created by the lower courts, and also when they act against their powers and natural justice. Under these circumstances, a writ will be issued either by the Supreme Court under Article 32 of the Indian Constitution or by the High Court under Article 226 of the Indian Constitution. The writ of prohibition and the writ of certiorari are identical with minor differences. 

The prohibition writ is issued by the higher courts to the subordinate courts to prevent them from doing something or stopping them from giving judgments, whereas the certiorari writ is issued by the higher courts to quash the granted judgments. It is a quick and effective remedy for preventing the lower court from acting in a way that is contrary to jurisdiction or natural justice. It is also known as a ‘Stay Order,’ and it prevents the lower court from hearing which is a primary proceeding. It gives redress to both judicial and quasi-judicial bodies with the capacity to judge or rule on any issue.

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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The incline of video games on IP

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This article is written by  Neha Sunaria studying at Amity University, Rajasthan and Diploma in US Intellectual Property Law and Paralegal Studies.  This article has been edited by Ruchika Mohapatra (Associate, Lawsikho). 

This article has been published by Sneha Mahawar.

Introduction

The gaming world is a place of relaxation for a vast group of people. There are computer experts that redefine creativity and coding style. The world of gaming and the law are interconnected as various laws are required to protect the owners as well as the creators of these video games and their rights. The art of storytelling in games has been increasing over the years. The subtleties of cinematic exposure in the universe of games are like never before. The Battlefield series has had various iterations over the years, such as when EA Games reimagined it with Battlefield 2042. The article deals with the legislation protecting the owners and creators of video games. It highlights the way distribution takes place. It concludes that the development of games also invites intruders that knock on the realm of the law from time to time.

Are video games related to IP

The ladder of intellectual property rights is built by reacting to risk factors for the creators and developers of a video game. Copyright protects the derivative and the original work expressed in music, code, website design, characters and the script in the ambience of literary and artistic works. A trademark gives an identity to a game, which makes it different from the competitors dealing in relative trade. Furthermore, rights for the product or process of hardware setting or novel applications like the rules of a game are protected by patents. A trade secret protects the information known by the creator and is implemented by a non-disclosure agreement, data security agreements, etc. Lastly, the user interface is the appearance of a game and becomes a part of the design.

Copyright

The Copyright Act does not expressly protect video games but does so in the realm of literary and artistic works. Section 13 of the Copyright Act of 1957 protects computer programmes as literary works, while sections 14 and 57 protect economic and moral rights. India is a member of the TRIPS that established Article 11 of the agreement, which provides rental rights which are automatically granted to the author of the work. Audio-visuals are also protected under copyright law but are not expressly granted protection for video games, which is quite debatable. Furthermore, depending on the type of work, a period of 60 years is guaranteed.

Trademark

A trademark protects the distinguished components of the game. These can be a word, letter, device, brand, name, or a combination of the previous. Its protection extends to the characters in the game, as they are functioning under the same mark. Statutory protection is necessary for exclusive rights to be granted to the person, which can extend to ten years from the date of registration. The protection can be renewed from time to time under Section 25 of the Act. Liabilities against infringement of a registered mark or the action of passing off for an unregistered mark are decided based on the claims provided by the sufferer.

Patents

Patents are issued when the elements of non-obviousness, novelty, utility, and industrial application are present in an invention. Patent registration secures the product or process by providing the authorization to sell, transfer, and utilise it to the owner. The patentee enjoys protection for 20 years under Section 53 of the Act. The owner can also pay a renewal fee at the time of expiration.

Trade secrets

Sheltered by the law of contract, equity, and common law, it is administered by the terms and conditions of the agreement between the respective parties. For instance, it could be any proprietary information about video games. In the case of Bombay Dyeing and Manufacturing Co., Ltd. v. Mehar Karan Singh, the defendant disclosed information related to the custom software of the plaintiff’s company to a competitor when he was bound to keep it confidential per agreement. As pronounced by the Bombay High Court, the appropriateness of a trade secret depends on the measures taken by the owner to protect it. It is to be seen whether the owner has taken steps to keep the information confidential, the degree of information shared with the employees, the efforts made by the information holder to develop it, and the commercial value attached to it. 

Design

Governed by the Design Act, 2000, industrial design constitutes any shape, configuration, lines, or colours that can be seen by the eye when applied to an element. The design must be novel and unpublished before being registered. The Term of protection extends to ten years for the inventor and can be extended further.  Here, the interface means how the users or competitors perceive the game. Design can also be constructed with the help of computer codes, which are construed to be protected by copyright law, blending here and becoming pretty helpful. 

Is there a global perspective on IP protection of video games

Berne convention

It works on the principle of automatic protection and national treatment. The Berne convention contracting parties are also protected in other contracting countries. It works on the belief of reaching out to the world, at present, 179 countries are signatory members of the convention, including India, Norway, Egypt, the USA, and Zimbabwe. It safeguards the music composed with or without words and illustrations under literary and artistic work per Article 2. It also grants the author the right to adaptation, translation, or reproduction of the work, as well as moral rights in incidents of defamation that help the creator claim authorship of such a work.

Madrid protocol

A single trademark application is filed with the USPTO to acquire protection in all member nations. The preference to opt for a particular nature resides with the applicant, and the fee for the application is paid by the designated contracting party. This protocol was also helpful to the game character Sonic the Hedgehog, the creators of which have tried to create a secure IP environment for it in many countries. 

TRIPS agreement

The TRIPS agreement provides protection to those who take steps to prevent unfair commercial use by safeguarding commercial value, which can be done with the help of confidentiality agreements. It also necessitates general obligations, provisional measures, and effective remedies that restrict infringement of intellectual property. This agreement strives to minimise the burden of enforcement of IP rights for the parties that seek to protect them. 

Paris convention

The convention for industrial property delivers the rights of priority and national treatment to foreign nationals. Under this treaty, the applicant enjoys national treatment in a foreign country as they’d have if they were a citizen of it. 

A simple approach to legislative protection of video games

Manuel Noriega v. Activision Blizzard, Inc. 

In this case, the plaintiff claimed that the defendant used his image in the game character of Call of Duty: Black Ops II. He was also opposed to the way the defendant used it to help a villain. The Court applied the transformative test and held that it did not amount to the extortion of an image. The case facilitated the use of the right of publicity as a defence rather than the transformative test in a scenario like this.

E.S.S. Entertainment 2000, Inc. v. Rock Star Videos, Inc

In this case, the plaintiff accused the defendant of using the logo and trade dress in their video game series from the strip club PlayPen with no prior permission. The defendant manufacturer company used the words “PIG PEN” in their virtual game, besides creating a mimic of locations in Los Angeles. The district court held that it does not infringe upon the plaintiff’s logo or mislead consumers to believe they’re associated with each other, adhering to no artistic distortion to the consumers. 

Mazooma Games v. Nova Productions Ltd

In this case, the plaintiff accused the defendants of copying the screen appearance of their video game, Pocket Money. The court dismissed the claim of infringement because screen appearance is not a substantial part of the game like software. The court refused, saying that there was no reproduction frame to frame. This decision lays down the unanswered fact that if the artistic work is not well protected, someone else will reproduce it again. As it would remain unquestioned on the part of the defaulter, the stress on the author matters.

North American Philips Consumer Electronics Corp. v. Atari Inc.

In this case, the plaintiff claimed that the defendants’ cloned their maze game PAC MAN with the version of K.C. Munchkin. The defendants claimed that there were differences in the compositions of game characters and maze variations. The court granted an injunction against the defendant because copyright infringement may occur where there is a similarity in expression. The judgement explained that copyright does not protect the idea but the creative expression of components of a game.

Tetris Holdings, LLC v. XIO Interactive, Inc.

In this case, the plaintiff accused the defendant of infringing the copyright of TETRIS and trade dress by developing the same in his game, MINO. On the other hand, the defendant argued that they copied the elements unprotected by the copyright. The court held that the defendants did not present the game rules innovatively and that the doctrine of scenes fair and merging would not also apply here because they confused the users.

Sony Computers Entertainment v. Harmeet Singh And Ors

In this case, the Delhi High Court granted an ad parte injunction against the defendants for distributing and selling pirated software with the programme JAILBREAK in the video games. The defendants modified the software of Sony with no licence from the plaintiff and continued to sell it. . Subsequently, the gadgets involved in unauthorised circulation were equipped and sealed.

Are there difficulties with the distribution and ownership of video games

With various games developed over the years, consumers and distributors add to the overall mass. The distribution comes into the picture as soon as the game launches. It could happen before the launch that the creators are unable to justify consistently. It can happen legally or by pulling an illegal trick. 

Licence

Licensing agreement helps the developer distribute and use products restricted to the terms and liabilities provided in it. The developer decides the provisions for the duration of use and compensation if the other person fails to follow them. It secures the developer or the author from the end-user who is using it and other consumers or entities that may cause any loss to its representation. Often, it happens in the case of misuse, mutilation, or abuse of the power to use the game.

Assignment

It is the transfer of ownership to a party subjected to specific grounds. The assignment rights may be transferred either fully or partially as designated by the assignor. The employer can become the owner of work created by an employee if there exists no specific agreement between them. Sometimes, the person who acquires a party to the contract to do specific work may become the first owner subjected to it. For example, if a freelancer assigns her work to another person, then that person becomes the owner. 

United Kingdom

The 2019 incident at the National Film & Television School was regarding the institution’s preference to acquire the IP rights for the video games that the students of its  MA programme in a game design created. The students claimed back the rights instead of paying an amount that was fixed by the institution itself, which challenged a lot of financially viable students. It also included a particular share to be paid to the institution on commercialising the video games by the students. The institution had set out a policy that mentions the rights guaranteed to the NFTS for any creation as a part of the IP course taught to them. The act was seen as a negative approach by the NFTS as the students are automatically enrolled on the terms when they join it. The signature by the owner per his or her will is taken as their assent to being bound legally to the terms. Students may not have the required knowledge to learn about policy agreements before starting the course itself. It has been observed to be harmful to the developer when entering into commercial agreements with another party. Students can be the owners and the assignment to third parties is also possible with a written agreement signed by the owner.  

France

The components of video games are protected here like in common law countries. Here, the total work done by a person determines the curator of the game. It could also involve contributions to audiovisuals or the user interface. Every individual involved is significant in deciding the factor of authorship.

In common law countries, the advantage of authorship is often unseen by the creators of elements of the game. But in a civil law country like France, the details of the contribution are a viable part in deciding the intellectual property rights associated with the author.

The contributors are vested with copyright if they meet the criterion for authorship. The end-user licence agreement governs the incidents of exploitation of the video game. Unlike in common law countries, an employee can become the author of her own work even if she is employed. The employer becomes the legal author of the software written by the employee. The authorship may be transferable depending on the terms and conditions granted. In a common law country like India, the author is the one who transforms all the elements into the end product of a video game.

Conclusion

The distribution of IP is not just about protecting the right holder, but the efforts taken by the owner to protect it. The protection extends to the diversity of games on consoles, PCs, and mobile phones. It is the place where licensing comes in to protect those descending walls of developers and publishers. The use of video games may not decline when technology is at its fastest pace in the current world. With it, the legislation that safeguards any distortion and protection becomes competently necessary and is, therefore, constantly being passed and amended. 


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

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Blog competition winner announcement (Week 2nd November 2021)

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So today is the day! We are finally announcing the winners of our Blog Writing Competition for 2nd week of November 2021 (From 8th November 2021 to 14th November 2021). 

We’d like to say a big thanks to everyone for participating! It has been a great pleasure receiving your articles on a different legal topic, they were all amazing! 

And now we’d like to congratulate our top 5 contestants, who become the undoubted winners. They will receive Prize money of Rs 2000, LawSikho store credits worth Rs. 1000 and a Certificate of Merit from team LawSikho.

They will also get an opportunity to intern at iPleaders under the mentorship of Ramanuj Mukherjee, Abhyuday Agarwal, Harsh Jain, and Komal Shah. Their articles will get published on the iPleaders blog (India’s largest legal blog). Click here to see other perks available to them.

Their entries (see below) received maximum marks based on the average marks given by the panel of editors, and have been crowned the winners!

S.noNameAbout AuthorArticle
1Niharika AgrawalInternThe burden of proof in criminal cases and changing trends of the Supreme Court of India
2Erum KhatoonStudent pursuing Diploma in US Technology Law and Paralegal Studies: Structuring, Contracts, Compliance, Disputes and Policy Advocacy from LawSikhoTop 10 data breaches that have occurred in India in 2020-21
3Mayuri ShuklaStudent pursuing the Diploma in Cyber Law, FinTech Regulations and Technology Contracts from LawSikhoOverview of famous cyber crime cases that target people instead of money
4Nishka KamathInternReformations and recent developments in e-services brought in by the judiciary
5Aditya AnandInternOverview of capital market and its regulation in India : a critical analysis

Meet our next 5 contestants who made it to top 10 here. They will receive a Certificate of Excellence from team LawSikho.

They will also get an opportunity to intern at iPleaders under the mentorship of Ramanuj Mukherjee, Abhyuday Agarwal, Harsh Jain, and Komal Shah. Their articles got published on iPleaders blog (India’s largest legal blog). Click here to see other perks available to them.

S.noNameAbout AuthorArticle
6Puneet DhanoaGuest PostWhat you should know about procedural aspect of summoning and attendance of witnesses in civil proceedings
7Rahul ManglaniStudent pursuing Diploma in Labour, Employment and Industrial Laws (including POSH) for HR Managers fromLawSikhoHow strikes and lockouts considered as weapons of collective bargaining : limitations on managerial prerogatives
8Aishwarya ParameshwaranStudent pursuing Diploma in Intellectual Property, Media and Entertainment Laws from LawSikhoDifference between product patent and process patent
9Ria VermaInternArbitration – types and significance
10Raunak SoodStudent pursuing Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution from LawSikhoThe legal structure of e-banking in India

Click here to see all of the contest entries.

Our panel of judges, which include the iPleaders Blog Team, chose the winning entry based on how well it exemplified the entry requirements.

Certificates will be sent on the email address given by the contestant while submitting the article. The contestants have to claim their prize money by sending their account details as a reply to the mail in which they received their certificate within 1 month (30 days) of the date of declaration of results and not afterwards. 

For any other queries feel free to contact Vanshika Kapoor (Senior Managing Editor, iPleaders) at [email protected]

LawSikho credits can be claimed within twelve months from the date of declaration of the results (after which, credits will expire).

Congratulations to all the participants!

Regards,

Team LawSikho


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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Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

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Blog competition winner announcement (Week 1st November 2021)

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So today is the day! We are finally announcing the winners of our Blog Writing Competition for 1st week of November 2021 (From 1st November 2021 to 7th November 2021). 

We’d like to say a big thanks to everyone for participating! It has been a great pleasure receiving your articles on a different legal topic, they were all amazing! 

And now we’d like to congratulate our top 5 contestants, who become the undoubted winners. They will receive Prize money of Rs 2000, LawSikho store credits worth Rs. 1000 and a Certificate of Merit from team LawSikho.

They will also get an opportunity to intern at iPleaders under the mentorship of Ramanuj Mukherjee, Abhyuday Agarwal, Harsh Jain, and Komal Shah. Their articles will get published on the iPleaders blog (India’s largest legal blog). Click here to see other perks available to them.

Their entries (see below) received maximum marks based on the average marks given by the panel of editors, and have been crowned the winners!

S.noNameAbout AuthorArticle
1Adithya PrasadStudent pursuing the Diploma in International Business Law from LawSikhoThe importance of LPG Reforms of 1991and its underlying controversy
2Oishiki BansalInternAll about criminology and criminal psychology
3Sneha JaiswalInternThe line between right to privacy and freedom of speech in the digital media
4Mangalakshmi Teja VeluriStudent pursuing Diploma in Law Firm Practice: Research, Drafting, Briefing and Client Management from LawSikhoProcedure for declaration and payment of interim dividend
5Vivek MauryaInternA comparison between civil law countries and common law countries

Meet our next 5 contestants who made it to top 10 here. They will receive a Certificate of Excellence from team LawSikho.

They will also get an opportunity to intern at iPleaders under the mentorship of Ramanuj Mukherjee, Abhyuday Agarwal, Harsh Jain, and Komal Shah. Their articles got published on iPleaders blog (India’s largest legal blog). Click here to see other perks available to them.

S.noNameAbout AuthorArticle
6Sakshi Kumari  Student pursuing Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution from LawSikhoImportant clauses of pre-incorporation contracts
7Ibapynhun S MukhimStudent pursuing Diploma in Law Firm Practice: Research, Drafting, Briefing and Client Management from LawSikhoProtection of minority and majority shareholders through shareholder agreements under the Companies Act 2013
8Kashika MahajanGuest PostLaws regulating mergers and acquisitions in India
9Akshita GuptaInternPassing of resolutions through postal ballot facilities for absentee voters : Section 110 of the Companies Act, 2013
10Vibhanshi ShakyaInternAll you need to know about the doctrine of ejusdem generis

Click here to see all of the contest entries.

Our panel of judges, which include the iPleaders Blog Team, chose the winning entry based on how well it exemplified the entry requirements.

Certificates will be sent on the email address given by the contestant while submitting the article. The contestants have to claim their prize money by sending their account details as a reply to the mail in which they received their certificate within 1 month (30 days) of the date of declaration of results and not afterwards. 

For any other queries feel free to contact Vanshika Kapoor (Senior Managing Editor, iPleaders) at [email protected]

LawSikho credits can be claimed within twelve months from the date of declaration of the results (after which, credits will expire).

Congratulations to all the participants!

Regards,

Team LawSikho


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:

https://t.me/lawyerscommunity

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

Download Now

All you need to know about the writ of Quo Warranto

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This article is by Shivi Khanna, a student of School of Law, Sushant University, Gurugram. This article is an attempt to understand the origin, history and efficacy of the writ of Quo Warranto.

It has been published by Rachit Garg.

Introduction

Article 32 of the Indian Constitution (hence referred to as the “Constitution”) is the guardian and shield that serves to protect the individual’s fundamental rights, given in Part III of the Constitution. According to the words left behind by Dr. B.R Ambedkar, Article 32 is the most important Article, and it embodies the “very heart and soul” of the Constitution. Indeed, in order to be called ‘rights’ in the first place, having an effective remedy to combat the breach of one’s fundamental rights is essential. The Constitution-makers arranged for a remedy in the form of Article 32 and Article 226. These Articles allowed for the Courts to issue writs – orders issued in the name of the sovereign necessitating the performance of a certain act.

Article 32 grants the Supreme Court with the power to issue five types of writs: habeas corpus, mandamus, prohibition, certiorari and quo warranto. The Supreme Court can also issue writs “in the nature of” the five aforementioned writs, allowing the Court to have a wider scope of movement in the enforcement of justice. The writ jurisdiction of Article 32 only covers the protection of fundamental rights by the Supreme Court, whereas, Article 226 grants the High Courts the power to issue the five types of writs, or any other purpose.

What is Quo Warranto

The maxim quo warranto means “by what authority” and this writ is issued to prevent a ‘usurper’ from wrongfully occupying a substantive public office, enjoying certain privileges and franchise from that public office, when he does not have the authority to do so. The person being appointed to the public office must show by what authority he occupies it, in order for it to be considered a valid appointment.

History and later developments of the writ of Quo Warranto

The origins of the concept of writ jurisdiction can be found in early English law. Quo warranto used to be issued by the Crown against any person occupying or usurping a public office, availing franchise or privilege of the Crown – to show by what authority the usurper justified his claim. In India, during the Pre-Constitution period, the writ of quo warranto was not used frequently and was gradually replaced by proceedings in the nature of quo warranto. According to Section 9 of the Administration of Justice (Miscellaneous Provisions) Act 1938, information in the nature of quo warranto came to an end. The three High Courts in the Presidency towns, before the Constitution came into effect in 1950, possessed the authority to issue the writ of quo warranto within the limits of their original jurisdiction. With the advent of the Constitution in 1950, Articles 32 and 226 emerged and granted the Supreme Court and High Courts, respectively, the power to issue writs, including the writ of quo warranto.

Who can file the writ of Quo Warranto

The following conditions are required to apply to the court to issue a writ of quo warranto:

  1. There is no bar or restriction on who can apply. Any person can apply as long as their fundamental or any other legal right is being breached. In cases where there is no breach of right, a question of public interest must arise with respect to the application.
  2. The application made by the applicant should be bona fide.
  3. The application should not be made for the sake of certain hidden political struggle or undercurrent. The applicant should act in public interest, and not expect any benefit or unethical gain through making the application. 

Grounds of issuing the writ of Quo Warranto

The writ of quo warranto can be issued under the following cases:

  1. When a public office (created by law or the Constitution) is occupied by a private person, who does not actually have the authority to do so.
  2. The public office must be substantive in character. The duties connected to the office must also be public in nature.
  3. The usurper, whose authority is being challenged, must be holding his position at the time the challenge is made.
  4. Even if a person was qualified at one point of time, the writ of quo warranto can be issued against him if he loses his qualifications.

Conditions for issuing the writ of Quo Warranto

Public office

The writ of quo warranto applies in the case of an office which is public and not private in nature, i.e established by law or the Constitution. The public office must be substantive in nature, which excludes mere employment or function of a servant at the pleasure of another.

The writ can be successfully applied in a case where

  1.  The usurper does not have the requisite qualifications to hold the public office.
  2. The usurper exercises certain rights or privileges with respect to the public office he wrongfully occupies.

Election

The Court needs to have strong and concrete justification if it wants to interfere with cases associated with election. The Court can only interfere by issuing the writ of quo warranto where:

  1. The election does not have the sanction of the law;
  2. There was a problem where people’s right to express their opinions was being curtailed;
  3. The electoral roll was unlawfully made and used.

In cases where the inconsistency in the election does not affect the end result, or the problem is not severe enough, the Court usually does not interfere. The Court also does not take action when the applicant’s intentions are shady, with respect to the problems concerned with election.

Procedure to follow if Quo Warranto has to be issued

Article 32(1) grants the Supreme Court the power to issue writs, orders, directions through “appropriate proceedings” for the purpose of enforcing fundamental rights covered under Part III of the Constitution. The procedure for issuing writs is not rigid and has not been stipulated in the Constitution. As India is a diverse country with a plethora of social issues such as poverty, exploitation and lack of awareness, it would not be conducive to enforce fundamental rights if the process for doing so is too complicated and ‘straight-jacketed.’ The Court may either take suo motu cognisance of the case, or entertain a PIL (public interest litigation) concerned with the case.

When can the writ of Quo Warranto be refused

The Court has the discretion to refuse to grant quo warranto in cases where:

  1. The Court’s interference would not change the end result;
  2. The case is vexatious;
  3. The defendant no longer wrongfully occupies public office.

Case laws on the writ of Quo Warranto

Amarendra Chandra v. Narendra Kumar Basu, (1951)

In this case, the members of the Managing Committee of a school in Calcutta were the respondents. The application for quo warranto was prayed for, to question the authority by which these members occupied their posts. The Court held that the writ of quo warranto would not be applicable to an office of a private nature.

G.D Karkare v. T.L Shevde, (1952)

In G.D Karkare v. T.L Shevde, (1952), the appointment of a non-applicant as Advocate-General of Madhya Pradesh by the Governor was challenged. The non-applicant had already crossed the age of 60 and retired from his post as a High Court Judge. As such, based on Article 165(1), since he was no longer a High Court Judge, he was not qualified to be appointed as Attorney-General. Here, the Court observed that it was not merely confined to enforcing fundamental rights based on Article 226(1). The phrase “for any other purpose” in Article 226 empowered the Court to act on any object it considered appropriate and in the exercise of its powers. There is no reason that the same cannot be applied to issuing the writ of quo warranto.

Furthermore, in the proceedings for the writ of quo warranto, the non-applicant does not seek to enforce his fundamental rights or complain of any non-performance of duty towards himself. The main issue was whether the non-applicant has the right to occupy the office and whether the order passed is an order ousting the non-applicant from his position.

University of Mysore v. CD Govinda Rao, (1963)

In this case, the University of Mysore had set up recruitment advertisements for the positions of professor and reader. The eligibility for the posts would be decided on the basis of the list of criteria made by the University. The petition was put forward to issue the writ of quo warranto based on the fact that an unqualified person, not meeting the criteria was recruited and appointed as reader in English. It was observed by the Supreme Court that to issue the writ of quo warranto, the person who wrongfully occupies the public office, must be holding an office of a ‘substantive’ nature.

Mahesh Chandra Gupta v. Dr. Rajeshwar Dayal and Ors, (2003)

In Mahesh Chadra Gupta v. Dr. Rajeshwar Dayal and Ors, (2003), the appointment of the respondent as a professor of Paediatrics in S.N Medical College in Agra was questioned. However, it was found that the appellant had no connection or interest whatsoever with the appointment and was not adversely affected in any way. The Court referred to the case Bindra Ban v. Sham Sunder (1959), where the locus standi was relaxed for applying for the writ of quo warranto. However, even so, a person cannot apply for quo warranto when he does not have even the remotest connection to the appointment of the public office which is being challenged. By allowing such applications, the Court would be flooded by such petitions.

Even if the locus standi is relaxed, there must be certain connection between the petitioner and the appointment to the public office, no matter how remote for quo warranto to be maintainable.

S. Chandramohan Nair v. George Joseph, (2010)

In S. Chandramohan Nair v. George Joseph, (2010), the appointment of the appellant as a member of the State Consumer Commission was challenged on the ground that his name was not recommended by the Selection Committee. Here, the respondent had no relation to the State Commision and failed to prove how the appointment would adversely affect the samiti of which he was a general secretary. The Court labelled the respondent a ‘busybody’ and ‘interloper’. The Supreme Court observed that the Division Bench of the Kerala High Court erred by issuing the writ of quo warranto, thus quashing the appellant’s appointment to the State Commission.

Rajesh Awasthi v. Nand Lal Jaiswal, (2013)

In Rajesh Awasthi v. Nand Lal Jaiswal, (2013), it was laid down that quo warranto applies where an appointment is made which is “contrary to statutory provisions” and came up with a test to determine whether a person is eligible/qualified to hold office as per the stipulations of law. The key point is to see if the office holder has the qualifications to hold office as per law or not, with respect to statutory provisions.

Critical analysis of the writ of Quo Warranto

Elements of Quo Warranto

  1. For issuing the writ of quo warranto, the following ingredients are necessary:
  • Wrongful occupation;
  • Nature of the office being public, not private;
  • Substantive character;
  • Contrary to statutory provisions or the law.
  1. For quo warranto, with respect to Article 226(1), it is not necessary that there must be a breach of fundamental rights or a non-performance of duty. The main issue is – whether the usurper has the authority to hold the office, and if not, then the order passed is an order to oust the usurper from his post.
  2. Even though the locus standi for quo warranto is relaxed compared to writs such as certiorari and mandamus, the applicant must not be completely unrelated to the appointment and office in question. Even if the connection is remote, the ‘link’ itself must exist.
  3. In cases of election, where the applicant is not adversely affected or the end result would not change despite the interference of the Court, the Court usually takes a stance of non-interference.
  4. The applicant must not have any malafide or ulterior motives for applying for quo warranto. The purpose of the applicant should be inclined towards acting for the benefit of public interest, and not for personal gain.

The concept of Quo Warranto in other countries

England 

The Crown started the practice of issuing prerogative writs (writs with a special relationship to the Crown), thus elevating prerogative writs and the Crown’s justice supreme over the other courts. The Crown used the writ of quo warranto to prevent the wrongful usurpation of public offices, and associated rights, privileges and franchise by its subjects, predominantly the lords of the nobility. By showing with what right or authority they claimed their office, the office-holders justified their claim. During the era of colonisation, English law left its mark on the commonwealth countries and its colonies (including India). The concept of writs in Indian law can find its origins in English law.

California, USA

In California, USA, to apply for the writ of quo warranto, the approval of the Attorney-General is required. If leave to sue is granted, then the applicant or relator must proceed under the supervision of the Attorney-General. If the usurper holding the office is found to be holding it without authority or wrongfully, then, the Court may issue a writ of quo warranto to remove him.

Australia

In Australia, the writ of quo warranto inquires into the justification, or by what authority a person holds a franchise or an office. The usurper may be ‘deemed’ to hold an office wrongfully, and the writ can be brought about by both the Crown or a person.

Conclusion

To summarise, Articles 32 and 226 serve as the guardians of fundamental rights enshrined in Part III of the Indian Constitution. These Articles prevent the legislative and the executive from infringing on the rights of the people, which have been guaranteed to them by the Constitution. The independent judiciary has been tasked with interpreting the Constitution and it fulfils the right to constitutional remedies through writs. The writ of quo warranto acts as a scanner to inquire into the legitimacy of holders of substantive public offices.

Public offices are vital toward the day-to-day and overall smooth functioning of the nation. To have unqualified people sitting in these important offices is a very serious concern. Quo warranto curbs nepotism, corruption, and irregularity and allows for applications to remove unqualified people from these important positions. Despite being a legacy of the colonial era, the writ of quo warranto is still significant and relevant, especially with respect to preserving the sanctity of public offices and elections in India.

References

  1. https://oag.ca.gov/opinions/quo-warranto
  2. https://researchdata.edu.au/quo-warranto-briefs/162107
  3. https://ccsuniversity.ac.in/bridge-library/pdf/B.A.LL.B.%20VIII%20SEM%20(ADMINISTRATIVE%20LAW%20BL%20801)%20TOPIC-%20WRITS.pdf
  4. J.N Pandey, Constitutional Law of India, 54th Edition
  5. Sumeet Malik, V.D Kulshreshtha’s Landmarks in Indian Legal and Constitutional History, EBC, Lucknow
  6. M.P Jain, Indian Constitutional Law, 7th Edition, LexisNexis

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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Should Section 29A of IBC be struck down as unconstitutional

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This article is written by  Kaushiki Keshari and pursuing a Certificate Course in Insolvency and Bankruptcy Code.  This article has been edited by Tanmaya (Associate, Lawsikho). 

This article has been published by Sneha Mahawar.

Introduction

The most debatable section of the Insolvency and Bankruptcy Code (IBC) is Section 29A, so to understand section 29 A, we need to infer the preamble of IBC as it describes the elementary function of the law. Mere liquidation was not optioned as it was making sure the company was a going concern. Earlier if a company wanted to liquidate itself, it would take 4 to 4.5 years. However, under the Insolvency and Bankruptcy Code, it takes 330 days at most to make sure that power is transferred from the debtor to creditors ensuring that more control is in the hands of creditors which may promote more entrepreneurs to participate in the liquidation process.

The resolution process is implemented in any organization which is under some kind of financial stress or is bankrupt. In a nutshell, the resolution process is a reconstruction of an entity. Even if an organization has some kind of financial stress or is bankrupt, if an organization has to be run through going concerns, then somebody has to run the company. As per earlier laws, the old management can take up the company easily but the enactment of Section 29 A, prevented the people who were wrongdoers from taking up the company again. In this article, the author has tried to provide a detailed analysis of section 29 A of the Insolvency and Bankruptcy Code 2016.  

What is Section 29 A of the Insolvency and Bankruptcy Code 2016

Section 29 A is binding on Resolution Applicant wherein a resolution applicant is defined as a person who individually or jointly with any other person, presents a resolution plan to the resolution professional following the invitation made under Section 25 (2) (h). In simple terms, a resolution applicant can be himself or a group of individuals coming together to submit the resolution plan floating to the invitation sent by the resolution professional. 

Section 29A of the Code put certain restrictions for the resolution applicants to present a resolution plan. This Section does not apply to an individual – jointly or in concert with the ineligible person, person-related on connected to the ineligible person. Drop under any of the disqualification lists will not be allowed to present any resolution plan.

In the above definition, there is a word included ‘person’-Section 5 (23) of The Insolvency And Bankruptcy Code defines the term person. This definition of a person is wide. Section 29 A is a deadly section and any person falling under the negative list will not be able to apply. In the landmark judgment of Swiss Ribbon Pvt Ltd V. Union of India  Section 29 A was primarily enacted, the judgment stated the primary focus of the law was to ensure improvement and maintenance of the corporate debtor by defending the corporate debtor of its management and from corporate death by liquidation.  

The constitutional validity of Section 29A

While reading the Swiss Ribbon Pvt. Ltd v Union of India case, the following issues have been raised-

  • the vested rights of quondam promoters to share in the recovery process of a corporate debtor has been bloodied retrospectively; 
  • a masking ban has been assessed on the taking part of promoters of corporate debtors without any medium to weed out those who are unconscionable, and
  • the period of one time specified under Section 29A of the Law is wholly arbitrary and without any base in rationality and law;
  • persons who are cousins with no business connections to quondam promoters of commercial debtors may also be barred under Section 29A (j) of the Code. 

As per the above issues raised, the following compliances were enumerated.

Supreme Court’s observation

Retrospective Operation

It was stated that Section 29A of the Code had retrospectively bloodied the right of quondam promoters to share in the retrieval process for the corporate debtor.  As per this argument, the Supreme Court observed that an enactment isn’t retrospective simply because it affects rights. Noting that the resolution aspirant has no vested right for consideration or blessing of its resolution plan, the Court eminent that Section 29A is not retrospective. 

Section 29A (c) is not confined to misbehavior

It was argued that there is no reason to not permit a manager who is not shamefaced of malfeasance, or of doing opposite to the interest of the corporate debtor, from taking part in the resolution process. Additionally, it was stated that there were no grounds as to why during liquidation, any person, including persons unsuitable to be resolution aspirants, shouldn’t be allowed to buy any property by the liquidator by way of a public transaction. 

The Supreme Court, while restating the absence of a vested right of the promoter of a corporate debtor to bid for the property of the corporate debtor, clarified that misbehaviour was not the sole ground for disqualification under Section 29A of the Code, as this section specifies other grounds based on which a person could be ineligible to present a resolution plan. Thus, there was not a single query of treating unequals as equals. The Supreme Court also held that the principles of Section 29A further pervade the process of liquidation, and there is no anomaly with the same. Accordingly, the constitutionality of Section 29A of the Law was upheld on this count. 

Arbitrary period of  one time as per Section 29A (c)

This particular section disqualifies a person in the operation of a corporate debtor which has remained categorized as a Non-Performing Asset as per guidelines stated by RBI for a period of one time. The period of one time specified in Section 29A (c) of the Law was confronted as arbitrary. The Supreme Court looked at the relevant RBI rules and decided that this policy could not be faulted under Clause 4 of the RBI Master Circular on Prudential Morals on Income Recognition, Asset Bracketing, and Provisioning relating to Advances (“Master Circular”). The Master Circulars vittles were held to have emerged for a period of one time, as a non-performing asset was designated as an unacceptable asset during this period. The clause was found to be neither arbitrary nor illegal because the ineligibility only applies once the one-time term has expired and the non-performing asset has been categorized as a dubious asset.

All orders of people indicated in Section 5 (24A) of the Code demonstrate that comparable persons must be associated with the resolution aspirant within the sense of Section 29A (j) of the Law, according to the Supreme Court. All order individuals in Section 29A (j) deal with people, both natural and artificial, who are involved in the resolution aspirant’s business. The Supreme Court concluded in this case that the meaning of “associated party” in Section 5(24A) must be construed with noscitur a sociis with the categories of individuals listed in Explanation I and must only include those who are involved with the resolution applicant’s economic activity. The Court further concluded that in the absence of evidence indicating such a person is associated with the resolution applicant’s business or activity, such a person cannot be disqualified under Section 29A. (j).

Micro, Small, and Medium Enterprises (“MSME”) Impunity from the Section 29A viewpoint

The exemption of MSMEs from the application of Sections 29A (c) and 29A (h) of the Law was questioned on constitutional grounds. MSMEs should be exempted from the dimensions of Section 29A (c) and 29A (h), according to the Insolvency Law Committee’s report, because the business of an MSMEs often receives attention solely from its promoters and not from other stakeholders. MSMEs have been exempted from the application of Sections 29A (c) and 29A (h) of the Law to ensure that there are enough openings to resuscitate the businesses. While affirming the legitimacy of the impunity, the Supreme Court also noted that the council is aware of major irregularities. Also, section 29A(c) was amended to include the phrase ‘at the time of submission’, Thus the disqualification under Section 29Awill only be examined at the time of submission of resolution application.

Conclusion

The Supreme Court’s ruling has helped to clarify some of the difficult issues surrounding the interpretation of Section 29 A of the Code. Section 29A identified additional reasons on which a person may be disqualified to submit a resolution plan. As a result, there was no issue of treating unequal as equals, making it constitutional. The court has examined the implications of Section 29A from time to time and made every effort to overcome technicalities so that the corporate debtor receives the greatest possible rehabilitation choice.

References


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