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The role of lawyers in the development of MSMEs and SMEs

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This article is written by Vipul Kumar, pursuing a Diploma in Law Firm Practice: Research, Drafting, Briefing and Client Management from LawSikho

This article has been published by Shoronya Banerjee.

Introduction

Considering the sheer size of the small enterprises based in India, Micro, Small, and Medium Enterprises (MSMEs) are the engines of the country’s economy. There are significant numbers of  MSMEs in India; the number may be around 6.3 crores throughout the country as per the MSME ministry as of November 26, 2021.

The problems MSMEs face regularly are running out of money, poor technology adoption, labour issues, lack of collateral, and overall difficulties in doing business. India started celebrating Small Industry Day on August 30 every year to encourage small businesses around the country, which recognises the contribution of small-scale units to the economy and promotes their expansion. Some of the entrepreneur’s and industry experts’ opinions that due to lack of knowledge and not being willing to take more risks are holding back MSMEs from transforming from small to big. India’s MSME sector contributes over 33% to the nation’s GDP and over 45% to its manufacturing output. Furthermore, MSMEs comprise over 40% of India’s total exports, which is why they are considered the backbone of the country. Although MSMEs continue to face major challenges, direct guidance and handholding concerning different government processes and regulations could help businesses accelerate their growth. MSME promoters are rarely familiar with rules or terms and conditions and due to that a small mistake can cost them heavy penalties. The role of legal professionals becomes very crucial for entrepreneurs since they can help them comply with the law and take advantage of opportunities provided by the government through various schemes.

What is MSME?

MSME refers to Micro, Small, and Medium Enterprises, which were introduced by the Government of India by the Micro, Small, and Medium Enterprises Development Act, 2006. MSME is initiated and managed under the Ministry of MSME (MoMSME) and is an entity engaged in the production, manufacture, processing, and preservation of goods and commodities.

New MSME classification

The government notified a new rule that removes the distinction between the manufacturing and services enterprises by making the investment amount and annual turnover similar for enterprises engaged in both sectors.

MSME – Merged Criteria: Investment and Annual Turnover
Sector/Enterprise TypeMicro-Enterprise (MSMEs)Small Enterprise (SMEs)Medium Enterprise (MEs)
Manufacturing & Services Sector, BothInvestment less than Rs. 1 crore turnover less than Rs. 5 croreInvestment less than Rs. 10 crore turnover up to Rs. 50 croreInvestment is less than Rs. 50 crore turnover up to Rs. 250 crore

The definition of MSME is introduced in ‘Aatm Nirbhar Bharat Abhiyan‘ which is also known as the Self-reliant India Scheme 2020 by the Government of India.

The following are the key takeaways of the Aatm Nirbhar Bharat Abhiyan Scheme 

  1. The government provides collateral-free loans to MSMEs.
  2. Unsecured loans up to Rs. 1 crore.
  3. Secured loans of up to Rs. 500 crore (lease rental discounting).
  4. The moratorium period offered is 12 months and can exceed as per the bank’s policies.
  5. Manufacturing and Service MSMEs shall be considered as the same entities.
  6. Repayment tenure up to 60 months.
  7. 100% credit guarantee, for several loan schemes.
  8. Approx. 45 lakh MSMEs to benefit from Rs 3 lakh crore loans, as per MoMSME.

What role does the MSMEs play in the economy?

As per the NITI Aayog reports the MSME sector is considered the backbone of the Indian economy that has contributed substantially to the socio-economic development of the nation. These enterprises have always played a vital role in the Indian economy. The 6.3 crores of  MSMEs in India contribute 30% of the nominal GDP of the country and employ a large segment of the population, particularly the non-formal sector. The share of the sector in manufacturing output is 33%. Around 50% of all MSMEs operate in rural areas, employing 45% of the workforce. In this sector, about 97% of all employment is in the micro-segment and that plays a crucial help to the livelihood of nearly 110 million people.

What types of problems the MSMEs sectors are facing?

Small businesses face both costs and time constraints that result in complying with a bundle of regulations obtaining and maintaining innumerable licenses, registrations, approvals, and reporting requirements. A lack of proper knowledge frequently results in enterprises being fined and penalized, diverting management’s time and resources to resolve these disputes. SME and MSMEs intellectual property (IP) arising out of indigenous innovations/inventions has long been a grey area.

For the MSMEs, the most worrisome aspects are legal recourse and technology. These enterprises usually do not have optimum technologies exposure and legal help(due to their nature and scale of business) which results in these MSMEs failing to contend effectively with the big market players.

How can lawyers help MSMEs and SMEs?

Lawyers should go the extra mile to assist MSMEs not only in their field of expertise but also in other areas such as technical and operational challenges. These enterprises face the urgency and complexity of reopening their businesses and lawyers can help them to turn whopping challenges into meaningful change. With the help from lawyers, the MSMEs’ can freely drive their business and that can help business owners navigate the challenge they were facing in the operation. Lawyers can guide them to follow the standard procedures according to the law and ensure compliance with the government. Lawyers should also help the MSMEs’ to overcome the challenges in the restoration of their business.

The advice and support of a lawyer will help MSMEs or SMEs entrepreneurs to take critical decisions that will influence the lives of millions of people and shape society for the future. Lawyers have the power and potential that can create a mechanism that may help businesses and enterprises to make conceivable growth and move forward as they are the support system for business and enterprise.

Factors that may cause the failure of businesses 

Many businesses fail because of a combination of these four factors.

1. Poor business planning,

2. Poor financial planning,

3. Poor marketing,

4. Poor management. 

Lawyers work closely with business owners, entrepreneurs, or start-ups that need legal as well as professional advice or solutions, that may help them to overcome their problems and drive ahead.

Why do many MSMEs fail to reach out to lawyers?

Lack of funds and poor financial condition are some of the main reasons that  MSMEs fail to reach out to a lawyer. Often business owners are unaware of the law, and even if they are aware, they don’t know how to seek legal assistance. They fear the process is time-consuming and lawsuits in India drag out for years, which makes it difficult for them to pursue the case due to financial constraints and paucity of time. Entrepreneurs do not want to get involved in court cases or legal matters because they believe that it will harm their business.

The areas where lawyers can help MSMEs and SMEs

1. Registrations 

Lawyers can help entrepreneurs/business establishments to get registered under the MSMED Act, 2006, and advise them about MSME investment, benefits, and compliance-related matters. The MSME registration is free on the Udyam portal. They should inform the entrepreneurs/business establishments about the same. When the online MSME registration form has been successfully submitted to the portal then the reference number of registrations is generated. If the registration form submitted on the portal is verified, the Ministry of MSME will send the Udyam Registration Certificate or MSME Certificate to the entrepreneur’s registered email address. 

2. Update/modification 

When the company gets a Udyam Registration Certificate, after that they can update or modify their data if they find any error or due to a change in circumstance that creates a need to update or modify the data. In this case, lawyers may facilitate them with proper advice that helps in the update and modification of the data on the portal.

3.  Advisory 

Advisory is the core expertise of the lawyer which comes from experience, knowledge, application of mind, and situation handling mindset. A good advisor may lead a business to reach great heights. 

4.  Drafting of contracts 

Drafting is the art of presenting thoughts in words. It is a tool, writing out the terms and details of the contract, to outline the legal obligations of the two parties. A lawyer can draft a simple, effective, and understandable contract/agreement that defines the respective duties of the parties to avoid future conflict. 

5.  To get payment without delay 

The Ministry of Micro, Small, and Medium Enterprise lends a helping hand to such enterprises by giving them the right to collect interest on the payments that are delayed from the buyer’s side. This is the most important benefit the MSMEs get post-registration under  MSMED Act, 2006, which may help to resolve the liquidity problems. Arbitration or conciliation must be used to resolve such disputes within a reasonable timeframe. The Act has provided MSMEs protection against delay in payment from buyers and the right of interest on delayed payment in the following manner.

  • Under the MSMED Act, 2006, lawyers should inform MSMEs that all pending dues of MSMEs are to be released within 45 days (maximum) after accepting the products or services.
  • If the buyer delays payment for more than 45 days after accepting the products or services, then the buyer must pay compound interest at three times the bank rate as notified by the Reserve Bank of India at that time. Payment shall be made as per the timeline agreed upon under the agreement, but such a period cannot exceed 45 days from the date of acceptance of the products or services. 

Therefore, a lawyer can assist them to draft the same clauses in the contract that have been made with the party/parties.

6. To help in IPR (Intellectual Property Rights) 

Lawyers assist them in registering their IP, such as trademarks and patents. Then lawyers can inform them that they are entitled to a 50% subsidy for patent registration after they have been registered as professionals. In addition, lawyers can assist them in getting remedies for infringements of IPR and how to file a suit in the court of law to get remedies.

7. Tax and finances

As a lawyer, we can help in taxation and finance matters as well. Being professionals, we play a very important and crucial role in smoothing business operations, investment/fundraising which is always needed to run the business and expand the business as well. Lawyers must ensure that the important expenses are being met and the organisation remains in a situation that is manageable in terms of financial profitability. We can help them to get promoters and venture capitalists who are willing to invest in their business.

Compliance under the laws 

MSMEs and SMEs are first registered under various laws like the Companies  Act,  2013LLP Act, 2008, and Partnership Act 1932. Lawyers decode the complexity of laws and do all the compliances in a time-bound manner to avoid penal provisions/litigation to the enterprises.  

Conclusion

At the same time, the MSME industry is one of the most vulnerable industries.  Many eligible enterprises do not get the maximum benefits due to a lack of awareness or professional guidance that they can avail themselves of. Despite getting registered as MSME, many entrepreneurs cannot take advantage of even a single government scheme due to a lack of knowledge or ignorance on the part of professionals. Therefore, this is the time when professionals like lawyers should come forward and find out the status of their clients and try to mentor and advise them accordingly. So that the clients can also take advantage and benefit to grow the business. Lawyers aim to provide standardised common legal services and cost-effective legal solutions for startups, MSMEs, and SMEs.

The government of India also acknowledged the importance of the MSMEs and SMEs sector which contributes almost 29 % towards the country’s GDP. The government has been planning to scale it up to  50% of  India’s GDP and that can add 50 million fresh jobs over the next five years. If the government reduced the compliance burden, the business could grow, and production would increase. In scaling up, the plethora of rules and regulations and red-tape are major hindrances. In India, micro, small, and medium enterprises (MSMEs) play a huge role in GDP generation by generating mass employment throughout the country. Considering its importance, the government is expected to provide adequate support to ensure that MSMEs’ growth is not impeded at any time, especially during a pandemic that has brought global economies to a deadlock. 

References

  1. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/viewer.html?pdfurl=https%3A%2F%2Fwww.icsi.edu%2Fmedia%2Fwebmodules%2FNIRO_June_2020.pdf&clen=1746045&chunk=true
  2. https://www.thehindubusinessline.com/news/msme-benefits-for-lawyers-no-way-says-court/article32233388.ece
  3. https://economictimes.indiatimes.com/news/economy/foreign-trade/legal-platform-to-counter-cheap-imports/articleshow/73220520.cms?from=mdr
  4. https://cleartax.in/s/msme-registration-india
  5. https://www.msmex.in/learn/benefits-of-msme-registration-in-india/
  6. https://www.fundstiger.com/benefits-msme-registration/
  7. https://economictimes.indiatimes.com/small-biz/sme-sector/role-of-msmes-crucial-for-india-to-become-a-5-trillion-economy-says-kant/articleshow/88605491.cms?from=mdr

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Blog competition winner announcement (Week 4th October 2021)

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So today is the day! We are finally announcing the winners of our Blog Writing Competition for 4th week of October 2021 (From 25th October 2021 to 31st October 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
1Krithajnya RaghunathanStudent pursuing Certificate Course in Advanced Corporate Taxation from LawSikhoCarbon tax and its impact on India
2Dnyaneshwari Patil InternThe legality of agreements without consideration
3Darshee MadhukallyaStudent pursuing Diploma in Law Firm Practice: Research, Drafting, Briefing and Client Management from LawSikhoRole of mediation in international disputes
4Shreya PatelGuest PostThe Cyber Applellate Tribunal
5Srishti SinhaInternCritical analysis of cyber crime in India

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
6AswathyStudent pursuing Diploma in M&A, Institutional Finance, and Investment Laws (PE and VC transactions) from LawsikhoConsideration under competition law regime
7Nikara Liesha FernandezInternAn analysis of the choice of law existing in a domestic context
8Aditi DiwanGuest PostTax on agricultural income in India : overview
9Swaroopa V RoyaduStudent pursuing Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution from LawSikhoEverything you need to know about the anti-competitive agreements in the pharmaceutical industry in India
10Vidhya SumraStudent pursuing Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution from LawSikho Drafting a mortgage deed between a mortgagor and a housing finance company

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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Fundamental principles of International Environmental Law

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This article is written by Smaranika Sen from Kolkata Police Law Institute. This article exhaustively deals with the principles of International Environmental Law.

Introduction

International Environmental Law comprises various multilateral or bilateral agreements, Conventions, etc. The main concern of such international law is to protect the environment and thereby create certain legislation in view of it.  In the mid-twentieth century, the onset of International Environmental Law was observed. Before this, there were only local movements or protests in order to protect the environment but there was no legislation. 

The source of International Environmental Law cannot be particularly mentioned in a kind. However, it can be stated that International Environmental Law has derived its roots from public international law. 

Through this article, I will be discussing the fundamental principles of International Environmental Law.

Sources of International Environmental Law

The sources of International Environmental Law cannot be mentioned in a definite manner. However, after analysing its way of making laws, development, etc; few sources can be carved out. They are:

  • Treaties
  • Agreements
  • Customs

It has also been observed that developing international law is less traditional i.e. the laws made are based on present-day circumstances and are constantly changing with time, thus, it is not based solely on customs or traditions, and have more binding source; it is said so because the importance of environmental law is recognised worldwide and many countries have also made legislation regarding it. 

Principles of International Environmental Law

Sovereignty and responsibility

The above-mentioned principle is quite contradictory to each other in apparent vision. It is so because the principle of sovereignty tells that every state has sovereign rights over its natural resources. On the other hand, the principle of responsibility tells that no damage should be made to the environment by the state. It is now clearly evident that one principle tells that one has sovereign power and another principle states certain rules the sovereign power has to maintain. 

Now the question which arises is whether such contradicting principles can be implemented or not.

In the 1992 Rio Declaration, it was stated that:

“States have, in accordance with the Charter of the United Nations and the principles of the international law, the sovereign right to exploit their own resources pursuant to their own environmental and development policies, and the responsibility to ensure that activities within their jurisdiction or control do not cause damage to the environment of other states or areas beyond the limits of national jurisdiction.”

This shows that sovereign power is not absolute. It is subjected to certain restrictions. Therefore, here in this principle though the state enjoys a sovereign power over its natural resources its responsibility to not cause any damage to the environment is mandatory and not contradictory. 

Over time, the duty to not cause any damage to the environment has been accepted worldwide and it has also been backed by international treaties and laws. 

Now there are certain areas that are not under any jurisdiction of states like the high sea, In such cases what should one do? It is stated that here the principle of sovereignty may not apply but the principle of responsibility should always prevail. States should protect and conserve such environmental areas as common heritage.

Principle of good neighborliness and international cooperation

The principle of good neighborliness denotes the duty of states in view of not damaging the environment. The principle of international cooperation means that there should be an obligation where one cannot perform any such activities which are contrary to other states’ rights or which might harm their environment. This principle of international cooperation is believed to be based on this legal maxim sic utere tuo et alienum non laedas; meaning one should use their property in such a manner that they do not cause any harm to another. 

Besides avoiding any environmental damage, the principle of good neighborliness also states the duty of cooperation in identifying, investigating any damages. One might think that there already lies legislation among states regarding cooperation in the field of science, technology, socioeconomic, etc, then why does an international environmental law put emphasis on cooperation. This is so because the legislation regarding cooperation is not absolute. They are mostly limited to the cooperation regarding patents. 

Some other benefits of the principle of good neighborliness and international cooperation are the functions of prior notification and consultation. Due to prior notification and consultation, other states might provide some vital information about the environment. For example in times of natural calamities and emergencies. Other states on request can also provide consultation in times of need. 

Principle of preventive action 

Under this principle, the states remain under the obligation of not causing any damage to the environment within their own territory. However, this principle should be differentiated from the duty to avoid environmental harm. This principle mainly states that there should be some preventive action in the state regarding reducing wastes, reducing liability, and increasing efficiency. Discharge of toxic substances which exceed the reasonable limit should be stopped, it should rather be stopped at an early stage so that irreversible damage to the environment is not inflicted upon. There are certain ways in which the states have tried to implement preventive action. The ways are:

  • Use of penalties
  • Authorities established to particularly look into these preventive actions
  • Establishing environmental standards

It is believed that these ways are the golden ways in which irreversible damage can be stopped. This principle is recognised by various international instruments, treaties, etc. This principle is also reflected in the fifteen Rio Declaration.          

Where there are warnings of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.”It was the basis of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, 1989.      

Precautionary principle

This principle was first codified in the fifteen Rio Declaration. It was stated that “In order to protect the environment, the precautionary approach shall be widely applied by States according to their capabilities. Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.”

Another Convention on Biological Diversity stated that “ where there is a threat of significant reduction or loss of biological diversity, lack of full scientific uncertainty should not be used as a reason for postponing measures to avoid or minimize such a threat.” This principle was mainly carved out because there are certain elements present in our environment which can cause certain extreme damages. However, at times waiting for scientific clarity and proper judgment regarding the burden of proof, the damage on the other hand can become irreversible. 

Now the question may arise why do the states need to wait for any scientific clarity when damage is already visible or is known. The answer is that whenever any states adopt any protective measures, the state has to prove beyond doubt that a specific substance or substances have caused damage, therefore states have to wait. But because of the precautionary principle, now states do not have to wait for proof of harm before taking any action. The first treaty to embody this principle was the 1985 Vienna Convention for the Protection of the Ozone Layer. Subsequently, it was widely addressed in various other instruments. However, it should be noted that the precautionary principle is always changing based on its circumstances, therefore, there is no precise formulae in its regard.

Principle of common but differentiated responsibility

The meaning of common but differentiated responsibility is that the common aim of all states should be protecting the environment, but having said that, certain states owing to their different ecological systems, physical appearances, geographical features might have to take more responsibility than other states. The basic idea of this principle is that all states should follow and obey international laws on the basis of equity and in accordance with their common but differentiated responsibilities and respective capacities. Two major principles of this principle are:

Common responsibility

It signifies that all the states must aim to conserve the environment together. They should not disregard their responsibility at any cost. They should not take advantage of their fellow states and not perform their own duty,

Differentiated responsibility 

States comprised of heavy industries, factories have to bear more precautionary measures or perform actions compared to a state which is filled with flaura and fauna. But each state has to keep in mind that while performing their differentiated responsibility, they cannot perform or form any such policies which are harmful or derogatory to their own state or other states.

The principle of sustainable development

The 1987 Brundtland Report first discussed the principle of sustainable development. It stated that the principle of sustainable development means a kind of development where the essential needs of especially the poor are met in the present without compromising the future generation’s ability to meet their needs. The primary focus of sustainable development in this regard is environmental protection. This principle has been accepted regionally as well as globally. There are three elements of sustainable development. The three elements are:

  • Integrational Equity- This means that each person must leave some kind of wealth (in this regard natural resources) for future generations, not less than what they have enjoyed in their lifetime so that the future generation can enjoy natural resources.
  • Sustainable use of natural resources- This aims at judicious, wise, careful, or rational use of natural resources.
  • Integration of environment and development- It is believed that without the integration of environment and development, the aim of sustainable development cannot be achieved. Thus, while making any environmental obligations, ecological and sociological development should also be taken into consideration. For example, in microeconomics, sustainable development would require the cost of environmental damage on the state which caused the damage. 

In the case of MC Mehta v Union of India and others (2001), the Supreme Court was analysing the case of vehicle pollution and it was held that non-CNG vehicles would be stopped and the country should enhance the use of CNG vehicles. In this case, the Supreme Court also stated that the principle of sustainable development is an important feature of environmental law.

The principle of absolute liability

The principle of absolute liability is implemented in a legal aspect in environmental law. It is applied in the environmental law to assess the risks of environmental law, and thereby the liability can be given to the person for unlawful acts. In a lot of states, the procedure of lawsuits regarding environmental cases or how one should file cases are not properly stated. In such cases compensation for the damage is hard to get. However, the application of absolute responsibility in the environmental law system makes it easier to get compensation. 

Polluter Pays principle

The basic meaning of this principle is that those who commence the act of pollution shall bear the cost of its management and prevention so that it does not harm the environment and human beings. The 1992 Rio Declaration has recognised the polluter pays principle. The primary arena of this principle is land, air, and water. We all know how much greenhouse gases have affected our environment. This principle can be applied to greenhouse gases. The principle can be implemented through a carbon price. The carbon price is a small charge which is paid by greenhouse gas emitters equivalent to the corresponding potential cost caused through future climate change, thus forcing emitters to internalize the cost of pollution. The carbon price can be paid in two ways:

  • In form of the carbon tax (direct method).
  • In the form of quota, here a certain limit is set and beyond it, the price has to be paid.

In the landmark case of MC Mehta v Kamal Nath (1996), the Court established the polluter pays principle in India. It was observed that the Motel Company encroached upon 27.12 bighas of land which also included forest land. This encroachment caused huge problems as there was constant movement of bulldozers and earthmovers to turn the course of the river for almost 5 months. This caused floods in the river and property worth 105 crores was destroyed. The Court held that the Motel Company should pay compensation for the destruction of the environment, thereby establishing the polluter pays principle.

Ecocentrism

Before discussing the principle of ecocentrism, let us understand what is the traditional concept of human beings towards the environment. Traditionally and even from a religious point of view, it has been observed that some people or groups of people believe that they are in dominion over the environment. Therefore, they can do whatever they like towards it. However, ecocentrism denotes a nature-centered concept. Here, it is stated that the human species are the consumers of almost everything in nature. They have the responsibility of conserving nature irrespective of the fact that they are getting any benefit from it or not. The ill-treatment of humans towards the environment is very dangerous as they are capable of harming the environment in such a way that the damage becomes irreversible. Thus, humans should take care, protect and conserve the environment.

Conclusion

The above-mentioned are some of the principles of environmental law. It is to be noted that international environmental law is still developing. Therefore, the interpretations of these principles remain open. There is no such precise boundary given to these principles. 

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

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

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All you need to know about the British Constitution

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This article is written by Sahaja, from NALSAR University of Law, Hyderabad. This article exhaustively explains the important aspects of the British Constitution. 

Introduction

England, Wales, Scotland, and Northern Ireland make up the United Kingdom of Great Britain and Northern Ireland, which is a constitutional monarchy with a parliamentary system of government. The written and unwritten procedures that establish the United Kingdom of Great Britain and Northern Ireland as a political body are referred to as the British constitution. The United Kingdom is often referred to as having an “unwritten” constitution. This is not entirely accurate as it is mostly written but in various documents. However, it has never been codified or compiled into a single document. In this regard, the United Kingdom differs from most other countries with written constitutions. 

Salient features of the British Constitution

Although the British Constitution is not a completely codified one, certain rules, acts, conventions, and regulations are considered constitutional documents. These documents determine the working of the country and impart certain features to this ‘unwritten’ constitution. Some of the most significant features are listed in the following sections:

British Constitution is unwritten

As mentioned previously, the British Constitution is not a particular codified document like that which exists in India (the Indian Constitution). However, it is unwritten and is an aggregate of several documents which together constitute the rules of the land. The unwritten character of the British constitution is by far the most important element. There is no documented, accurate, and compact document that can be referred to as the British constitution. The fundamental reason for this is that it is founded on customs and political traditions that are not codified in any text. Historical Documents, Parliamentary Statutes, Judicial Decisions, and Constitutional Characters, such as the Magna Carta (1215), Petition of Rights (1628), Bill of Rights (1689), and Parliamentary Acts of 1911 and 1949, are among the written portions.

It is significant to note the British Constitution is also a mixed Constitution. The British constitution is a mix of monarchical, aristocratic, and democratic values. The institution of monarchy in England is demonstrated through the institution of kingship. The presence of the House of Lords suggests that the institution of kingship is in existence. The administration of England is aristocratic. The House of Commons is a reflection of how a full-fledged democracy works in this country. However, all of these disparate political aspects have been expertly welded together to make a flawless representative democracy.

The British Constitution keeps evolving with time

The British constitution is an example of how things have evolved over time. There was no presence of a constituent assembly to frame the British Constitution like the one that framed the Indian constitution. This nature is due to the fact that it is the result of slow growth and evolution. A particular date of its creation cannot be provided, and no one group of people can claim to be its authors. It has had a continuous evolution for over a thousand years. It has a variety of sources, and its evolution has been influenced by both accidents and high-level designs. The British Constitution is said to be the result of both wisdom and social circumstances. It has had a continuous evolution and reforms for over a thousand years from the Magna Carta to the Bill of Rights 1689 to the Act of Settlement 1701 to the Treaty and Acts of Union of 1706-1707 to Act of Union 1800 to the Parliament Acts 1911 and 1949 to the European Communities Act 1972 to the Human Rights Act 1998 to the House of Lords Act 1999 and to the European Union (Withdrawal) Act 2018.

British Constitution is flexible

One of the most obvious features of an unwritten constitution is the flexibility that comes with the uncodified structure, which might be considered a merit and demerit at the same time. A typical example of a flexible constitution is the British constitution. Because no distinction is established between constitutional legislation and ordinary law, it can be passed, changed, and repealed by a simple majority of Parliament. Both are treated the same way. The virtue of adaptation and adjustability has long been associated with the flexibility factor in the British constitution. This trait has allowed it to adapt to changing circumstances. The Indian Constitution, in contrast, is both flexible as well as rigid. However, amendments to the Indian Constitution are approved only after a tedious process.

British Constitution has a unitary character

In contrast to a federal constitution, the British constitution is unitary in character. The British Parliament, which is a sovereign body, has complete control over the administration. It is subservient to the executive organs of the state, which have delegated powers and are accountable to it. There is just one legislature in the United States unlike in the UK. England, Scotland, Wales and the rest of the United Kingdom is composed of administrative, rather than political autonomous units. Instead of adopting a federal model like the United States, the United Kingdom uses a devolutionary system in which political power is gradually decentralised. Devolution differs from federalism in the aspect that unlike federalism, in devolution, regions are not guaranteed constitutional powers.

British Constitution promotes a parliamentary executive

The United Kingdom is governed by a Parliamentary system. All of the King’s powers and authority have been taken away from him. Ministers who belong to the majority party in Parliament and continue in office as long as their party’s trust in them is maintained are the true functionaries. Acts and policies of the Prime Minister and his ministers are accountable to the legislature. The executive and legislative branches of government are not separated in this system, as they are in the Presidential form of government.

British Constitution promotes a Sovereign Parliament

Parliamentary sovereignty is a key aspect of the British constitution. Parliamentary sovereignty refers to the fact that parliament is superior to the executive and judicial spheres of the government and so has the power to adopt or repeal any law. Parliament is the sole legislative body in the country with unrestricted legislative powers, allowing it to enact, amend, and abolish any law it sees fit. There is no purer way for the courts to call into question the legality of laws approved by the British Parliament than through the courts. The parliament can even alter the constitution on its own authority as if it were ordinary law. It has the power to make what is legal, illegal and legalise what is illegal. Parliament became sovereign as a result of a series of power battles involving the king, the church, the courts, and the people throughout history.

British Constitution upholds the Rule of Law

Modern legal systems, like the United Kingdom’s, see the rule of law as a fundamental premise. It has been referred to as “as important in a free society as the democratic franchise,” and even “the ultimate governing principle on which the constitution is founded.” This prevents the Executive from acting arbitrarily. It has evolved to only work in tandem with the equal application of the law to all citizens (‘equality before the law,’) and to maintain the legal philosophy of parliamentary sovereignty within the framework of the constitutional monarchy. The main function of the judiciary is to uphold the rule of law. The principles of the rule of law are:

  • In the eyes of the law, everyone is equal, regardless of their position or rank.
  • This theory emphasises that the law, not any individual, is supreme.
  • Without a fair and adequate trial by a competent court of law, no one can be detained or imprisoned. A person cannot be punished or deprived of his or her life, liberty, or property unless there has been a specific breach of law proven in a regular court of law through a regular procedure.

British Constitution prescribes an Independent Judiciary

The Rule of Law in the United Kingdom is protected by the fact that judges can only be removed from office for significant misconduct and only after a procedure that requires the approval of both Houses of Parliament. As a result, the judges are free to make their decisions without fear or favour. The same approach has been taken in India, where judicial independence is regarded as an unambiguous component of the Constitution.

Sources of the British Constitution

The United Kingdom’s constitution is made up of character and statute, as well as judicial decisions, common law, precedents, customs, and traditions. There are thousands of documents, not just one. The British Constitution can be found in a variety of places. The UK constitution’s sources include both law and other less formal documents that have no legal force. Acts of Parliament, court cases, and conventions in the way the government, Parliament, and the monarch act are the key sources of constitutional law.

Historical constitutional documents

The evolution of UK constitutional legislation from the establishment of England, Wales, Scotland, and Ireland to the current day is the subject of the history of the UK constitution. The history of the United Kingdom constitution dates back to a time before the four nations of England, Scotland, Wales, and Ireland were fully created, despite the fact that it was formally established in 1800. Great charters and treaties, which define and limit the Crown’s power and citizens’ rights, are the earliest source of the British Constitution. Some of the historical constitutional documents are mentioned hereunder:

Magna Carta (1215)

The Magna Carta, or “Great Charter,” was undoubtedly the most influential historical document among other influences, on the long historical process that led to the rule of constitutional law in the UK today.

After King John of England broke a number of old rules and practises that had controlled England, his subjects forced him to sign the Magna Carta, which enumerates what would later be known as human rights. The right of the church to be free from government intervention, the rights of all free citizens to own and inherit property and be protected from exorbitant taxes, and the right of widows who held property not to remarry were among them. It also included rules prohibiting bribery and official corruption.

Magna Carta’s role as a source of liberty has long been recognised. One of the fundamental stipulations of the 1215 Charter was that no one should be imprisoned without first going through the legal system. This also introduced the concept of a jury trial. ‘No free man shall be seized, imprisoned, exiled, or in any manner ruined… except by the lawful judgement of his peers or by the law of the realm,’ according to Clause 39 of the 1215 Charter. This successfully established the rule of law notion, which protects people from arbitrary punishment.

Petition of Right (1628)

The Petition of Right, which was passed on June 7, 1628, is an English constitutional instrument that establishes explicit individual safeguards against the state and is said to be on par with the Magna Carta and the Bill of Rights of 1689. It was part of a larger dispute between Parliament and the Stuart monarchy that culminated in the Wars of the Three Kingdoms, which lasted from 1638 to 1651 and were finally settled in the Glorious Revolution of 1688. King Charles-I surrendered to the Petition of Right (1628), which featured protests against taxes without Parliament’s authorisation, unjust detention, and military grievances.

Bill of Rights (1689)

It is an original Act of the English Parliament that has remained in Parliament’s possession since its inception. The Bill established the ideals of frequent parliaments, free elections, and freedom of speech in Parliament, which is now known as Parliamentary Privilege.

All of the Bill of Rights’ main principles are still in effect today, and the Bill of Rights is frequently mentioned in judicial proceedings in the United Kingdom and Commonwealth countries. It occupies a central position in a larger national historical narrative of papers that established Parliament’s rights and established universal civil liberties, beginning with the Magna Carta in 1215.

Act of Settlement (1701)

The Act of Settlement of 1701 was enacted to ensure the Protestant succession to the crown and to enhance the guarantees that a parliamentary system of government would be maintained.

Acts of the UK Parliament

An Act of the UK Parliament is an action or a step taken by the Parliament that enact new legislation or modifies existing legislation. An Act is a Bill that has received Royal Assent from the Monarch after being approved by both the House of Commons and the House of Lords. Acts of Parliament, when taken collectively, make up what is known in the United Kingdom as Statute Law. The UK constitution is based on a number of articles of fundamental law. Devolution agreements; the right to vote and elections; the protection of human rights; the prohibition of discrimination; the existence of the Supreme Court; and much more are all covered by these laws. Despite their constitutional significance, there is no obvious formal distinction between these statutes and regular laws. 

These acts of influential value which have a constitutional significance, include the Act of Habeas Corpus (1679), the Act of Settlement (1701), the Reform Acts of 1832, 1867, 1884, 1918, and 1928, the Parliament Acts of 1911 and 1949, and the West Minister’s Statute of 1931, among others. 

The Habeas Corpus Act safeguards an essential right against detention. A person who is imprisoned without legal basis can be released under the Habeas Corpus Act. Previously the Act of Settlement dealt with the succession of the authority, according to which, The King must be a Protestant. The right to vote (franchise) and Parliamentary representation are determined by the different Reform Acts. the Reforms Act is the main basis for election and parliamentary representation issues till date. The House of Lords’ powers is governed by the Parliament Act of 1911, as revised in 1949. The Statute of Westminster establishes the Dominion status and their connection with the home country, the United Kingdom.

The most essential source of the British Constitution is the statute law as the Parliament is a sovereign body and it makes legislations. As a result, any law passed by Parliament (a Statute Law) supersedes all other constitutional sources. In the United Kingdom, the Constitution is generally modified through Statute Law. The Human Rights Act of 1998 and the Devolution Acts of 1998 are two notable instances. As a result of Parliamentary Sovereignty, there is no way to overturn Statute Law other than for Parliament to repeal it. In Common Law, Statute Law is utilised to resolve inconsistencies or areas of ambiguity.

Common Law

The third branch of law is common law. Common law, often known as case law or precedent, is a body of law created by judges, courts, and other tribunals. It is one of the many sources of the unwritten constitution of the United Kingdom. It will be mentioned in rulings that decide particular cases, but it may also have precedential implications for future cases. The majority of the rights that the British people have today are the result of legal battles. In England, judicial decisions have established the right to personal liberty, the right to public assembly, the right to freedom of speech, and so on. It is distinguished from and is on an equal footing with statutes, which are enacted through the legislative process, and regulations, which are enacted by the executive branch.

Conventions

Constitutional conventions play an important role in the uncodified British constitution. Some regulations are followed by the various constituent components despite the fact that they are not written in any legally binding instrument. There are often underlying enforcing principles that are not codified. A convention is a rule referring to strict behaviour that does not have the authority of law. Certainly, repeated practice can become formalised as a norm of conduct and, in that sense, become customs. Conventions are however obeyed by the people because they are extremely beneficial to the government’s smooth operation. Written conventions include ‘the Cabinet Manual‘ and ‘the Ministerial Code.’ Conventions have traditionally not been put down in official papers. However, in recent decades, accounts of them have become increasingly common in writings published by institutions such as the UK government. The courts’ approach to constitutional conventions is unquestionably distinct from their approach to legal standards. Conventions are beyond the scope of the courts’ authority to rule on.

Works of Authority

Books created by constitutional theorists that are regarded as authoritative guides on the UK’s uncodified constitution are known as works of authority on the UK constitution. On England’s constitutional law, legal authorities and notable jurists have written opinions. Arson’s Law and Customs of Constitution, May’s Parliamentary Practice, and Dicey’s Law of Constitution are considered authoritative commentaries on English constitutional law and practice. Because the United Kingdom lacks a codified constitution, these documents serve as guides to the country’s regulations and practises. Acts of Parliament can either adopt or override them.

Institutions

The Parliament

Over the course of three centuries, the British Parliament has evolved. Because there is no written constitution in the United Kingdom, the Parliament can be said to be the sole entity that exercises sovereign powers and has no boundaries. The British Parliament is bicameral, meaning it consists of two houses or chambers: the House of Lords (whose strength is not fixed) and the House of Commons (whose strength is fixed) (strength fixed at 650 members). Hereditary members make up the House of Lords.

The House of Lords

The House of Lords is the United Kingdom’s bi-cameral (two-chamber) parliament’s second chamber, or upper house. The House of Lords, along with the House of Commons and the Crown, make up the UK Parliament. Members of the house are divided into four categories: life peers, law lords, bishops, and elected hereditary peers. The House of Lords has the power to propose and pass amendments. Its powers, however, are restricted; if it does not agree with a piece of legislation, it can only postpone its enactment for up to a year. Following that, there are rules in place to ensure that the views of the House of Commons and the current government are carried out.

The House of Commons

The Speaker of the House of Commons presides over the lower chamber. The number of members fluctuates slightly over time as the population changes. In current practice, the Prime Minister leads the government and is always a member of the House of Commons majority party or a coalition. Although members of the House of Lords have served as Cabinet ministers, the Cabinet is usually made up of House of Commons members who belong to the majority party. Despite being the head of government and a member of Parliament, the Prime Minister is no longer the leader of the House of Commons. The Speaker of the House of Commons is the majority party’s chief spokesman.

Amendments and changes to the British Constitution

An amendment is a change to the wording of a Bill or a motion offered by a member of the House of Commons or the House of Lords. The term “consideration of amendments” refers to the final step of a bill’s development. When a Bill is passed by one House and then amended by the other House, the first House must consider the amendments.

The Executive

In the United Kingdom, the executive is known as the Crown. Previously, the Crown represented the monarchy. The King is now a member of the Crown. Her Majesty Queen Elizabeth II, a hereditary queen since 1952, is the formal head of state. The King, Prime Minister, Council of Ministers (CoM), Permanent Executive, Civil Servants, and the Privy Council make up the Crown as an institution.

The United Kingdom is governed by a Cabinet system. A cabinet is a form of governance that is multiple or collegiate. The entire Council of Ministers wields power, not just one individual. “All Ministers Sink and Swim Together,” is the principle. It is founded on a sense of shared responsibility for the Lower House. The Cabinet came from the Privy Council, which was established to advise the King.

The Monarchy

In the United Kingdom, monarchy is the oldest form of governance. In a monarchy, the head of state is a king or queen. The monarchy of the United Kingdom is regarded as a constitutional monarchy. This means that, while the Sovereign is the Head of State, an elected Parliament has the power to make and pass legislation. Despite the fact that the monarch no longer has a political or executive role, he or she continues to play a vital role in the country’s administration. The monarch is the head of state in the United Kingdom’s uncodified Constitution. Excluding the monarch’s responsibility, decisions to exercise sovereign powers are delegated from the monarch to ministers or officers of the Crown, or other public entities, either by statute or by convention.

As head of the state, the Monarch’s principal responsibilities include appointing the Prime Minister and all other ministries, opening new sessions of parliament, and giving royal assent to measures enacted by parliament, indicating that they have become law. As ‘Head of Nation,’ the Monarch has a less formal role. The Sovereign serves as a focal point for national identity, solidarity, and pride, as well as providing a sense of stability and continuity, formally recognising success and greatness, and encouraging voluntary service.

The Judiciary

In the United Kingdom, the judiciary is responsible for safeguarding the rule of law, democracy, and human rights. The composition of the judiciary is clearly demonstrated for the first time inside the Constitution, thanks to the Constitutional Reform Act of 2005. This type of codified law establishes a new arm of government. Separate from the House of Lords, an independent Supreme Court has been established, with its own appointment mechanism, staff, budget, and facility. Because Parliament is sovereign, the government can utilise amendment legislation to try to override court judgements. The power of judicial review gives the courts the ability to play a substantial role in the policymaking process.

Merits and demerits of an uncodified Constitution

The uncodified constitution, according to some, leaves the political system vulnerable to exploitation. There are a few restrictions on the authority of a government with a majority in the House of Commons to change the rules for its own benefit in the UK system. A strong government may theoretically dissolve devolved legislatures and remove the Human Rights Act. There are likewise few hurdles to a government ramming through ill-considered constitutional amendments. Every government branch’s powers are defined and established in codified constitutions. This means that individual government branches have restricted power in terms of enforcing laws, formulating laws, and forming government bodies, so that none of them may dominate the others.

The legislative branch of government has the authority to define and enact laws that govern society’s inner workings. Countries with codified constitutions limit this branch’s power, ensuring that the laws it makes are not damaging to society. Uncodified constitutions do not contain provisions that prevent the creation of legislation that may exacerbate inequality in a society, provide protection to the wealthy, or even limit the rights of the poor. Because an uncodified constitution is unrestricted, it may collect excessive taxes or even send its men to war without popular support. The greatest problem of an uncodified constitution, however, is the formation of conflict. Because there are no written laws, there may be misconceptions about customs and the application of the constitution’s provisions.

However, an uncodified constitution is highly beneficial as well, in many aspects. There are no specific methods for drafting constitutional law, unlike a codified constitution, and it will not be necessarily superior to other legislation. A country with an uncodified constitution lacks a defining moment when its government’s ideals were deliberated. Instead, they are permitted to develop in response to the political and social factors that have arisen over time. 

The unwritten nature of the UK constitution is a result of history and the gradual evolution of concepts and regulations. Unlike in other countries, where the codification of the constitution is given special attention, the UK has never done so. Despite the lack of definition, it is clear that the United Kingdom has a constitution that outlines the norms and procedures that govern governmental institutions.

The UK constitution is highly flexible and can easily evolve and adapt to changing circumstances because it is an unwritten constitution. In order to accommodate new trends, attitudes, and ideas, regulations must be changed in modern times. All that is required is for parliament to recognise the need for change and to keep amending the law. As a result, historic provisions in the UK constitution are observed to not stifle progress, but rather are subject to revision in order to conform with changing circumstances.

Parliament and Brexit

The un-codified and unwritten nature of the British Constitution caused a crisis during Brexit and there was an uncertainty as to how the matters of constitutional importance would then be dealt with. The absence of a codified constitution resulted in a serious constitutional debate regarding what a government can do without Parliament’s assent. The lack of clear referendum rules highlighted an underlying political debate of who has ultimate sovereignty.

Conclusion

The United Kingdom’s Constitution is in constant flux due to its lack of codification. Each new statute, each new big judicial decision, adds another stone to the British Constitution’s building. As a result, the British constitution is always changing, albeit slowly and often subtly. Britain advances through evolution rather than upheaval. 

References

  1. https://consoc.org.uk/the-constitution-explained/the-uk-constitution/#what-are-the-sources-of-the-uk-constitution
  2. https://www.ucl.ac.uk/constitution-unit/explainers/what-uk-constitution
  3. https://about-britain.com/institutions/constitution.htm
  4. https://www.bl.uk/magna-carta/articles/britains-unwritten-constitution

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Is it safe to invest in India as a minority shareholder

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This article has been written by Bhupender Palustya pursuing a Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution. This article has been edited by Zigishu Singh (Associate, Lawsikho) and Ruchika Mohapatra (Associate, Lawsikho). 

This article has been published by Shoronya Banerjee.          

Introduction

Minority shareholders are those who hold equity of a company and are not able to enjoy voting power of a firm because of their below 50% ownership of the firm’s equity capital. The role of minority shareholders is very important in building the economy of a company. As we all know, companies are considered to be the soul of the economy and are important for the growth of a country. There are many instances in India where conflict between minority shareholders and controlling shareholders is seen like in the case of  Tata v. Cyrus Mistry where Mistry`s family had 18.47% of the total equity capital of Tata Sons and 66% of the total equity of Tata sons was owned by Tata Trusts. In this case, the Tata group decided to remove Cyrus Pallonji Mistry from the position of Executive Chairman of Tata Sons, and thereafter Mistry alleged oppression and mismanagement on the part of the Tata Trust. Here, the Supreme Court stated that the removal of Mistry from the post of Executive Chairman of Tata sons does not amount to an act that is “oppressive or prejudicial in nature.” There has been a significant attempt on the part of the Ministry of Corporate Affairs to protect the interests of Minority shareholders by including more comprehensive provisions in the Companies Act of 2013 in comparison to the Companies Act of 1956. Through this article, the author attempts to delve into a very important concept of corporate law which deals with the circumstances in India with regards to minority shareholder`s investment.

 The problems with minority shareholders in India

(i) Majority shareholders’ control over management 

In countries like India, where most companies have concentrated ownership, majority shareholders’ control over management is quite common and this is the reason behind the cause of irregularities, manipulation in accounts, manipulation in audits, etc. which is the biggest problem faced by small shareholders. This issue was highlighted by the ‘Satyam Scam’. It was one of India’s largest financial scams. In this scam, Byrraju Ramalinga Raju, the chairman of Satyam computers manipulated financial statements of Satyam computers creating fake information about revenues, operating profits, interest liability, and cash balance. This misled the minority shareholders and other investors. After getting a high value of shares based on fake information, he invested in his other real estate companies  (Maytas Infrastructure and Maytas Properties).       

(ii) Fiduciary duties of controlling shareholders are not specified

As we all know, there was no provision in India regarding fiduciary duties of controlling shareholders and there are many instances where these shareholders used a company for their benefits by abusive use of RPTs (Related Party Transactions). There is a scam related to this viz. ENRON Scam. ENRON is an oil-based company in the USA and there are many related transactions that came out in the scam, and in the Vijay Mallya case, the Serious Fraud Investigation Office (SFIO) alleged that Kingfisher paid around 30 crores to a related party named FIFOTL without disclosing this transaction to the minority shareholders, its lenders and the board of Kingfisher Airlines.  

(iii) Appointment to the board of directors

In India,  directors are appointed by voting at a general meeting that every director appointed shall have a majority vote cast in his favor by shareholders. In countries like India, where most companies have concentrated shareholdings and most of the board is appointed by majority shareholders, there are chances that the board of directors will act according to majority shareholders. This may create a sort of control of shareholders over the board. The majority shareholder`s control over the board might then create injustice for the small shareholders.      

Remedial rights to minority shareholders granted by  Companies Act, 2013

Section 241 and Section 244 of the Companies Act

Under Section 241, an application may be made to the Tribunal by any member of a company or by the Central Government for relief in case of oppression and mismanagement in the affairs of the company.

There are three conditions in which a member of a company may complain:-

  • Where the affair of the company is in a manner prejudicial:
  1. to the public interest,
  2. to him or any other member,
  3. to the interests of the company.
  • The Central Government may also suo moto to apply the tribunal.

There are four scenarios in which the Government is of the opinion that the affairs of the company are conducted in a prejudicial manner:-

(a) Any person concerned with the conduct and management of the affairs of a company is or has been in connection therewith guilty of fraud, misfeasance, persistent negligence, or default carrying out his obligations and functions under the law or of breach of trust.

(b) The business of a company is not or has not been conducted and managed by such a person by sound business principles or prudent commercial practices.

(c) A company is or has been conducted and managed by such person in a manner which is likely to cause, or has caused, serious injury or damage to the interest of the trade, industry, or business to which such company pertains.

(d) The business of the company is or has been conducted and managed by a person with the intent to defraud its creditors, members, or any other person otherwise for a fraudulent or unlawful purpose or in a manner that prejudices public interest. 

Section 244 : right to apply under Section 241 

Basically, this section provides eligibility to the members who hold the right to apply under Section 241

In the case where the company has share capital:-

  1. 100 members ;
  2. 1/10th of total members; or
  3. Holding 1/10th of total issued share capital shall right to apply under Section 241. 

In the case where the company does not have share capital:-

-At least 1/5 of the total numbers of its members;

-The tribunal has the power to waive all or any of these requirements.

-Anyone or more members may make an application to the tribunal on behalf of all the members by obtaining the written consent of other members.  

Section 242 : power of tribunal

Section 242 states that on receipt of the application, if the tribunal is of the opinion that the affairs of the company are being conducted in a manner prejudicial or oppressive to any member or against public interest or interest of the company and that the tribunal would be justified in winding up the company on just and equitable grounds but doing so will unfairly prejudice such members of the company, then it can pass any order it considers to be fit with a view to ending the matters being complained of in the application.

Nature of the Order that can be passed by the tribunal

  • The tribunal may conduct the affairs of the company in the future. 
  • Tribunal may order the purchase of shares or interest of any member of the company by the other member thereof or by the company.
  • In case of purchase of its shares by the company as aforesaid, the consequent reduction of its share capital. 
  • It can impose restrictions on the transfer or allotment of shares of the company. 
  • The termination, setting aside or modifications, of any agreement, between the company and the managing director, any other director or manager, upon such terms and conditions as may, in the opinion of the tribunal, be just and equitable in the circumstances of the case; 
  • The termination, setting aside or modifications, of any agreement, between the company and the person other than referred in the clause. 
  • The setting aside of any transfer, delivery of goods, payment, execution, or other act relating to the property. Removal of MD etc these kinds of orders a tribunal may pass.

A certified copy of the order of the tribunal shall be filed by the company with the registrar within 30 days of the order of the tribunal. In many cases, the tribunal orders an interim order that it thinks fits for regulating the conduct of the company’s affairs. The tribunal may make an order to alter the MOA of a company. 

Section 243 : consequences of termination or modification of the agreement

(a) No damages or compensations are given to the person for loss or termination of office.

(b) Any MD, Director, or manager whose agreement is terminated by the tribunal is not able to join office in the company without the permission of the tribunal.

(c) And also a person who is not found fit for the office shall not hold the office of director or other office connected with the conduct of the company’s management for 5 years from the date of order. But the Central Government may permit after getting the leave of the tribunal.

(d) Any provision of MOA regarding termination is not applicable in this section.

Section 245 : class action suit

When a group of people of a particular class files a relief petition against a company it is known as a class-action suit. Like, a group of members, a group of debenture holders, etc. (suit must be against the same company and for the same cause). In this section depositors are also included to file a petition and action may also be taken against CA, CS, or any other auditors.

Section 151: small shareholder’s director

For electing a small shareholder`s director there should be 1000 small shareholders or 1/10 of total shareholders whichever is lower. Name, signature, address, shares held and folio number of candidates for the post of small shareholder`s director should be given to the company at least 14 days before the meeting.                      

Limit of minimum public shareholding

Security contracts (regulation) Rule 19A states that a listed company must have at least 25% of public shareholdings. But SEBI has observed that companies that undergo insolvency proceedings under IBC face a very peculiar or common problem that the public holdings post the insolvency proceedings often falls below 25%.  Where companies that are listed under the stock exchange have maintained a minimum public shareholding of 25% but after insolvency proceedings are carried out it often goes below 25%. So SEBI issued guidelines regarding this problem – allowing these companies to have public shareholdings of a minimum of 5% for the first six months when insolvency proceedings get underway, then within 1 year they have to increase it by 15% and within another 1 year, they have to increase 25%. 

Suggestions to mitigate loopholes

i. Need of demutualization by SEBI

As we all know, earlier the brokers used to own, control, and manage stocks, this created conflict between brokers and their clients. By demutualization, the government separates the rights of trading and ownership.

In India, the shares of a company are mostly held by the promoters and most companies have concentrated shareholdings in India, so there must be a separation between management and ownership because decision making can be influenced by concentrated shareholders. And by this, we can provide a safer and protected environment to investors as minority shareholders.

ii. Controlling shareholders agreement

This concept is implemented in the United Kingdom stating that every listed company in the United Kingdom has to comply with this agreement which talks about fiduciary duties of promoter shareholders (controlling shareholders).

In India, these kinds of laws should be incorporated by which all fiduciary duties of controlling shareholders towards the company and minority shareholders would be specified. By implementing this, our nation can become safer for small investors.

iii. Slate voting

Under Sections 151 and 152, the Act provides for the appointment of directors. Shareholders are given the power to elect a director on the general board of directors; every director shall be appointed by the shareholders at the GM according to the count of the majority votes cast in his favor. This creates a high chance that the board will work on the will of majority shareholders. That is why in countries like India concentrated shareholding is a common problem. There is a mechanism in Italy named” Voto di lista” which is a way for nomination and election of the Board of Directors and the Board of Statutory Auditors. This slate voting system is a highly innovative and progressive solution to protect the interests of minority stakeholders.

This mechanism of Slate voting provides the right to minority shareholders to appoint one or more representatives. In Italy, listed companies have to write in their by-law about the criteria for conducting elections.  This should be based on submission of the slate at AGM and there must be at least one director elected from the slate given by minority stakeholders.

This mechanism allows all the shareholders who are called to vote on a slate of nominees, submitted by controlling shareholders and minorities alike. Such that there is at least one director elected from the slate submitted by minority shareholders. A mechanism of this kind would be ideal for Indian listed to ensure minority protection.

Conclusion

After discussing provisions of the Companies Act, 2013 regarding minority shareholders we can conclude that there are many provisions in India regarding inter-corporate loans, investments, guarantees, and security-related party transactions but by adding some new amendments and adopting certain solutions Indian corporate governance has become better.

There are some suggestions for better protection of minority shareholders that were discussed above and if our laws focused on giving more power to minority shareholders for active participation in the company’s decisions then this would make India investor-friendly and our nation would become an investment decision. When a country gives a legal framework and disciplinary mechanism to protect minority shareholders, then more people are willing to invest which increases the investment in the country.

References 

  1. https://www.usgbc.org/articles/vote-usgbc-board-directors-slate-2022
  2. https://www.sebi.gov.in/acts/contractact.pdf
  3. Gerard J. Sanders, GOOD GOVERNANCE AND MODERN INTERNATIONAL    FINANCIAL INSTITUTIONS, AIIB YEARBOOK OF INTERNATIONAL LAW
  4. https://www.samco.in/technology/pledge-monitor
  5. https://www.oecd-ilibrary.org/governance/improving-corporate-governance-in-india_9789264220652-en
  6. https://taxguru.in/company-law/oppression-mismanagement-section-241-246-companies-act-2013.html#:~:text=Section%20242%20lays%20down%20the,company%2C%20and%20that%20the%20Tribunal

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All about Section 309 of the Indian Penal Code, 1860

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This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article provides a detailed analysis of Section 309 of the Indian Penal Code, 1860. 

Introduction 

Section 309 of the Indian Penal Code, 1860 lays down the provision for an attempt to commit suicide as an offence. It is to be noted that suicide is as such no crime under the Indian Penal Code, 1860 but an attempt to commit suicide has been made punishable under Section 309. The latter has been carried out taking into consideration mens rea as one of the essential elements of the aforementioned offence. There exists a lot of misunderstanding about Section 309 of the 1860 Code among the general public, and many of them believe that the Supreme Court of India and the legislature have struck it already. While this provision has been deemed unconstitutional by some, few argue that the same should be decriminalised. The present article provides a detailed analysis of Section 309 of the penal Code. 

Section 309 of the Indian Penal Code, 1860 : an insight 

Section 309 of the Indian Penal Code, 1860 reads as, “Whoever attempts to commit suicide and does any act towards the commission of such offence, shall be punished with simple imprisonment for a term which may extend to one year or with fine, or with both.” The intention of the legislature while formulating this provision was clear as the provision implies that if someone tries to commit suicide and fails to achieve his or her goal, he or she may face simple imprisonment for up to one year, a fine, or both.

The subject matter of this provision is ‘suicide’ and understanding the same is significant with respect to the discussed provision. Suicide is made up of two words, ‘sui’, which means self, and ‘cide’, which signifies killing. In other words, a person committing suicide must do it themselves, regardless of the tools they use to accomplish their goal of killing themselves. One of the prime issues concerning suicide is that the same is not specifically defined in the Indian Penal Code, 1860. In a divergent sense, every act that brings a person closer to death and further from life is a crime. The intention, no doubt, maybe deduced from a variety of circumstances, including the method used to commit suicide. However, the veracity of these inferences may be questioned. As the simple acts themselves may not imply a specific intention, various people may engage in the same or similar behaviours with different intentions, and not all of them are intended to end one’s life.

The Law Commission of India proposed abolition of Section 309 in its 42nd Report (1971), stating that the criminal provision is “severe and unreasonable.” The Government of India approved the suggestion after the aforementioned Law Commission’s Report was made public, and the Indian Penal Code (Amendment) Bill, 1972 was tabled in the Rajya Sabha to remove Section 309. The Bill was referred to a Joint Committee of both Houses, and after receiving its report, the Rajya Sabha approved it in November 1978 with minor revisions. The Bill was pending in the Sixth Lok Sabha when it was dissolved in 1979, as a result, it expired.

State wise statistics of suicides in India (2016-2020)

Each suicide is a personal tragedy that steals an individual’s life too soon and has a long-term impact on the lives of their family, friends, and communities. In our nation, almost a million individuals commit suicide each year. Suicides can be caused by a variety of factors, including professional/career issues, feelings of loneliness, abuse, violence, family issues, mental diseases, alcohol addiction, financial loss, chronic pain, and so on. The National Center for Suicide Prevention collects statistics on suicides through police reports.

The National Crime Records Bureau’s (NCRB) report on suicide has calculated rate of suicides using projected population for the non-census years whereas for the census year 2011, the population in the Census 2011 Report was used. A total of 1,53,052 suicides were reported in the country during 2020 showing an increase of 10.0% in comparison to 2019 and the rate of suicides has increased by 8.7% during 2020 over 2019. While the rate of suicide was 10.3 back in 2016, it increased to 11.3 in 2020. 

Maharashtra had the highest number of suicides with 19,909 individuals, followed by Tamil Nadu with 16,883 suicides, Madhya Pradesh with 14,578 suicides, West Bengal with 13,103 suicides, and Karnataka with 12,259 suicides, accounting for 13.0%, 11.0 %, 9.5 percent, 8.6%, and 8.0 percent of total suicides, respectively. Suicides in the remaining 23 states and 8 UTs accounted for 49.9% of the total. Uttar Pradesh, the country’s most populous state (16.9% of the total population), has recorded a smaller percentage share of suicide fatalities, accounting for just 3.1 percent of all suicides reported in the country.

The most populous Union Territoriy (UT), Delhi, has the greatest number of suicides (3,142) among the UTs, followed by Puducherry with 408. During the year 2020, a total of 23,855 suicides were recorded in the country’s 53 megacities. Uttarakhand (82.8 percent), Mizoram (54.3 percent), Himachal Pradesh (46.7 percent), Arunachal Pradesh (42.9 percent), Assam (36.8%), and Jharkhand (30.5 percent) reported significant percentage increases in suicides in 2020 over 2019, while Manipur (24.1 percent), Puducherry (17.2%), Uttar Pradesh (12.1%), Haryana (4.5 percent), and Chandigarh (2.3 percent) reported significant percentage decreases in suicide cases.

The suicide rate trend in states and union territories

The rate of suicides, or the number of suicides per 100,000 people, has long been used as a benchmark for comparison by the NCRB while preparing its report. In the year 2020, the overall suicide rate in India was 11.3 percent. Suicide rates were greatest in the Andaman & Nicobar Islands (45.0), Sikkim (42.5), Chhattisgarh (26.4), Puducherry (26.3), and Kerala (24.0). 

‘Marriage related issues’ (particularly, ‘dowry related issues’) and ‘impotency/infertility’ were the significant reasons behind a higher proportion of female victims of attempted suicides. The most susceptible age groups committing suicides were those between the ages of 18 and 30, as well as those between the ages of 30 and 45. Suicides occurred in 34.4 percent and 31.4 percent of these age groups, respectively. Suicides among minors (below 18 years of age) were primarily caused by family problems (4,006), love affairs (1,337), and illness (1,327). 

Major causes of suicide in India

The NCRB Report 2020 reveals that suicides were mostly caused by ‘family problems’ and ‘illness,’ accounting for 33.6 percent and 18.0 percent of total suicides in 2020, respectively. Other reasons for suicide included;

  1. Drug abuse/addiction (6.0 percent),
  2. Marriage related issues’ (5.0 percent),
  3. Love affairs (4.4 percent),
  4. Bankruptcy or indebtedness (3.4 percent),
  5. Unemployment (2.3 percent),
  6. Failure in examination (1.4 percent),
  7. Professional/career problem(1.2 percent), and
  8. Poverty (1.2 percent).

In 2020, a total of 10,677 people working in the agriculture industry (including 5,579 farmers/cultivators and 5,098 agricultural labourers) committed themselves, representing for 7.0 percent of all suicide victims (1,53,052) in the nation. There were 5,335 men and 244 women among the 5,579 farmer/cultivator suicides. There were 4,621 males and 477 females among the 5,098 suicides committed by agricultural labourers in 2020.

Mass suicides  

In the year 2020, there were 121 reported cases of mass/family suicides. A total of 272 people died as a result of these suicides, including 148 married people and 124 unmarried. During the year 2020, the highest number of mass/family suicides were reported in Tamil Nadu (22 cases), followed by Andhra Pradesh (19 cases), Madhya Pradesh (18 cases), Rajasthan (15 cases), and Assam (10 cases), with a total of 45 people dying in Tamil Nadu, 46 in Andhra Pradesh, 39 in Madhya Pradesh, 36 in Rajasthan, and 10 in Assam. In ten of the 53 cities studied, mass/family suicides were documented. In these three cities, there have been 26 occurrences of mass/family suicides, resulting in the deaths of 63 people in 2020. There were 40 married people and 23 singles among them. 

Mass suicides are a common sight in India for every year there has been several cases across the nation that has been responsible for shooking the entire nation. One such incident was on December 6, 2021 when a 47-year-old auto parts merchant, his 67-year-old mother, his 45-year-old wife, a grocery store owner, and their two girls, committed suicide in Bhopal. The cause of their suicide was inadequacy in fulfilling moneylender’s loan. The two little girls had started poisoning the household pets the next day. Then each and every one of them ingested the poison. Neighbours had rushed them to the hospital, but in three days, the entire family had breathed their last. The Chief Minister, Shivraj Singh Chouhan, was startled by the incident as the long-standing issue of predatory lending came back into the spotlight. “Hum buzdil nahi, majboor hain” (we’re not cowards, we’re powerless) were the family’s concluding remarks in the 13-page message. 

Further, on 3rd January, 2021, a four members family, including two minors were found hanging from a tree at a village in Modasa rural area of Aravalli, two days after they went missing. Polices have claimed the incident to be a mass suicide. As per investigation, the cause of the suicide was financial difficulties as the bread earner of the family was unemployed since lockdown. Thus financial constrains have been discovered to be the primary reason behind mass suicides. 

Constitutionality of Section 309 of the Indian Penal Code, 1860

In order to understand the constitutionality of Section 309 of the Code of 1860, certain landmark decisions by courts across India need to be taken into account, as have been provided hereunder. 

Maruti Shripati Dubal v. State of Maharashtra (1986)

Constitutionality of Section 309 of Indian Penal Code, 1860 first came up for consideration before the Bombay High Court in the case of Maruti Shripati Dubal v. State of Maharashtra (1986). The reasonings that the Court had provided before arriving at its decision of striking down Section 309, have been elaborated below:

  1. The desire to die, and the right to die, are both natural human emotions. Whatever circumstances lead to a person ending or terminating their life, arrive at that person’s voluntary decision. The conflation of the conditions that drive or encourage a person to end their lives and the act of ending one’s life leads to the incorrect conclusion that the desire to end one’s life is not natural. It’s also important to distinguish between the unnatural cause of death with that of the natural cause. The methods used to take one’s life can range from hunger to strangling and are often unnatural. But, the desire which leads one to resort to the means is not unnatural.
  2. Suicide or attempts to commit suicide are not a normal part of life. It’s an unusual occurrence, an extraordinary circumstance, or a peculiar personality feature. Abnormality and uncommonness aren’t unnatural just because they’re unusual. Mental diseases and imbalances, unbearable physical ailments, affliction by socially feared diseases, decrepit physical condition preventing the person from taking normal care of his body and performing normal chores, loss of all senses or desire for the pleasures of any of the senses, extremely cruel or unbearable conditions of life making it painful to live, a sense of shame or disgrace or a need to defend one’s honour or a complete loss of interest in life or a sense of shame, are among the various circumstances in which suicide is committed or attempted.
  3. The difficulty in coming up with a convincing definition cannot be used to argue for the legitimacy of the provision of Section 309, especially if it is penal in nature. Because there is no logical definition or even standards to separate the felonious from the non-felonious behaviour, Section 309 stands arbitrary and in violation of Article 14 of the Indian Constitution. Arbitrariness and equality, as it is aptly remarked, are adversaries. The provision of Section 309 further contravenes the equality established by Article 14 since they treat all attempts to commit suicide in the same way, regardless of the circumstances in which they are made. When it is realized that some people commit themselves to escape the brutal conditions of life, which are a punishment to them at all times, the arbitrariness of the section becomes even more apparent. The relief from such a monotonous existence is, in fact, a blessing for them. Despite this, a society that is either incapable or uninterested in changing a person’s living conditions wants to penalise him/her for attempting self-help or self-deliverance.
  4. When the provisions of Section 309 are contrasted to those of Section 300 of the Indian Penal Code, 1860, the discriminating nature of the former becomes particularly prominent. When it comes to defining murder, the legislature has gone to great lengths to distinguish between culpable homicide that amounts to murder and culpable homicide that does not, and has prescribed different sentences for the two. Section 309, on the other hand, imposes the same punishment on all people, regardless of the circumstances in which they attempt suicide. This is odd, given that murder is a more severe crime with far-reaching ramifications for other members of society.
  5. If the objective of the imposed penalty is to dissuade future suicide attempts, it is difficult to see how this can be accomplished by punishing individuals who have attempted suicide. Those who attempt suicide due to mental illnesses deserve psychiatric therapy rather than incarceration in person cells, where their condition is likely to worsen, leading to additional illness. Those who attempt suicide due to severe physical ailments, incurable diseases, torture, or a decrepit physical state created by old age or disablement, require nursing facilities rather than jails to prevent them from attempting suicide again.
  6. Section 309 of the Indian Penal Code, 1860 was struck down by the Court on grounds that the provision is ultra vires the Constitution being violative of Articles. 14 and 21.

Chenna Jagadeeswar and Anr. v. State of Andhra Pradesh (1987)

In Chenna Jagdeshwar v. State of Andhra Pradesh (1988), the Andhra Pradesh High Court decided that the right to die is not a fundamental right under Article 21 of the Indian Constitution, and hence Section 309 of the IPC is not unconstitutional. The observations made by the Hon’ble High Court have been provided hereunder:

  1. The Court reasoned that if Section 309 is declared unconstitutional, it is exceedingly unlikely that Section 306 of the Indian Penal Code, 1860 will survive. As a result, those who intentionally aid and persuade someone to commit suicide may get away with it. It is true that a society which is unconcerned about improving the living situations of troubled people cannot justify punishing them for seeking self-help or self-deliverance. But the question is whether it is appropriate for the government to take the stance that individuals who are unable to live a dignified life are welcome to depart it.
  2. It is prudent to err on the side of caution in a nation like India, where the individual is subjected to enormous pressures. Conferring a right to self-destruction and removing it from the purview of the courts to investigate would be a step backwards in the scene of human pain and motivation. It may result in a number of inconsistencies, which are undesirable. As a result, the Court found that Section 309 of the Indian Penal Code, 1860 is lawful and does not violate Articles 19 and 21 of the Constitution.
  3. In the present case, the appellant had killed his four children, attempted to commit suicide for reasons which are not clear. Taking into account the gravity of the facts, the Hon’ble Court held that the conviction of the appellant under Section 309 was perfectly justified and therefore confirmed the same.

P. Rathinam v. Union of India (1994)

In the case of P. Rathinam v. Union of India (1994), the Supreme Court upheld the Bombay High Court’s decision in State of Maharashtra v. Maruti Sripati Dubal (1986), observing that a person has the right to die and declared that Section 309 is unconstitutional. The different opinions that the Apex Court put forth in this present case have been provided hereunder:

  1. The Court observed that suicide is a psychological issue, not a symptom of criminal behaviour. The Supreme Court agreed with Dr. (Mrs.) Dastoor who stated that suicide is essentially a “cry for aid,” and not a “request for punishment.”
  2. The Court disagreed with the Andhra Pradesh High Court’s conclusion in the case of Chenna Jagadeeswar and Anr. vs State of Andhra Pradesh (1987) that if Section 309 is declared unconstitutional, Section 306 is unlikely to survive, because self-death is fundamentally distinct from assisting others in killing themselves. The Apex Court stated that the provisions are on opposing sides because in one, a person takes his own life, while in the other, a third person is aided in taking his own life.
  3. The Court ruled that Section 309 of the Indian Penal Code, 1860 should be repealed in order to make penal rules more humane. It is a cruel and unreasonable provision that may result in a person being punished twice (due to his/her failure to commit suicide and who has undergone misery and would face ignominy if he/she did not commit suicide). An act of attempted suicide cannot be argued to be against religion, morality, or public policy, and it has no negative impact on society. Furthermore, suicide or attempts to commit suicide create no harm to others, hence the State’s intervention with the individuals’ personal liberty is unnecessary. The Apex Court had concluded that Section 309 violates Article 21, and so, it is void.

Gian Kaur v. State of Punjab (1996)

The Supreme Court’s constitution bench in Gian Kaur v. State of Punjab (1996) held that the right to life under Article 21 of the Constitution does not include the right to die or the right to be killed, thereby providing some clarity on the constitutionality of Section 309 of the Code of 1860. The Apex Court’s observations are provided hereunder: 

  1. The importance of ‘sanctity of life’ should not be disregarded. Article 21 guarantees the protection of life and personal liberty, and extinction of life cannot be construed to encompass the protection of life by any stretch of the imagination. Whatever the philosophical justification exists for allowing a person to end his/her life by suicide, the Court considered it impossible to read Article 21 to include the right to die as a fundamental right provided therein. Although the ‘right to life’ is a natural right enshrined in Article 21, suicide is an unnatural termination or extinction of life, and hence incompatible with the idea of the right to life.
  2. Article 21’s word ‘life’ has been interpreted as life with human dignity to give it meaning and content. Any component of life that makes it dignified may be read into it, but not that which extinguishes it and, as a result, is incompatible with life’s continuous existence, culminating in the effacing of the right itself. If there is a right to die, it is essentially incompatible with the right to life, just as death is incompatible with life. The Supreme Court had also held that there is no requirement of awarding any minimum sentence with respect to the offence of attempt to suicide. The sentence of imprisonment or fine is not compulsory but discretionary. Taking these reasons into consideration, the Apex Court concluded that Section 309 is not violative of constitutional provisions and therefore is valid. 

Attempt to commit suicide as perceived by the Mental Healthcare Act, 2017

With the Mental Healthcare Act, 2017 on board, there have been several speculations that Section 309 of the Indian Penal Code, 1860 has seen the end of the day already. After the passage of the Mental Healthcare Act of 2017, many people believe that Section 309 has been abolished or decriminalised. However, this legislation does not repeal Section 309 of the aforementioned Code, instead, it narrows the scope of its application. Section 115 of the Act explicitly specifies that if a person tries to commit suicide, it will be assumed that he or she was under tremendous stress and that he or she would not be prosecuted or punished under Section 309 of the Indian Penal Code, 1860.  

It’s worth noting that, with the exception of the section assuming “severe stress” on the side of the individual who attempted suicide, the Act hasn’t either expressly abolished Section 309 or made it applicable to all suicide attempts. Furthermore, it makes the government legally obligated to treat and rehabilitate them so that the chance of a suicide attempt is lowered. It appears that a person who attempts suicide but has no (proven) ‘severe stress’ cannot be kept out of Section 309. Nonetheless, the appropriate government is required by law to “plan, design, and implement programmes for the promotion of mental health and the prevention of mental illness in the country” in general, as well as “plan, design, and implement public health programmes to reduce suicides and attempted suicides in the country” in particular.

Debates for and against attempt to suicide 

Despite the fact that attempt to suicide is a severe problem that necessitates mental health interventions, it is nonetheless classified as a criminal offence under Section 309 of the Indian Penal Code, 1806.

Decriminalisation of attempt to suicide 

  1. Decriminalisation of suicide attempt will help to reduce stigma and prevent punishment in the aftermath of an occurrence, as well as allow for more accurate collecting of suicide-related statistics.
  2. According to research, psychiatric illness is a leading cause of non-fatal suicide conduct. Depression and other mental diseases are risk factors for non-fatal suicide attempts in adults and kids. Other risk factors include childhood adversities like sexual/physical abuse, alcohol or drug abuse, stressful life events like the death of a loved one, the loss of a job or relationship, financial bankruptcy, impending criminal prosecution, and suffering from, or recently being diagnosed with, a terminal illness.
  3. In essence, persons who attempt suicide require assistance rather than punishment due to the substantial risk of mental or psychological illness. The philosophical boundaries surrounding an individual’s right to life and death have been argued, though inconclusively, across a variety of fields and views.
  4. Suicide is now decriminalised in 59 nations throughout the world, according to the World Health Organization. Attempted suicide is no longer a crime throughout Europe, North America, much of South America, and a few areas of Asia. Suicide attempt decriminalisation took place relatively late in nations governed by English common law. Similarly, in these nations, legal and coroner participation in suicide certification is far higher than in continental Europe and the Scandinavian region, where clinicians are free to certify suicidal deaths without the intervention of legal authorities.
  5. Most significantly, because the majority of attempted suicides are reported to authorities as unintentional, persons who have attempted suicide do not have access to the essential emotional and mental health help. Patients and their families will be in a better position to seek mental health care openly following an attempt if the crime is decriminalised. Decriminalisation is a more sensitive and humanitarian manner of dealing with the problem than prosecution from a society standpoint. It will also aid in the improvement of reporting and development of more accurate epidemiological data on suicidality. Suicide becomes a hidden problem as a result of the criminalisation of suicidal acts, making it harder for suicidal people to get the help they need. Improved and more accurate statistics can help in better planning and resource allocation for efforts towards suicide prevention.

Arguments against decriminalisation 

  1. The first main argument is based on the theological idea that only God has the authority to choose when a person’s life should come to an end, and therefore attempting to terminate one’s own life should be regarded as a malicious act. Suicide has long been condemned by faiths all throughout the world. Suicidal deaths in several ethnic groups are not commemorated with traditional burial rites. In Hinduism, suicide is not considered to be a means of attaining salvation (moksha). Suicidal death is generally connected with dishonouring the entire family, social disgrace, and other consequences.
  2. Another important proponent of criminalisation is the assumption that the law can serve as a deterrent to future efforts. However, it is still unclear if having a legislation that allows suicide attempters to be prosecuted serves as a deterrence or not. While awareness of Section 309’s presence in India cannot be said to be great, a considerable number of people are aware of its existence yet are not discouraged from attempting suicide. A study of 200 attempted suicides in a General Hospital Emergency Department found that 46.2 percent of males and 26.6 percent of females were aware of the legislation prior to attempting suicide.

Conclusion

While some readers might support the Apex Court’s decision in the 1996 case of Gian Kaur v. State of Punjab, many will disagree with the reasoning offered.  It is notable to mention that the provisions of the Mental Healthcare Act, 2017 are unknown to the general public along with several police officers. As a result, it is required to undertake a campaign to educate them about the statute so as to effectively implement the above-discussed provision.  

References 

  1. https://www.latestlaws.com/bare-acts/central-acts-rules/ipc-section-309-attempt-to-commit-suicide/.
  2. https://www.scobserver.in/journal/right-to-die-court-in-review/.
  3. https://lawtimesjournal.in/gian-kaur-vs-the-state-of-punjab/.

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All you need to know about medical jurisprudence

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 This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article provides a detailed analysis of medical jurisprudence with respect to India. Further, the article also discusses the relationship of medical science with Indian laws from legislative and judicial lenses. 

This article has been published by Shoronya Banerjee.

Introduction

Medical jurisprudence is the branch of law that studies the relationship between medical facts and legal issues. Medical witnesses may testify in front of courts, administrative tribunals, inquests, licencing agencies, boards of inquiry or certification, or other investigative organisations. Doctors in most countries are required by law to certify individuals for workers’ compensation or other national insurance plans, the occurrence of birth or the cause of death, to report any cases of specified infectious diseases to the authorities, and to determine when mentally disturbed individuals need to be detained to protect themselves or others. The most common tasks of medical jurisprudence are these everyday activities. The use of a doctor as a witness is less common, but perhaps more important. When physicians appear in court to testify about what they have seen, they are subjected to the same restrictions that apply to other witnesses. As the discipline evolved, the medical practitioner/doctor gained enormous authority thereby playing a critical role by providing expert opinions in cases. With this authority, however, came enormous responsibility. To mention a few, there is the doctor-patient relationship, medical negligence, ethical behaviours, and professional misconduct. Medical jurisprudence is a very old discipline, but with the advancement of technology and the addition of changes to the legal system, this sector is continually evolving. The present article provides a detailed analysis of medical jurisprudence from an Indian legal perspective. 

Turning the pages of history for medical jurisprudence

Medical jurisprudence stretches back to 4000-3000 BC, and the data recorded can be studied from the Materia Medica Imhotep (around 2300 BC), the Egyptian ruler’s personal physician and chief judge, and is regarded as the first medico-legal specialist. While in India, the Charaka Samhita (about 7th century BC) contains necessary regulations for physicians regarding ethics, obligations, privileges, and other matters, other writings like the Manusmriti, Sushruta Samhita, Yajnavalkya Smriti, and others were also important in preserving and regulating medical practice. In medico-legal practice, an autopsy is regarded as the most significant instrument. Dr. Edward Bulkley was the first to do a medico-legal autopsy in India in the 18th century. 

When this branch was first introduced in India, it didn’t take long for it to spread in all directions. Calcutta received the country’s first medical school in 1822. This progression continued in the states of Madras and Bombay. Scientific procedures have evolved by a factor of ten in the previous few decades. In Pratap Misra v. State of Orissa (1977), Justice Fazal Ali had observed that medical jurisprudence is not an exact science, and it is difficult for any doctor to say with precision and exactitude when a particular injury was caused, or when the accused may have had sexual intercourse with the prosecutrix. The tests carried out and the findings produced were so accurate that they were used as evidence to prove or refute a defendant. This expansion has resulted in the expansion and diversification of medical law into several small fields.

In forensic medicine, a medical specialty that aids in the identification of crime, law, and medicine come together more harmoniously. Forensic medical experts also help courts, especially the coroner’s court under Anglo-Saxon law, figure out what caused sudden and unexpected deaths. In these circumstances, the primary inquiry conducted by a forensic professional is a postmortem examination of the corpse, which includes a thorough inspection of every organ and its contents, as well as microscopical study of some organs and chemicals along with DNA testing. Forensic medicine includes dramatic tasks such as establishing the size and sex of a body by analyzing just a few bones, identifying a corpse based on its dental pattern, and uncovering signs of rape or unsolved murder. It usually entails determining the timing of a person’s death or analysing the amount of alcohol in a motorist’s blood to determine the degree of impairment in a judgment.

In a hypothetical situation, if a patient dies as a result of a hypersensitive allergic reaction to a medicine that is generally accepted by the general public, is the death to be regarded as the doctor’s fault? The patient’s family may bring a medical malpractice complaint against the practitioner. The attorneys representing the doctor and the patient in the lawsuit should be well-versed in the circumstances surrounding the patient’s tragic death. This is how medical jurisprudence will assist in assessing whether or not the doctor should be held accountable. The following are some of the most common medical jurisprudence cases that come up before the courts:

  1. Paternity testing.
  2. Injuries and wounds.
  3. Death as a result of poisoning.
  4. Cause of death and manner of death.
  5. Violent death.

Medical jurisprudence in India 

The evolution of medical jurisprudence in the democratic land of India can be better understood by means of judicial decisions where the subject of medical jurisprudence has always been provided with a dignified position. 

The case of Ram Kala v. Emperor (1945) that appeared before the Allahabad High Court was one such early case where the Court had referred to Lyon’s Medical Jurisprudence for India by Waddell to understand the ‘signs of recent intercourse’ in cases of rape. Lyon states that if the vagina is covered with a uniform coating of smegma then recent intercourse is indicated. Furthermore, according to Modi’s Medical Jurisprudence, if the accused is not circumcised, the presence of smegma around the corona glandis, which is rubbed off during sexual intercourse, is proof against penetration. If the victim doesn’t take a bath for twenty-four hours, the smegma will accumulate. Even if there are certain flaws in the defence that are not precisely compatible with the accused’s innocence, the prosecution must nonetheless show his guilt beyond a reasonable doubt and in the present case, the prosecution had failed to achieve this goal. The Court held that the accused was not guilty under Section 376 of the Indian Penal Code, 1860, and was therefore acquitted. 

The Supreme Court of India while deciding on the case of Mulakh Raj Etc v. Satish Kumar and Others (1992), relied on Taylor’s Principles and Practice of Medical Jurisprudence to decide what asphyxia actually is and whether the death of the deceased victim was a result of the same. In this case, all of the symptoms observed on the deceased’s dead body indisputably revealed that her death was caused by pressure on the neck, and the doctor’s findings during the post-mortem examination and his testimony were compatible with medical jurisprudence. Hence, the respondent was charged under Section 302 of the Indian Penal Code, 1860. 

The Delhi High Court while hearing the case of Virender v. the State Of NCT of Delhi (2009), referred to Parikh’s Textbook of Medical Jurisprudence and Toxicology which describes ‘sexual intercourse’ as the tiniest degree of penile penetration of the vulva, with or without semen discharge. As a result, it is quite conceivable to lawfully commit rape without causing any genital harm or leaving any seminal traces. In light of the facts of the case and perspective provided by the aforementioned textbook, it was decided that the finding of guilt of the appellant for commission of the offence under Section 376 of the Indian Penal Code, 1860 was not sustainable. 

In Madan Lal v. State (2012), the Rajasthan High Court was considering a rape incident of an adolescent girl, in which the hymen of the victim was not torn. Because of the same, the Court had taken reference from medical jurisprudence along with the contentions of the parties to the case. Medical jurisprudence provides that as the hymen is located more posteriorly in teenage females, rape can occur without the hymen being ripped. On the other hand, if the hymen of an adolescent girl is torn as a result of rape, the penetration must be deep. The Labia Majora are the first organs to be contacted by the male organ, and they are subjected to blunt powerful strikes, depending on the vigour and force employed by the accused and countered by the victim, with bruising visible to the human eye. The most trustworthy evidence in the rape case is the examination of the hymen and their state of harm. In the case at hand, it was evident that the medical evidence about the commission of rape was contradicting the prosecution’s case, hence, the accused was acquitted of the offence under Section 376 of the Indian Penal Code, 1860. The offence of committing assault to outrage the modesty of a woman was made out in this case and the accused was held guilty of offence punishable under Section 354 of the aforementioned Code.

The Gujarat High Court while deciding on the recent case of Bharatbhai Mohanbhai Chavda v. State of Gujarat (2021) had put its reliance on Modi’s Medical Jurisprudence and Toxicology (26th Edition) in order to understand the meaning of the term ‘strangulation’. The mentioned text refers to strangulation as the compression of the neck by a force other than hanging. The Court had concluded that the deceased was murdered in her home by smothering and strangling, and an effort was made to remove her corpse by setting fire to it. After that, close relatives concocted a tale that she committed suicide by hanging herself. The Hon’ble High Court had also observed that the Trial Court in the present case was correct in convicting the accused under Section 302 of the Indian Penal Code, 1860. 

Indian laws that are being governed by principles of medical jurisprudence 

To comprehend the legal aspect of medical jurisprudence, it is necessary to understand the structure of the Indian judicial system’s classification of laws.

Indian Penal Code, 1860 

The prime criminal legislation in India is the Indian Penal Code, 1860. The following provisions are to be taken into account while relating medical jurisprudence with the Indian laws:

  1. Section 44: This provision provides the definition of injury as any illegal harm to a person’s body, mind, reputation, or property of any kind.
  2. Section 319: The provision lays down the definition of hurt as bodily pain, disease, or infirmity caused to any person.
  3. Section 320: This provision defines grievous injury and lays down a list of injuries that comes under the broad head of grievous injury.
  4. Section 321: This section defines voluntarily causing hurt. 
  5. Section 322: The provision provides for voluntarily causing grievous hurt.
  6. Section 323: This section lays down punishment for intentionally inflicting harm. 
  7. Section 324: This provision provides punishment for voluntarily causing hurt with a dangerous weapon is up to 3 years in jail, with or without a fine.
  8. Section 325: The provision lays down punishment for intentionally causing grievous harm. The punishment prescribed is a maximum of 7 years in jail, or/and fine.
  9. Section 326: The section lays down punishment for intentionally causing grievous harm with a dangerous weapon or means.
  10. Section 328: The provision lays down the penalty for inflicting harm by means of poison, etc. 
  11. Section 351: This provision defines assault as the threat/attempt to apply force.

Indian Evidence Act, 1872 

The Indian Evidence Act, 1872 is an adjective law that comprises a collection of rules governing the admission of evidence in Indian courts of law, as well as related concerns. Sections 45 and 114 A of the 1872 Act needs to be taken into account while attaching the importance of medical jurisprudence with Indian laws. 

  1. Section 45: This provision deals with the opinions of experts. When the Court has to develop an opinion on a point of foreign law, science, or art, or on the identification of handwriting, the opinions of individuals who expertise in the same are considered to be relevant facts. Such individuals are referred to as experts.
  2. Section 114 A: In a rape case, if the question is whether sexual intercourse occurred without the woman’s consent and she indicates that she did not consent in her testimony, the court shall presume that she had not to consent.

Code of Criminal Procedure, 1973 

The Code of Criminal Procedure, 1973 is the procedural law governing criminal proceedings in India. Sections 53 clauses (i) and (ii), 54, 174, and 176 are the provisions that need to be taken into account while talking about medical jurisprudence in India.

  1. Section 53 (i): At the request of a police officer who is employing reasonable force, an accused may be evaluated by a medical professional.
  2. Section 53 (ii): When a female accused’s person is to be examined, it must be done by or under the supervision of a female certified medical practitioner exclusively.
  3. Section 54: A medical practitioner may examine an arrested individual at his/her request in order to find evidence in his/her favour.
  4. Section 174: Police to enquire and report on suicide, etc.
  5. Section 176:  Inquiry by Magistrate into cause of death.

Indian Medical Council Act, 1956

The Indian Medical Council Act, 1956 is an Act to provide for the re-establishment of the Medical Council of India, the maintenance of a Medical Register for India, and related things. Section 20 A of the statute provides for professional conduct consisting of standards for the same, etiquette, and a code of ethics for medical practitioners, to be prescribed by the medical council. Regulations adopted by the Council under subsection (1) of the aforementioned provision define which infractions may constitute notorious behaviour in any professional respect, that is, professional misconduct, and such provision shall apply notwithstanding anything contained in any law for the time being in force. 

Discussion around medical negligence 

The idea that ignorance of the law is no excuse for breaking it, is acknowledged by both Indian and other legal systems. The norm can also be represented as a legal presumption that everyone is aware of the law. Every individual owes it to themselves to understand the parts of it that interest them. A doctor, in particular, is definitely considered to know the law and is treated as if they do, because they can and should know it in general. The medical profession varies from other vocations in terms of professional responsibility since it operates in areas where success cannot be guaranteed in every case and when success or failure is frequently dependent on elements outside a medical expert’s control. A medical expert has grown increasingly vulnerable to being sued by a lawsuit of any sort, civil or criminal, as a result of the increased knowledge of a patient’s rights in today’s society. The majority of working doctors in our nation are still unfamiliar with the basis of a medical negligence lawsuit.

The risks involved with medical practice have long been acknowledged by the courts. Because the law presumes that a doctor always works in good faith for the well-being of his/her patient, Sections 88 to 92 of the Indian Penal Code, 1860 shield doctors from criminal culpability. In a medical malpractice case, however, the idea of good faith plays a more difficult role. “Nothing is claimed to be done or believed in ‘good faith’ which is done or believed without appropriate care and attention,” according to Section 52 of the aforementioned Code.

The Supreme Court of India reaffirmed its views in a medical malpractice case, ruling that “the medical practitioner must bring to his duty a fair degree of ability and knowledge and must exercise a reasonable degree of care.” The law does not demand the maximum level of care and competence, nor the lowest level of care and competence, as determined by the facts of each instance. When a scenario arises that necessitates the application of a particular skill or competence, the test is the ordinary/reasonable skill that a man practising and purporting to have that special talent possesses. The “duty of care” is viewed as the complementary principle that applies to medical professionals and healthcare providers.

When it comes to professional negligence, courts have always been quite mindful of medical practice. A clinician has specific responsibilities to his or her patients. A clinician has committed a negligent act if they do something that other clinicians of their standing, standard, and competence would not do, or if they fail to do something that other clinicians would undoubtedly do. A medical expert is supposed to practice with proper care, dedication, and adoption of acknowledged standards of practice while respecting the autonomy of the patient. A medical practitioner must also follow the copy of the Code of Medical Ethics statement issued by the Indian Medical Council at the time of registration.

The Supreme Court of India set the legal basis for the duty of care as a binding ethical and constitutional concept in a ruling declaring the Code of Medical Ethics as the prevailing rule for the medical profession. In a way, this gives medical ethics in India legal support, as in Section 33 of the Indian Medical Council Act, 1860. In a sense, this provides medical ethics with the backing of legal authority in India. 

Issues in the existing legal regime 

There are several disadvantages to the aforementioned laws, according to the current Indian scenario. Despite its numerous advantages, evidence obtained through medical jurisprudence is still deemed secondary to expert opinion rather than primary evidence. Only in limited circumstances is the report of an autopsy process deemed documented evidence under the Indian Evidence Act of 1872. Doctors are obligated by doctor-patient confidentiality, which frequently puts them in the position of deciding whether or not to share information with the legal system. If the doctor learns that one of his patients has committed a crime (other than suicide), he/she is obligated to report it to the authorities. The doctor may face repercussions if he/she fails to do so. Suggestive reforms for the existing system would be:

  1. Drafting of legislation that will use medical jurisprudence as a main source of evidence.
  2. Other scientific test findings must also be regarded as documentary evidence, provided they are done according to standard testing methodology.
  3. If a patient attempts suicide, the doctor must notify the appropriate authorities. This will assist in addressing the circumstances that may have led to such drastic action by the victim, as well as ensuring the patient’s safety in the near future.

Jurisprudence of emergency medical care in India

In India in the 1980s, emergency medical care jurisprudence, which closely intersected ethical concerns, established the groundwork for the emergence of healthcare litigations. In following litigations involving the medical profession and private and public healthcare providers, it provided a bridge for the courts to apply the right to a dignified life and the State’s constitutional responsibility to save a life. It also made it easier to write healthcare jurisprudence and declare healthcare to be a fundamental right.

The topic of emergency medical treatment, which frequently involves dealing with life and death circumstances, brings various overlapping concerns about health services, patient rights, and the state’s and medical profession’s responsibilities into sharp light. The indignity caused by the refusal to treat critically ill patients, resulting in death, undue suffering, morbidity, and financial loss, has been challenged in courts on the basis of moral-ethical principles that are at the heart of the medical profession and the reason behind the healthcare system in a welfare state. 

Bystanders do not come forward to aid the victims of such emergency situations because of the medico-legal nature of the cases and the fear of being harassed by the police and courts. Following a PIL filed by the SaveLIFE Foundation in 2012, the Supreme Court of India made efforts in 2016 to enact new legislation relating to accidents and emergency treatment by requesting that the Central government draft guidelines for the protection of ‘Good Samaritans’ from police or other authorities. Santosh Ahlawat, an MP, raised the issue in Parliament. In another key ruling (Pt. Parmandand Katara v. Union of India and Ors (1989)), the subject of safeguarding doctors from legal headaches in medico-legal matters so that they can offer prompt treatment to patients in need of emergency life-saving care has been addressed.

In the well-known case of Paschim Banga Khet Mazdoor Samiti v. State of West Bengal (1996), the victim, Hakim Sheikh, was an agricultural labourer who was a member of the Paschim Banga Khet Mazdoor Samiti, a labour organisation. He was denied admission to five public hospitals after falling off a moving train on his way to work. The patient was refused admission on the ground that there were no beds available. The victim was finally admitted to a private hospital and forced to pay expensive fees for his care. Surprisingly, some 20 years after the Paschim Banga Khet Mazdoor Samiti case, the focus in “the Good Samaritan” discourse has changed from the healthcare system to the healthcare of individuals from a different social class. This discourse has been pushed into the public imagination without any mention of emergency care accessibility and availability for the disadvantaged. It appears sufficient that such care is available, through medical insurance, to the upper-middle class, who continue to overlook its inaccessibility to the underprivileged.

Role of Public Interest Litigation in developing medical jurisprudence

A number of subsequent PILs aided in the development of personhood jurisprudence, affirming the priority of the right to life and dignity. As a result, Article 21 of the Indian Constitution became the bedrock of social and civil-political rights, including health and healthcare. The right to medical treatment for employees and civil rights litigation for the rights of people in jails and police custody are two of the many components of a large number of healthcare litigations. Even though the number of lawsuits involving emergency medical treatment is less, they have shown systemic flaws in the field of life-saving care. These include medical practitioners’ insensitivity and personal/professional apathy, especially towards patients from socially disadvantaged groups, as well as delays or denials of care.

Medical care in police custody 

People in state custody, such as those in police or judicial custody, as well as those in state-run asylums and prisons, are subjected to torture, ill-treatment, and abuse, as well as are denied access to necessary medical care. In Poonam Sharma v. Union of India, the Delhi High Court reaffirmed police officers’ and physicians’ constitutional obligations to care for wounded people in medico-legal matters. Article 32 of the Constitution, which establishes access to justice as a fundamental right, confirms the indisputable nature of the State’s commitment.

Viewing patients availing healthcare services as ‘consumers’

The ramifications of violating the principles of saving lives and the duty of care are clearly stated in the medical jurisprudence. Failure to give prompt medical treatment to a person in need of emergency care is claimed to be a breach of Article 21 of the Indian Constitution, which guarantees the right to life. As a result of this rationale, the medical profession was brought within the Consumer Protection Act (CPA) of 1986. The medical profession, as represented by medical groups, has fought for more than a decade to put healthcare workers in general, and physicians in particular, under the CPA 1986.

The case of Indian Medical Association v. V.P. Shantha (1995) exemplifies the medical profession’s long-standing opposition to any regulation of doctors under the guise of professional self-regulation. In this case, the definition of ‘service’ as it relates to healthcare under various circumstances was argued in order to ascertain the consumer status of the healthcare-seeking patient. The lawsuits pointed out the rejection of admission to public hospitals, which almost always results in death or treatment in private hospitals. Medical malpractice and ethical problems at private hospitals were also mentioned which include the termination of medical care due to a lack of immediate payment, medical malpractice, and the charging of unreasonable fees for treatment. 

Conclusion 

Both the medical and legal fields have profited greatly from the development of medical jurisprudence. A greater understanding and cooperation have evolved, allowing both disciplines to operate more smoothly. With the advancement of medical jurisprudence, formerly insoluble problems are now easily settled. It may be used to identify a child’s paternity as well as the identification of human remains that have been disfigured beyond recognition in incidents such as bomb blasts, factory explosions, and so on. It may be used to solve instances involving murder, rape, and other crimes in the subject of evidence laws. After a person has died, medical jurisprudence procedures like an autopsy can be used to uncover key information that is crucial to the case. The heart of ethics, codified in the Code of Medical Ethics and strengthened by ethical jurisprudence, may revitalise ethics-compliant healthcare in India. Streamlining ethics in the public and private healthcare systems would necessitate a number of policy measures, including a complete statute to institutionalise ethical principles for maintaining the right to healthcare. Most significantly, medical practitioners would have to be steadfast in their efforts to resuscitate and restore the profession to its lofty ethical ideals of patient care and suffering reduction.

References 

  1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5022301/.
  2. http://www.indianculture.gov.in/rarebooks/manual-medical-jurisprudence-india-including-outline-history-crime-against-person-india.
  3. https://pdfs.semanticscholar.org/0334/53f4dde99195baf6ffd0bd234fdeba2931a7.pdf.
  4. https://legaldesire.com/medical-jurisprudence-and-related-laws-in-india/.

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How to file a consumer case in India

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This article is written by Aariya N, from Lawfirm Bootcamp organised by LawSikho. This article has been edited by Prashant Baviskar (Associate, Lawsikho), Ruchika Mohapatra (Associate, Lawsikho), and Arundhati Das (Intern at Lawsikho). 

This article has been published by Shoronya Banerjee.

Introduction 

After independence, the need to recognise and enforce the right of consumers was realised and several laws were formulated for this purpose, inter alia, the Indian Standards Institution(Certification Marks) Act 1952, The Prevention of Food Adulteration Act 1954, The Standards of Weights and Measures Act 1976, The Trade and Merchandise Marks Act 1958, which to some extent protects the consumer interests. However, these laws require the aggrieved consumer to file a civil suit for consumer dispute which is an expensive and time-consuming legal process and also it is inconvenient for ordinary consumers. Therefore, the need for simpler and quicker access to redress consumer grievances was felt, and accordingly, it led to the legislation of the Consumer Protection Act, 1986. In the globalised world, consumers play an important role in the country’s economic system. The importance of consumer protection has considerably increased worldwide due to the social change and growing interdependent nature of many business practices. Consumer protection is seen as an essential part of economic and social policy. A variety of factors have led many countries to enact laws, thus recognising the need to evolve effective measures for consumer protection. Therefore, the Consumer Protection Act, 1986 attempts to remove the helplessness of the consumer which he complains against the powerful business and it also promotes the welfare of the society by allowing the consumers to participate directly in the market economy. In this article, we are going to understand how to file a consumer case before different Consumer Dispute Redressal Commissions in India. 

The Consumer Protection Act,1986

In India, the Consumer Protection Act, of 1986 introduced the concept of ‘consumer’ and conferred the express additional rights of consumers. It is interesting to note that the Act doesn’t seek to protect every consumer within the literal meaning of the term. The protection is meant for the person who fits the definition of the consumer given by the Act. Section 2(7) of the Consumer  Protection Act, 1986 defines that “consumer is any person who buys goods or avails any service for consideration and does not include any user but does not include a person who obtains such goods for resale or for any commercial purpose.” The recent 2019 amendment of the Act has included the buying of goods and availing of services through all the modes of transactions, including offline, online, telephonic,direct-selling, or multi-level marketing. Consumer consciousness is growing at an increasing speed in India. In recent years, the development of consumer protection is not limited to the domestic level but has extended at the global level as well. A social movement has indeed begun which has made the consumers more aware of their basic rights. The United Nations Economic and Social Council has made recommendations emphasizing the role of governments in safeguarding the interest of the consumers. In India, the Consumer Protection Act 1986 provides the procedure for the administration and establishment of the quasi-judicial machinery ‘consumer courts’ which are set up at three levels: District consumer forums, State consumer forums, and National consumer forum, where the aggrieved consumer can file a complaint and these consumer courts address their grievances regarding consumer disputes.

Filing a complaint

Before filing a complaint before the forum, the consumer has to send a personal or legal notice to the seller/manufacturer or service provider informing the opposite party regarding the grievance faced and ask for the replacement or repair of the defective goods. In some cases, the consumer can also ask for compensation or damages. When there is no reply to the grievance notice sent, the consumer can go for the legal proceedings against the opposite party to the consumer court.

The consumer can file a complaint with CDRCs in relation to unfair or restrictive trade practices, defective goods or services, overcharging, or deceptive charging, the offering of goods and services which are hazardous to life and safety, and misleading advertising,  Section 2(c) of the Act states that a complaint is a statement made in writing by the complainant to the forum, who is also competent to file it, which should contain the allegation in detail, and attach the relevant documents and pay requisite court fees and submit an affidavit. 

Who can file a consumer case in India?

The complaint can be filled by a 

1. Consumer, 

2. A voluntary consumer organisation, 

3. The Central Government or State Government,

 4. One or more consumers where several consumers are having the same interest. 

5. Consumer’s legal heir or representatives in case of the death of the original consumers. 

The complaint can be filed by the consumer directly or by an authorised agent on behalf of the consumer, signature, and verification by the complainant or his authorised agent. If the complaint is filed by the authorised agent, it has to be notarised. 

Time limit within which a complaint can be filed

Under Section 69 of the Consumer Protection Act, 2019, there is a limitation period for filing the complaints. A complaint has to be filed within 2 years from the date on which the cause of action/deficiency in service/defect in goods arises. However, a complaint can also be filed after 2 years if the complaint satisfies the District Commission or the State Commission, or the National Commission that the consumer has sufficient reasons for not filing the complaint within two years. The commission records the condoning of such delay before entertaining it. 

Components of a complaint 

The complaint must contain-

1. Name and address of the complainant.

2. Name and address of the opposite party. 

3. Date of purchase of goods purchased or service availed. 

4. The consideration amount paid for the purpose. 

5. Particulars of the purchase of the goods like bills, numbers, and details of the service availed 6. Details on what grounds the consumer dispute arises should be explicitly mentioned in the complaint petition.

7. Attach supporting documents like bills or receipts and notice sent to the seller or manufacturer 8. Attach the Affidavit along with the complaint petition, the affidavit must state that the facts presented and statements made by the consumer are true to their knowledge. 

9. Pay the court fees and attach the same, the CDRCs charge a nominal fee as part of the complaint registration process, the demand draft for this fee should be made out to the President, Consumer Disputes Redressal Forum, of the relevant district. 

Jurisdiction for filing the complaint 

1. District Consumer Disputes Redressal Forum(DCDRF)

Pecuniary jurisdiction

Under Section 34(1) of the Act, 2019, the consumer can file their complaint under the  District Consumer Disputes Redressal Forum where the value of the goods or service and the compensation, if any claim does not exceed one crore rupees. 

Territorial jurisdiction

Under Section 34(2) of the Act, 2019, the consumer can file their complaint under the DCDRF where all or one of the opposite parties at the time of the institution of the suit ordinarily or voluntarily resides or carries on any business or the suit can be instituted where the cause of action arises or the suit can be instituted where the complainant resides or personally works for gain. 

2. State Consumer Disputes Redressal Forum(SCDRF)

Pecuniary jurisdiction

Under Section 47(1) of the Act, 2019, the consumer can file their complaint about consumer dispute and unfair contracts to the SCDRF, where the value of the goods or service paid as compensation, exceeds one crore but does not exceed rupees ten crores.

Territorial jurisdiction

Under Section 47(4) of the Act,2019, the consumer can file their complaint under the SCDRF where all or one of the opposite parties at the time of the institution of the suit ordinarily or voluntarily resides or carries on any business or the suit can be instituted where the cause of action arises or the suit can be instituted where the complainant resides or personally works for gain.

3. National Consumer Disputes Redressal Forum(NCDRF)

Pecuniary jurisdiction

Under Section 58(1) of the Act, 2019, the consumer can file their complaint for consumer dispute or under unfair contracts to the NCDRF, where the value of the goods or service paid as compensation, exceeds rupees ten crores.

Territorial jurisdiction

Under Section 58(2) the jurisdiction, powers, and authority of the National Commission may be exercised by Benches thereof and a bench may be constituted by the President with one or more members deemed fit. 

Procedure for admission of  consumer case 

1. District Forum

After the admission of the complaint, the DCDRF shall: 

1. refer a copy of the admitted complaint, within twenty-one days to the opposite party, 

2. if the complaint alleges a defect in the goods which cannot be determined without proper analysis or test of the goods, obtain a sample of the goods from the complainant with such fees as may be specified for the test, and direct to the appropriate laboratory for finding whether such goods have any defect alleged in the complaint or from any other defect and the report of its findings thereon sent to the District Commission within a period of forty-five days of the receipt of the reference or within such extended period as may be granted by it.

Every complaint shall be heard by the District Commission on the basis of affidavit and documentary evidence placed on record. Under Section 48 of the Act, 2019 the complainant may at any stage of the proceedings make an application to the state commission to transfer any complaint pending before a District Commission to another District Commission within the State if the interest of justice so requires. 

Under Section 40, of the Act, 2019 any of the parties can make an application to the District Commission to review any of the orders passed by it if there is an error apparent on the face of the records within thirty days of such order. 

2. State Forum

The consumer may either file an original complaint if it is within the pecuniary jurisdiction or Under Section 41 of the Act, 2019 an application can be made the party aggrieved within thirty days from the date of such order of the District forum to go for an appeal to the State forum with the certified order copy or a copy of Interim orders passed by the DCDRF, along with the affidavits has to be submitted before the State forum if there is any delay in filing an appeal the Condolences of delay must also be filled and submitted along with the affidavit. A statutory deposit is to be paid by the appellant/opposite party of Rs 35,000 or 50% of the award or the compensation amount, whichever is less. 

Under Section 50 of the Act, 2019 any of the parties can make an application to the State Commission to review any of the orders passed by it if there is an error apparent on the face of the records within thirty days of such order. 

Under Section 62 of the Act, 2019 the complainant can make an application for the transfer of cases at any stage of the proceedings before the National Commission and in the interest of justice, the commission may transfer any complaint pending before the District Commission of one State to a District Commission of another State or before one State Commission to another State Commission.

3. National Forum

The consumer can file the complaints directly if the goods purchased or service availed is within the pecuniary jurisdiction of the National Forum, or Under Section 61, of the Act, 2019 an application can be made by any of the parties aggrieved within thirty days of such order of the State forum. 

Under Section 60 of the Act,2019 any of the parties can make an application to the National Commission to review any of the orders passed by it if there is an error apparent on the face of the records within thirty days of such order.  

Relief available against the complaint

After studying the case the consumer forums may direct the opposite party to do any of the following measures to the aggrieved party : 

1. Removal of defects from the goods. 

2. Replacement of the goods. 

3. Refund of the price paid. 

4. Removal of defects or deficiencies in the service. 

5. Award of compensation for the loss or injury suffered. 

6. Discontinue and not repeat unfair trade practices. 

7. To withdraw hazardous goods from being offered for sale. 

8. To cease manufacture of hazardous goods, and desist from offering services that are hazardous in nature. 

9. To issue corrective advertisement to neutralise the effect of misleading advertisement. 

10. To provide adequate costs for parties. 

Conclusion 

The Consumer Protection Act provides a guarantee to the consumer’s rights and has made the filling proceedings facile for the consumers suffering to get redressal of their grievances without facing long delays, heavy court fees’ and lawyers’ tolls also the bare fact that the complainant in this written complaint has even raised complicated questions of fact or law, it cannot be refused to be entertained by the Consumer Disputes Redressal Commissions. In the present time, innovation in technology has provided the option for filing consumer complaints online. The Consumer Protection Act, 2019 is incorporated with mediation as an alternative dispute resolution mechanism, which helps in arriving at a settlement. 

References 

  1. https://confonet.nic.in/default.htms   
  2. https://consumerhelpline.gov.in/ 
  3. Consumer protection Amendment Act, 2019
  4. Book: Law of Torts and Consumer Protection by Asian Law House 
  5. Book: Consumer Protection Jurisprudence Author V Balakrishna Eradi Publication: LexisNexis ISBN: 81-8038-071-8
  6. A handbook of Consumer Protection Law and Procedure by Dr. R.K.Bangia Publisher Allahabad Law agency Sixth Edition, 2007
  7. http://ncdrc.nic.in/bare_acts/1_1_2.html

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Section 406 IPC : what is the punishment for criminal breach of trust

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The article is written by Nikhil Thakur from Manav Rachna University. In this article, the author aims at explaining the various nuances (explanation, ingredients, punishment) of Section 406 of the Indian Penal Code,1860. Moreover, the author has cited several judgments of various courts concerning criminal breach of trust.

Introduction

Establishing trust consumes a lot of time while destroying it is a matter of seconds. There are a plethora of instances like; when a person is not in the position of controlling their property as the case may be and for that purpose such person engages another person to take care of that property is said to have created a trust. Whenever a person has been entrusted with a property, the person so entrusted must take care of the said property with utmost good faith and shall not utilise the same for his/her personal use.

Chapter 17 (XVII) of the Indian Penal Code (IPC), 1860 deals with an important provision that is ‘Criminal Breach of Trust’. Section 405 of the IPC, 1860 aims at defining in detail what is ‘Criminal Breach of Trust’. Moreover, Section 406 furnishes the punishment for criminal breach of trust that may be extended upto to a period of 3 years of imprisonment or fine or both.

Criminal breach of trust

As stated previously, the provision dealing with criminal breach of trust is Section 405 of the Indian Penal Code, 1860. This Section states that:

Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, or willfully suffers any other person so to do, commits criminal breach of trust.’

From the above-mentioned statement, it is clear that criminal breach of trust means that whosoever is; 

  1. incharge or has been entrusted with property or any dominion over that property dishonestly misappropriated or converts the same to his own use as the case may be, or 
  2. disposes of the property in violation of the directions rendered under the law, or 
  3. enters into any legal contract that discharges such trust, or 
  4. makes the other person suffer. 

is said to have committed a criminal breach of trust and is sufficient to be covered under the scope of Section 405 of the Indian Penal Code, 1860. 

The Supreme Court of India under the case of Smt. Rashmi Kumar v. Mahesh Kumar Bhada (1996), held that in case wife entrusts her stridhan and further hands over the control to her husband or any other member of the family and the husband or such other member of the family dishonestly misappropriated that property (stridhana) is said to have committed criminal breach of trust and is liable to be punished under Section 406 of the Indian Penal Code, 1860.

Explanation prescribed under Section 405 IPC

Section 405 of the Indian Penal Code,1860 lays out two explanations that are:

  1. The first explanation states that, if an employer has deducted the employee’s contribution from the wages which is a part of the employee’s provident fund or family pension fund shall be considered as an entrustment of such amount so deducted.

When the employer makes a default during the payment of the so deducted amount towards the provident fund or family pension fund is said to have utilised such an amount dishonestly.

  1. The second explanation says that, if an employer has deducted the employee’s contribution from the wages which is a part of the employee’s state insurance fund that is administered by the Employees’ State Insurance Corporation it shall be considered as an entrustment of such amount so deducted.

When the employer makes a default during the payment of the so deducted amount towards the employees’ state insurance fund is said to have utilised such an amount dishonestly.

In a Supreme Court case of Employees State Insurance Corporation v. S.K Aggarwal,1998 the Hon’ble Court held that under the Employees State Insurance Act,1948 the principal employer means and includes the occupier or the owner. Hence, the company’s director will not be covered within the definition of employer. Upon such findings of the case, the Supreme Court quashed the criminal proceedings initiated against the director under Section 405 of IPC, 1860.

Ingredients of criminal breach of trust 

Chiefly, there are two main ingredients of criminal breach of trust:

  1. That the accused must have been entrusted with a property,
  2. That the accused must have dishonestly misappropriated the property or has utilised or disposed of the same in violation of trust.

Entrusted

“Entrustment” of property under Section 405 of the Indian Penal Code, 1860 is pivotal to constitute an offence under this. The term entrustment used under this Section is vague and wide enough to include other aspects. Therefore, entrustment extends to clerks, servants, business officials, agents or any other person holding the position under trust.

In the case of Som Narth Puri v. the State of Rajasthan (1972), the Hon’ble Supreme Court gave the ruling that the term entrustment is wide enough to include all those properties that are willfully handed over for a specific purpose or motive. Furthermore, entrustment shall not be only expressed instead it can also be implied as held in the case of the State of Madhya Pradesh v. Pramode Mategaonkar (1965).

In a landmark Supreme Court judgement of R.K Dalmia v. Delhi Administration (1962), the Supreme Court stated that the term property used under the Code is wide enough as compared with the moveable property. Further, the Hon’ble Court observed that various nuances of the term property shall not be confined to moveable property while dealing under Section 405 of the Indian Penal Code, 1860.

In the case of Shivnarayan Laxminarayan Joshi v. the State of Maharashtra (1980), the Hon’ble Supreme Court stated that the term dominion refers to control over the property. Hence, the director of a company in the position of a trustee or holder of the assets has dominion over the said property.

Misappropriated

Another vital ingredient of criminal breach of trust is “dishonest misappropriation”. Section 24 of the Indian Penal Code,1860 defines what is dishonesty; the act of causing wrongful gain to one person and wrongful loss to another intentionally is said to have committed dishonesty.

Moreover, the phrases wrongful gain and wrongful loss are defined under Section 23 of the Indian Penal Code,1860. The gain, which is made by an unlawful means by a person who is not entitled to such property is known as wrongful gain while the loss, made by an unlawful means to a person who is legally entitled to such property is known as wrongful loss.

The essence of this Section is that the property must be used by the accused dishonestly for an unauthorised purpose. Mere mismanagement of money is not sufficient to constitute an offence under Section 405 of the Indian Penal Code,1860. 

Dishonest misappropriation may not be available at the first instance or as a matter of proof every time, however, when it is established that the property has been entrusted with a person and the same got control over the property and he has rendered a false explanation for his failure to account for it, in such a case, the conception of misappropriation with dishonest intention can be made readily, as held in the case of Jaikrishnadas Manohardas Desai v. the State of Bombay (1960).

Moreover, in the case of Surendra Prasad Verma v. the State of Bihar (1973), the accused was holding control of the keys to a safe. The Hon’ble Court gave the ruling that irrespective of the fact that whether the accused had the possession of those keys at the time of misappropriation or not, the accused shall be held liable because the accused alone had the keys, except him nobody had the access to the safe. To safeguard himself, the accused must satisfy the Court that he parted with the keys to the safe or he had no access to them.

Krishan Kumar v. the Union of India, AIR (1959)

In the above-mentioned case, the accused was an assistant storekeeper at the Central Tractor Organisation (CTO), Delhi. He was conferred with several duties of which one of his duties was to take delivery of consignments of those goods which were received by railways for the Central Tractor Organisation (CTO). 

The accused took the delivery of a specific lot of iron and steel from Tata Iron and Steel Co, Tatanagar. However, the goods though removed from the railway’s depot woefully didn’t reach the Central Tractor Organisation (CTO). 

Upon the proceedings of the case, the prosecution fizzled to establish that the goods were misappropriated by the accused and even failed to show the exact purpose for which those goods were put to. Therefore, the matter went to the Supreme Court, and it was held that it is not essential in every case to prove or show how the accused has misappropriated the goods of his master. The intention of the accused also needs to be emphasised, hence, there is no need to have direct proof of misappropriation. 

Criminal breach of trust and criminal misappropriation

Criminal Breach of TrustCriminal Misappropriation
Criminal breach of trust is enshrined under section 405 of the Indian Penal Code, 1860.Criminal misappropriation is defined under section 403 of the Indian Penal Code, 1860.
Under criminal breach of trust, it is essential that the property so entrusted has been converted for personal use by such person to whom such property was entrusted.Criminal misappropriation is a wider terminology as compared with criminal breach of trust. Under criminal misappropriation, the defaulter has been under the possession of the property in any way. 
Under criminal breach of trust, there is a contractual trust which is established. Hence, a contractual relationship is created.However, under criminal misappropriation, no contractual relationship is established.
Under this, the person is entrusted with property and such entrusted person dishonestly misappropriates it and converts the same for his/her own use.Under this, the offender is not entrusted with the property, however, such person obtains possession of the property in response to an accident or causality which is later converted by him/her for personal use.
The punishment for criminal breach of trust under the Indian Penal Code is three years of imprisonment or with a fine or both.The punishment for criminal misappropriation under the Indian Penal Code is two years imprisonment or with a fine or both.

Section 406 IPC

Section 406 of the Indian Penal Code (IPC), 1860 stipulates the penalties for criminal breach of trust. Section 406 states as follows; that any person who commits criminal breach of trust shall be punished with an imprisonment of a term extendable upto 3 (three) years or fine or both accordingly. The offence of criminal breach of trust is abnormally tried by the magistrate of the 1st class. Furthermore, it is a non-compoundable and bailable offence.

Penalties for criminal breach of trust

Under the Indian Penal Code,1860 the offence of criminal breach of trust is a cognizable (cases when police may arrest without a warrant) and non-bailable offence. Punishment for committing a criminal breach of trust depends upon the type of person who has committed the offence;

  1. As per Section 406 of the Indian Penal Code,1860: Any person who is guilty of an offence for committing criminal breach of trust shall be liable with an imprisonment of a term extendable upto 3 (three) years or fine or both accordingly.
  2. As per Section 407 of the Indian Penal Code,1860: when a criminal breach of trust is committed by the carrier, warehouse, wharfinger, etc,. The accused shall be punishable with imprisonment for a term extendable upto a period of 7 (seven) years or fine or both.
  3. According to Section 408 of the Indian Penal Code,1860: when a criminal breach of trust is committed by a clerk or servant he/she shall be punished with imprisonment for a term extendable upto a period of 7 (seven) years or fine or both.
  4. According to Section 409 of the Indian Penal Code,1860: when a criminal breach of trust is committed by a public servant, banker, merchant, agent, etc,. He/She shall be punished with imprisonment for life or imprisonment upto a period of 10 (ten) years or fine or both.

Conclusion

By going through Section 405 of the Indian Penal Code,1860 it is clear that there are two main ingredients of criminal breach of trust that are entrustment and dishonest misappropriation of the property. Therefore, in order to constitute an offence under Section 406 of the Indian Penal Code, 1860 it is pivotal that both the ingredients of the criminal breach of trust are fulfilled.

The punishment for criminal breach of trust has been enumerated under Section 406 of the Indian Penal Code,1860; that is imprisonment which is extendable upto a period of 3 years or fine or both which further depend upon the type of person who has committed the offence. 

References


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Section 201 IPC : complete overview with case laws

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This article is written by Sujitha S, from the School of Excellence in law, Chennai. This article focuses on Section 201 of the Indian Penal Code which deals with disappearance of evidence and providing false information regarding the offence committed. 

Introduction

The word ‘evidence’ is derived from the Latin term ‘evidentia,’ which means ‘to exhibit clearly, to make clear to the eye, to find clearly certain, to confirm, or to prove.’ Therefore, evidence is anything that may be used to establish or reject the existence or nonexistence of a claimed fact. Legally, evidence is something that is offered before a court for the purpose of demonstrating or disproving a point of contention. Section 3 of the Indian Evidence Act, 1872 defines ‘evidence’ as the statements that the court permits to be made by the witnesses relevant to the facts of the case and the documents submitted before the court for inspection. This documentary evidence also includes inspection of electronic records.

As said above, evidence can be either oral, which refers to witness testimony, or documentary, which refers to documents and electronic data presented to the Court. Circumstantial evidence can also be used to show an accused’s guilt. When such evidence is forged, fabricated, tainted evidence, it is known as false evidence. False evidence is evidence that has been forged, falsified, or corrupted in some way. The provisions dealing with providing and fabricating false evidence, as well as offences against public justice, are dealt with in Chapter 11 of the Indian Penal Code.

Section 201 IPC

Section 201: Causing disappearance of evidence of offence, or giving false information to screen offender.

This Section comprises two aspects which include the disappearance of evidence and giving false information with the intention of screening the offender from legal consequences. The Section further prescribes the extent of punishment with reference to the gravity of the committed offence. They are as follows:

  • In case of a capital offence, the offender can be punished with imprisonment extending to 7 years and fine.
  • In case of an offence punishable with imprisonment for life, the offender can be punished with imprisonment extending to 3 years and fine.
  • In case of an offence punishable with less than 10 years imprisonment, the offender can be punished with imprisonment for a term extending to one-fourth part of the longest term of the imprisonment provided for the offence or fine or both.

Illustration

A, knowing that B has murdered Z, aids B in concealing the body in order to protect B from prosecution. Thus, A is given a sentence of seven-year imprisonment as well as a fine.

Primary Requirements for Section 201 IPC

The Section is divided into two parts. The first is making evidence disappear, and the second is providing false information about the crime. The two essential criteria applicable to the said offences in Section 201 are: 

  • The accused should have had knowledge or reason to believe that an offence had been committed, and 
  • He should have then caused the disappearance of evidence of the commission of that offence or should have given false information.

The prosecution has to prove the above two essential elements for conviction under this provision.

Disappearance of evidence

Essential ingredients 

  • An offence must have been committed; 
  • A person must induce the disappearance of any evidence of the crime committed; and 
  • It must be done with the goal of screening or sparing the offender from punishment.

Commission of a crime

One of the primary requirements of Section 201 is proof of the actual commission of an offence. This is because the question of inducing the disappearance of evidence of a crime or concealing the criminal does not arise until an offence has been committed in the first place.

Palvinder Kaur v. State of Punjab (1952)

In Palvinder Kaur v. State of Punjab (1952), the prosecution claimed that the appellant had given her husband potassium cyanide and killed him and that she, along with another person with whom she had an illegitimate relationship, had put the deceased’s body in a trunk, loaded it into a jeep, and threw it into a well. The foul scent coming from the well was reported to the local officials, more than a month after the purported murder, and the body was found. A post-mortem examination was carried out. There were no signs of potassium cyanide poisoning, according to the post-mortem report. 

According to the defence, the deceased enjoyed photography as a form of recreation and occasionally produced prints at home, for which he purchased liquid to work on the images. He had mistakenly drank the liquid on the day of the incident, believing it to be medicine that had been kept. The appellant was afraid to inform her in-laws since she already had a poor relationship with them. So, with the assistance of another, she placed the body in a trunk and tossed it into the well.

The trial court found her guilty under Section 302. Her conviction was overturned by the High Court on appeal, and she was found guilty under Section 201. The Supreme Court ruled on the appeal that the wife’s statement demonstrated that no crime had been committed because the death was unintentional. The Court concluded that a person could not be convicted based solely on suspicion, no matter how strong the suspicions were, in the absence of any additional proof.

Pointers

  • Under Section 201, mere suspicion is insufficient to convict the accused. There has to be some solid evidence on file to demonstrate that the accused dealt with the evidence in order to spare another person, known or unknown. He must be aware of or have reasonable grounds to suspect, that a crime has been committed.
  • It is important to note, however, that the offence under Section 201 is distinct from the main offence in nature, even if it cannot be isolated from the body of the main offence. It is a serious offence. As a result, even if no one is convicted of the primary offence, a person might be found guilty under Section 201. Despite acquittal on the main charge, conviction under Section 201 is possible if the essential elements of the provision are met.
  • It must also be proved that the person accused under Section 201 of the IPC had knowledge of the conduct of the offence or had information sufficient to lead him to think that the offence had been committed. The term ‘offence’ as used in this Section does not imply that the accused should be aware of the precise nature of the crime committed or the specific Section of the IPC under which the offence is classified. If there is the knowledge that a crime has been committed, it is sufficient.

Shamim Rahmani v. State of Uttar Pradesh (1975)

In Shamim Rahmani v. State of Uttar Pradesh (1975), Shamim, a college student, had an illegitimate affair with the deceased, a doctor. The deceased was a married man with three children.  As the attention and commitment of the deceased towards their relationship reduced eventually, Shamim was enraged and shot him with a handgun in her home. Shamim’s younger brother informed his elder brother. Shamim’s elder brother told authorities that his younger brother informed him that it was unknown how Shamim brought out the gun and how it got fired but it shot the deceased and he had fallen and was bleeding. The prosecution said that Shamim’s brother was aware that his sister had committed a murder, but made this statement to protect her. The Supreme Court observed that Shamim’s elder brother’s understanding was based on information provided by his younger brother, and he was likely unaware if the deceased had died to his injuries. As a result, no offence under Section 201 was deemed to have been established. Shamim’s elder brother was found not guilty under Section 201 of the Indian Penal Code.

Person causing disappearance of evidence

The word ‘whoever’ is used in this Section. The conflict emerged as to whether the phrase ‘whoever’ encompassed the individual who is guilty of the crime for which evidence has been obliterated or if it applied to anybody other than the person charged with the principal offence.

In the case of Kalawati v. State of Himachal Pradesh (1953), the accused Kalawati was the deceased’s wife. The deceased had been cruel to her. She was accused of murdering her husband with the aid of another man, Ranjith Singh, with whom she had an extramarital affair. While they were all sleeping on their house’s terrace, the deceased was killed. Kalawati, the wife who was there, said that some unknown dacoits broke into her home, murdered her husband, and looted her valuables. Kalawati was accused of plotting to murder her husband as well as making a false statement with the intent of sparing Ranjit Singh. She was found not guilty of murder. It was argued before the Supreme Court that since she had been acquitted from the charge of murder, she could not be absolved of the offence under Section 201 of the IPC.

When confronted with the identical situation in V.L Tresa v. State of Kerala (2001), the Supreme Court relied on the Kalawati case to sustain the appellant’s conviction under Section 201, notwithstanding her acquittal on the charge of killing her husband.

If the circumstances of the case show that the accused committed first the offence and then took efforts to conceal the evidence, he can be convicted of both offences. If the primary offence is not proven against him, he cannot be convicted under Section 201. However, mere suspicion or the impossibility to declare with certainty that he committed the principal offence does not put him beyond the scope of Section 201.

Intention of sparing the offender

The cause of the disappearance of evidence in relation to a crime must be done with the goal of protecting the culprit from legal punishment under this Section. The Supreme Court has underlined in subsequent court proceedings that the heart of Section 201 is the disappearance of evidence with the purpose of safeguarding the offender from lawful punishment. The accused’s single and primary goal is to spare the criminal. In the absence of such purpose, the accused cannot be found guilty under Section 201 of the Indian Penal Code.

There was a property dispute between two families in Hanuman v. State of Rajasthan (1993). When the victim died under strange circumstances, the settlement discussions were well underway, but there was no proof as to how he died. The indictment against the defendants was that they incinerated the corpse to spare the offender. There was no proof that a murder had occurred, and if it had, who were the offenders of the crime? It must be proven that the accused incinerated the body “with the aim of screening the offender from lawful punishment” to maintain a prosecution under Section 201 of the IPC. The Supreme Court ruled that no charge under Section 201 of the Indian Penal Code was made out since no such conclusion was made.

Disappearance of evidence of the crime

The cause of the disappearance of evidence of the crime is one of the necessary elements of the offence under Section 201. However, under Section 201, IPC, mere knowledge that someone has caused the disappearance of evidence by disposing of a body is not a crime. It is not enough to just remove a corpse, it must also be proven that the removal was conducted with the intention of shielding the criminal from legal consequences.

A conflict arose in the case of State of Uttar Pradesh v. Mahendra Singh (1974), about the right to use water from a tube well. Five individuals were killed when an armed mob of over 20 people went to the deceased’s field and started a fire. The accused’s group then beheaded and cut the five deceased victims’ limbs. They took fuel from a vehicle, sprayed it on some wood, lit it on fire, and tossed the five bodies into the flames. The decapitated heads were taken home as mementoes. All of the defendants were found guilty of murder and causing the destruction of evidence proving the crimes.

Giving false information

Essential ingredients 

  • An offence must have been committed; 
  • He must be aware or have knowledge that the information he provides is false; and  
  • It must be done with the aim of screening the criminal.

Kodali Purnachandra Rao v. Public Prosecutor, Andhra Pradesh (1975)

Giving false information about the incidence of an offence is also a component of the offence under this Section. The first accused (A1) was an arrack contractor, while the second accused (A2) was a police sub-inspector in Kodali Purnachandra Rao v. Public Prosecutor, Andhra Pradesh (1975). The defendants, in this case, kidnapped, raped, and killed two young college girls before throwing their corpses into the sea. One of the bodies washed up on the beach within a few hours. When word of the corpse washing up on the coast reached the second accused, the sub-inspector, he decided to visit the scene and inquire. The first accused, who was also present at the police station, agreed that the second accused should conduct his own investigation. By that time, several people had gathered around the girl’s body. On the corpse’s forehead, there was a mark from which blood was seeping. There was a reddish abrasion on the deceased body’s thigh, as well as blood traces on his underpants. A2 did not conduct any inquests or keep any records. He told the residents in the area to bury the deceased. 

In the meantime, Karnam had arrived. A2 chastised Karnam for being late but assured him that he had accomplished all the necessary tasks and had the body buried. When Karnam inquired why he did not submit the body for post mortem, despite the fact that A2 was aware of the identity of the college girl, he said that the body was that of a prostitute who had committed suicide. Despite the injuries on the corpse, A2 falsely said that the deceased’s body had no injuries. He also said incorrectly that the stomach was inflated as a result of water consumption. He also made up a bogus storey about a person who was later shown to be non-existent, claiming that he arrived in the hamlet with two prostitutes offering them film roles and that they got into a dispute after which both prostitutes left him. He determined that the body belonged to one of the prostitutes. The second body was discovered drifting approximately three kilometres from the coast by some fisherman. The victim’s wristwatch, ring, and earring were removed, but the body was allowed to float away. The articles were given over to the cops, who were able to identify the second female owing to them.

The Supreme Court ruled that A2, as a public servant is responsible for preparing an official record pertaining to the inquiry of the causes of death of both girls, had constructed the record in such a way that the true criminals were spared punishment. With the fraudulent and dishonest intent of fooling his superiors, he created phoney and counterfeit records. A1 had helped and assisted A2 in the fabrication of the fake and falsified record on purpose. The defendants were cleared of the charges of kidnapping, rape, and murder, but were found guilty of crimes under Sections 201, 318, and 468 of the Indian Penal Code.

Issues with Section 201 IPC

  • Section 201 is a bit clumsily written because of the terms “knowing or having reason to believe” in the first paragraph and “knows or believes” in the second paragraph are interchangeable.
  • Consider the example of an accused who has reasonable grounds to think that a crime has been committed. He is guilty of an offence under Section 201 if the other elements of the first paragraph are met.
  • If it is assumed that the term ‘believes’ was used in a different sense from the statement ‘having reason to believe,’ it would be necessary to establish that the accused ‘believes’ in addition to ‘having cause to believe’ in order to penalise him.
  • Unless some further fact or state of mind is proven, the legislature cannot be accused of intending for an accused who is found guilty of the offence under the first paragraph to avoid punishment under the second paragraph.

Measure of the punishment under Section 201 IPC

The severity of the offence is stated to rely on the punishment in the second, third, and fourth paragraphs. 

  • If the offender is protected from prosecution for a crime that is punishable by death, a maximum term of seven years and a fine is imposed. 
  • If the screening offence is one that carries a life sentence, the penalty is reduced to a maximum of three years in jail and a fine. 
  • If the shielded offence carries a penalty of less than 10 years, the sentence is one-fourth of the longest period of imprisonment allowed for the offence, or a fine, or both.

For instance, If an accused sees blood marks on the ground as a result of an offence punishable under Section 323 (for causing hurt), he erases the blood marks with the intent of screening the offender, whom he erroneously believes to have committed the offence of murder, he could be convicted only on the basis that an offence under Section 323 was committed and that he acted with the intention of screening such an offender believing that such an offence was committed. He could not, however, be found guilty just because he screened a murder or because he mistakenly believed that a murder had been committed. The accused’s erroneous belief in delusion would not be sufficient grounds for punishment, and he would not be subjected to a seven-year sentence under the second paragraph. It’s impossible to believe that the legislature intended for the minor offence of screening an offender under Section 201 to be punished more harshly than the primary offence committed by the main criminal.

Conclusion

To conclude, the first paragraph of Section 201 spells forth the essential elements of Section 201. It must first be established that an offence has occurred. Second, the accused must be aware of the crime or have reasonable grounds to suspect it has been done. Third, the accused must either erase any evidence related to the offence or provide any information about the crime that he knows or thinks to be false. Finally, the accused must have committed this with the goal of protecting the offender from legal consequences. The latter portion of the Section deals with the punishment. Punishment has been determined based on the magnitude or gravity of the offence, as well as whether or not evidence has been disappeared with or false information has been presented. The more serious the offence, the harsher the punishment.

Reference


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