Download Now
Home Blog Page 344

Blog competition winner announcement (Week 2nd October 2021)

0

So today is the day! We are finally announcing the winners of our Blog Writing Competition for 2nd week of October 2021 (From 11th October 2021 to 17th 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
1Priti ShekhawatStudent pursuing the Diploma in Labour, Employment and Industrial Laws (including POSH) for HR Managers from LawSikho. Theory of notional extension of employers premises under the Employees Compensation Act
2Aditya AnandInternDeed settlement : an overview
3Hemnaag I Student pursuing the Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution from LawSikho.Smart contract : why is it inflexible
4Pratibha ChauhanStudent pursuing a Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution from LawSikho. Unexplored antitrust and contract law concerns in Indian transport aggregation
5Pranjali AggarwalInternThe Uttar Pradesh Gangsters and Anti-Social Activities (Prevention) Act and other similar laws

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
6Niharika AgrawalInternAnalytical analysis of legal education : the gap between National Law Schools in contrast to other institutions
7Smriti SinghGuest PostKrishna water dispute : an overview
8Nishtha GarhwalInternDetailed analysis of copyright violation with respect to Brazil
9Mayank Jain and Shreya SinghStudent pursuing Diploma in US Contract Drafting and Paralegal Studies from LawSikho Best business structure for foreign companies in the Indian market
10Anindita DebInternProblems with enforcing the western favoured international law in third-world countries

Click here to see all of the contest entries.

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

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

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

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

Congratulations to all the participants!

Regards,

Team LawSikho


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

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join: https://t.me/joinchat/L9vr7LmS9pJjYTQ9

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

Download Now

An overview of bond yields

0
Anticipatory Law
Image Source: https://bit.ly/2JdPZgg

This article has been written by Sumanth D, pursuing a Diploma in M&A, Institutional Finance and Investment Laws (PE and VC transactions) from LawSikho.

It has been published by Rachit Garg.

What are Bonds?

A bond is a financial instrument that allows you to borrow money. It’s similar to a promissory note. A bond can be launched or issued by the government of a country or by a company to raise cash. Government bonds (also known as G-secs in India, Treasury in the United States, and Gilts in the United Kingdom) are one of the safest investments since they are backed by the sovereign. 

As a result, they also provide the lowest investment returns (or yield). Corporate bond investments are riskier since the odds of failure (and, as a result, the firm defaulting on the loan) is higher.

Different types of Bonds

Fixed Coupon Rate Bonds

In these types of bonds, “the interest is fixed from the date of issue. Most of the corporate and government bonds are of fixed coupon rate and the interest or coupon is provided annually, semi-annually, quarterly or monthly till the redemption date”.

Floating Coupon Rate Bonds

In these bonds, the “coupon rate fluctuates at a predefined time till the date of maturity. Here interest rate depends on a benchmark that it follows to determine the coupon rate in each coupon payment. In the case of FRB Bonds, the coupon rate depends on the Treasury bills (T-Bills) yield”.

Zero-Coupon Bonds

These bonds are those bonds where the issuer does not provide any coupon payment to the holder till the maturity date. Here the “bonds are issued below the face value amount and on the date of redemption or maturity. 

Bonds are redeemed on the face value amount. Here the difference between the redemption price and the issue price is the return for an investor. In India, T-Bills are the Zero-Coupon Bonds”.

Cumulative Coupon Rate Bonds

These bonds are issued with a “coupon rate but the coupon payment is done at the time of redemption”. Usually, corporations issue these types of bonds.

Inflation-Indexed Bonds

These bonds provide protection from inflation. It is primarily issued by the government. Here the coupon rate is dependent on the inflation rate.

Usually, the coupon rate equals the inflation rate and the additional rate provided over the inflation rate.

Perpetual Bonds

Perpetual bonds have no maturity date. It means these are “not liable for redemption as per law or issuing entity. In these bonds, the Issuer pays the interest forever till it is in existence”.

Callable and Puttable bonds

In callable bonds, the issuer has an option to redeem the bonds earlier than the redemption date and in the case of Puttable Bonds, the holder has an option to get back the investment amount before maturity or redemption date.

RBI Bonds (The Floating Rate Saving Bonds) 2020

The RBI’s Floating Rate Savings Bonds 2020 are government-issued bonds with a 7.15 percent interest rate. The Bonds have a variable interest rate that is reset every six months, with the first reset scheduled for January 1, 2021. The interest rate is determined by the NSC interest rate (National Saving Certificate). The Bond pays out semi-annually on January 1st and July 1st of each year. The bonds are only issued electronically and are kept in the Bond Ledger Account (BLA). The bonds are held in the BLA, which is a bank account with the RBI or an agency bank.

What are Bond Yields?

The predicted profits created and realised on a fixed-income investment over a given period of time, expressed as a percentage or interest rate, is referred to as the yield on a bond.

The return on a bond is referred to as the bond yield. Bond yields can be defined in a variety of ways. The simplest definition is to set the bond yield equal to the coupon rate. If the bond’s price differs from its face value, the current yield is a function of the bond’s price and its coupon or interest payment, and it will be more accurate than the coupon yield.

Simply explained, a bond’s yield is the effective rate of return it receives. However, the rate of return is not constant; it fluctuates with the bond’s price. However, in order to comprehend this, one must first comprehend the structure of ties. There is a face value and a coupon payment on every bond. There’s also the bond’s price, which may or may not be equal to the bond’s face value.

Assume a 10-year G-sec has a face value of Rs 100 and a coupon payment of Rs 5. Buyers of this bond will provide the government Rs 100 (face value), in exchange for which the government will pay them Rs 5 (coupon payment) every year for the following ten years, and will refund their Rs 100 at the end of the term. The bond’s yield, or an effective rate of interest, in this case, is 5%. The yield is the investor’s reward for parting with Rs 100 today, but for staying without it for 10 years.

Overview of Bond Yields

When investors purchase bonds, they are effectively lending money to bond issuers. Bond issuers commit to pay investors interest on bonds for the duration of the bond’s life and to reimburse the face value of bonds at maturity in exchange. The most straightforward technique to determine a bond yield is to divide the coupon payment by the bond’s face value. This is referred to as the coupon rate.

If a bond has a face value of $1,000 and receives 100 interest or coupon payments each year, the coupon rate is 10% (100 / 1,000 = 10%). However, a bond might be purchased for more than its face value (premium) or for less than its face value (discount), which will affect the bond’s yield.

Coupon rate = Annual Coupon Payment/Face Value

Different types of Bond Yields

  • Running Yield: The same as the current yield – earnings from a bond divided by its current market value
  • Nominal Yield: The same as coupon rate or coupon yield – the rate of interest you’ll earn annually from a bond
  • Yield to Maturity (YTM): Indicates the interest you’ll earn if you buy a bond and hold it until its maturity date
  • Tax-Equivalent Yield (TEY): Helps you compare bonds that are tax-exempt and those that are not; calculated by taking the yield on the tax-exempt bond and dividing by [one minus your marginal tax rate]
  • Yield to Call (YTC): A calculation of your long-term interest if you sell the bond prior to maturity; uses a “call date” – or the date on which you have the right to sell the bond, as well as the bond’s price for that day
  • Yield to Worst (YTW): Either the YTM or the YTC, whichever is the lowest; gives investors an idea of the lowest possible returns the bond offers

Is it difficult to invest in bonds as compared to equity shares?

While there are a variety of investment options available in India, bonds and stocks are the most popular. Bonds can be purchased on the primary or secondary markets. One can subscribe to a public issue of a significant company on the primary market. Alternatively, bonds can be purchased on the secondary market, which is where they are exchanged on exchanges.

Bonds are often considered illiquid and are held till maturity. However, if you need to sell your investment before it matures, you may do so on the secondary market.

  • In the case of a bond, the holder is dependent on the issuer for getting back the lent money. Therefore, it is vital to check the creditworthiness of the issuer.
  • As a purchaser of bonds, one should buy bonds or debentures issued by a good-quality issuer.  
  • The way to ascertain the quality of the issuer is to look at their credit rating. 

Credit rating companies assign ratings to issuers and express an opinion on their creditworthiness.

AAA (triple-A) rated companies are thought to be high-quality issuers. Professional investors, such as fund managers and corporate treasury managers, do due diligence on the issuer’s fundamental quality.

However, because not every investor has the time or resources to do so, it is a good idea to verify with credit rating organisations.

The implication of rising bond yields in India

A number of factors have contributed to the rapid spike in bond rates. The first is inflation, which has been on a steady upward trajectory since June of last year and has just now begun to decline. The rate of inflation is beyond the RBI’s tolerance level, and inflation forecasts remain high. Second, the Fed has already indicated three rate rises this year, with strong economic statistics suggesting as many as four. As a result, Indian yields have remained rising in line with global trends. Finally, markets are pricing in the possibility that the RBI would be required to raise rates by 25-50 basis points this year in order to make the yield disparity appealing to international investors. What, though, are the consequences of increasing bond yields? There might be five major ramifications.

Higher bond yields will create a problem for bank bond portfolios

Indian banks, particularly public sector banks, are among the country’s major bondholders. Because banks must maintain a statutory liquidity ratio (SLR) with the RBI as a safety net to safeguard their solvency, this is the case. The SLR is mostly made up of government bonds, and the RBI utilises it to fund the government’s borrowing needs. SBI recorded a large loss in the prior quarter’s earnings due to two factors: an increase in Non-Performing Assets (NPAs) and bond losses. Bond losses are a key issue for banks since rising rates cause bond values to decline, resulting in losses that must be booked by the banks. This might lower bank earnings and make any fund-raising ambitions more difficult.

Rising bond yields is not great news for Net Asset Value (NAV) of debt funds

Debt funds that hold these government bonds see their NAV values erode, much as banks do with their bond holdings. This issue is exacerbated for mutual funds that own long-term government bonds, which are the most sensitive to rising bond rates. In fact, bond prices have plummeted so much in recent months that bond dealers have almost pleaded with the RBI to join the market and defend prices by purchasing at lower levels. In the end, a drop in NAVs diminishes the wealth of both retail and institutional investors.

Indian corporates may be forced to borrow at higher rates of interest

A number of prominent banks have begun to raise their lending rates in recent months. Rising bond yields are a direct cause of this. To maintain the appeal of deposit rates when bond yields increase, banks will have to hike deposit rates. However, in order to preserve their spread, they are required to boost lending rates to compensate. It may be remembered that demonetization caused a liquidity surplus in the financial sector, causing yields to plummet. The rise in rates may negate this advantage, and it may stymie the capital investment cycle’s fledgling rebound.

Government borrowing programs will be impacted negatively

In the next two years, India’s government has already resolved to exceed its budget deficit targets by 30 basis points. This means the government will have to rely on the bond market to raise cash on a regular basis. However, increasing bond yields will force the government to borrow at much higher rates, which it will not be willing to do because it would significantly raise its borrowing costs. This is bad news given the government’s need to borrow substantially to satisfy its budget obligations over the coming year. Higher rates might put a crimp in the government’s borrowing plan.

It could also have a negative impact on equity valuations

The equity markets have also corrected sharply since February when bond yields spiked. While the LTCG tax played a role, one of the most important factors was the worldwide trend of rising bond rates. But why do higher bond rates have an effect on the stock market? Remember that the discounted cash flow (DCF) approach is used to value stocks. The cost of capital is used as the denominator to discount future cash flows to the present year. The weighted average of the cost of stock and the cost of debt is the cost of capital. If bond rates rise, the cost of capital rises as well, implying that existing values are more depressed. One of the main reasons why markets have been falling over the previous two months is because of this.

Financial takeaway

Bonds are often regarded as one of the safest investment options available. The varied yields on a bond may tell you a lot about how risky the investment is and what kind of returns you might expect.

Before making any decisions, consult with a knowledgeable investment expert or financial advisor if you’re unclear whether a bond or investment is right for you.

Conclusion

Bond yields can be applied in a variety of ways. To begin, they can tell you how much you may expect to earn on a bond versus another investment.

Bonds with higher yields, for example, have greater profit potential. Keep in mind, too, that while high-yield bonds are appealing, they also carry a higher risk.

If a bond’s yield is greater than most other bond yields, it indicates that the bond’s risk is higher, because investors will often pay less for a riskier investment. If that danger of default does not materialise, the bond will be more valuable than other bonds since it will pay a greater return. To put it another way, the greater the risk, the lower the price, and hence the greater the return.

References 

  1. https://www.incometaxindia.gov.in/Acts/Finance%20Acts/2000/102120000000009405.htm
  2. https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11196&Mode=0
  3. https://www.sebi.gov.in/sebi_data/attachdocs/1288587929503.pdf
  4. https://www.mondaq.com/india/debt-capital-markets/227488/corporate-bonds-in-india
  5. https://indianexpress.com/article/explained/explained-why-rbi-wants-moderate-bond-yields-and-what-it-means-for-investors-7304997/

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/joinchat/L9vr7LmS9pJjYTQ9

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

Download Now

Human Rights Day : 10th December

0
Image source - https://bit.ly/3Fjz3Qr

This article has been written by Ria Verma, a student at Symbiosis Law School, NOIDA. This article aims to elucidate the meaning of human rights, the significance of Human Rights Day, and the theme for this year. 

This article has been published by Diva Rai.

Introduction

Where, after all, do universal human rights begin? In small places, close to home – so close and so small that they cannot be seen on any maps of the world. … Unless these rights have meaning there, they have little meaning anywhere. Without concerned citizen action to uphold them close to home, we shall look in vain for progress in the larger world.” – Eleanor Roosevelt.

The COVID-19 pandemic brought our life to a standstill. We had to adjust to the new normality of quarantining and working at home. The pandemic expanded the existing fault lines all across the world. It is imperative to understand the significance of human rights in these trying times.

There have been a number of instances of gross violations of human rights all across the world. To reduce the extent of the crisis, many volunteers formed groups on social media platforms providing information on medicines, hospital beds, oxygen cylinders, availability of vaccines, etc. However, many suffered and lost their lives because of the inadequate infrastructure. 

The need to protect the individual’s human rights has attained a greater meaning in the aftermath of the pandemic, leading to more poverty, inequalities, and injustices. 

What are human rights

Human rights are rights that exist on the sole ground that we are human beings. These rights are not granted by the State but are inherent to all human beings irrespective of gender, nationality, ethnicity, color, language, religion, or any other such status. These rights emanate from the right to life which includes having basic needs such as food, shelter, health, education, work, and liberty. 

The foundations of these rights are the Charter of the United Nations and the Universal Declaration of Human Rights, adopted by the General Assembly in 1945 and 1948, respectively. 

  1. Article 1 of the Universal Declaration of Human Rights (UDHR) states that all individuals have the right to life, liberty, and security. 
  2. Article 5 of the UDHR mandates that no individual must be subjected to torture or any cruel, degrading, or inhuman treatment or punishment. 
  3. Article 9 of the UDHR guarantees equality before the law and the right to an effective remedy for acts violating an individual’s fundamental rights. 
  4. Article 6(1) of the International Convention on the Civil and Political Rights of individuals states that every human being has the inherent right to life which is protected by the law and as such no one can be arbitrarily denied the same. 

Human rights law has been gradually expanded since then to encompass specific standards for women, children, persons with disabilities, minorities, and other vulnerable groups, who now possess rights that protect them from discrimination that had long been common in many societies.

The following are the prominent features of human rights:

Universal and inalienable

The principle that human rights are universally applicable is the bedrock of international humanitarian law. It means that all individuals have an equal entitlement to basic human rights. The UDHR laid emphasis on this principle and the same has been reiterated in many international declarations, conventions, and resolutions pertaining to human rights. 

Human rights are inviolable and cannot be taken away except in special circumstances and in accordance with the procedure established by law. For example, an individual who has been convicted of a crime by a court of law would not be able to exercise his right to liberty. 

Indivisible and interdependent

All human rights are both indivisible and interdependent on each other. In other words, one set of rights cannot be enjoyed without the other set of rights. For example, violating the social, economic, and cultural rights of an individual can have a direct impact on the enjoyment of the other rights by the individual. 

Equal and non-discriminatory

Article 1 of the UDHR states that: “All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.” 

Article 2 talks about every individual’s entitlement to freedom irrespective of any distinction between race, religion, or any other status or on the basis of the status of the country or territory to which the individual belongs to. The freedom from any form of discrimination in this article ensures the equality mentioned in Article 1. 

The principle of non-discrimination permeates through every international human rights framework. It is present in all the prominent human rights treaties. It is also the core theme for two major conventions- the International Convention on the Elimination of All Forms of Racial Discrimination, and the Convention on the Elimination of All Forms of Discrimination against Women

Both rights and obligations

All States have ratified at least 1 of the 9 core human rights treaties, as well as 1 of the 9 optional protocols. Approximately 80% of States have ratified at least 4 or more treaties. This gives the States the duty as well as the obligation to protect, respect, and fulfill human rights under international law.

The States have an obligation to refrain from trampling upon and curtailing the enjoyment of human rights. It requires the States to protect individuals and groups of individuals from stark violations of their human rights. They must take positive action to ensure the enjoyment of basic human rights by all. 

On the other hand, as individuals, we are entitled to our human rights but we must stand up for the rights of others as well. As stated by Nelson Mandela, “to deny people their human rights is to challenge their very humanity”.

Participation and inclusion

Every individual has the right to have the freedom to actively participate and contribute to the enjoyment of social, political, cultural, economic, and civil development. Through this, we would be one step closer to realizing the fundamental freedoms and human rights of every individual. 

Accountability and rule of law

There must be strict compliance with the legal norms and standards stipulated in human rights instruments by the States and the other duty-bearers. On their failure to do so, the aggrieved parties have the option to initiate proceedings for grievance redressal before a competent court or an adjudicator, in accordance with procedure and rules established by law. 

Human Rights Day

Human Rights Day is celebrated every day to spread awareness about our inalienable human rights and to celebrate the adoption of the UDHR. A number of programs are organized to encourage governments, organizations, etc. to establish a sense of equality and protect the rights of individuals irrespective of their sex, religion, color, or any other such status. 

Human rights are protected by several laws and treaties all across the world. A 47-member group, the Human Rights Council, has been assigned the task of promotion and protection of human rights. These UN member states are responsible to reduce and prevent inequality, discrimination, abuse, giving protection to the vulnerable sections of the society, and giving appropriate punishment to the wrongdoers. 

Universal Declaration of Human Rights

On 10 December 1948, the United Nations General Assembly adopted the Universal Declaration of Human Rights (UDHR). It is a milestone document in the history of human rights and was the first legal document stating the basic human rights that needed to be protected universally. It was drafted by representatives belonging to various cultural and legal backgrounds from all territories across the world. It has been translated into more than 500 languages. 

It consists of 30 articles and is the basis for all the current as well as the future international human rights legal frameworks, treaties, conventions, legal instruments, and policies formulated. 

The UDHR coupled with the 2 covenants – the International Covenant for Civil and Political Rights along with two optional protocols, and the International Covenant for Economic, Social, and Cultural Rights – constitute the International Bill of Rights.

It is widely recognized as inspiring and paving the way for the adoption of more than 70 human rights treaties, applicable today on a permanent basis at global and regional levels. All these treaties reference the document in their preamble, that is, the foreword of all the documents. 

It includes 30 rights and freedoms such as civil and political rights, the right to life, liberty, free speech, and privacy; social, cultural, and economic rights such as the right to social security, health, and education, etc. India had an active role in the drafting of the UDHR.

The UDHR does not directly create legally binding obligations on countries since it is not a treaty.

Equality – theme for 2021

The theme for this year’s Human Rights Day is equality. It relates to Article 1 of the UDHR that states that every individual is free and equal. 

The principles of equality and non-discrimination are at the center of human rights. Equality is aligned with the 2030 Agenda and the UN’s approach outlined in the document Shared Framework on Leaving No One Behind: Equality and Non-Discrimination at the Heart of Sustainable Development. It includes addressing and finding solutions for deeply ingrained forms of discrimination affecting minorities and the most vulnerable people in societies, such as indigenous people, women and girls, people of African descent, LGBTI people, migrants, and people with disabilities, to name a few. 

Equality means that we embrace our diversity and demand that all be treated without any kind of discrimination,” says UN Human Rights High Commissioner Michelle Bachelet.

Equality and non-discrimination are essential to prevent the biggest global crises of our time. Human rights have the power to address the underlying root causes of conflict and crisis by eliminating inequalities and exclusion, addressing grievances, and giving people the opportunity to participate in decision-making that affects their lives. 

A human rights-based approach to development by keeping the values of equality, non-discrimination, and inclusion at the core is an effective way to reduce inequalities and achieve the objectives of the 2030 agenda. 

This approach can break the vicious cycle of poverty, pervasive inequality, and normalized structural discrimination. An economy based on human rights should be the foundation of a new social contract allowing every individual the right to enjoy a clean, safe and healthy environment and work towards a sustainable environment for future generations. 

The “COVID generation” is especially vulnerable to falling prey to mounting debts, poverty, and inequality. Financial and health crises have adverse impacts on millions of young people. Their rights need to be protected by giving them employment opportunities as well as social protection. 

Vaccine inequality is a recent alarming issue. Hoarding vaccines and distributing them unfairly is against the very spirit of global solidarity and it is the need of the hour for the government to formulate effective policies to ensure that every individual has access to the vaccine. 

Climate change, pollution, and forest fires cause environmental degradation on a large-scale impacting the livelihoods and safety of millions. Existing inequalities are expanded and the rights of the present, as well as the future generations, are negatively affected. The policy-maker must emphasize green recovery, that is, utilizing innovative sustainable projects, restructuring critical sectors, and accelerating the pre-existing environmental plans. 

Human Rights in India

Human rights enumerated in the Universal Declaration have been enunciated in the Indian Constitution in two parts- the Fundamental Rights and the Directive Principles of State Policy.

Articles 12 to 35 cover the fundamental rights in the Constitution. These include the Right to Equality, Right to Freedom, Right Against Exploitation, Right to Freedom of Religion, Cultural & Educational Rights, and Right to Constitutional Remedies.

Articles 36 to 51 cover the directive principles of the state policy in the Constitution. These include the right to work, to free choice of employment, right to social security and protection against unemployment, right to equal pay for equal work, right to existence worthy of human dignity, right to free & compulsory education, equal justice & free legal aid and the principles of policy to be followed by the State.

Protection of Human Rights (Amendment) Act, 2019 provided for the institution of a National Human Rights Commission at the Union level, and supervising the State Human Rights Commission in States and Human Rights Courts for facilitating better protection of Human Rights and matters connected therewith or incidental thereto.

Conclusion

Human rights are applicable universally and every individual around the world deserves to be treated equally and with dignity. Basic rights include freedom of speech and expression, privacy, health, life, liberty, and security, as well as adequate standards of living. The government has the duty to safeguard vulnerable communities from abuse by third parties. 

Societies capable of promoting and protecting human rights for everyone are more resilient and sustainable and are better equipped to deal with unforeseen circumstances such as pandemics and the negative implications of the climate crisis. 

It is time to not just demonstrate solidarity through words, but also act to end extreme forms of violence, prevalent inequalities, and injustices. Dowry deaths, rapes, female foeticide, hate crimes against LGBTQIA+, racism, xenophobia, religious discrimination, cyberbullying are critical issues that need to be addressed and effective solutions are required to deal with them. 

A new social contract is the need of the hour. We need to address the structural inequalities and discrimination, ensure the participation of all communities, firm political commitments, and a more equitable allocation of resources, power, and opportunities between the poor and the rich. The school curriculum must build courses aimed at building rationalistic thoughts and scientific temper so that students are conscious citizens and are aware of their rights from a young age. Social media is a great platform to sensitize the public towards practices that violate human rights, for example, female genital mutilation. At the same time, fake news misleading the public must be regulated.

We need to stand up for our rights and those of others. We can take action in our day-to-day lives and uphold the rights that protect all of us. We must strive for a world where we all can live with our heads held high and where equal rights and opportunities are not a dream but a reality. 

References

  1. https://www.ohchr.org/en/issues/pages/whatarehumanrights.aspx 
  2. https://www.un.org/en/observances/human-rights-day 
  3. https://www.unicef.org/child-rights-convention/what-are-human-rights 

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/joinchat/L9vr7LmS9pJjYTQ9

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

Download Now

Donoghue v. Stevenson : case analysis

0

This article is written by Ansruta Debnath, a student from National Law University Odisha and Ria Verma, a student at Symbiosis Law School, NOIDA. This article is a detailed case analysis of the landmark judgment of Donoghue v. Stevenson.

This article has been published by Sneha Mahawar

Introduction

Every law student has almost mandatorily heard about the famous case of Donoghue v. Stevenson (1932) or the ‘‘the snail in the bottle’’ case. It was not only a landmark judgment in the evolution of common law but also extremely pertinent to the development of tort law, a branch of law that, till today, houses numerous ambiguities. The revolutionary significance of the decision in the case is in the establishment of a standardized duty of care in negligence cases and the ‘‘neighbour principle’’ as set forth by Lord Atkin.

A brief overview of the tort of negligence 

I often hear from our seniors and well-wishers to not be negligent in studies, work, or daily tasks. In the legal sense, negligence has a deeper meaning and constitutes an actionable tort. Some questions could arise like whether due to an individual’s negligent behavior that causes them to commit an act or omission, the individual could inflict risk or hamper the well-being of an individual or a group of individuals. 

Negligence is one of the most prominent principles in the law of torts. It refers to an individual’s conduct that could be classified as either unreasonable or careless conduct or breach of a legal duty to take due care, which subsequently causes harm to an individual.

In several cases, the courts have given recognition to a duty of care existing due to some relationship between the parties. For example, a doctor and patient, employer and employee, manufacturer and consumer, one road-user to another, etc.

There are three pertinent essentials of this particular tort:

  1. The defendant had a duty of care towards the plaintiff
  2. There was a subsequent breach of that duty
  3. The plaintiff suffered damages as a consequence of the breach

According to Professor Winfield- “Negligence as a tort is the breach of duty to take care which results in damages.”

Let us look at the first case, Donoghue v Stevenson (1932), that introduced the doctrine of negligence that has been widely discussed and been a topic of discourse by eminent jurists, scholars, and law students all across the world. The landmark judgment has been credited as laying the foundation for the liability of the manufacturer in common law to the end-consumer.

Products could be classified into two categories: dangerous and not dangerous. However, there is a fine line of distinction that varies from case to case. Scrutton LJ confessed that he did not understand the difference: “Between anything dangerous in itself, like poison, and a thing not dangerous as a class, but by negligent construction dangerous as a particular thing. The latter, if anything, seems to be the more dangerous of the two; it is a wolf in sheep’s clothing instead of an obvious wolf.”

Facts of the case

On the 26th of August, 1928, Mr Minchella purchased a ginger beer bottle from Wellmeadow Cafe in Paisley (Scotland) for his friend, Mrs Donoghue, the appellant. The ginger beer bottle was made of dark opaque glass, and thus, there was no reason to suspect that the bottle might have contained anything other than ginger beer.

After consuming almost half of the contents of the bottle, when the rest of the ginger beer was poured into a tumbler, dead, decomposed remains of a snail floated into it. The nauseating sight coupled with the consequences of ingesting the impurities in the bottle caused shock and severe gastro-enteritis to the appellant.

The case was first filed in the Second Division of Sessions Court of Scotland where an interlocutor was issued by Lord Ordinary for proof after a good cause of action of the petitioner was found. But subsequently, another interlocutor by the majority was issued recalling the previous interlocutor and the action was dismissed. An appeal was then filed in the House of Lords.

Legal background

The general principle established till then was that the manufacturers owed no duty of care to anyone with whom they are not in contractual relation. However, this general rule had two exceptions-

  1.  The article is dangerous per se.
  2. The dangerousness of the article was known to the manufacturer but said knowledge was deliberately concealed.

In the present scenario, since the appellant was unable to claim compensation due to the breach of contract (no contract existed between the appellant and the manufacturer as the appellant’s friend had originally purchased the bottle), she submitted that Stevenson, the respondent, had breached the duty of care and caused legal injury through negligence.

Most cases, with a comparable fact scenario, had till then rejected the claims of compensation, asserting no duty of care arose without the presence of a contract. The only exception was George v. Skinvington (1869), where it was held that ordinary care was owed to persons using the product even in lack of a contractual relationship.

An important point to be noted is that even though the case was based in Scotland, English laws were used to deliver the judgment regarding the issue at hand, existing Scottish and English law concurred.

Prominent issues raised

The following issues were raised in this case:

  1. Was the manufacturer of the ginger beer aware of the defect in the product that made it unfit to consume and was it fraudulently concealed from the consumer?
  2. Could the product be classified as dangerous per se and was there a failure on part of the manufacturer to warn the consumer of the same?
  3. Would an action of negligence be applicable in light of the fact that there was no contract formed between the plaintiff and the manufacturer?

The arguments

Appellants

The ginger beer bottle was manufactured and sold to the public for consumption by the respondent- the bottle bore labels of the respondent’s company, and it was by the respondent who used metal caps to seal them.

The respondent, as manufacturers should have ensured that- 

  1. A system was in place to ensure snails would not get into their packaged products.
  2. An efficient system of inspection was there to conduct checks before the bottles were sealed.         

According to the appellants, the respondents failed in both these duties and caused this accident. Since the respondent invited the public (including the appellant) to consume a product they manufactured, bottled, labelled, and sealed and offered no opportunity to the consumer to examine their contents, they owed a duty of care to the appellant to ensure nothing in the bottle would injure such a consumer.

Moreover, the appellants contended that the principle of res ipsa loquitur was applicable in the present scenario. The fact that there was a snail in the bottle ‘spoke for itself’ the negligence of the manufacturers.

Finally, the appellants said that the exceptions to the general principle mentioned above were too strict and limited.

The appellants primarily cited the following to support their claim-

  1. George v. Skivington (1869)– This was an exceptional case that had held that ordinary care was owed to persons using the product even in lack of a contractual relationship,
  2. Sir Brett M.R.’s observation in Heaven v. Pender (1883) where he observed that  ‘‘Whenever a reasonable person would foresee that harm would be caused if he did not use reasonable care and skill he owes a duty in tort’’ and,
  3. Lord Denuedin’s observations in Dominion Natural Gas v. Collins and Perkins (1909) stated that those who sent out to everyone inherently dangerous articles were subject to a common law duty to take precautions. 

Respondents

The respondents claimed that the allegations of injury to the appellant were exaggerated and not as a cause of the alleged snail but due to existing health problems. Hence, the allegations were irrelevant and insufficient to constitute a proper ground for a summons. 

Moreover, they sought to prove that the appellants had no legal basis for the given claim by primarily citing the following cases-

  1. Mullen v. AG Barr & Co Ltd. (1929): The scenario, in this case, was almost similar to the case in question, except dead mice were discovered instead of a snail. The Scottish Sessions Court dismissed the case due to the absence of a contractual relationship and used that precedent to dismiss the present case as well.
  2. Winterbottom v. Wright (1842): In this case, the issue of contention was whether the manufacturer owed any duty of care to a third party and the judgment was given in negative.
  3. Blacker v. Lake & Elliot, Ld (1912): Hamilton J. observed here that breach of duty in the contract does not give any cause of action to third parties.

The respondents further contended that although most of the relevant precedents dealt with non-food items, there was no logical reason why they would not apply to food items as well. 

Final judgment

The outcome of the judgment, was by 3:2 majority, decided for the appellant, Mrs. Donoghue. Lord Atkin, leading the judgment, declared that in the present case there was clear duty of care to Mrs. Donoghue.

It was held that- 

  1. The manufacturer owed a duty of care to all end-consumers of their product
  2. The said liability could arise if and only if there was no way of intermediate inspection of the product, and thus injury was a proximate cause of breach of duty.
  3. The manufacturer did not owe any contractual duty towards the appellant (in line with established doctrine of privity of contract) but at the same time owing to the appellant a general duty of care to ensure the integrity of the said product.

Lord Thankerton and Lord Macmillan concurred. 

Lord Buckmaster and Lord Tomlin presented a dissenting opinion on the grounds that the appellant’s case went against the already established principles. Lord Buckmaster pointed out the importance of retaining the distinction of dangerous and non-dangerous products and implored the application of the exception to only those objects which were inherently dangerous.

Moreover, both these judges denied the legitimate authority of George v. Skivington (1869) and expressed concern over the cascade of cases that might ensue if the ambit of liability of the manufacturers was widened. Lord Buckmaster said that it would be socially and economically irresponsible to affix such a wide liability on the manufacturing sector. Lord Tomlin was of the view that such a feat was logically impossible.

Establishment of legal principles

This case garnered widespread importance due to the three basic legal principles it established-

Negligence

The tort of negligence as a distinct tort was properly established by this case. Previously, there was a need to prove the presence of the contract and its breach to constitute a negligent act. However, after this case, one had to prove breach of duty or omission to do something according to standards of a reasonable man (no need for a contract) and consequent legal injury to satisfactorily sue for negligence.

Duty of Care

Lord Atkin observed ‘‘…a manufacturer of products, which he sells…to reach the ultimate consumer in the form which left him…owes a duty of care to the consumer”. In other words, the manufacturer owes a duty of care to all their possible consumers. This precedent was thus able to initiate numerous avenues in consumer protection and consumer rights.

The ‘‘neighbour’’ principle

Lord Atkin developed this principle to determine the individuals to which duty of care was owed. He called such individuals ‘‘neighbours’’. These neighbours could be determined by the doctrine of reasonable foreseeability- only those individuals who could be reasonably foreseen to be affected by a person’s actions could claim damages in case of injury due to said person’s actions. 

Atkin said, ‘‘You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbour.

Who, then, in law is my neighbour? The answer seems to be – persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts or omissions which are called in question.’’

The implications

Thus, through the case law of Donoghue v. Stevenson, crucial principles required to establish liability- degree of duty of care and the neighbour principle got introduced in the still-nascent field of early 20th-century tort law.

One of the most glaring aspects that come to light on the reading of the original judgment of Donoghue v. Stevenson (1932) is the stark contrast between the judgments of Lord Atkins and Lord Buckmaster. Both of them reached opposite opinions from the same fact scenario, a situation which is a fine indicator of the rising complexities the legal system was facing. 

On one hand, there were the already established principles of common law which as Lord Buckmaster stated ‘‘cannot be changed nor can additions be made to them because any particular meritorious case seems outside their ambit.’’ Accordingly, Lord Buckmaster gave his judgment which did not deviate from these principles.

On the other hand, there was Lord Atkin who reiterated the immense role that judges play in protecting the rights of citizens by ensuring the development of a principle that reoriented the concept of liability from negligence. As a result, he played a vital role in changing the perspective of how common law works, as well as, in the inevitable evolution of tort law.

One of the driving forces of the decision in favour of the appellant was the need for justice even when law per se was contradictory to it. This case thus highlighted the changing dynamics of the concepts of law and justice and was a good example of a situation where justice takes the front seat instead of law.

Conclusion

Donoghue v. Stevenson thus successfully sets a benchmark for the standard of duty of care. However, with increasing legal convulsions, the set standard started becoming too simple. A more elaborate three-step neighbour test was established in Caparo Industries Plc v. Dickman (1990). The test, however, had its basis in the original principle of Lord Atkin. Other cases have further developed this principle.

Hence, the significance of this case cannot be understated. This case is still quoted, one recent example being The Managing Director, Kerala Tourism Development Corporation Ltd. v. Deepti Singh and Ors. (2019) in the Supreme Court of India.

Yet, many scholars criticize the continuing fanfare regarding this case, observing that the principles established are too basic. However, it is precisely this reason that the author believes there is a need to exhaustively study the given case law. As cases become more complex, it can be safely concluded that there is a profound need to go back to the basics and study all those that are now taken for granted.

References

  1. Judgement: Donoghue v. Stevenson (1932) 
  2. Case Analysis- Donoghue v. Stevenson
  3. Negligence Duty Of Care Cases | Tort Law Cases
  4. Donoghue v. Stevenson Analysis
  5. Case Analysis: Donoghue v. Stevenson

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

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

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

Download Now

How to evict a tenant in India

3
Power of government to direct payment of wages
Image source: https://bit.ly/3i2VddU

This article has been written by Ayush Tiwari, a student of Symbiosis Law School, NOIDA. The objective of this article is to give an overview of how one can evict a tenant from their property.

This article has been published y Diganth Raj Sehgal.

Introduction

Renting a house or flat is a difficult task. It is not an easy effort to find a tenant and sign a rental agreement with someone you can trust with your property. A person takes a huge risk by lending his property to a stranger. Many times, after renting out their property to tenants, the landlord needs the property for their personal use or has to evict the tenant for different reasons, many of which might be due to the fault of the tenant himself; however, despite several requests from the owner, the tenants may often refuse to leave the property. Hence, this article aims to help owners to evict tenants from their property.

What are eviction laws in India

A rental tenancy is simply a type of a lease in which the property is temporarily transferred from the owner, who is known as the lessor, to the tenant, who is referred to as the lessee, according to Section 105 of the Transfer of Property Act, 1882. But, The Rent Control Act of 1948, which was enacted by the Government of India to calibrate the rentals of real properties and to govern the evictions of tenants in India, encompasses all the provisions relating to tenants and landlords. The most important requirement, however, is that you should have a proper rental agreement in place with your tenant, which defines details such as the rent amount, the duration of the agreement, the security deposit, and the purpose of the stay. While tenants are protected from arbitrary eviction from their homes except for specified reasons and under specified conditions under the Rent Control Act, the landlord retains the right to evict a tenant if the tenant commits certain specified acts or if the landlord requires the home for his own personal use.

How to prepare for a suit for eviction

The most significant document is the rent agreement, which contains the terms and conditions of the contract and creates the contract between a landlord and a tenant. The contract should include an eviction clause that may be used in case there is any disagreement. Evicting a tenant is only possible when the lease ends or when the landlord cancels the lease by providing a formal notice under Section 106 of the Transfer of Property Act, 1882, and if the tenant still refuses to vacate, the landlord will have to file a lawsuit and get an order from the court. 

Grounds for eviction of tenant in India

You can state any of the following grounds for the eviction of a tenant from your property:

  • If you need the property for your own requirement or for a member of your family
  • If a tenant has leased a previously rented house/flat/property to another individual without your permission or acknowledgement
  • If the worth or value of the property has relatively decreased because of the tenant’s action
  • If the landlord plans to build another structure, which will necessitate the property’s destruction
  • If you want to construct a new structure, you’ll have to demolish the existing one
  • One can initiate an eviction suit if the tenant fails to pay the rent amount (as indicated in the rental agreement) for more than 15 days after the due date
  • If the neighbour finds the tenant’s activities distasteful, and the landlord has received complaints against the tenant
  • If the tenant has utilised the rented property for illegal purposes or for reasons not specified in the rental agreement
  • If the tenant is establishing that he or she is the owner of the rented property on purpose

What one should not do while evicting a tenant

The landlord has the right to evict a tenant from his/her property based on the grounds stated above. However, he/she should keep in mind the following points:

  • The landlord must not carry out the eviction by using illegal methods like shutting off basic services such as electricity or water supply, changing the locking mechanism of the rented home, throwing away the goods of the tenant, or imposing penalties on his own unless it is mentioned in the rent agreement. These are criminal offences, and if the landlord is proven guilty, the tenant has the right to pursue charges against him
  • The rental agreement must be for only 11 months and include an optional renewal provision. It provides future protection against eviction issues.
  • A landlord cannot remove a tenant without first providing the tenant with an eviction notice.
  • The reasons for eviction must be justified under the rental laws of the state where the property is situated.
  • The rent agreement must be established with the help of a property lawyer and must include terms about how to use the property, the termination of the rent agreement, the amount of rent, and so on.
  • The Supreme Court of India has ruled that for at least five years a landlord cannot evict a tenant if the rent is paid on time and the landlord does not want the property for personal use.

Process of evicting a tenant in India

The following method must be followed to evict the tenant after establishing the reasons for the eviction and understanding what should not be done to evict a tenant:

Step 1 – Send a notice to the tenant to vacate

An eviction notice must be filed in a court of competent jurisdiction, stating the basis for eviction as well as the time and date by which the tenant must leave the property, and it must then be issued to the tenant. The landlord must allow the tenant a reasonable amount of time to quit the rented property. After getting a legal notice from the court, the tenants in the number of situations vacate the rented premises.

Step 2 – File a suit for eviction

After obtaining the court’s eviction order, the tenant has the option of refusing to leave the rented property and challenging the eviction. In this instance, the landlord might retain the services of a rental property attorney to file an eviction lawsuit against the tenant. The tenant’s eviction lawsuit is filed in the civil court that has jurisdiction over the rented property.

Step 3 – Final notice for eviction

The court hears both parties and, relying on the arguments and facts presented, issues a final legal notice of eviction for the tenant. Once the court issues the final eviction order, the tenant must leave the rental property as they cannot overlook this notice. 

Some Frequently Asked Questions (FAQs)

  1. What to do if the tenant is not paying the rent

Ideally, the rental contract would include a plan of action in the event of non-payment of rent. Nonetheless, non-payment of rent is one of the most prevalent reasons for eviction under state tenancy laws. A legal notice might be given to the tenant in question, with details of the payment due, the tenant’s need to comply or depart, and the course of action you’ll take if the tenant does not comply or evict.

  1. Can police be called to evict a tenant

You cannot evict the tenant or threaten to evict the tenant, no matter how serious the situation is. This is known as a “self-help eviction,” and it is against the law. Before a legitimate eviction may take place, the court must issue an eviction notice.

  1. What can I do if a tenant refuses to move out 

If the tenant refuses to leave despite the legal justifications, an eviction procedure may be initiated. Non-payment of rent and reluctance to move out at the conclusion of the lease period are both valid reasons for eviction.

  1. How can I evict a tenant without a lease in India 

Since the individual state laws include tenancy at will, an eviction might be carried out in accordance with their rules. Other typical grounds for eviction include engaging in activities that may impair the rental property’s usability or worth, permitting someone else to occupy the property without the landlord’s consent, using the property for illegal purposes, and the end of the lease period. Before eviction may begin, an eviction notice must be sent.

  1. What happens if the tenant refuses to leave after being presented with an eviction notice

Non-compliance with the eviction notice will result in judicial action if the landlord decides to pursue it.

Conclusion

Many landlords have complained about tenants not paying rent on time, not maintaining the property in good repair, and extending their stay after the rental agreement’s term has expired. The Rent Control Act of 1948 was designed to address the issue of rent and rent control. Following its enactment, which acted as a Union law, other states began amending and adding to the statute to better fit their requirements and companies. These state statutes and amendments differ somewhat from the federal legislation. The Rent Control Act of 1948 was created to govern the laws of property rental and ensure that neither landlords nor the renters take advantage of one another. The statute is primarily aimed at tenants, although there are safeguards to protect landlords’ rights as well.

References


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/joinchat/L9vr7LmS9pJjYTQ9

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

Download Now

Authorship rights of translators around the world

0
Image Source: https://rb.gy/dnvcyg

This article is written by Abhishek Sharma, pursuing Diploma in Intellectual Property, Media and Entertainment Laws from LawSikho.

This article has been published by Abanti Bose.

Introduction

Nobel laureate in literature José Saramago said: “Writers make national literature while translators make popular literature.”

The importance of the interpreter is always diminished, some of the greatest works would never have come to us without translators. Literary works such as Anna Karenina, One Hundred Years of Solitude, Rumi’s poems, to mention a few, have never been appreciated by the public as they are now. Translating a literary work involves the complex task of trying to express literature from one language to another, sometimes an almost impossible task due to some non-equivalent expressions in the literature of other languages. Although the translation is based on the existing original, the translator’s skill level deserves some degree of protection.
Even if the Berne Convention for the Protection of Literary and Artistic Works identifies translations as original works, capable of such protection, the degree of protection provided to Translators will vary between jurisdictions and only some countries like France grant author status to translators. In most jurisdictions, including India, translators do not have statutory copyrights to the works they create. Even the TRIPS Agreement does not reserve any copyright for the translator. 

Are translations similar to an original work?

The copyright of a work depends on its “originality”. The construction of originality under copyright law has a relatively lower threshold, and the traditional test of originality is that the work, skill, and judgment were incorporated into the creation of this work. For copyright, the originality of a translation depends on the translator’s perceived effort to convert a text from one language to another. This test is easily satisfied by micro textual decisions made by translators during the translation of the work. Even for very simple translations, it is likely that creative decisions will be made about which terms to use. He may have to create new devices for lack of equivalent devices, perhaps even trying to portray the true intention of work. In addition, it is a fact that the boundaries between different languages ​​are not absolute, but sacred links between languages, and in order to realize these links the author must have a good knowledge of two languages. Participate in the translation process. If the author is comfortable with both languages, then only then can he mold the original into a reality that must correspond perfectly to the two cultural contexts.
Despite the removal of the originality check, a translation is not “completely original” as the Berne Convention attempts to convey.
Article 2(3) of the Convention provides that “translations …… of a literary or artistic work are protected as original works without prejudice to the copyright of the original work”.
The use of the word “original” twice in this regulation creates a situation of contradiction. On the one hand, it says that translations must be protected as original works, and on the other hand, translations must not infringe the copyright of the original work from which they were created. This seems to suggest that the translation is an original work, a spin-off and derivative of earlier original work. Thus, the Berne Convention recognizes the right of uniformity for both the author of the source work and the author of the translation.
A fundamental principle of copyright law is that copyright exists only in the expression of a work, not in the idea behind it. The original author’s literary work is the expression of his idea, and the translation implies another expression of that idea. The translator does not build on the author’s work but conveys the author’s ideas in a new form of expression. The author believes that a literary translation that meets the criteria of originality is eligible for copyright protection.

Rights of translators in India

Section 13 of the Copyright Act 1957 (Act) provides that copyright shall exist throughout India for an original literary work. But what does this right authorize the right holder to do? So we turn to the Law, which stipulates that, in relation to literary works, copyright means the exclusive right to perform or permit certain acts such as the distribution of copies, works, adaptations of works, performing translations of the work, etc.
Thus, a translated literary work must seek permission from the original author before translating and publishing the work. Translations made without proper permission and license may be considered illegal by law and may have legal implications.
It is generally, therefore, important before undertaking or delivering a translation to obtain permission from the original author. The procedure to be followed is specified in Section 32 of the Act. There are cases where this may not be possible. For example, it may not be possible to contact the original author if the author is deceased or unknown or untraceable, or if the copyright owner of the work cannot be found. In such cases, under Section 31A, the law allows people to apply to the Intellectual Property Appeals Board (IPAB) for a required license to translate the work, among other things.

Judicial precedents in India vis-à-vis translated works

The law does not state whether the translator owns the copyright in the translation. This can only be determined on the basis of Indian court judgments.
In addition to treating a translated work as a literal translation of an original work, it can also be viewed as a derivative of an original literary work or an expression of the creation itself. . The Indian courts have considered works translated in all these ways and have reached some useful conclusions.
In Blackwood v. Parasuraman, Madras High Court ruled that the translation is copyrighted and that the translation is an original literary work. Furthermore, in Hafiz P.H. Abdul v. Abdurahiman the translation of the author is equally copyrighted. “
In Eastern Book Company v. DB Modak, the Supreme Court of India classified the literary works into: 

1. Major or earlier works that are not based on an existing theme.

2. A minor or derivative work that is a literary work based on an existing theme. The Supreme Court is considering the question of what should be considered the original standard of a derivative work and would be required in a derivative work to treat it like an original work of one author, thereby granting the author of derivative work copyright under the Act.
In its decision, the Supreme Court ruled that whether copyright was created in a derivative work would depend not only on the skill, labour and capital of the derivative work but depends on the minimum level of creativity available.

A combined reading of Section 2(d) and Section 13 of the Indian Copyright Act, at first glance, clearly states that copyright is conferred only on creators of “original literary works”. There is no provision for authorship of the translator of the original work. Furthermore, as it is clear that, the copyright owner may authorize translations of such a work. In addition, the act grants the author of the original work an additional right to perform all acts related to the translation created with his permission, as you could have done with our original work. This clause completely removes any rights the translator may have enjoyed and grants them to the author. The translator has no right to copy the work, sell it, and authorize the adaptation of the work, motion pictures and any other rights mentioned in the act. He has been reduced to a simple contract worker of the author, who received a sum for his efforts then forgotten. In many cases, even the name of the translator is not mentioned anywhere in the books he has translated.

French model of safeguarding translator’s rights

The French Intellectual Property Code provides a prime example of a translator’s copyright, in which the translator has become a full author, eligible for protection under the French copyright regime. . However, this right is subject to the originality of the work and does not affect the copyrights of the authors in the original work. The rule states as follows: “Authors of translations, adaptations, adaptations or arrangements of intellectual works benefit from the protection provided by this rule, without affecting the rights of the author of the original work.

Currently, under Indian copyright law, translations can be protected as derivative works, only if they meet the criteria set forth in the above-mentioned rulings. However, this is not an adequate protection mechanism and involves changing the law to protect the interests of translators.

Conclusion

The Copyright Act of India should be amended in line with the French Code, by making translators ‘authors’ in their work. A translator should be given the absolute moral rights of attribution and prevention of distortion of his work. With respect to economic rights, owing to the fact that the translation derives from existing original work, without which it could not have existed, reserving the absolute economic rights of exploitation of the translated work to the translator would be unfair to the author of the original literary work.

References

  1. https://www.wipo.int/treaties/en/ip/berne/summary_berne.html
  2. https://www.wto.org/english/docs_e/legal_e/27-trips_01_e.htm
  3. https://h2o.law.harvard.edu/text_blocks/27048
  4. https://www.lawyerservices.in/Copyright-Act-1957-SECTION-32A-Licence-toreproduce-and-publish-works-for-certain-purposes
  5. https://copyright.gov.in/frmIPAB.aspx
  6. https://www.lawyerservices.in/BLACKWOOD-AND-SONS-LTD-VERSUS-AN-PARASURAMAN-1958-02-28
  7. https://www.casemine.com/judgement/in/56b49641607dba348f017751
  8. https://www.wipo.int/edocs/lexdocs/laws/en/fr/fr467en.pdf

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/joinchat/L9vr7LmS9pJjYTQ9

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

Download Now

Insurance contract : all you need to know

0

This article is written by Adhila Muhammed Arif, a student of Government Law College Thiruvananthapuram. This article seeks to explain the concept of insurance contracts and how they are formed. 

This article has been published by Abanti Bose.

Introduction

Many uncertain events can occur in a person’s life causing damage to his life and property. This incites a need to protect oneself from the losses incurred from such events. This is what the concept of insurance is based on. 

Section 2(8) of the Insurance Act, 1938, defines an “Insurance Company’ as any company, association or partnership that can be wound up under the Companies Act, 1956, or the Indian Partnership Act, 1932. Section 2(9) of the Act defines an ‘insurer’ as any individual, body of individuals or any corporated body that carries on an insurance business. 

Insurance contract : meaning 

  • An insurance contract is essentially a contract between two parties, where one of them is called an “insurer” and the other party is “insured”. 
  • In this type of contract, the insurer promises the insured party that he will save or indemnify him from losses caused by a particular contingent event, on the payment of an amount called “premium”. 
  • Insurer usually refers to the insurance company that sells the insurance and the insured or policyholder is the person who buys it by paying the premium. In a contract of insurance, the insurer or insurance company advertises the insurance policy, which is an invitation to offer. 
  • Then, on seeing the invitation to offer, the insured makes an offer to the insurer. When the insurer accepts, it becomes an insurance contract. 

Purpose of insurance 

The following are the two main purposes of insurance contracts : 

  1. Protection against uncertain events: The main purpose of an insurance contract is to make the insured person secure and financially protected from certain uncertain contingencies that would cause a huge financial burden. 
  2. Better management of finances: Many people have the tendency to make poor financial decisions that could potentially leave them without any support when faced with an unfortunate situation. By subscribing to an insurance policy, the insured would be able to make better financial decisions. 

Types of insurance 

There are broadly two types of insurance, based on what they cover, which are life insurance and general insurance. 

Life insurance 

Life insurance covers the life of the insured. On the death of the insured, the insurer would pay a sum of money to the nominee or beneficiary of the contract. This provides the insured with an assurance that his family will be financially stable even on his demise. The different types of life insurance policies are endowment plans, child plans, pension plans, etc. 

General insurance 

General insurance, on the other hand, covers everything except life, such as health, house, motor vehicles, fire, travel, etc. It provides financial assurance against losses incurred from events other than the death of the insured. 

History of the insurance sector in India

Ancient times

The concept of insurance was loosely practised in ancient Indian society. It also finds mention in some religious scriptures such as Dharmasastra and Arthasastra. The scriptures mention that communities pool their resources and redistribute them when natural calamities hit them. 

British rule 

With the advent of the British, the concept of insurance in India changed. India had its first British insurance firm with the establishment of the Orental Life Insurance Company in 1818, which later failed in 1834. Subsequently, the British Insurance Act was enacted in 1870. Most of the insurance companies in India were owned and operated by foreigners. In 1912, the Government of India passed the first statute called Indian Life Assurance Companies Act, 1912. For the first time, in 1914, the Government of India started to publish the returns of insurance companies in India. And, in 1928, the Indian Insurance Companies Act was enacted, empowering the government to collect data on the business of both Indian and foreign insurers. In 1938, Insurance Act, 1938, was enacted, whose importance was diminished by subsequent legislation. 

Post-independence 

In the 1950s, the Government of India started to nationalize the insurance sector of the country. In 1956, the Life Insurance Corporation Act, 1956 was enacted which led to the establishment of Life Insurance Corporation, popularly known by its abbreviation LIC, which has a monopoly over the life insurance business in India. After the enactment of this Act, life insurance fell out of the purview of the Insurance Act, 1938. In 1973, the General Insurance Business (Nationalisation) Act, 1972 came into effect, nationalizing general insurance business. 

Liberalization policy 

In 1991, liberalization and privatization brought forth many changes in the Indian economy. When the need to reopen the insurance sector to private parties arose, the central government set up a committee headed by R.N. Malhotra, former governor of RBI, to examine the changes to be made in the insurance sector. The eight-member committee recommended privatization of the insurance sector and the establishment of the Insurance Development Regulatory Authority (IRDA), an autonomous body to regulate the insurance sector. Finally, the monopoly of LIC over the life insurance sector ended and the IRDA Act, 1999 was enacted. 

Principles and characteristics of an insurance contract 

The following are the fundamental principles and characteristics of an insurance contract : 

1.  Essentials of a valid contract

An insurance contract is just like any other contract, and hence it has the essentials of a valid agreement, as per Section 10 of the Indian Contract Act, 1872. The following are the features of a valid contract: 

  • Offer and acceptance,
  • Competency of parties,
  • Free consent,
  • Lawful consideration, 
  • Lawful object.

2.  Indemnity contract

Indemnity is one of the main purposes of an insurance contract. Section 124 of the Indian Contract Act, 1872, has defined indemnity contract as an agreement between two parties where one party promises to save the other from some loss that would occur to him due to the conduct of the promisor himself or any other person. But, one cannot make a promise to indemnify another from loss caused to him due to something caused not by a human, like the Act of God. Thus, the concept of life insurance falls outside the purview of indemnity, as per the decision in Gajanan Moreshwar v. Moreshwar Madan Mantri. 

3.  Aleatory contract 

An aleatory contract is a type of contingent contract whose performance depends on the occurrence of an uncertain event, beyond the control of both parties. Such events are usually natural disasters and deaths. This concept can be seen in many insurance policies and thus, aleatory contracts are sometimes called aleatory insurance. Under such insurance policies, the insurer has to pay only when an uncertain event occurs. For example, A and B enter into a contract where A promises to provide B with financial support if B’s house catches fire. Here, B’s house catching fire is an uncertain event. The contract can be performed only when B’s house catches fire and not any time before that.

4. Uberrimae Fidei 

Insurance contracts are contracts of uberrimae fidei. The term ‘uberrimae fidei’ means ‘good faith’. This means that, in a contract of insurance, both the insurer and the insured must be fully transparent with each other about all the material facts, and not withhold any information that goes against the interest of the other party. 

5.  Contract of Adhesion 

Insurance policies are normally standardised and fixed. Thus, as the terms of an insurance policy are not formed with the consent of the insured, the insurer must explain the clauses in the insurance policy to the insured. The insurer party is at an advantage as the insured does not get to negotiate on the terms of the contract. The insured must understand all the terms well and choose the policy that suits his interests the best. 

6.  Principle of Subrogation 

The term subrogation also means substitution, where one party is substituted by another party, which allows a third party to sue and claim damages on behalf of another. This principle is used frequently in insurance contracts. It allows the insurer to have all the rights that the insured has against the third party who caused an insurance loss to the insured. Thus, after the insured faces losses, the insurance company pays for those losses and then claims reimbursement from the other party or his insurance company. 

7. Insurable Interest 

Insurable interest is one of the requisite elements in an insurance contract. A thing is insurable only if the insured will face pecuniary losses when it is destroyed. Thus, the insured must have an actual financial interest in the subject matter of the insurance contract. 

8. Principle of Contribution  

In some instances, an insured may subscribe to multiple insurance policies in respect of the same subject matter, and it is not forbidden by law. It is also called double or multiple insurances. In such cases, the insured cannot make more than one claim for the same loss to make a profit. 

9.  Reinsurance 

In certain situations, the insurer might get the insured property, reinsured by another insurer, if he fears that an insurance claim above his capacity may arise. It is also called ‘insurance for insurance’. 

10.  Principle of Loss Minimization 

According to this principle, the insured must take the necessary steps, like any reasonable prudent man, in taking care of the subject matter of the insurance contract, so that financial losses to the subject matter are reduced as much as possible. 

11.  Principle of Proximate Causes 

In some instances, an accident may be caused by multiple causes. In such cases, it is the nearest or the most proximate cause that must be taken into account. The insurer would pay only for the nearest cause. 

Process of forming an insurance contract

The procedures for life insurance and general insurance are as follows:

Life insurance

  1. Fill a proposal form: The form would require many details such as name, nationality, residential address, occupation, date of birth, etc. It would also require information of the proposer’s medical history, diseases, etc. to be filled. It would also have questions regarding the risk posed by the event, amount insured, term of insurance, premium to be paid, details of double insurance if any, etc. 
  2. Proof of age: After filling the proposal form, the person must submit the necessary documents to prove his age, such as certificates of school exams, municipal records, etc. This is done because older clients have more risks and hence, they are required to be paid more premium. 
  3. Presentation of proposal form to agent: After the completion of the first two steps, the agent will have to verify the authenticity of the proposal form and the documents submitted along with it, and prepare a report based on it. 
  4. Medical examination: The terms and procedures for a person with normal health and a person with a family history of diseases would be different. Hence, details about the insured person’s health conditions, medical history of family members, habits, occupation, salary, etc. must be given. It is usually done by Life Insurance Corporation (LIC) authorised doctors. 
  5.  Final scrutiny by the branch office: On examining the agent’s report and the medical report, the branch office would determine whether or not to accept the proposal. 
  6. Final decision: After the scrutiny, the branch office accepts or rejects the proposal and sends a letter to the person informing him of the decision. 
  7. Deposition of premium: Then, the branch office issues a notice to the person to pay the premium, which may be paid periodically. 
  8. Issue of insurance policy: Finally, the life insurance policy is issued. It is a document that contains important details of the insured and the terms and conditions of the policy. 

General insurance 

  1. Selection of the insurer: Firstly, the proposer or insured must select a suitable insurance policy, by taking the subject matter and his interests into consideration. 
  2. Filling up the form and presentation of goodwill: The proposer should then fill up the proposal form, filling up details such as name, occupation nationality, etc. like how it is required for a health policy. The proposer should also present a certificate of goodwill. 
  3.  Certification of the agent: Recommendation of the insurance agent is also necessary for the effectiveness of the proposal form, and the proposer will not be able to proceed with it otherwise. 
  4. Survey of the subject matter: The company then examines the subject matter on the recommendation of the agent and determines the validity of the proposal. 
  5. The decision of the insurer: After that, the insurer or insurance company makes a decision on the proposal and issues a notice regarding the same to the proposer. 
  6.  Deposition of Premium: After notifying the acceptance of the proposal, the company will also notify the proposer about the premium to be deposited. 
  7. Issuing of the policy: After the premium is deposited, the temporary cover note of the insurance policy will be issued and after its period expires, a permanent cover note of the insurance policy would be issued. 

Conclusion

As insurance contracts are standardised, the formation of insurance contracts does not go through a phase of negotiation. On observing the formation of insurance contracts, one can find that insurance policies by nature are invitations to offer and the real offeror is the insured. Insurance contracts possess features that are contracts on their own, such as contracts of indemnity and aleatory contracts. 

Here is a sample of an insurance contract: https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/TAC1718/122N114V01.pdf.

References


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/joinchat/L9vr7LmS9pJjYTQ9

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

Download Now

All you should know about a Metropolitan Magistrate

0
Image source - https://bit.ly/3FpKeqw

This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article provides a detailed analysis as to what makes a Metropolitan Magistrate different from other court officers.

This article has been published by Diva Rai.

Introduction

‘Metropolitan Magistrate’ is a term coined with the help of ‘metropolitan area’ defined under Section 8 of the Code of Criminal Procedure, 1973. According to the said provision, any area in the State comprising a city or town whose population exceeds one million shall be a metropolitan area for the purpose of the Code of 1973. As we have gathered some knowledge about ‘metropolitan area’, we can swiftly move to Section 3 (1), (2) and (3) of the aforementioned Code which gives clarity to the term ‘Magistrate’ used exhaustively in the Code. As per the said provision, any class of magistrate in relation to a metropolitan area will be termed as a ‘Metropolitan Magistrate’. While a ‘Metropolitan Magistrate’ can sink in the skin of a first class Judicial Magistrate, it can very well fit in the dress of a second class Judicial Magistrate as well.

It can also wear the responsibilities of a Chief Judicial Magistrate or a Presidency Magistrate. Thus, a single term can be used in synonymous ways as soon as a ‘metropolitan area’ comes into the picture. This is the speciality of a ‘Metropolitan Magistrate’ and this is what makes it different from other court officers. The present article delves deeper into the concept of ‘Metropolitan Magistrate’ with respect to the Code of Criminal Procedure, 1973. 

Metropolitan Magistrate under the Code of Criminal Procedure, 1973

Section 6 of the Code of Criminal Procedure, 1973 classifies criminal courts into four major groups namely:

  1. Courts of Session;
  2. Judicial Magistrate of first class/ Metropolitan Magistrate;
  3. Judicial Magistrate of the second class;
  4. Executive Magistrate. 

Section 19 of the aforementioned Code further clarifies the subordination of the Metropolitan Magistrate. It provides that while the Chief Metropolitan Magistrate and every Additional Metropolitan Magistrate will be subordinate to the Session Judge, every Metropolitan Magistrate will be subordinate to the Chief Metropolitan Magistrate. Although, Section 19(3) vests powers on the Chief Metropolitan Magistrate to regulate the activities of a Metropolitan Magistrate, the former cannot curtail the statutory powers granted to the latter by the Code.

The second-level Courts of Metropolitan Magistrate have been detailed out under Section 16 of the Code of Criminal Procedure, 1973. While Section 16(1) states that the number of courts of Metropolitan Magistrates to be established in every metropolitan area vests on the state government in consultation with the High Court of the respective state, Section 16(2) vests powers of appointing presiding officers of such courts on the High Court of the concerned state. Clause 3 provides that the courts of the Metropolitan Magistrate will exercise its jurisdiction throughout the metropolitan area. While deciding the case of Shah Jethalal Lalji vs Khimji M. Bhujpuria (1974), the Bombay High Court had observed that the jurisdiction of every Metropolitan Magistrate under Section 16 (3) of the 1973 Code, extends to try an offence which is committed at any place within the territory of the metropolitan area. 

Section 17 of the aforementioned Code deals with Chief Metropolitan Magistrate and the Additional Chief Metropolitan Magistrate. The High Court is equipped with the responsibility of appointing both the mentioned Metropolitan Magistrates. The Additional Chief Metropolitan Magistrate as provided by Section 17(2) will be empowered with all or any of the powers vested on a Chief Metropolitan Magistrate under the Criminal Procedure Code, 1973 or any other law which is in force as per the High Court’s direction. 

Section 18 of the Code of Criminal Procedure, 1973 lays down the provision for Special Metropolitan Magistrates. As the wordings of the provision goes, the High Court is vested with a discretionary power of appointing any person who has held or is holding a government post and the said power can be regulated by the High Court on request by the Central or the State Government as per requirement. While the Special Metropolitan Magistrate is conferred the same powers as any Metropolitan Magistrate, the term of these magistrates is for a period of one year as expressly provided under Section 18(2). As per Section 18(3), a Special Metropolitan Magistrate can also be empowered with the powers of a first class Judicial Magistrate if the State Government or the High Court deems fit. 

Powers vested on Metropolitan Magistrates

As we have already discussed previously, a Metropolitan Magistrate can wear on its sleeves, responsibilities alongside powers of all other magistrates with respect to a metropolitan area. The different kinds of powers that a Metropolitan Magistrate can exercise have been elaborately presented hereunder.

Combined powers of first-class and second class Judicial Magistrate 

The quantity of punishment that various types of magistrates are permitted to inflict is set forth in Section 29 of the Code of Criminal Procedure, 1973. The first-class Magistrate can only impose a sentence of up to three years. They can, however, try such instances, and if they believe the accused merits a more severe penalty than they can deliver, they can resort to Section 325 of the Code to refer the matter to the Chief Judicial Magistrate (Chief Metropolitan Magistrate with respect to a metropolitan area). This was the observation by the Karnataka High Court in the case of Shivarajveerappa Purad and Another etc. v/s State of Karnataka and Another etc. (1977). It’s also worth noting that the Chief Judicial Magistrate’s powers aren’t transferable to other magistrates who preside over the Children’s Court. 

Section 29(4) specifies that while on one hand a Chief Metropolitan Magistrate will be conferred with the powers of a Chief Judicial Magistrate, on the other, a Metropolitan Magistrate will be vested with the powers of a first-class Magistrate. Thus, 

  1. The quantum of punishment that a Chief Metropolitan Magistrate can pass is any sentence except the death sentence, sent for the imprisonment of life and imprisonment exceeding seven years. 
  2. A Metropolitan Magistrate may pass a sentence which:
  1. In case of imprisonment, should not exceed three years;
  2. In case of fine, should not exceed ten thousand rupees. 

Section 9(5)

The Chief Metropolitan Magistrate steps in the shoes of a Session Judge under Section 9(5) of the Code of 1973 when the office of a Session Judge is vacant. Where the office of the Sessions Judge is vacant, the High Court may make arrangements for the disposal of any urgent application made or pending before such Court of Session by an Additional or Assistant Sessions Judge, or, if there is no Additional or Assistant Sessions Judge, by a Chief Judicial Magistrate, in the sessions division and each such Judge or Magistrate shall have jurisdiction to deal with any such application.

Section 190

Section 190 of the Code of Criminal Procedure, 1973 empowers the Magistrate of the first and second class to take cognizance of the offence which are specified in the said provision. Further, Section 190(2) of the Code vests the power of appointing a Magistrate of the second class to take cognizance of the offences as specified in clause (1) rests solely on the Chief Judicial Magistrate. 

Section 192

Making over of cases to subordinate magistrates after taking cognizance of an offence, for the purpose of carrying out inquiry or trial, is another significant power vested on a Chief Judicial Magistrate under Section 192 of the Code of 1973. The requirements of this section are designed to distribute work among magistrates when there is more than one at a location. This section allows matters to be transferred to a subordinate magistrate who is qualified to conduct the investigation or trial. A superior magistrate can withdraw or recall any matter that they have transferred to a subordinate magistrate under Section 410. No notification to the accused is required under this provision. However, under Section 410, the Magistrate is required to keep a record of his reasoning.

Section 260

Section 260(1) of the Code of Criminal Procedure, 1973 vests power to try summarily to any Chief Judicial Magistrate, any Metropolitan Magistrate, and any Magistrate of the first class who is specifically empowered by the High Court. A summary trial indicates a quick conclusion. A summary case is one that can be tried and decided on the spot. The goal of a summary trial is to have a record that is sufficient for the purposes of justice but not so extensive that it stymies case resolution. In general, it will apply to offences that do not carry a sentence of more than two years in prison. It will also apply in circumstances of certain offences listed in sub-sections (ii) to (ix) of clause (1). It is the discretionary power of the Magistrate to try a case summarily depending on the facts of the case. 

Section 325

Section 325 of the Code deals with the procedure to be resorted to when a magistrate cannot pass a sentence sufficiently. When a Magistrate with jurisdiction over the offence under trial finds the accused guilty of that offence but believes they are not competent to pass punishment of an appropriate description or sufficiently severe to meet the needs of justice, they must submit the entire proceedings to the Chief Judicial Magistrate, to whom they may be subordinate. Along with the subordinate magistrate’s procedures, the accused must be transferred to the superior magistrate for ultimate disposition.

Section 410

Withdrawal of cases from the Judicial Magistrate by the Chief Judicial Magistrate is provided under Section 410 of the Code. Any Chief Judicial Magistrate may remove any case from, or recall any case that they have entrusted to, any magistrate subordinate to them, and may investigate or try the matter himself, or refer it to any other magistrate competent to investigate or try it.

Judgment by a Metropolitan Magistrate 

Section 355 of the Code of Criminal Procedure, 1973 lays down the provision for a judgment delivered by a Metropolitan Magistrate. The items that a Metropolitan Magistrate shall record are:

  1. The serial number of the case;
  2. The date of the commission of the offence;
  3. The name of the complainant (if any);
  4. The name of the accused person, and his parentage and residence;
  5. The offence complained of or proved;
  6. The plea of the accused and his examination (if any);
  7. The final order;
  8. The date of such order;
  9. In all cases in which an appeal lies from the final order either under Section 373 or under sub-section (3) of Section 374, a brief statement of the reasons for the decision.

This section specifies that the Metropolitan Magistrate does not need to write a detailed decision as required by Section 354 of the Code, but simply needs to record the specifics given out in this Section. Clause I, on the other hand, requires the Metropolitan Magistrate to provide a concise description of the grounds for their judgment in all situations where an appeal is pending.

Conclusion 

A Metropolitan Magistrate with respect to a metropolitan area functions efficiently under the designation of a Judicial Magistrate of first class, a Judicial Magistrate of second class, and a Chief Judicial Magistrate. While we have a proverb which goes as ‘jack of all trades, master of none’, when it comes to a Metropolitan Magistrate, the proverb can be turned around to be read as, ‘jack of all trades, master of all’.

References

  1. https://indiankanoon.org/search/?formInput=judicial%20 magistrate%20and%20 metropolitan%20 magistrate pagenum=1.
  2. https://dakshindia.org/Daksh_Justice_in_India/23_chapter_02.xhtml.
  3. http://www.mcrhrdi.gov.in/splfc/week3/L%20-%20Structure%20of%20Courts%20-%20Dr.R.Madhavi.pdf.

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/joinchat/L9vr7LmS9pJjYTQ9

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

Download Now

Crimes that shook the entire nation in 2021

0
Crime

This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article provides a detailed analysis of crimes that shook the entire nation in 2021. 

This article has been published by Abanti Bose.

Introduction 

A crime is an act, omission, or occurrence that is banned by law and, if committed, results in prosecution by and in the name of the state rather than an individual person. Both crime and society co-exist, and their relationships are intertwined. Crime is always committed in society since it is the society that determines whether or not a given act is a crime. And when there is society, there remains a likelihood of crime. As we stand at the end of the current year, it is evident for us to look back at some shameful crimes that have taken place over this year and have made us realize where we stand as a nation with respect to crimes. Crimes ranging from murder, rape, robbery to that of caste-discriminations, animal cruelty, murders in the influence of superstition have all seen the light of the day in 2021. The present article is dedicated to the same. 

Crimes that shook the entire nation in 2021

Some of the crimes that shook the entire nation in 2021 have been highlighted hereunder. Among the crimes discussed, some have not taken place in this year but have received media highlights this very year owing to an incomplete investigation, judicial crunch, or increase in general awareness of the country’s citizens. 

  1. Vismaya Nair suicide case 

According to the police charge sheet submitted in the Court of First Class Judicial Magistrate in Sasthamcotta, Vismaya V Nair, a 24-year-old woman was discovered dead by suicide at her husband’s home in Kollam on June 21, 2021, as a result of dowry harassment. Kiran Kumar, a former Assistant Motor Vehicles Inspector and the husband of the deceased was facing dowry harassment and domestic abuse charges. The couple had married on 31st May 2020. The investigating team has submitted witness testimony, material evidence, and digital evidence from 102 people. The case shook the public’s conscience, with well-known figures decrying the dowry threat. Vismaya’s residence had been visited by Governor Arif Mohammed Khan who had conducted a day-long dowry fast. The voice messages and photographs that the victim shared to her family over WhatsApp about the abuse she was subjected to by her husband for dowry served as the charge sheet’s main digital evidence. She allegedly sustained many injuries as a result of her husband and his family’s physical assault in response to their discontent with the “gifts” presented to them during the wedding. Early reports suggested suicide, but it was eventually determined to be a homicide.

Dowry harassment and death 

The offences harming the human body are covered in Chapter XVI of the Indian Penal Code, 1860. “If a woman dies within the seven years of marriage by any burns or any other bodily injury, or it is revealed that before her marriage she was subjected to cruelty or harassment by her husband or any other relative of the husband in connection with the demand for the dowry, then the woman’s death will be considered a dowry death,” says Section 304B of the aforementioned Code. Dowry death carries a minimum punishment of seven years in jail and a maximum term of life in prison.

The crime statistics around dowry paint an ominous story. In the previous five years, the state police’s criminal records office has registered 66 incidents of dowry-related killings and nearly 15,000 complaints of harassment by husbands/relatives. According to the state women’s commission, approximately 1,100 incidents of dowry-related harassment have been brought to their notice since 2010, with the capital district of Thiruvananthapuram accounting for nearly half of the cases. According to the data, the state’s southern areas are famous for spreading unlawful activity.

Vismaya’s killing provoked indignation across Kerala, reigniting debate over the prevalence of dowry-related harassment, abuse, and death. All political leaders, including Chief Minister Pinarayi Vijayan, have sharply criticized the event and issued a statement pushing for measures to eliminate the dowry system from society.

Observation by the Kerala High Court 

Kiran Kumar S, the husband of Vismaya V Nair, was denied bail in the dowry death case against him by the Kerala High Court on October 8, 2021. Justice MR Anitha dismissed the bail application, stating that the petitioner has been charged with a serious crime of dowry killing, which is a societal evil. The Court stated that a fair trial is in the public interest and that it would trump the accused’s personal interest in his liberty. The Court stated in the ruling that Vismaya, who was 24 years old at the time of her marriage to the applicant, an assistant motor vehicle inspector, had to commit suicide within 13 months of their marriage owing to cruelty and harassment in the demand for dowry. The Court also emphasized the severity of the sentence if convicted, as well as the plausible probability of influencing witnesses if released on bond.

  1. The Koodathai serial murder case 

The Koodathayi Cyanide Murders were a series of crimes that took place in Koodathayi, Kozhikode district, Kerala, India. The crimes were examined in late 2019 and involved the murders of six persons over a 14-year period. The murders were some of the criminal incidents in Kerala that received a lot of media and public attention, finally leading to Jolly Joseph’s arrest. The case also sparked a discussion on the legal and moral ramifications. Jolly Joseph, 47, is the main suspect in the assassination of six members of the family she married into. Annamma Thomas, the accused’s mother-in-law, died in 2002 after drinking mutton soup. Annamma’s spouse, Tom Thomas, died in 2008 after falling and swooning. Jolly Joseph, their daughter-in-law, was supposedly present on both occasions. Jolly’s then-husband, Roy Thomas, died in 2011 after devouring rice and curry. He was discovered dead in a closed restroom from the inside. Because the post-mortem examination revealed evidence of poison, the cause of death was deemed to be suicide owing to financial difficulties. Mathew Manjayadil, Roy Thomas’ maternal uncle, demanded a post-mortem report and an investigation into Roy’s death. Jolly reportedly offered him poison-laced scotch in 2014, Mathew swooned and died. Roy Thomas’ brother, Rojo Thomas, was the one who reported the six unnatural deaths to the authorities, which led to the arrest of Jolly Joseph. Jolly admitted to using cyanide to kill the six victims after her arrest in October 2019. M. S. Mathew and Praji Kumar, who have also been detained, are accused of helping her get the cyanide.

Present scenario and status

In August 2020, the Kerala High Court granted bail to Jolly Joseph, but the Kerala Government had appealed before the Supreme Court. The Hon’ble High Court had granted Joseph bail since the allegation against her was based on an extrajudicial confession given after so many years of alleged killings. On February 8, 2021, the Supreme Court halted the release of Jolly Amma Joseph, who was accused of murdering six members of her family over a 14-year period. A bench of Judges Mohan M Shantanagoudar and Vineet Saran issued the order to stay her release.

  1. Murder of a hapless dog Bruno in Kerala

Bruno, a labrador, was killed by three men on Adimalathura beach, on the outskirts of Thiruvananthapuram. The men had beaten the dog with a stout stick, then hung it on the boat with a fishing line and rained blows on it until it appeared to be dead. According to police, the accused has had previous spats with the dog’s owner, Christuraj, at least once over the dog peeing near their vessel.  unclear where Christuraj was when the dog was beaten. A witness recorded the event on his phone and afterwards shared it with Christuraj, who published it on social media. According to local sources, the police did not initially respond to his complaint. An FIR was filed when the Thiruvananthapuram Chapter of People for Animals intervened. 

The video sparked widespread indignation. Justice Jayasankaran Nambiar, outraged at Bruno’s inhumane treatment, issued a letter to Chief Justice S Manikumar of Kerala High Court on 1st July 2021. After that, the letter was handled as a suo motu petition. On the 2nd of July 2021, a day after taking suo motu cognizance of the barbaric killing of a dog called Bruno in Thiruvananthapuram, the Kerala High Court decided to rename the case in Bruno’s honor. In an attempt to pay “appropriate respect to the wretched dog that succumbed to acts of human brutality, and disturbed by which incident we had launched these proceedings,” a bench of Justice A.K. Jayasankaran Nambiar and Justice Gopinath P. stated, thereby renaming the case as ‘In Re: Bruno’.

Animal cruelty in India 

All acts of cruelty, such as murdering, poisoning, maiming, or rendering animals worthless, are punishable under Sections 428 and 429 of the Indian Penal Code, 1860. Further, the Prevention of Cruelty to Animals Act, 1960  is another such legislation that specifically focuses on curbing cruelty against animals. The aforementioned laws were created to protect animals from undue pain and suffering, and similar laws are still being enacted in response to changing conditions. In addition to particular regulations, generic ideas such as tort law, constitutional law, and so on provide further safeguards for animals.

In the case of Animal Welfare Board of India v. A.Nagaraja & Others (2014), the Supreme Court recognized five freedoms as inherent in all animals and treated them as akin to the rights guaranteed to citizens of our country under Part III of our Constitution. As a result, the State cannot use a lack of funds as an excuse to avoid fulfilling its constitutional obligations.

In Telangana, a monkey was hanged and beaten to death, in Ludhiana, a street dog was beaten, tied to a scooter, and then thrown from the second floor of a building, in Kolkata, sixteen pups were poisoned by nursing students, in Kerala, a pregnant elephant died after eating fruit laced with firecrackers. All these are real cases and just five out of an approximate 2,400 recorded cases of crimes against animals compiled by the Federation of Indian Animal Protection Organisations and All Creatures Great and Small in a report titled ‘In Their Own Right: Calling for Parity in Law for Animal Victims of Crimes’. The fact that these offences are not recorded by the National Crime Records Bureau is crucial. Their yearly report on crime in India includes statistics on violent crimes, assaults, theft, sexual abuse of women and children, and murders across the country, broken down by state and district. It’s a crucial policy document for India’s crime-fighting efforts, yet it makes no mention of animal victims.

Kerala High Court’s observation 

The Kerala High Court issued the following guidelines to be followed by the Kerala state government while hearing the case of  in Re: Bruno: 

  1. The State’s veterinary clinics and related infrastructure facilities are in desperate need of upgrading, and the State Government must take action to modernize these facilities. The State Government must also issue directives to the local self-government institutions in the state, namely the Corporations, Municipalities, and Panchayats, to comply with their respective statutory obligations in terms of providing animal shelters, dog pounds, and cattle sheds, and to ensure that such compliance is not hampered by a lack of funds.
  2. The State Government should investigate the potential of promoting and hosting animal adoption camps at least three times a year throughout the State, where people can be urged to adopt animals who have been abandoned by their owners and are wandering the streets looking for food and shelter. It must be ensured that adoptions at such camps are always in the best interests of the animals involved.
  3. The State Government will also look into the possibility of entrusting District Administrations across the state with the authority to investigate complaints of animal rights violations and cruelty to animals, as well as cases where people are denied the right to keep pets of their choice in their apartments.
  4. Gudiya rape case

A 16-year-old Class 10 student from Shimla’s Kotkhai region left school on the afternoon of July 4, 2017, but never returned home. Her brother and other schoolmates who typically accompanied her to her house remained back due to a school sports event, so she opted to go to her house alone, a 1.5-hour journey that entailed crossing through a forest. Her corpse was discovered two days later in a woodland ditch, with her clothing, an empty wine bottle, and other objects scattered about her. Her death was caused by the cumulative impact of “homicidal smothering and manual strangling in a case of recent forced penetrative sexual assault,” according to an autopsy. She was raped and killed, in layman’s terms. The act sparked widespread outrage and demonstrations in Kotkhai, Shimla, and other regions of the hill state, where such crimes are uncommon.

A week later, a state police special investigation team commanded by IG Zahur H Zaidi arrested six males from the region on allegations of raping and murdering the youngster. On the night of July 18 and 19, one of the suspects, Suraj Singh, a 29-year-old Nepalese labourer, died while being interrogated at the Kotkhai police station. He was allegedly slain by one of his co-accused, according to the police. The death in custody exacerbated public protests and concerns about an unfair inquiry, resulting in a riot the next morning in Kotkhai and Theog. The Kotkhai police station was set on fire, and police cars were vandalized. The Himachal Pradesh High Court directed the CBI to take up the case the same day. On April 13th, 2018, CBI had arrested woodcutter Anil Kumar alias Nilu in the Kotkhai minor rape and murder case followed by which the CBI had submitted a charge sheet in court against Nilu, the lone accused in the case on 29th May 2020. On 15th October 2020, family members of Gudiya filed a petition in the High Court seeking re-investigation into the case.

Present scenario

On the 18th of June 2021, a local court convicted Anil alias Nilu guilty in the four-year-old Gudiya rape and murder case and sentenced him to life in jail. Kumar, a Chirani (woodcutter), was found guilty of rape and murder of the juvenile girl under Sections 376 (2)(i), 376 (A), and 302 of the Indian Penal Code, as well as Section 4 of the POCSO Act. Rajiv Bharadwaj, the Shimla District and Sessions Judge who is also a Special Judge of the CBI Court, stated that 12 of the 14 critical pieces of evidence submitted by the CBI were determined to be against Nilu. The conviction was based on the fact that DNA from Nilu’s blood sample matched with semen found on the victim’s private parts and clothes, and soil samples from the victim’s clothes matched with soil samples obtained from the place where the deceased’s corpse was discovered. In forensic investigations, the bite marks on the deceased’s body were also discovered to be Nilu’s. There were 59 witnesses in all, including students, instructors from Gudiya’s school, locals, medics, forensic specialists, police, and eyewitnesses who had seen the accused in the area before and after the incident. The judge noted that the crime was undertaken on the spur of the moment, with Nilu making up his mind to rape and kill the girl when she was walking home from school via a wooded corridor.

  1. Subir Chaki murder case

Subir Chaki, the Managing Director of Kilburn Engineering, and his driver were discovered dead in the Gariahat neighbourhood of South Kolkata on October 18, 2021, according to authorities. On the night of October 17th, Chaki (61) and his driver Rabin Mondal (65) were discovered with numerous knife wounds to their necks, knees, and backs in an ancient building owned by the businessman. While Chaki’s body was discovered in a pool of blood on the second floor of his house, his driver’s body was discovered on the first level of the Kakulia Road building. Chaki, who had purchased an apartment in New Town and lived there with his wife and mother, planned to sell the building where he was killed, according to authorities. 

Vicky Halder and his suspected partner Subhankar Mondal had been detained in Mumbai in connection with the murders of Subir Chaki and his driver Rabin Mondal. Vicky, 26, and Subhankar, 35, were detained at the ground-floor parking lot of a 48-story building under construction on St Xavier’s Street in Parel East, Mumbai on October 27, 2021, according to police. The two, who were purportedly employed as construction site guards, were arrested and brought before a Mumbai court. The two had been placed on travel remand until November 3, and the accused appeared at Alipore court, Kolkata on November 2, 2021. Vicky had spent a few months working as a guard in Mumbai a year earlier, when he had picked both English and Hindi, according to investigators. 

Subhankar, from Basanti in South 24-Parganas, met Vicky for the first time at a construction site on Fern Road, where he worked as a supervisor, according to preliminary findings. Subhankar was a manual laborer. Vicky and Subhankar walked down from Fern Road to the Kankulia Road residence on the afternoon of October 17. They were joined by three additional Diamond Harbour youngsters, who police said had taken the train to Ballygunge station and then walked to Kankulia Road. Vicky’s mother, Mithu, is said to have pledged money to the three Diamond Harbour teenagers who were battling to survive the epidemic. Mithu waited outside as the party of five entered the residence, where Subir was waiting to meet a potential buyer. All six suspects have been arrested and are presently in custody.

The increasing gap between rich and poor : main reason behind rise in crime in India

Since the beginning of economics literature on crime, the link between income inequality and the prevalence of crime has been a key topic of research. Crime rates depend on the risks and penalties associated with apprehension and also on the difference between the potential gains from crime and the associated opportunity cost. Because the characteristics of victims are dependent not only on their relative wealth but also on the distribution of security services across communities and social classes, the observation that most crimes are committed by the poor on the poor does not necessarily imply that the economic theory is invalid. Indeed, crime may be more widespread in impoverished communities as a result of the state’s allocation of police services favouring wealthy areas or because poor people accept lower levels of protection as a normal good. According to the strain theory, the relative success of others will induce frustration among the unsuccessful group resulting in violent crimes. If one analyses the murder of an influential man like Subir Chaki by his laborers, it is evident that the same has been done with the intention to rob him because the latter wants financial support to survive. Such vast inequality existing in Indian society should be addressed with urgency to curb rising crimes in the society. 

  1. Bulandshahr Dalit women rape case 

A little Dalit girl was burned alive in broad daylight on November 17, 2020, in Bulandshahr’s Sidh Nagla hamlet. The girl was reportedly raped by Harish alias Chainta in August and has since been pressured by his colleagues to drop her accusation. In the adjacent sugarcane fields of her house, the victim used to assist her family with farm chores. The victim was picked up from a sugarcane mill on August 14 after a dispute about the functioning of a machine by one Kajal of Dhamni, a hamlet near Sidh Nagla. Her father discovered her semi-conscious in the adjacent orchards over 24 hours later, when she said she had been raped by Harish, who worked in the orchards. Harish and the victim’s family had never had a prior feud, according to the family. 

Harish/Chainta was arrested on August 15 after the victim’s father had filed a complaint with the Jahangirabad police station under Section 376 of the Indian Penal Code,1860, as well as sections of the Protection of Children from Sexual Offences Act and the Scheduled Caste and Scheduled Tribe (Prevention of Atrocities) Act. The arrest of the two co-accused, Sanjay and his wife, both Harish relatives, was halted by the police. Since August, claimed accomplices of the accused from the victim’s village have been threatening her, attempting to get her to drop the complaint. They informed the victim as she went to work in the fields. 

Following the attack, there was institutional indifference, which is common among India’s marginalized people, notably Dalits. Before the victim’s relatives could file a complaint, the cops took her to a nearby hospital. The victim was not given the medical treatment she needed at the Jahangirabad hospital. An ambulance had moved the wounded to another hospital in Bulandshahr after a 45-minute delay. She was referred to a Delhi hospital from there. She died of her injuries at the Ram Manohar Lohia Hospital in Delhi. In a video taken in a hospital, the victim had named the co-accused Sanjay and Kajal who was also involved in raping her. Unlike in the wake of the Hathras gang rape and murder, the cruelty meted out to this young Dalit girl has largely gone unnoticed. “No one arrived when my sister was assaulted,” told the older sister of the victim to The Wire. The case remains ongoing as there was no conclusion of the investigation that was carried out and the family of the Dalit girl remains in shadow to date. 

Article 15 of the Indian Constitution and it’s losing the essence

The Constituent Assembly had decided to guarantee social, political, and economic justice for all under the Indian Constitution. For this purpose, the Constitution contains many measures aimed at protecting and improving the status of scheduled castes. Social justice is influenced by the Constitution in two ways. First, it gives men and women equal rights through “fundamental rights” that may be enforced in court. Second, it instructs the states to execute “state policy directives.” Despite the fact that they are not enforceable in Indian courts, they have been considered to be important in the country’s administration and hence have moral and political worth. As a basic right, the Indian Constitution guarantees equality to all Indian people. Discrimination on the basis of religion, ethnicity, caste, sex, or place of birth is prohibited under Article 15 of the Constitution. Occasionally, though, we are presented with cases of caste prejudice, with men and women from certain tribes and castes being lynched or violently raped. The country’s social environment is dominated by hate crimes against religious minorities. Although the Bulandshahr rape case had taken place in the year 2020, similar incidents were noticed in some regions this year as well. They possibly didn’t cross the media radar and therefore remained known only in bits and pieces. As India celebrated its 74th independence this year, it is notable to mention that it’s time our country realizes whether it is actually independent of social evils or not. 

  1. Rajaram Khadari murder case

On February 20, 2021, Abhay Ohri, a tribal doctor and activist in Ratlam, Madhya Pradesh, received a call from a volunteer of Jay Adivasi Yuva Shakti, a tribal youth organization that he had leads in Ratlam, Madhya Pradesh, informing him of his 27-year-old colleague Rajaram Khadari’s death in a state hospital. Rajaram’s body was dyed with kumkum, a crimson turmeric powder used in religious ceremonies. Lacchas, or ritual yellow threads, were also knotted throughout the body. Rajaram’s limbs and legs had the impression of being shackled. Many injuries from sharp items were also visible. Even after he died, his body continued to bleed.

Rajaram’s parents, Thwari Bai and Kanhaiya Lal Khadari had eight daughters and one son, Vikram, who is 26 years old, in addition to Rajaram. While Santosh is the oldest daughter, Tulsi Palasia, their middle daughter, is the family’s most powerful figure. She is 40 years old. Tulsi and her husband, Radhey Shyam, reside in Dharad village, around 35 kilometers from Thikariya. She worked as a Bhopa, a witch doctor, for the past three or four years, according to the police. Tulsi claimed that her 17-year-old son has magical abilities and was an incarnation of Sheshnag, the serpent king. The Hindu deity Vishnu is often depicted resting on Sheshnag. Tulsi’s whole family was participating in the practice, including her children Maya and another young boy, as well as Rahul, her brother-in-law’s child. 

In the Bhil tribal culture, Bhopas are historically priest-singers. They perform in front of a phad, which is a large piece of fabric that acts as a portable temple and contains numerous mantras and local deity folk tales. When villages ask bhopas to perform at times of sickness or disaster, they bring this phad with them. When the chanting ladies were requested to move aside by the policemen in the present case, they threatened to curse them, claiming to be representations of the Hindu goddess Durga. The room was so thick with incense smoke that it was difficult to see anything. Blood, smashed coconuts, lemon, kumkum, and tonnes of burned incense and wood were all there. Maya, Tulsi’s daughter, was sitting on the tummy of Adarsh, Seema and Rajaram’s two-year-old son, in one corner of the room. Maya had her fingers in Adarsh’s mouth with one hand and a sword in the other. Adarsh has already passed away. Tulsi sat on Thwari’s stomach in another corner, suffocating her at the neck and tugging her hair. Thwari’s sword wounds were causing her to bleed heavily. Vikram’s injured children were crying in terror in a third corner, while other family members held them. Maya and Tulsi clung to the bodies of Adarsh and Thwari so firmly that it took three to five police officers to remove them when the scene was broken up.

The ladies in the room said that Seema had possessed Rajaram as she was a witch and that if the witch was murdered, Rajaram would resurrect. That’s when the cops began looking for Seema. She was discovered in a room close to a livestock shed on the other side of the road. She was hurt, bleeding, and unconscious, yet she was still alive. By that time, her parents had arrived and had taken her to the hospital. A two-rupee penny was discovered wedged in her throat, preventing her from speaking. Tulsi and her children, including Maya and the boy she claimed to be the manifestation of Sheshnag, were among those detained and accused of murder. Rajaram’s younger siblings, Vikram and Sagar, were also apprehended.

Tulsi and her family were attempting to destroy the ghost that they felt had possessed Seema in the ceremony, according to the police inquiry. They thought the ghost had left Seema’s body and seized her husband, Rajaram when she fell unconscious. They believed it had possessed Adarsh after he died. They assumed it had entered Thwari’s body after Adarsh died. Seema learned that her husband and child had passed away eight days after the tragedy. To get the penny out of her throat, she had to go through many surgeries. She currently shares a home with her mother and father, which she purchased with Rajaram.

India remains a socially under-developed country 

Superstition remains the greatest hindrance to social development in India. Crimes from superstition remain thriving in developing India as people slowly lose logical reasoning as the percentage of detrimental influence increases. Over the last decade, witchcraft has claimed the lives of hundreds of people. But, is it better to have distinct laws like the anti-witchcraft laws in states such as Jharkhand, to punish the harm caused by witchcraft as witchcraft, or should it be controlled as much as possible by current laws and the Indian Penal Code, 1860? These activities frequently entail inflicting bodily injury on a person, as well as psychological torment and, in some cases, actions that result in death. The Code of 1860 already covers the majority of these risks. Whether hunting witches or collective spirits, murder should be murder. No matter what the reason, forcibly evicting someone from their home or doing anything to their body without their consent is illegal.  However, when we portray the law as limiting superstition rather than concentrating on the damage in question, we provide a moral explanation of why conduct is wrong that is deceptive. 

There is larger cultural work to be done over spreading science. However, the focus of legislation should be on highlighting the moral harm caused by specific actions. We’re having an odd argument where some people are hesitant to act because someone claims to be a godman. Others want to respond by making it illegal to pretend to be a godman. All we have to understand is that no matter who you are or what others believe if you commit a crime, you are not above the law.

Conclusion

The police, the prosecution, the courts, and the prisons cannot prevent and regulate crime on their own, they need the full collaboration and coordination of all members of society. Great efforts must be taken to enhance public awareness and encourage people’s participation in all aspects of the crime issue if successful crime prevention is to be achieved.

References 

  1. https://indianexpress.com/article/india/kerala/kerala-dowry-death-vismaya-charge-sheet-7501472/
  2. https://murderpedia.org/male.R/r/reddy-umesh.htm
  3. https://www.telegraphindia.com/my-kolkata/news/prime-suspect-in-murder-of-subir-chaki-driver-arrested-in-mumbai/cid/1836934
  4. https://theprint.in/judiciary/in-re-bruno-kerala-hc-pays-tribute-to-dog-beaten-to-death-renames-case-after-him/689028/

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/joinchat/L9vr7LmS9pJjYTQ9

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

Download Now

Offences under Central Goods and Services Tax, 2017

0

This article is written by Niharika Agrawal, from IFIM Law School. This article deals with the offences under GST laws and their penalties, fines, and prosecution.

This article has been published by Oishika Banerji.

Introduction

Goods and Services Tax (GST) was introduced in India in 2017. Since then, GST is a single domestic indirect tax for the whole of India. This tax is levied on every value addition. Any breach of these laws leads to offences. Under GST laws, offences are well explained in the Central Goods and Services Tax Act, 2017. This Act also imposes penalties, fines, and imprisonment for such offences. This article highlights the offences under GST laws provided in CGST Act and also briefly about the fine penalties and prosecution imposed upon such breach.

Offences

Offences generally means an illegal act or a crime or something that disgrace the mental and physical sense among the people. It also affects the moral and social conduct in society. An offence is a breach of rule of law. Under the Central Goods and Services Tax Act, 2017 (CGST Act) or any other Good and Services Tax (GST) laws that were introduced in the year 2017, there is no specific definition of an offence, however, the provisions for the offences and its penalties are explained in Central Goods and Services Act, 2017. Hence, any act or conduct that commits a breach of the provisions under the CGST Act is known as an offence under GST laws.

Provisions related to offences are covered under Chapter XIX, Section 122 of the CGST Act. This section constitutes those offences that attract penalties for any infringement or breach and also apply tax and interest. Some of the offences are also provided under Section 132 that is liable for prosecution depending upon the gravity of the offences. These provisions are applicable in various State and Union Territories Goods and Service Laws and Integrated Goods and Services Tax Act, 2017. 

Section 122 of the CGST Act, consists of a list that includes 21 offences on which the law imposes a penalty. Thus non-compliance with the laws under the Act may lead to penalties. For the sake of better understanding, such offences are divided into four broad categories, and these are as follows

Fake or wrongful invoices

This category of offence is about a taxable person that conducts the following:

  • If a person supplies any kind of either goods or services or both without issuing invoices or issuing fake invoices related to such supply will be liable for the offence.
  • Without supplying the goods or services or both, the issue of any invoice or bill is a violation of the provision of the CGST Act along with rules given under. 
  • If they wrongfully avail Input Tax Credit (ITC) with the help of fake and illegal invoices or bills. 
  • If the invoice or bill is issued with a GST identification number of some other bonafide taxable person. 

Evasion or non-payment of tax

  • If a person collects any tax but does not pay the same amount to the government within the period of three months from the date when such payment is declared to be due.
  • If any person avoids tax payment or fraudulently benefits himself of ITC or obtains any refund provided such offences or refund is not covered under (1) and (4) clauses of Section 122.
  • If a tax is collected in violation of the provisions of the Act and also fails to pay the same tax to the government beyond a period of three months from the date on which such payment becomes due. 
  • If the person fails to deduct the tax pursuant to the provisions of Section 51(1) that states about tax deduction or even if deducted by less than a required amount, or if deducted full tax but fails to pay the government as per Section 51(2). 
  • If collected tax is not as per Section 52(1) that explains about the collection tax at sources or if collected, the amount is less than the required or fails to pay the same to the Government as per Section 52 (3).
  • If the person avails ITC without actual receipt of goods and services or both either wholly or partly in violation of the provisions or rules of this Act. 
  • Either take or distribute ITC in infringement of Section 20 which is distribution of ITC by input service distribution or the rules made thereunder. 

Commission of fraud

  • If a person with an intention to avoid payment of tax due under the GST laws either fraudulently gets a refund of tax or falsifies or replaces financial records or shows fake accounts or documents or provides false information or return. 
  • Suppresses his turnover.
  • If the goods are supplied, transferred, or stored for the reason to be liable for confiscation under the Act. 
  • Tries to tamper, destroy any material evidence or document. 
  • If someone tries to interfere with any goods that are detained, seized, or attached under this Act and are liable to be registered but fails to do so.
  • If someone at the time of registration or subsequently frames any fake information related to registration particulars.

Miscellaneous

  • If the person retains or prevents any office in the discharge of his duties. 
  • If the person transports any taxable goods without the required documents as specified under the Act. 
  • If the books of accounts are not kept, or maintained, or retained as per the provisions of the Act. 
  • If fails to provide information or documents asked by the officer pursuant to the provisions of this Act or the rules thereunder. Also if someone provides false information or documents during any proceedings under this Act. 

Penalties under GST laws

Penalty for the supply of goods and services for non-payment or short payment of tax

According to Section 122(2) if the person has registered himself and supplies goods and services for which the tax is yet to be completely or partially be paid or by any other wrongful means refunded or utilized ITC. The following are the conditions:

In case of misstatement or suppression of facts to avoid tax, with or without the reason being a fraud, the person is liable to pay the penalty of Rs. 10,000 or 10% of the tax due, whichever is higher.

Penalty for aiding or abetting of offences

According to Section 122(3), any person who commits the following offence is liable to pay a penalty up to Rs. 25,000.

  1. Aiding or abetting any of the 21 offences under Section 122 of the Act. 
  2. Deals with goods or services that are known to be liable for confiscation under the Act or the rules. 
  3. Supply goods or services that are known to be in contravention under the Act or the rules. 
  4. Fails to appear before the Central tax officer even after issuing the summon for appearance.
  5. Fails to provide invoices and maintain books of accounts as per the Act.

Penalty for failure to furnish or return

It is mandatory for all taxable persons to provide information or return as per Section 150 of the CGST Act. Thus, if the person required under Section 123 of the Act fails to do so within the duration specified in the notice, needs to pay the penalty of Rs. 100 per day for the period during which the failure to provide such information or return continues. This penalty cannot exceed  Rs. 5000.

Penalty for failure to furnish statistics

If the Commissioner of CGST Act, 2017 is empowered under Section 151 that if he feels necessary to collect the statistics relating to any matters dealt with under the Act, he may direct to do so. If the directed person fails to provide any information as per under Section 124 without reasonable cause or provides any false information or returns willfully, shall be liable to pay penalty up to Rs. 10,000. If in case the offence continues, the penalty may further extend to Rs. 100 each day after the first day during which the offence continues. This is extended up to Rs. 25,000. 

General penalty

No other penalty is provided for these offences. According to Section 125, any person violates any provision or rules of the Act and if no penalty is provided for such violation, thus are liable to a penalty maximum up to Rs. 25000.

These penalties can be waived off either fully or partially under Section 128 if the government notifies to do so for such class of taxpayers and under such mitigating circumstances as specified therein on recommendations of the council. 

Offences liable for prosecution

There are 12 certain offences under Section 132(1) that are liable for prosecution. The one who commits or causes to commit or retains any benefit accrued from these offences is liable for the same. 

  1. If someone with an intention to evade tax supplies any goods or services or both without issuing any invoice in contravention of the provisions of this Act or the other rules.
  2. If there is availing of wrongful utilization of ITC or refund of tax by issuing any invoice or bill without supply of actual goods and services in contravention of the provisions of the Act. 
  3. The one who fraudulently takes a benefit of ITC with or without the help of invoice or the bill as mentioned in clause (b). 
  4. Collection of any amount in the name of the tax, at the same time, it fails to pay the same to the government within the period of three months. 
  5. In order to avoid tax or fraudulently get a refund or where such offence is not covered under clause (a) to clause (d). 
  6. In an intention to avoid tax if someone falsifies or replaces financial records or produces false accounts or documents or provides fake information under the Act.
  7. Prevents any officer in the discharge of his duties.
  8. If any person acquires possession, or involves himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other way deals with the goods or services knowingly that such goods are liable to be confiscated under this Act. 
  9. The person is liable for the offence if he/she receives or is involved in any way with the supply of those goods and services which he knows and believes are a contravention of any provisions of this Act.
  10. Tries to tamper or destroy any material evidence or documents. 
  11. If someone fails to provide information that is required to be supplied as per the provisions of the Act or deliberately supplies false information.
  12. If someone attempts to commit or abets the commission of the offences mentioned in clauses (a) to (k) of this section.

Punishments

The offences mentioned above are liable for fines or punishment. Here are the following punishments:

  1. In the case where the tax is avoided or wrongfully availed or utilized ITC or in case of wrongfully refunded amount more than Rs. 5 crore is liable for imprisonment up to five years along with fine.
  2. If evaded tax or availed and utilized ITC or refunded any amount more than Rs. 2 crores but less than Rs. 5 crores are liable for imprisonment up to 3 years along with fine.
  3. If in the same case mentioned above the amount exceeds Rs. 1 crore but less than Rs. 2 crore is liable for imprisonment up to 1 year along with a fine.
  4. In case of the abatement or the offences specified in clause (f), (g), (j) under Section 132, they are punishable with imprisonment for a term which may be extended to six months or with a fine or with both. 

Punishment for double conviction

According to the provisions of Section 132(2), if any person is already convicted of an offence under this section and if he again gets convicted, then he shall be punishable for the second offence with imprisonment for a term which may extend to five years and with fine.  

Conclusion

It can be concluded that there are various provisions under the CGST Act, 2017 that explain various kinds of offences and for all those offences, there is a proportionate penalty, fines, or prosecution. A taxable person should always follow all the above provisions and should avoid committing such offences; if done so will be liable for the same. 

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/joinchat/L9vr7LmS9pJjYTQ9

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

Download Now
logo
FREE & ONLINE 3-Day Bootcamp (LIVE only) on

How Can Experienced Professionals Become Independent Directors

calender
28th, 29th Mar, 2026, 2 - 5pm (IST) &
30th Mar, 2026, 7 - 10pm (IST).
Bootcamp starting in
Days
HRS
MIN
SEC
Abhyuday AgarwalCOO & CO-Founder, LawSikho

Register now

Abhyuday AgarwalCOO & CO-Founder, LawSikho