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Industrial units need prior environment clearance to operate, the State has no authority to exempt the requirement of prior EC

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This article is written by Gitika Wadhwani, from Jagran Lakecity University. This article deals with environment clearance requirements, processes, and consequences of violation.

Introduction 

There are many cases where commercial enterprises have been granted environmental regulatory approvals putting people or groups at risk who are adversely affected by the environmental degradation and projects undertaken by the companies. It is widely perceived that financial gains are always prioritized at the cost of public interest and environmental protection. The laws are bypassed to facilitate economic growth and the legalities required to be followed by these commercial enterprises are considered as obstacles that slow down the country’s growth. Before commencing any new project the industries have to go through a proper process. One of the steps is to get environmental clearance. This is a complex process and there are some problematic aspects in its regulatory framework. 

Environmental impact assessment notification 

The Central government issued the Environmental impact assessment (EIA) notification under the rules of the Environment (Protection) Act, 1986. The government has the power under the EP Act to take all measures necessary for protecting the environment and preventing environmental degradation. This notification aims at imposing restrictions and prohibitions on new projects or the existing projects’ expansion or modernization depending upon their potential impact on the environment. The EIA notification requires a pre-determined set of projects to obtain prior environmental clearance.

The EIA notification schedule states the details of categories of projects or activities which require prior EC. It includes mining and extraction of natural resources and power generation projects, material production, primary processing projects, material production projects, service sector projects, etc. The projects’ categorization is broadly split into two types: Category A projects in the schedule deals with projects which require prior environment clearance(EC) from the Central Government. Category B deals with projects that require clearance from the State Environment Impact Assessment Authority (SEIAA)

There is an exception to this division of regulatory roles between the Ministry of Environment, Forest and Climate change (MoEF) (central government) and the SEIAAs (state government). Under ‘General Conditions’ it is stated that if a category B project is located in whole or in part within 10 km from the boundary of protected areas, critically polluted areas, eco-sensitive areas, inter-state boundaries, or international boundaries it would be treated as a category A project.

The EIA notification schedule also states ‘specific conditions’ for five categories of projects. The condition states that if any individual industry including proposed industrial housing operating or set up within those industrial estates that have obtained prior environmental clearance, these new set up within those industrial estates do not require separate EC to operate. The condition is that the industrial estate must comply with the terms and conditions of prior environment clearance. If any proposed project or activity mentioned in the schedule is beyond the manner or limits set in the schedule it would require prior EC as per the conditions mentioned in the EIA notification. 

Role of Centre and state in EIA Process

Centre 

The central government plays a significant role in the implementation of the EIA notification at the central level through the MoEF. As a primary policymaker, the MoEF is expected to ensure smooth implementation of the notification across the country by issuing clarifications, office memorandum, circulars, etc. To other authorities involved in the process. Granting or rejecting applications for the EC for category A projects, appointing centre and state level Expert Appraisal Committees, monitoring the implementation and compliance with the EC conditions all these are done by the Centre through the MoEF and other functionaries. The Expert Appraisal Committees (EAC) is constituted by the MoEF. They play a crucial role in considering applications for category A projects for the EC. Different EACs deal with different categories of projects. Its role is recommendatory in nature, they do not have the power to reject or accept applications for the EC.

The power lies with the government through the MoEF. EACs are constituted for three years terms and consist of experts and professionals with expertise or experience in areas of risk assessment, EIA process, environmental economics, sectoral experts, environmental quality, etc. The EACs work independently of the MoEF. Some of the activities are performed by the Central Pollution Control Board that are relevant in the EC process. The CPCB has the list of critically polluted areas, industrial clusters and a moratorium has been declared on grants of the ECs for projects proposed in these areas. Also, projects under Category B located within ten kilometers of critically polluted areas as identified by CPCB are considered category A projects. 

State 

The SEIAA performs the regulatory function at the state level. It grants or rejects applications for the EC for Category B projects. It is constituted by the MoEF in each state and union territory upon recommendation from the respective state government or union territory administration. SEIAAs get financial and logistics support from state governments. It consists of a chairperson, a member, and a member secretary. The chairperson and members must have professional expertise similar to that of EAC members and the term is three years. The member secretary ordinarily is a serving officer of the state government or Union territory administration who is familiar with environmental laws. The member secretary or any other officer of the state pollution control board should not be a member of the SEIAA directed by NGT to the MoEF. It is done to facilitate the independent assessment of the projects at the SEIAA level. 

The EC applications are decided by SEIAA based on the recommendations of SEACs. SEACs are constituted by the central government in consultation with the state government, and composition is along the same lines as the EACs. Unlike EACs at centre, most states have only one SEAC to appraise all categories of projects. Across states, the number of members in the SEAC varies. It is provided financial and logistics assistance from the state government. The SEAC has a recommendatory role like the EAC with SEIAA being the final authority to decide for category B projects. The state pollution control board is responsible for the facilitation and conduct of the public consultation component of the EC process for both categories of projects. It also reports the proceedings to either the MoEF or the SEIAA, as the case may be. Primary monitoring is done by the regional offices of the MoEF but SPCBs are involved to a certain level. They are constituted by state governments and play an important role in the EC process. 

Environment clearance process

  • Before Final Decision 

The environmental clearance process consists of four stages:

  1. Screening

This stage is particularly for category B projects or activities. At this stage, all the applications seeking prior environmental clearance in form 1 are scrutinized by the concerned state-level Expert Committee (SEAC). They determine whether the project requires any further environmental studies for the preparation of an EIA for its appraisal depending upon the nature and location of the project. The projects that require an environmental impact assessment report are termed as category ‘B1’ and others that do not require the EIA report are termed ‘B2’. 

  1. Scoping

Scoping requires the Expert Appraisal Committee or State Level Expert Appraisal Committee to determine detailed and comprehensive Terms of Reference (TOR) required to prepare an Environmental Impact Assessment( EIA) Report in case of Category A or Category B1 projects. These TORs are determined based on Form 1/Form 1A information and include the terms proposed by the applicant. 

The set of model terms of reference are provided by the MoEF on its website for different sectors, the EAC and SEACs can rely on these models for drafting ToRs as per their project specifications. While framing ToRs EAC and SEACs may undertake a site visit to the proposed project site. At the end of this stage, the decision has to be issued within sixty days of Form 1 being submitted by the proponent. The project proposal can be rejected at the scoping stage. If the appropriate regulator decides to reject the project, the decision should be communicated to the project proponent with reasons. If EAC or SEAC recommends ToRs then they have to be conveyed to the project proponent by the appropriate regulator and displayed on the regulator’s website. If within sixty days the ToRs are not finalized then the ToRs suggested by the project proponent will be considered final. 

  1. Public consultation

Once the project proponent completes the impact assessment studies the process of public consultation begins. The public consultation is an important step in deciding whether to grant the Environmental Clearance or not. Public Consultation is defined under EIA notification as “the process by which the concerns of local affected persons and others who have a plausible stake in the environmental impacts of the project or activity are ascertained to take into account all the material concerns in the project or activity design as appropriate. 

Category A and Category B1 projects necessarily need public consultation. However, certain projects are exempted. The project that can be exempted can be amended by the MoEF through an Office Memorandum. The public consultation has two components- 

  1. Public hearing 

The main purpose of the public hearing is to ascertain the concerns of the local people who are affected. A public hearing has to be conducted as per procedure in Appendix IV of EIA notification. The responsibility to conduct and facilitate public hearings is on State Pollution Control Board (SPCB) or the Union Territory Pollution Control Committee (UTPCC). It has to be organized in a systematic, transparent, and time-bound manner and the possibility of public participation. The process of the public hearing can be understood in three parts:

i. Before the public hearing

The submission of a letter by the project proponent to the relevant SPCB requesting it to arrange a public hearing is the first step to the public hearing process. It should be completed within forty-five days from the date of letter submission. The public hearing has to be held in every district if the proposed project site is situated in more than one district. If the project site is located in more than one state, separate letters have to be sent to each state’s SBCBs. Following the ToRs issued at the end of the scoping process, a draft EIA report and its summary have to be prepared and the project proponent has to forward it to the MoEF, the offices of the District Magistrate/District Collector/Deputy Commissioner, the Zila Parishad, the district industries office, urban local bodies, Panchayati raj institutions, development authorities and the concerned regional office of the MoEF. the Member Secretary of the concerned SPCB has to finalize the date, venue, and time for a public hearing within seven days of receiving the draft reports from the proponent. The information advertisement has to be made through a notice in one major national daily newspaper and one regional vernacular. 

ii. During the public hearing

The public hearing is supervised by the District Magistrate, District Collector, or Deputy Commissioner, assisted by the SPCB representative. There is no restriction on who can attend the public hearing. A hearing can be commenced with only a few participants and the presiding panel. The presence of each person who attended the hearing has to be marked. The video recording of the entire proceeding has to be arranged by the SPCB. A copy of the recording and attendance sheet along with a written record of proceedings has to be sent to the appropriate regulator. 

The project proponent’s representative begins the hearing by presenting the draft EIA report summary. Every person present during the hearing has to be allowed to present their views or ask any query on the project from the representative. The presiding panel prepares the summary of the proceedings and reads it over to the audience in the local language to verify. The presiding officer signs the agreed minutes on the same day and forwards them to the concerned SPCB. Also, the issues raised by the public and comments of the project proponent are attached. 

iii. After the public hearing

After completion of the hearing, the public hearing proceedings have to be displayed at the panchayat office where the project is located. Also, the SPCB has to display the proceedings on the website and forward it to the appropriate regulator within eight days of the completion of the hearing.

  1. Written responses

In the public consultation process, the second component is written responses by other concerned persons to the appropriate regulator. The regulator and the SPCBs have to place the EIA report draft’s summary and project proponent’s application on their website and seek responses from concerned persons. The responses received from the public have to be forwarded to the project proponent as soon as possible. 

The concerns raised during the public hearing and in written responses have to be addressed by the project proponent either by submitting a final EIA report or supplementary report to the draft EIA report. 

4. Appraisal 

After submitting the EIA report and the Environment Management Plan (EMP) after public consultation by the project proponent the appraisal stage begins. The EACs or SEACs scrutinized the EC application and other documents in detail. There should be transparency in appraisal and if any necessary information has to be taken about the project an authorized representative of the project proponent may be invited. The EACs/SEACs then may recommend the project for the EC grant or reject the same, with reasons. The EAC/SEAC has to appraise the application within sixty days from the day on which it is received along with necessary documents. Within five days the EAC/SEAC minutes of the meeting have to be prepared and uploaded on the regulator’s website with safeguards/conditions imposed on the project in case the EC is granted. If the EC application is rejected the minutes must include the reasons.

  • Final decision 

After EAC/SEAC gives its recommendations, the appropriate regulator has to consider and make the decision within 45 days. Normally recommendations received are accepted by the appropriate regulator, but in case of any disagreement, the regulator has to provide reasons for the same and request EAC/SEAC to reconsider the recommendations within sixty days. After completing the second round of recommendations, the regulator’s decision is final and should be communicated to the project proponent within thirty days. In case the final decision is not informed to the project proponent within the stipulated time, the proponent can assume the final recommendation of EAC/SEAC to be the final decision. 

The environmental clearance letter issued to the project proponent includes a list of conditions to be followed by the project proponent during the project. These standards are to be complied with by the project proponent. The recommendation of EAC/SEAC and the final decision of the regulator are public documents. If any information given by the project proponent is false or misleading and the EC has been granted such an application, the EC can be cancelled. Before cancelling or taking any decision, the project proponent will be given a chance to be heard by the regulator. 

  • After Clearance 

Environment clearance validity 

The EC validity differs from project to project. For river valley projects, the EC is valid for 10 years. For mining projects, the EC is valid for the entire project life, as determined by EAC/SEACs, subject to a maximum of thirty years. For other categories of projects, the EC is valid for five years. For area development projects, the validity is calculated from the date on which the EC is granted to the date on which the project proponent has completed all the activities.

Environment clearance publication

Through the 2009 Amendment in EIA notification, publicizing the information about the EC grant is made mandatory. The EC grant has to be displayed by the project proponent on its official website. The EC has to be placed on the government portal by the appropriate regulator. In the case of Category A projects, the advertisement of the EC grant and the safeguards and conditions in two local newspapers of district or state where the project is located is done by the project proponent at his own cost. For category B projects the advertisement of the EC grant is done in two local newspapers by the project proponent and provides a link to the MoEF where information about the EC would be available. 

Compliance and monitoring 

After the grant of the EC, the project proponent has to submit half-yearly reports to the regulator about the compliance of conditions and safeguards imposed on the project. Hard and soft copies are submitted for compliance and made available to the public. The obligations on the project proponent to self-monitor its operations based on several parameters are included in the EC letter. These reports are to be submitted regularly to the regional office of the MoEF, CPCB, SPCB and, or any relevant government agency. The regional offices of the MoEF have a responsibility to monitor the compliance of the EC conditions. Certain conditions relating to compliance have to be included in the EC letter such as placing results of monitoring data on the proponent’s website. 

Transfer of EC

The transfer of the EC can be done to another legal entity during its validity by applying to the appropriate regulator. The transferor can transfer in the name of the transferee. The transferee can also apply for the transfer from the transferor with no objection. The conditions and validity of the EC remain the same. In a case where a company with a record of environmental and civil rights violations can buy an EC from a company that was granted the EC initially. The poor image of the transferee would be irrelevant in this case which would have been relevant in the appraisal process. 

Consequences of violation

The EIA notification does not specify the consequences of violations except for the concealment of information in paragraph 8(vi). 

  • Any violation of the provisions of notification would face consequences under Section 15 of the Environmental Protection Act.
  • If a complaint is filed, the MoEF and EAC have to verify the validity of the complaint. 
  • If the complaint is found to be valid, the project would be delisted and the project proponent would be required to submit a formal resolution of the Board of Directors stating that the violation won’t be repeated.
  • It has to be done within sixty days. If the project proponent does not respond within this time limit, the project file will be closed and no future action will be taken only if the proponent applies. 
  • Simultaneously, the state government will take necessary action under the EP act. And submit evidence of credible action taken to the MoEF. The project proponent’s information and written commitment would be placed on the MoEF website. 
  • The MoEF will issue directions to suspend all the activities till appropriate EC is obtained. Action will be taken against the project proponent and the EC application will be rejected if the directions are violated. 
  • If all the conditions are met, the project will again be considered at the appropriate stage. 
  • However, during the decision-making process, the fact of violation will be material. The MoEF/SEIAA reserves the right to reject the project proposal even if the conditions for the project are met by the project proponent. 

Grievance redressal 

In case of any grievance related to a grant of the EC or the rejection of an application for the EC by the regulator may be challenged before the NCT through an appeal. 

  • The person can approach NGT within thirty days of communication of the order to the person. 
  • NGT has jurisdiction under Section 16 of the National Green Tribunal Act, 2010. The EC conditions and compliance issues can also be raised before NGT. 
  • NGT has jurisdiction to hear civil cases where any substantial question is involved related to the environment. And cases related to the implementation of EIA Notification also fall under the ambit of NGT. 
  • The right to appeal before NGT is not a bar to appeal to high courts. High courts have writ jurisdiction under Article 226 of the Constitution of India which can be invoked in issues relating to the implementation of notification. 

Power to regulate 

The regulation of development and construction of projects through the EC process affects the interest of states. The question arises as to how much power the states have in decision-making. In EIA notification, the powers are divided between the centre and the state. Category B projects are regulated at the state level with certain exceptions under general conditions. Category B projects which do not have to undergo EIA studies have a less cumbersome clearance process. State governments have a very crucial role in the regulation of these projects, the SEIAAs and SEACs are constituted by the central government on the recommendation of the relevant state government. These bodies are provided financial and logistical support by the respective state governments. 

The state’s power can be reduced by the central government by amending the schedule and bringing more projects in category B. the central government can increase the administrative burden on state government by introducing procedural requirements. The Environmental protection Act gives extensive powers to the centre to regulate environmental actions and protect the environment. 

The state has no power to exempt EC requirement

In Dastak N.G.O vs Synochem Organics Pvt, Ltd. & Ors., (2021)the manufacturers of formaldehyde, requiring prior EC, were ordered by the State of Haryana to operate without the EC for six months by making an application for EC. The applicant submitted that the units cannot operate without prior EC. The NGT stated that the EC is a statutory mandate and units cannot operate without the EC. For any violations, the actions can be taken by the concerned authority appropriately. 

In Alembic Chemicals v. Rohit Prajapati & Ors. (2017) the Supreme Court held that the prior EC requirement is mandatory and the state has no power to exempt the prior EC requirement on payment of compensation. The state has no delegated power under the Environment Protection Act to exempt EIA requirements.

Conclusion 

Business is a part of society and it uses society’s resources to succeed. It must protect society and the environment. Owing to growing pollution caused by industries for commercial gains, it has become mandatory for all industrial units to obtain prior environmental clearance to operate and function without any obstruction. The government through EIA notification has mandated projects to get the EC. There is a proper process which the project proponent goes through by applying for the EC and state level and central level authorities play an important role in decision making and granting the EC to the project proponent after analyzing and reviewing the terms and conditions to be followed by the proponent. The industries have to comply with the standards and conditions of the notification to operate. They cannot skip the process of the EC or cannot operate without prior EC. Time and again it is being reiterated by NGT and the supreme court that the state has no power to exempt prior EC requirements. Therefore, it is a mandatory document for all industrial units.

References 

  1. https://www.thehindu.com/news/national/industries-cannot-operate-without-prior-environment-clearance-ngt/article34751177.ece
  2. https://www.cseindia.org/environmental-clearance—the-process-403
  3. https://main.sci.gov.in/supremecourt/2016/2562/2562_2016_0_1501_21582_Judgement_01-Apr-2020.pdf

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Can learning arbitration law prepare you for a career abroad : an insight

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This article is written by Sharad Yadav from the Institute of Law, Nirma University. This article will give you insight into whether learning arbitration prepares one for career opportunities abroad. In addition this will help you to understand the different aspects of international arbitration.

Introduction

The globalization of different businesses across the countries has been a fact for several decades now, bringing vast economic opportunities in different sectors. However, running a business across borders creates obstacles on multiple levels, such as linguistic, logistical issues, even in successful endeavours.

In this particular environment, lawyers have had to evolve and adapt their services and skills to enable their business clients to accomplish their aims and apply their capabilities most fully. Lawyers with experience in managing cross-border transactions are highly valued by their clients for helping to clear the path and get sophisticated and complex deals closed. If you are interested in developing your legal career and forging a specialization that is increasing in demand and transferable across continents, jurisdictions, and industry sectors, you should consider learning more about international arbitration.

Alternative to litigation

The contracts between the parties or companies do not always work out well. Even the best and the most robust drafting can not prevent the risk of arising a dispute between the parties. The contract happened between the reputed big companies. If some dispute arises, they can not go to court because it will damage the reputation of companies heavily in the international market. There are a lot of examples where the news of ligation spreads and  the shares of the companies fall drastically. No company wants its reputation of the company to degrade in the international market. Now the companies are not used to the traditional system of litigation. Firstly they try to resolve the dispute by Arbitration. Presently the companies use it as an alternative to traditional litigation. A study conducted by FTI ConsultingDispute resolution in the global economy” revealed that the companies which are based in the middle and far east are increasingly looking towards arbitration as the best option for resolving international disputes. There are now more and more companies that insert arbitration clauses into the commercial agreement.

The traditional litigation system takes a lot of time while arbitration takes much less time. Due to the exuberant amount of cases, court decisions are decided very late, which in turn makes the company suffer a lot. Arbitration not only saves time but also saves the litigation costs of the companies which are very high.

Increasing demand for international arbitration lawyers

Arbitration centres around the world publish a report annually on their caseload which provides a clear picture that the demand for arbitration as a method for solving disputes has increased drastically. If the demand for the arbitration method has increased, it is obvious that the demand for arbitration lawyers will increase. The  London Court of International Arbitration (LCIA) reported an increase of 10% of the caseload in 2013 as compared to the previous year.

This consistency and significant growth show one thing that there are opportunities for dispute resolution lawyers with experience and expertise in the arbitration proceeding. Increasing the use of arbitration as a method directly impacts the demand of lawyers because without a lawyer the arbitration proceeding can not proceed.

There was a study done by Syracuse University in which it found that due to globalisation the demand for international lawyers with language skills, cultural awareness, and overseas experience has increased. There is one famous quote there that says, “A man who is his own lawyer has a fool for a client”. This is true when it comes to court but it is not necessary to be applicable to arbitration. Gary Born who is one of the world’s leading international arbitration lawyers explains that some parties opt to represent themselves in the proceedings of arbitration disputes in which the main issues are primary technical issues and commodities disputes. However, in the majority of the international commercial arbitration proceedings, parties do retain an external counsel who has the expertise in the particular subject matter. Such parties benefit from the experience and expertise in dealing with the complex procedural and judicial issues which might arise in international disputes especially in circumstances where no appeal is available.

Skills required to become an International Arbitrator

There are certain sets of skills required for a lawyer to become the best international arbitrator.

Knowledge of law 

We know a lawyer without the knowledge of the law can not be called a lawyer. When you are going to deal with an issue then the opposing counsel can hail from anywhere in the world so you have in-depth knowledge. One thing which makes one lawyer better than other is the knowledge of the law which comes from experience.

Communication skills

Communication skill is also one of the requisites to become a good arbitrator. They need to be polite and versatile. This communication skill is not only needed for this career but in every career field,  this skill is requisite.

Curiosity

It is important that the person is always curious to know something new as in international arbitration many new laws will keep developing with time from different jurisdictions but if the lawyer is not curious to learn new things then this career option is going to be very difficult for him. Every problem which will come to your doorstep, you will need a solution to that problem so it’s better to be curious to know new things.

International arbitration rules

Many international arbitration institutions provide rules and regulations which govern the resolution of disputes through arbitration proceedings. The famously known rules of arbitration include those of the London Court of International Arbitration (LCIA), International Chamber of Commerce (ICC), the rules of the Singapore International Arbitration Centre (SIAC), the International Centre for Dispute Resolution of the American Arbitration Association (ICDR), the Hong Kong International Arbitration Centre (HKIAC), and the United Nations Commission on International Trade Law (UNCITRAL) rules. Investment arbitrations are often resolved under the rules of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID). Many arbitrations involving Russian businesses generally take place under the rules of the Stockholm Chamber of Commerce (SCC).

How are international arbitration awards enforced?

A very well-known treaty relating to arbitration is known as the New York Convention, which entered into force on 7 June 1959, arbitration awards can be enforced in most countries, unlike traditional court judgments. Over 150 countries have ratified the New York Convention today, meaning that the arbitration awards can be enforced and applied in approximately three-fourth of the countries recognized by the United Nations.

The basic laws on which international arbitration lawyers argue a case are the governing law of a tort, the law of contract, the arbitration laws of the seat of arbitration, and the New York and Washington convention (alternatively known as the ICSID Convention).

International Institutions related to arbitration

Singapore International Arbitration Centre

It is one of the best centres for joining as not only high profile cases but a lot of exposure can be gained by working here. If someone is interested in the field of international arbitration then he/she should join this institution but that is not going to be easy as there are a lot of people who will be already in the queue for this.

World Intellectual Property Organisation Arbitration and Mediation Centre

This centre enables the private parties to settle their domestic as well as cross border commercial disputes. This centre specializes in IP and technology disputes. This centre is widely known for solving the disputes of the domain name under WIPO-designed UDRP. One can join this if he is interested in  IP and technology disputes

London Court of International Arbitration

Today we are well versed that London is called the financial capital of Europe. This can be the best place to work for international disputes related to commercial matters. Around 80% of cases that are pending here are not of English nationality so here you can get great exposure. It has access to the most eminent and experienced people from many different countries with the widest range of expertise.

Hong Kong International Arbitration Centre

This is a non-profit organization established under Hong Kong law. It has been ranked first worldwide for location, IT service, and value of money. According to a survey conducted by Queen Mary, University of London and White&case it is the 3rd most preferred arbitration centre in the world. It is self-sufficient and completely free from any type of influence and control.

Indian Arbitration Act applicable in foreign seat

In the landmark case of PASL Wind Solution Private Ltd. v. GE Power Conversion India Private Ltd.,2021 Supreme Court of India held that two indian parties are entitled to elect a foreign seat of arbitration.Apex court further said that the arbitral award passed in such type of cases would be considered as a foreign award enforceable under the provision of Part II of the Arbitration Act,1996 (“Arbitration Act”).

Role of dual-qualified lawyers in cross-border arbitration

As we know with the recent developments and globalization trends in the legal profession they are no longer confined to the jurisdiction in which they are born or have completed their education. Now lawyers can work in various countries throughout the world, become qualified in a second jurisdiction to increase their knowledge and experience, and be able to better meet the expectation of the clients.

Dual qualified lawyers admitted as English solicitors are in a better position in arbitration work. As we know that the clients/parties have a preference for either domestic laws or English laws as the choice of law for their agreement. Due to this, international lawyers with expertise in both their domestic jurisdiction and the English legal system are well placed to offer clients a one-stop-shop for the arbitration work done. Although clients, many at times opt to use London as the seat of arbitration, they may also use the LCIA’s rules.

Hence, dual-qualified lawyers whether based in the UK or in their home jurisdiction, have a unique advantage in offering to clients. They have an option to represent their client in arbitration proceedings both in cases involving their domestic legal system and in cases involving English law both locally and in London, the world’s capital of arbitration and one of the command centres of the global economy.

Indian law firms

There are many law firms in India which handle the cases of both domestic as well as international arbitration. If a person wants to make a career and wants to handle international arbitration disputes then he can join their law firm. Few of them are given below:

Join firm who is having best friend relation with a foreign firm

There are many law firms in India that have best friend relations with foreign firms, which means their employees can handle international cases.

  • TT&A is having best friend relations with Linklaters LLP. They frequently collaborate with Linklaters across all practice areas of TT&A. Its associates are regularly seconded to various Linklaters offices and participate in common training and know-how programmers.
  • BTG is having a best friend relation with International legal services provider, Osborne Clarke. Osborne Clarke is working on the areas particularly facilitating Indian companies setting up operations in Germany.
  • India Law Partners is having the best friend relation with Ashurst LLP which is a leading international law firm headquartered out of London with a  network of 26 offices in 16 countries.
  • Tuli&Co. has a best friend relationship with English international law firm Kennedy. Benefiting from an official relationship with Kennedys, it is active in such specialist areas as the construction,marine,aviation and trade credit spherence.

Other than this there are many law firms in India which are having best friend relations with foreign law firms in India. If you are interested you can check the particular law firm website where most of the firms mentioned their best friend relation if they are having any.

arbitration

QLTS as an opportunity to advance your international arbitration career

It is important for the legal practitioner with a keen interest in becoming an international arbitration lawyer to qualify as English law. The key to unlocking the high-handed opportunity is the Qualified Lawyers Transfer Scheme (QLTS) which is basically a fast-track route for international lawyers to qualify for the English solicitors. QLTS is controlled by the Solicitors Regulation Authority (SRA) which is an independent regulatory body of the Law Society Of England And Wales.

It is important to note that the majority of lawyers seeking to become dual qualified English solicitors through QLTS do not intend to practice in London; instead, they prefer to stay in their home jurisdiction and utilize the skill which they gained, by qualifying as an English solicitor. Whether a lawyer chose to work in a leading firm in London or remain in their home jurisdiction and develop their arbitration practice and expertise locally, holding the dual qualification in English law will definitely create many opportunities in the legal profession within international arbitration.

Conclusion

International arbitration is seen as a crucial tool for maintaining confidence in cross-border transactions, and international arbitration lawyers have a vital role to play in this. Demand for international arbitration lawyers with deep commercial and industry knowledge is strong within both law firms and in-house positions. If anyone wants to pursue a career in international arbitration then he has to go on the right path because there is a lot of competition in this field. Now people are seeing this field as interesting and the pace at which people are pursuing this is very high. It’s always better if you start your preparation for this as soon as possible.

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.

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Right to a fair and speedy trial : a human right

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Article 31B

This article is written by Anubhuti Singh at Symbiosis Law School, Noida. It covers the various nuances of the right of fair and speedy trial and some suggestions to improvise so that there is no delay.

Introduction

A fair trial is one that is open to the public and is presided over by an impartial judge who treats all parties equally. The right to a fair trial is a fundamental protection of human rights and the rule of law that aims to ensure the administration of justice. A fair trial comprises fair and proper opportunities to show innocence as provided by law. Before the courts and tribunals, everyone is treated equally. Everyone has the right to a fair and public hearing before a competent, independent, and impartial tribunal established by law in the resolution of any criminal charge against him or of his rights and obligations in a legal proceeding. The right to a timely trial is not specifically addressed in the Indian Constitution, but it is incorporated into Article 21 through judicial interpretation. The right to a rapid trial stems from the right to a reasonable, fair, and just trial, which stems from the fundamental right to life and personal liberty.

The need for fair and speedy trial 

The major goal of the Right to a Speedy Trial is to instil justice in society. Human rights are necessary because of human life. It is vital in a civilised society organised with the law and a system to provide a reasonably dignified existence for every citizen. As a result, every right is a human right since it allows a person to live as a human being. The very basic aim for which every governmental apparatus establishes the court system is to provide justice to victims of crimes. In the Maneka Gandhi case (1978), Justice Bhagwati stated, “The expression ‘personal liberty’ in Article 21 is of the broadest amplitude and it covers a variety of rights that go to constitute a man’s personal liberty, some of which have been elevated to the status of distinct fundamental rights and given additional protection under Article 19.” The Supreme Court held in Sheela Barsa v. Union Of India (1986), that if an accused is not tried quickly and his case is pending before the Magistrate or Sessions Court for an unreasonable amount of time, his fundamental right to a speedy trial will be violated unless there is some interim order issued by the superior court or a deliberate delay on the part of the prosecutor. As a result of such a delay, the prosecution could be thrown out. The Indian Constitution places a high expectation on the judicial system to provide a legal mechanism to deal with issues concerning the administration of justice. The Directive Principles of State Policy enshrined in Articles 38(1), 39, and 39-A of the Indian Constitution, as well as India’s international legal commitments, to ensure the prompt delivery of justice. There is no extant law that specifies a timeframe for the conclusion of the trial, and if one is included in a statute, it is just “indicative” rather than “mandatory.” The Supreme Court has stated in several decisions that the right to a quick trial is guaranteed under Article 21 of the Constitution. The establishment of an independent judicial system, as well as the inclusion of fundamental rights and directive principles of state policies, demonstrates our Constitution’s authors’ commitment to making the judicial system an effective organ of state machinery on which people can rely with trust and hope for justice. The right to a swift trial is originally recognised in the Magna Carta, a historic instrument of English law.

Loopholes in the Indian legal system

The first and most serious issue is the delay in case disposition. Due to a large number of pending cases, it takes years for the cases to be resolved, which would ordinarily take a few months. Arrears generate delays, and delays imply that the average man does not have access to justice in its genuine sense. The judge-to-population ratio — Currently, taking into account the country’s population and the number of cases pending, the number of judges available is quite low. The justice system becomes inefficient as a result of this. Judiciary is not viewed favourably by young aspiring lawyers since judges are underpaid, and young lawyers see litigation as a more gratifying and rewarding job. 

The investigation agencies, such as the police, also play a part in the delay of cases. Many times, investigation agencies take their time filing charge sheets in court, causing a delay. The absence of some or all of the accused, as well as the failure to produce undertrial detainees at the time of charging and during the trial, all add to the delay. The police are not making sincere efforts to apprehend and bring the fugitive accused to justice. Warrant execution has become a low priority for the police, who have their motives, which may or may not be real. Delays in witness examination lead to a slew of irrational outcomes, and this ailment is blamed on a variety of factors, including excessive delays in case trials. The lower courts’ infrastructure is extremely unsatisfactory. Though the Supreme Court and High Courts have adequate infrastructure, this is not the case for other courts. Because the courts lack convenient buildings and physical facilities, it takes longer to resolve a case. A good library, necessary furniture, adequate staff, and adequate space is required for qualitative justice, and most of these facilities are not available in lower courts. 

The consequences of delay of a trial 

Allowing continuous adjournments or the movement of judges impedes the processes and results in endless time losses, which causes delays in delivering justice. A defendant is deemed innocent unless the prosecution proves beyond a reasonable doubt that he is guilty of the charges levelled against him. Furthermore, the accused has the right to a speedy trial in a court of law and a violation of that right would encourage abuse of process. Trial proceedings sometimes last years, which may be both time consuming and costly. The amount of legal fees, court expenses, pay for expert views, and so on adds up quickly and might deplete the accused’s resources. A long trial not only adds a financial burden, but it also adds an emotional burden. Throughout the trial, the accused experiences a great deal of stress and worry as a result of his regular attendance in court or police stations, which has a negative impact on his work and business. An ongoing criminal case, more frequently than not, can impair a person’s reputation and position in society to the point where he is forced to quit his employment or is cut off.

Remedies available in case of delay in proceedings

Article 21 of the Constitution, which guarantees the Right to Life and Personal Liberty, includes the right to a prompt trial as a basic right. When a person’s fundamental rights are violated, he or she can file a complaint in the Supreme Court under Article 32 or the High Court under Article 226 of the Constitution. In the case P. Ramachandra Rao v. the State of Karnataka (2002), the Court established some guidelines and declared that Criminal Courts must use the authorities given by Sections 309, 311, and 258 of the Code of Criminal Procedure to carry out the right to a speedy trial. The High Court’s jurisdiction under Section 482 of the Criminal Procedure Code and Articles 226 and 227 of the Constitution might be used to seek appropriate remedy and directives. We can see that the right to a quick trial has been emphasised from time to time as a fundamental right under Article 21 to reconcile justice and fairness with many other compelling and essential interests. The Court may create the terms of a possible settlement and submit the matter to arbitration, conciliation, mediation, or judicial settlement if it appears to the court that there are aspects that may be acceptable to the parties. The notion of an online ADR (Alternative Dispute Resolution) is gaining popularity these days, but the issue is a lack of IT understanding among the general public, as well as a need for legal and ADR understanding, technological concerns, legal sanctity of proceedings, industry support, and so on. However, there are numerous flaws in the government’s policies.

Possible solutions and hope for a brighter future 

The time it takes to resolve a case measures the capacity and efficiency of a judicial system. A case is judged and disposed of fast in an efficient judicial system. Though this is not an easy task, it is important to attain good social fairness. Time schedules should be implemented so that there is effective time management, which leads to successful judicial system management. Judges should be given suitable training and assignments regularly to improve their drafting, listening, and writing skills, as well as the ability to make correct and timely decisions. Furthermore, the ratio of judges to the population should be increased, which will aid in the quick resolution of cases. Arbitration should be used wherever possible, and in small and minor situations, arbitration should be made mandatory. It will save the courts valuable time. Small and trivial cases should be dealt with by Nyaya Panchayats. Nonetheless. 

Lok Adalats were established to expedite the resolution of matters at the lower levels. The adjournment system should be changed in such a way that it is limited, and punishment should be levied on anyone who makes an application for an adjournment on flimsy grounds. Cases must be assigned to judges based on their areas of expertise. This means that criminal cases should be tried by a Judge who has extensive experience and knowledge of criminal law. At all stages of the process, including investigation, inquiry, trial, appeal, revision, and retry, the right to a fast trial is available. In different decisions, the Supreme Court has emphasised that a person can seek relief from the Supreme Court under Article 32 and the High Court under Article 226 to enforce the right to a quick trial. The Court, on the other hand, has often declined to set a deadline for a trial’s completion. The trial has been delayed for a variety of reasons. Even if the right to a speedy trial is a fundamental right, its effective implementation requires empirical research and detailed legislation.

Conclusion 

The judiciary is an essential component of our democracy, and all of its ramifications must be included in the judicial process. Once we accept the idea that the judicial system plays a critical role in ensuring that neither licence nor absolutism becomes dominant in a democratic society, the court’s tough tasks become starkly apparent. A judicial system that is only concerned with evidence and facts should not be concerned with taming the souls of the plaintiff and defendant with time, but rather with providing justice as quickly as possible; this delay/denial of justice leads to an increase in “out of court settlements,” which are cheaper and faster, resulting in a loss of trust in our judicial system. Though there are no particular provisions for a speedy trial, the Supreme Court has concluded that by judicial interpretation, Article 21 of the Constitution guarantees the right to the accused. It is in the best interests of everyone involved if the issue is resolved quickly and justice is served. “Justice delayed is justice denied,” is a legal maxim that states that if legal redress is available for a party that has experienced some harm but is not provided in a timely manner, it is functionally the same as having no redress at all. 

References 

  1. http://www.legalservicesindia.com/article/571/Constitutional-Right-to-Speedy-Trial.html
  2. https://blog.ipleaders.in/consequences-infringement-right-speedy-trial/#Consequences_on_infringement_of_the_right
  3. http://www.nja.nic.in/Concluded_Programmes/2019-20/P-1163_PPTs/1.Right%20to%20Fair%20Trial_Handout.pdf
  4. https://blog.ipleaders.in/right-speedy-trial-inalienable-right-article-21-indian-constitution/
  5. https://www.jstor.org/stable/43927473?seq=1.

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Paralegals and their role in remedying injustice during a pandemic : an analysis

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Ex-post-facto law

This article is written by Shashwat Kaushik, a student of CCS University. This article gives an introduction about paralegals and their role in remedying injustice during the pandemic.

Introduction

Recent years have transformed our lives from numerous points of view and habits. As the Covid-19 pandemic keeps on moving across the world, a considerable lot of us have been understanding working remotely. Paralegals and their colleagues are no special case. The times of strolling over to a legal counsellor’s office for advice are gone, legitimate activities and regulatory help labourers have needed to figure out how to impart and function gainfully from their own homes. 

However the entirety of the articles and reports out there appear to zero in exclusively on the attorney’s experience; and, the paralegal has been driven out of the spotlight. Our article is solely based on the paralegal’s experiences and working conditions.

Need for paralegals

Lawyers and lawful enrollment specialists report the requirement for paralegals to essentially emergency, arrange, and oversee cases, and to know the always changing state and government court e-documenting any hearing necessities. For instance, a few states, such as New Jersey, are facing a rush to grow electronic documenting choices considering the COVID-19 pandemic. Additionally, the sorts of administrations that paralegals can give distantly, for example, legal official administrations, are proceeding to extend. For instance, on May 15, 2020, Massachusetts joined more than 40 expresses that presently permit distant authorization of documents. Legal workplaces and staffing organizations need paralegals to fill occupations distantly or live, full-time, low maintenance, by contract for one day or one task. Even the American Bar Association considers them to be or V-Paralegal as the whiz of the law office. 

Lawyers look to paralegals to be fast on their far-off fingertips to convey innovation arrangements precisely and productively while lawyers centre around the novel and complex legitimate issues emerging from specializing in legal matters during a pandemic.

Paralegal pro bono support

Paralegals and undergraduates are likewise adapting to the situation in the current pandemic to give genuinely necessary local area support. More than 300 law understudies, paralegals, and understudy paralegals are offering to give far-off examination, drafting, and other help to lawyers dealing with free Covid related matters. Likewise, applications for paralegal volunteers to offer Pro Bono Legal Services are showing up in each state and through the ABA Center for Pro Bono. More data can likewise be found in the National Center for State Courts Resource Guide. 

Restricted licensed paralegal 

There is additionally a wave the nation over for the state court frameworks to address the neglected common and criminal necessities of its residents, which could bring about a change on the lookout for restricted authorized paralegals. An examination led in October 2019 by the National Federation of Paralegal Association shows a developing flood of late authorizing of paralegal experts to address the states’ obstructed court frameworks of unrepresented litigants. Paralegals are expected to serve our residents’ legitimate requests during this medical, economic, and social justice pandemic. 

Paralegal education

Instruction of paralegals stays fundamental in the present changing lawful administrations market; assets are accessible to discover paralegal instructive projects across the country. Many of these projects are changing their educational plans to meet the future necessities of their understudies considering COVID-19. Simultaneously, associations like the American Association for Paralegal Education “AAfPE” are effectively uniting paralegal teachers to share thoughts and help each other to convey top-quality viable paralegal education. Additionally, public paralegal affiliations, including the National Association of Legal Assistants, NALS (the association for legal professionals), National Fluid Power Association, the ABA, and some state bar and paralegal affiliations, give extra instructive freedoms by offering free paralegal understudy participation or potentially admittance to proceeding with lawful training workshops.

The Coronavirus pandemic has affected schooling, preparing an entry-level position in many pieces of the world. paralegals from various foundations are unsure about the situation with their temporary jobs. Understudies who are doing or intending to get tried out a worldwide entry-level position have felt restless are stressed over the vulnerability and weakness of their future because of the spread of the infection. 

After the Covid unfurled and we saw a basic impact on temporary jobs. At times, entry-level positions were dropped during the current year. To diminish the on-location presence of the workforce, a few affiliations have supplanted their on-location temporary positions with online entry-level position exercises. Worldwide understudies as of now face a ton of troubles. With different tensions, general living issues may give tangles in his/her learning. 

Issues faced

Routine disturbance and change in the workspace

  • As Coronavirus cases were rising alarmingly overall last March, the entire country faced total lockdown. This total lockdown disturbed the paralegal’s schedules. Most, if not all, of the understudies, as of now face trouble in changing per the new country. 
  • We needed to manage other family responsibilities and issues when we telecommuted. A few understudies believe their homes to be a non-work space also. Therefore, it’s obvious that the vast majority “do not have the space that works with work,” regardless of their home’s plenitude of interruptions. 

Inaccessibility of innovation

  • Access to suitable gadgets, innovation, and various apparatuses is a basic advantage concerning work. With the spread of Covid, the paralegals needed to work from home which strengthened the difficulty on account of the shortfall of appearing in a court hearing and client meetings or ground level legal working.
  • Ascension in issues due to segregation — the distance working and isolation have adequately affected the effectiveness of the associates. The lockdown has lessened vital collaboration with partners, associates, paralegals and subsequently restricted knowledge of some vital facts or information on an investigation.
  • Absence of financial sources — internships help in the regular costs of the understudies and for a few, it takes into account a few reserve funds, money, or cash they can send back home to help their families. These sources are by and by non-existent and there is a weakness when occupations will open again. 
  • Variety in psychological well-being — researchers show that the COVID-19 lockdown differently influences enthusiastic health. As the disconnection proceeds, the isolation fortifies impressions of weakness, which is associated with 29-32 % extended chances of mortality. It has affected their “ability to think imaginatively”. Each individual has their method of adapting to this pandemic. 

Working with the present

Here are a couple of ideas that paralegals can attempt to adapt to in the present circumstance:

  • Study more and build your capacities: This is the ideal opportunity to add to yourself, through an additional program of learning. Individuals worth expansion in hard abilities and additional degrees are together the best way to deal with making extraordinary the departure of a terrible monetary year and setting yourself up for an enormous leap when the condition changes. Get quickly onto web learning through Google classes, Zoom gatherings, etc, and fabricate your capacities. 
  • Plan for an online temporary job: Apply yourself preferably for online entry-level positions, paid or not, which can attract you in an advanced examination, overview, report forming, web-based media work, etc. Such temporary positions are crucial as of now to attract yourself productively, get knowledge from great ways, and authentication to finish off something very similar. 
  • Breaking down choices and reconsidering tentative arrangements: The pandemic has upset different parts of the existence of an alumni understudy. In any case, it has moreover opened new freedoms. The pandemic can be used as an opportunity for learning and improvement. 

Paralegal ethics of work from home 

All parts of the paralegal morals code are significant and should be clung to, anyway two spaces of morals referred to in the two associations’ moral code merit exceptional consideration when a paralegal isn’t fastened to the limits of an office climate. These are the Unauthorized Practice of Law (UPL) and the commitments of client’s privacy. UPL incorporates lawful guidance, addressing a client in an official courtroom, and marking lawful pleadings like a protest, answer, or starter complaints. Numerous states characterize UPL as a wrongdoing. A paralegal can plan authoritative records, talk with customers and witnesses, and direct lawful examination all under the management of a lawyer. The way toward getting that oversight can be testing when the paralegal and the lawyer are not in a similar office. 

A paralegal can move lawful data and standards to the customer, which began with the lawyer, however, the paralegal working distantly should not exchange lawful data to the customer that depends on the paralegal’s free examination in applying legitimate judgment to a bunch of facts that a client may introduce. Strategies should be set up to guarantee satisfactory correspondence between the directing lawyer and the paralegal to stay away from UPL, in a work from home climate. 

Secrecy is another paralegal moral commitment that paralegals should keep up. A legal counsellor or paralegal should not uncover data identifying with the portrayal of a client. The standard on classification is more extensive than the lawyer-client advantage and applies even to non-litigation and non-court procedures. The standard covers any data identifying with the portrayal, even open data of the client, which needs to be kept secret. A special case would be if the client approves the exposure. The work product rule is particularly significant for paralegals working in a civil case. In a civil suit, the revelation rules take into consideration wide divulgence of data from the two sides as long as the solicitation for the data applies to the situation or could sensibly prompt discoverable information. By and large, materials prepared in preliminary like lawful examination, mental impressions, strategy, conclusion, and sentiments addressing the worth of a case are shielded from divulgence. This is known as the work item rule and the paralegal should not make any divulgences that are the consequence of the work product. 

Fundamental tips for work from home 

When working at home the paralegal ought to have a private workspace where reports and customer documents are secure. When on the telephone, the paralegal should guarantee that the discussion isn’t caught by different individuals from the family. Secure that PC consistently. Oppose the compulsion to talk about with anyone data learned at work. On the off chance that out in the open, know about your discussions in lifts, corridors, and bathrooms. 

Presumably, the pattern of working at home will proceed past the pandemic. Observing the guidelines of not taking part in UPL and getting the classification of the client will work well for the paralegal, customer, and administering lawyer in this new workplace.

Conclusion

A huge-angle this pandemic brought is the insights and learnings obtained by the understudies. These new learnings brought by the pressing factors the understudies are going through resemble how a samurai edge is fashioned. Together, we have seen the highs and lows looked at by humanity. We’re working out how to adjust to and be more grounded notwithstanding unanticipated changes in our everyday lives. Along these lines, when the change happens, we will make a more vigorous, versatile, and reasonable future. The work of paralegals has increased due to the pandemic, and they need to take care whether they have obligated to all the guidelines or not. They need to be very cautious in making their statements and facts and should be thorough with all the facts to judge their client’s facts legally. Paralegals are an important part of our legal framework which may at times give assistance to the advocates and may gain personal legal experience also.

References


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Apex Court’s view on traffic management rules in light of VK Mittal v. Union of India

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This article is written by Srishti Sinha, a student of the Institute of Law, Nirma University, Ahmedabad. This article deals with the traffic management rules in India concerning the Supreme Court’s view on the case of VK Mittal v Union of India.

Introduction

In terms of traffic management, our efforts are mostly focused on guaranteeing the safety of automobile drivers, while pedestrians, residents, and cyclists, who are far more vulnerable to road accidents and sufferings, are mostly ignored. Traffic congestion, pollution, longer travel times, and higher road accidents have all come from the rapid rise of motor traffic in emerging countries. Indian metropolitan cities have witnessed tremendous urbanization, unparalleled increase in industry, commerce, and employment in recent decades, resulting in the addition of millions of automobiles. The Indian metros of New Delhi, Mumbai, Kolkata, Chennai, Bangalore, and Hyderabad now have over 25 million automobiles. However, there has been no corresponding increase in road infrastructure. As a result, there are too many automobiles on the road, consuming a limited amount of space but generating an excessive amount of pollution. 

Why traffic management rules are necessary?

The organization, arrangement, steering, and control of stationary and moving traffic within a construction zone, including automobiles, bikes, and pedestrians, is known as traffic management. Proper traffic management aims to ensure the safe, orderly, and efficient flow of people and commodities while preserving the local environment’s quality. 

The traffic management rules are necessary because they can help in the following:

  1. Before entering a construction zone, a solid traffic management strategy would effectively notify automobiles and pedestrians. Locals who travel through the region daily are not accustomed to having their route disturbed, therefore informing both local and non-local cars and pedestrians is critical to ensure that everyone pays more attention to their surroundings.
  2. Traffic management strategies are expected to have a key influence in decreasing not just noise emissions but also noise exposure levels at specific sites where sensitive receivers exist, such as residential areas, especially in cities. 
  3. The most significant management rule is reduction in traffic volumes (especially heavy vehicle volume reductions) and traffic speed reductions.
  4. A good traffic control strategy will assist drivers in avoiding getting delayed in traffic for hours at a time. While all road construction projects affect regular traffic flow to some extent, the strategy will assist in keeping things running smoothly and avoid significant delays. 
  5. When motorists obey traffic signals or traffic management signals appropriately, they can help to organize traffic flow. These devices provide maximum road control, particularly at diverse road junctions. These devices provide messages to the driver, such as when to stop/go, road closures, or speed changes.

There can be other reasons too but these are some of the major reasons why we need traffic management rules and strategies. 

Role of National Green Tribunal (NGT) in providing a safe environment

The fast rise of economic activity in the post-industrial age resulted in a widespread disregard for environmental issues. With enormous changes in climatic conditions and resource depletion, the globe is now facing the task of safeguarding the environment to survive. 

The establishment of a National Green Tribunal is a step towards safeguarding our environmental concerns and supporting long-term growth. The NGT also addresses the cases related to pollution caused by automobiles, illegal parking issues, solid waste management, regulating traffic so that it does not create noise pollution, and the use of diesel generators. 

Origin of National Green Tribunal

In June 1992, during the Rio de Janeiro summit of the United Nations Conference on Environment and Development, India pledged to provide judicial and administrative remedies for the victims of the pollutants and other environmental damage. This prepared the way for the National Green Tribunal Act, 2010, which was enacted to establish a special tribunal to hear matters involving environmental concerns promptly. The legislative Act of the Parliament defines the National Green Tribunal Act, 2010 as An Act to establish a National Green Tribunal for the effective and expeditious resolution of cases relating to environmental protection and conservation of forests and other natural resources, including the enforcement of any legal right relating to the environment and providing relief and compensation for damages to persons and property, as well as matters related to or incidental thereto. It also states that the tribunal’s specific environmental jurisdiction will expedite environmental justice while also reducing the burden of litigation in the higher courts. The tribunal will not be constrained by the method outlined in the Code of Civil Procedure, 1908, but will instead be governed by natural justice principles. Further, the tribunal is inspired by Article 21 of the Indian Constitution, which guarantees inhabitants of India the right to a healthy environment. 

Scope and objective of National Green Tribunal 

The National Green Tribunal was established in response to the necessity to properly handle and redirect a rising number of outstanding cases away from the other judicial institutions. As part of Article 21 of the Constitution, this tribunal was also established to protect citizens’ basic right to a safe environment. 

The National Green Tribunal is a specialist organization with the appropriate ability to address multidisciplinary environmental disputes. The following are the tribunal’s primary goals:

  1. To resolve matters involving environmental protection in a timely and effective manner.
  2. To make it easier to enforce any environmental legal rights.
  3. To give relief and recompense for losses to individuals and property, as well as things related to or incidental to such damages.
  4. To make environmental justice more accessible to the general public. 

Case of V K Mittal v. Union of India

In the recent case of V K Mittal v. Union of India (2021), to cope with the Ghaziabad Kaushambi traffic issue, the government formed a nine-member committee and asked them to prepare a comprehensive traffic management strategy. In this case, the petitioner, VK Mittal, the President of the Kaushambi Apartments Resident Welfare Association and Ashapushp Vihar Awas Vikas Samiti Ltd approached the Supreme Court, requesting that the authorities be directed to address several issues, including haphazard traffic management, pollution, and unrestricted dumping of municipal solid waste. The petition raised several problems, ranging from poor traffic management to pollution and unregulated municipal solid waste disposal. As a result, inhabitants in the region have been reported to be suffering from acute respiratory problems. Contaminated groundwater is also a source of worry. In essence, the criticisms raised centre on inadequate planning and implementation of development plans and regulatory obligations. The petition was submitted to avoid an unmanageably huge canvass being opened before the court all at once, and it was agreed to take up the subject of traffic management first. The petitioner also stated that due to these issues, the fundamental rights of citizens are violated. 

The learned counsel, on behalf of the petitioner, submits that the residents are suffering this issue because of the following:

  1. Haphazard parking of three-wheelers and other vehicles on public roads, including service roads;
  2. The absence of adequate spaces for the parking of public service vehicles;
  3. The pollution which is generated by buses plied by the Uttar Pradesh State Road Transport Corporation;
  4. Use of pressure horns by vehicles; and
  5. The total absence of implementation law enforcement machinery causes serious hardship to pedestrians and residents of the area. 

The Court also noted that the National Green Tribunal was convened under the National Green Tribunal Act 2010 to address pollution caused by automotive emissions, unlawful parking, encroachment on roads and sidewalks, and the use of diesel generators but the situation has not been improved yet. To deal with the problem, the Court directed that a thorough traffic control strategy must be developed. In addition to the NGT’s directives, this will be implemented. The Court further stated that the problem is not limited to Ghaziabad and Kaushambi, but rather affects the whole NCR. The Court emphasized from the start that a thorough traffic management strategy must be developed and delivered to the court. A nine-member group was constituted for this aim.

In the circumstances, the court also ordered the nine-member committee to present a comprehensive traffic management plan within three weeks. 

Suggestions to the nine-member committee with regard to the framing of the traffic management rules

Following are the suggestions to the committee which can help in framing traffic management rules and can reduce traffic-related issues:

Prioritize public transport 

It is well known that public transportation takes up less road space and emits less pollution per passenger kilometre than private automobiles. As a result, public transportation is a more environmentally friendly mode of transportation. As a result, state governments should encourage improvements in public transportation as well as policies that make it more appealing to use than in the past.

Parking management 

In all metropolitan locations, the land is precious. Large areas of similar land are used for parking. This information should be taken into account while developing the guidelines for parking spot distribution. The imposition of a high parking fee that accurately reflects the value of the property occupied should be utilized to encourage people to use public transportation. Another good step would be to provide bicycle users with park and ride facilities with easy interchange. Simultaneously, a graduated scale of parking fees should be implemented to recoup the economic cost of the land utilized for such parking. Also, for urban communities, police and municipal agencies should develop a comprehensive parking strategy that includes short- and long-term plans for achieving ideal parking standards.

Technologies for pollution control

With so many advances in technologies, the issue of pollution can be solved. Various innovative machines are introduced in today’s time which should be used for reducing pollution levels. 

Encourage non-motorized vehicles

Cycles are categorized as the best non-motorized vehicles because they are environmentally friendly and are affordable. Cycles do not produce noise pollution and also there is no use of excessive horns in cycles. 

Intelligent transport systems

Intelligent Transportation Systems (ITS) is a catch-all term encompassing a variety of technology-based methods to improve the quality, safety, and efficiency of transportation networks. To provide integrated travel information and traffic management systems from one or more businesses, the systems frequently incorporate communication, processing, and data storage components. The systems gather data on the present condition of the transportation network, process it, and then either run the network directly or let users determine how to best use it.

Many roads have traffic volumes that exceed the road’s capacity. As a result, there will be delays in travel time, traffic, and accidents. This may be eliminated by enacting regulatory measures and employing traffic control strategies to make the best use of the roadways possible. These strategies can include restrictions in speed, traffic signals, additional lanes, exclusive bus lanes, etc. 

Traffic laws and regulations must be presented to road users through various media such as the press, posters, brochures, presentations in theatres, banners, and so on. If at all feasible, road users should be informed about traffic rules and regulations by holding awareness camps where road user safety may be taught. Habitual and repeat offenders should be required to attend training sessions at the Traffic Police’s traffic training institutions.

The above-mentioned are some of the beneficial suggestions which will surely help in reducing pollution (especially air and noise pollution) and proper management of vehicles during parking. 

Conclusion 

Rules are necessary for every aspect of our life and hence for traffic management as well, otherwise, it will be very difficult to walk on roads. The case of V K Mittal v Union of India is one of the important cases which grabs the attention of the government and judiciary towards the problems faced by the citizens due to lack of proper traffic management strategies. This case is related to problems due to traffic on roads and also highlights the impact of traffic on the nearby residents. 

References

  1. https://morth.nic.in/national-road-safety-policy-1 
  2. https://www.latestlaws.com/latest-news/sc-constitutes-committee-to-address-ghaziabad-kaushambi-traffic-issue-read-order/.

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How to draft a software development agreement

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Image Source: https://rb.gy/lspnpy

This article is written by Arushi Agarwal, pursuing Diploma in Advanced Contract Drafting, Negotiation, and Dispute Resolution from LawSikho. The article has been edited by Ruchika Mohapatra (Associate, LawSikho).

Introduction

A software development agreement refers to an agreement between two parties where one is a developer and the other one is its client. By way of this Agreement, the developer contracts to develop the software application required by the client. The client may be individuals running a tech setup or companies owning complex software. The software developer works as per the concepts and requirements of its clients that are usually the core of the agreement. The time limit for the development of the given software is the essence of most software agreements. A software development agreement is also known as the ‘Master Services Agreement’. 

Software companies are now outsourcing their business by hiring developers for private as well as commercial purposes. This makes it apt to demarcate the extent of the rights and obligations of software developers and their clients to avoid the possibility of any kind of disputes. As stated above, each company prefers software development as per the nature of its idea, the complexity of its project, the team it plans to employ, etc. while a few key questions are universally valid, others may differ depending on the development process. All aspects must be carefully measured before agreeing to the terms of the agreement. 

Once the software developer develops and transfers the customized software to its client, the client would incorporate the same in its product, services or processes, and this customization is elucidated as an appendix, exhibit, or rider clause in the agreement. The client would also test the workability to see if it fits the business requirements, and all these steps find a place in the ‘scope of work’ or ‘statement of work’ of a software development agreement.

The commercial intent of parties entering into a software development agreement is like that of a work for hire agreement. The written agreement serves as a roadmap for the parties at each point and if any dispute arises, it suggests ways to overcome it.

Types of software development agreements

There are typically three types of agreements with software developers. These three can also be combined in a master service agreement. The following are the characteristic of each one of them below:

Agile contract

Here with the time/material principle, one pays for the developed user stories, there are certain progress indicators that are always agreed upon. Since many IT companies use the agile methodology for product development for their clients, its principals and ideas should be defined in the agreement, various words kike sprints, backlogs, user stories, etc. are used here. In waterfall agreements, the result of the development is stated in the very beginning only. This means both parties are aware of the exact results soon after signing the agreement and the work statement. However, this is not the case in agile agreements. 

  • Generality- At the start of the development process itself, the product owner and the customer have a backlog- the general ideas and outline of how the result would look like. After that, the project is divided into sprints with user stories.
  • Payment- The payment is evaluated depending upon the difficulty and time for the given user story and the sums of all user stories from the price of the specified sprint. One can think of sprints as some stages with the price of the work, that is formed based on the user stories within the specified period. It is always better to include a provision that allows changing the price spent per hour. One may also sign an additional agreement apart from the general agreement or just include an annexe with prices stipulated to avoid making permanent changes.
  • Warranty- In an agile agreement, the developer should warrant that the software developed does not suffer from the claim of any third party. The parties further state that the given agreement is an agreement of a work made for hire and therefore, customers would receive all copyrights.

In these relationships, a developer cannot guarantee the exact result from the very start, but during the working process, each user story gets accepted. Hence, parties tend to understand the progress as the process moves forward. More and more software development agreements are now made on an agile basis, so it is extremely important to state fair terms out there.

Waterfall (fixed price) contract

It is an agreement where the agreed work statement is stated as an integral part of the agreement and then one expects the result to meet all the stated requirements. An agreement can be signed based on this model when one has a strict and complex vision of their future software. To understand it better, let us say that a developer received the exact instructions from a waterfall agreement and the deadline to be adhered to. The developer can accordingly create the software as per the technical order received. Parties generally determine the deliverables to be produced in a statement of work. This defines all the aspects of the software development agreement. Let us understand it by going through some of the main features of waterfall agreements as stated below-

  • The subject of the agreement- The basic question of ‘what do we develop’ is answered in this clause. It generally includes design, development, delivery, testing, maintenance, and support of all deliverables set forth in the decision statement of work. The most convenient way to write down the subject matter of the contract is to include the most comprehensive provision possible.
  • Obligations of the parties- In this clause, states what materials are provided by the customer and when. The obligations of the developer are formed in a way that makes the developer liable for the development of the software in straight accordance with the statement of work. 
  • Warrants of the parties- In this clause, both the customer and the developer guarantee that they are entering into the agreement with good faith and are completely eligible to do so. The following provisions may be included by them:
  1. Parties have the necessary corporate power to enter into the agreement and to carry out its obligations hereunder.
  2. The execution, delivery and performance of the agreement have been duly authorized by all necessary corporate action and 
  3. No consent of any person or entity that is not a party to the agreement is required or necessary for it to carry out its obligations under this agreement.
  • Liability and confidentiality- Different provisions on liability are included by the parties such as breach of intellectual property rights, breach of obligations with respect to termination of the agreement, breach of obligations with respect to the termination of the agreement, breach of contractor’s indemnification obligations, etc. The most important part is related to the issue of confidentiality. The purpose behind inserting a confidentiality clause is to restrict outsiders from knowing about the relationship under the agreement and its results and not to forget the penalty for the party that fails in performing its obligations. 

How to draft a software development proposal?

Each requirement should be clearly described to ensure proper implementation of each process and a smooth transition from one phase to another. A business requirement document is used throughout the entire circle of the project to ensure that the product meets the detailed specifications and that the project gains value and achieves the desired result. A software development agreement has the following contents:

  1. Project scope- It comprises the purpose of the proposal and the ways to achieve it. This is covered under heads like need assessment and scope of the services.
  2. Project management – This section throws light on the structure and working of the project and action items against each phase of the proposed project. This is covered under heads like project structure and project phases. 
  3. Project deliverables and milestones- It comprises heads like deliverables and project teams, schedule of deliverables (planning, design development, and integration, content and testing, final handover).
  4. Financials- It tells us how to determine the project cost. This consists of design and development cost, invoicing schedule, payment terms, financial assumptions. 
  5. Conclusion- Under conclusion, the intention of the party is summed up stating further that any other query shall be addressed as when raised.
  6. About the software house- This section gives an overview of what the company is, where it has its subsidiaries, its portfolio of services, the quality of the people and what makes it unique. 
  7. Attachments- This section contains all the necessary details provided in the form of attachments.

Essential features of a software development agreement

This segment highlights the essential clauses in a software development agreement. It also talks about some common hurdles that arise in the development process, while also providing guidance on how to identify and resolve such issues.

  1. Definition clause- While it is extremely crucial to include explicit and comprehensive details about the required deliverables in the final agreement, it is even more important to form a lucid and mutual understanding of the expectations of both parties. Therefore, the parties shall define the key deliverables and services in the agreement.
  2. Scope of work/scope of engagement- The agreement shall cover what the party is agreeing to develop for its client. All obligations are limited to the extent of the scope of work decided by the parties. The agreement should also specifically exclude the work that a party will not be doing without the extra compensation.
  3. Development specifications and technical requirements- It is crucial to have clear and explicit terms surrounding development specifications and technical requirements for scoping the agreement and mitigating the risk of potential disputes.
  4. Work changes orders- In all probability, the work involved might change due to an upgrade in technology or change in circumstances during the project. Due to this, the agreement shall have a modification of the work clause that includes a mechanism for change agreed by the parties. It shall also mention the additional work, payment for the work and any amendments to the project’s milestones and timelines because of the changes. 
  5. Timeline- This clause outlines the duration in which a software developing team would complete the required body of work. The parties may decide to break the timeline down into discrete milestones by listing individuals’ deliverables and their respective deadlines. This makes it a two-way street as feedback can be given from the other party on a regular basis it prevents client disappointment and negative consequences such as breach of the agreement.
  6. Testing and acceptance of the deliverables- The agreement should mention the required testing of the product. Under some methodologies of software development, testing is regarded as a separate phase altogether. If this is the case, then it must be highlighted in the agreement. It shall also outline if the quality assessment process of one party is any different from the other party. Lastly, the agreement shall state the repercussion if any party fails to test as required by the agreement.
  7. Payment/compensation- Stating the payment amount and payment intervals would ensure that the other party does not keep waiting to receive the payment. It is generally made in two  forms:
  1. Fixed price- It is the price given to the whole project. It is beneficial to the parties as they know upfront how much the project will cost. Clients have the leverage here to insist on how the project looks in the end and how long it takes to develop. 
  2. Time and materials- Here the client pays for time spent and the cost of materials. This model is beneficial in the sense that one gets paid even if their project takes more time than anticipated.
  1. Third-party software- The software developing company shall not use any third-party IP unless it obtains the written consent of the client. The software developer warrants that the work is free of any IP violation. However, if the use of third-party IP results in any IP infringement, the software developer is liable to indemnify its client of any loss occurring thereby.
  2. Open-source usage- Many software developing companies refer to open-source libraries while developing software. The clients of such companies may wish to know the full details of materials accessed from such libraries and whether the requirements for access were duly completed or not. This is important for audits or due-diligence purposes. 
  3. Confidentiality- As per the confidentiality clause, except as otherwise required by the applicable law, neither party shall disclose to any unrelated third party any information with respect to the terms and provisions of the agreement during the term of the agreement. Apart from what is required by law, the parties in their agreement should mutually agree on what else would comprise ‘confidential information’. This would ensure there is the clarity with respect to such information and parties would be cautious while carrying out their contractual obligations.
  4. Intellectual property ownership- Parties shall decide which of them would own the IP arising from the project. When any of the parties intend to own the business IP, it becomes crucial to note the default position under the Copyright Act, 1957. If any change is to affect this default position, then a clear assignment clause shall be inserted by the parties. The receiver shall also ensure that the software developer agrees to take the necessary steps to formalise the relevant assignment of IP to the business.
  5. License- If the intention of the business is to have ownership rights over the IP after the services of the developer are completed, then it shall be considered whether the developer would then require a license to use the IP once the assignment of ownership rights is done. If it is a phased project, then the developer may require different licenses at different phases of the development process.
  6. Non-performance- This clause ensures that the development progresses satisfactorily and as per the required timeframes. Liquidated damages shall be considered in case of failure in meeting performance requirements by the party. This must be a genuine pre-estimate of damages enforceable in the court.
  7. General representations and warranties- It is necessary to document the representations and warranties from the parties relating to performance, run times and response times. These go on to the extent that if the given software includes plug-ins or back-end software, it would be important to list down the developers’ obligations regarding the operation of these and any suitable exclusions from representations and warranties, for example, non-performance due to third-party IT issues.
  8. Maintenance services- These services are like support services. The focus of the maintenance services clause is to keep everything up to date. The agreement should specify which work is general work and which kind of work would be categorized as additional work. Minor updates may not be chargeable, but significant updates are mostly chargeable. 
  9. Termination- Just like any other agreement, the parties can terminate a software development agreement. This clause outlines the circumstances under which any of the parties reserve the right to end the contract. The questions to cover are:
  • How can the termination happen?
  • What happens to money owed?
  • What is the required amount of written notice?
  • Does your client need to stop using your code?
  • Do your developers need to hand over the code?
  • What provisions of the software development agreement should survive the termination?

None of the parties wishes to end an agreement early, but outlining the procedures, at least the ways in which termination can happen, becomes predictable.

  1. Jurisdiction, governing law, and dispute resolution- Each agreement is governed by local law or international law if the parties belong to different jurisdictions. This clause states that the agreement shall be construed and enforced and the legality and validity of each term and condition shall be determined in accordance with the internal, local laws of any place, applicable to agreements fully executed and to be performed therein. The procedural law of such jurisdiction shall apply to the extent necessary to affect the arbitration or adjudication of disputes concerning the agreement. 

Conclusion

A software development agreement refers to an agreement between two parties where one is a developer and the other one is its client. By way of this agreement, the developer contracts to develop the software application required by the client. Generally, those who write business requirement documents have a thorough understanding of the business processes and the key objectives of the project to ensure proper implementation of different requirements and different elements within the requirement. The most important element of a business requirement document is the scope of the project which includes any restrictions and constraints that need to be considered during the development process. Most businesses require customized software as per their unique needs to ensure that operations can be automated. To hire customized software development services, one needs to be careful of the following mistakes: factoring price over value, having uncertain goals and objectives, loopholes in the agreement, not securing the source code as intellectual property, failure to seek a non-disclosure agreement, overlooking incommunicado and cultural barriers and do-it-yourself software agreements. 

References

  1. https://legaldesk.com/software-development-contract
  2. https://www.contractstandards.com/public/contracts/software-development-agreement
  3. https://relevant.software/blog/custom-software-development-contract-key-things-to-include/

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Vertical restraints : an insight

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Amalgamation of companies
Image source: https://rb.gy/raym4f

This article has been written by Sakshi Deo pursuing the Diploma in M&A, Institutional Finance and Investment Laws (PE and VC transactions) from LawSikho

Introduction

Restraints are divided into two categories in competition law: horizontal and vertical. Horizontal agreements are made between companies that compete on the same level in the market. Vertical agreements are those involving companies that have a supply connection. Vertical agreements exist between companies that operate at distinct stages of the manufacturing process. Before a product reaches a client, it goes through a production chain that includes obtaining raw materials, processing,  making the final product, distributing and selling the product, and so on. As a result, vertical agreements are an important part of business and, in some ways, a replacement for vertical integration. Vertical restrictions have a mixed influence on the competitive process and must be assessed based on their appropriateness.

Vertical restraints are agreements between companies or organizations at various stages of the manufacturing and distribution process that restrict competition. Price restraints, such as price maintenance and price discrimination, and non-price restraints, such as refusals to deal, exclusive dealing, tie arrangements, market-access arrangements, and consignment selling, are examples of vertical restraints. A vertical constraint occurs when a soft drink manufacturer enters into an exclusive agreement with a university, barring the university from selling any competing soft drink on campus.

Vertical constraints are conditions that a company imposes on its distributors or retail dealers in general. Resale price maintenance, in which a retailer is prohibited from selling below the manufacturer’s suggested retail price; territorial allocation, in which a distributor is required to limit its sales efforts to a specific geographic area; and exclusive dealing, in which a distributor or retailer is prohibited from carrying the products of a competing manufacturer are some of the prime examples of vertical restraints. Vertical restraints can be divided into a variety of categories. In the first, referred to as “exclusionary vertical constraints,” competitors may be denied access to desired wholesale or retail venues. Competing manufacturers are denied access if a particular group of distributors or retailers chooses to deal exclusively with a single manufacturer, forcing them to seek alternate distribution or retail channels or build their own. At the distributor or retail level, the second type of vertical constraint has an immediate impact on intraband rivalry. The manufacturer controls competition among its own wholesale or retail dealers in one way or another, for example, by requiring them to operate within their allotted (sometimes exclusively assigned) territory or by imposing a minimum retail price. The initial impact, as stated, is limited to intrabrand competition. Vertical restrictions benefit customers rather than harm them by stimulating the formation and development of efficient product distribution streams from manufacturer or distributor to consumer; streams that can lower consumer prices but would be jeopardized if leached onto by competitors.

How does it work?

Vertical restraints have an impact on market competitiveness only when the firm applying the restraint already has market dominance. Because competition from other businesses’ products (inter-brand competition) is limited in such instances, it is preferable to have enough competition among distributors and retailers of the firm’s products. If, on the other hand, the firm implementing the vertical restraint has considerable power in the market or if there is sufficient inter-brand rivalry, the restriction on the rivalry between distributors and retailers of the same brand (intra brand competition) may have little effect on the market.

Governing authorities

The CCI, short for the Competition Commission of India, governs the laws that regulate vertical agreements and dominant firm behavior. The Director-General, the CCI’s investigative arm, assists the CCI (DG). Moreover, sector-specific regulatory authorities (such as the Telecom Regulatory Authority of India (TRAI) established under the Telecom Regulatory Authority of India Act, 1997, and the Petroleum and Natural Gas Regulatory Board established under the Petroleum and Natural Gas Regulatory Board Act, 2006 are empowered to encourage and sustain competition in their respective sectors, including anticompetitive conduct by businesses operating in those sectors.

Types of vertical agreements

Vertical agreements are governed under the Competition Act of 2002 (hereafter referred to as the Act). The Act lists the following types of vertical barriers that are prohibited only if the CCI can prove that they cause, or are likely to produce, a substantial adverse effect on competition (AAEC) in India, despite being an exhaustive list:

  • Tie-in arrangements: Exclusive supply agreements that prevent the customer from acquiring or dealing with the seller’s or anybody else’s goods in any way;
  • An exclusive distribution contract that limits,  or withholds the supply of goods, or allocates regions or markets for scrapping or sale of goods.
  • Refusal to deal, which restricts or is likely to restrict the person or persons from or to whom products are purchased and sold; and
  • Resale price maintenance (RPM): any agreement in which products are sold on the premise that the resale price will be the seller’s price unless it is expressly stated that prices lower than those prices will be charged.

While several sector-specific regulators in India implement laws aimed at promoting competition in their respective industries, the CCI’s powers are in addition to, not in place of, other statutory regulators.

Legality

Under Section 3 of the Competition Act 2002, any agreement that has or is likely to have an appreciable adverse effect on competition (“AAEC”) in India is considered anti-competitive. Any agreement that “causes or is likely to cause an appreciable adverse effect on competition inside India” in the manufacture, supply, distribution, storage, or acquisition or control of products or services is prohibited under Section 3 (1) of the Act.

Section 19 (3) of the Act specifies certain factors for determining AAEC under Section 3:

  1. Creation of barriers to new entrants in the market;
  2. Driving existing competitors out of the market;
  3. Foreclosure of competition by hindering entry into the market;
  4. Accrual of benefits to consumers;
  5. Improvements in production or distribution of goods or provision of services;
  6. Promotion of technical, scientific and economic development by means of production or distribution of goods or provision of services.

Although the Act does not particularly identify either horizontal or vertical agreements, the text of Sections 3 (3) and 3 (4) makes it obvious that the former is directed at horizontal agreements and the latter is aimed at vertical agreements. 

Any agreement in violation of Section 3(4) of the Act between enterprises or persons at different stages or levels of the production chain in different markets in respect of production, supply, distribution, storage, sale or price of, or trade-in goods or provision of services, including (a) tie-in arrangement; (b) exclusive supply agreement; (c) refusal to deal; (d) resale price maintenance, shall not be considered a valid agreement. As can be shown, these agreements are not anti-competitive. Only if these agreements cause or are likely to cause an AAEC in India would they violate Section 3(1) of the Act. Vertical agreements relating to operations referred to in Section 3(4) of the Act, on the other hand, must be assessed under the Act’s rule of reason analysis. In other words, vertical agreements would be seen as anti-competitive (agreements that prevent competition) only if their execution results in or is likely to result in an appreciable adverse effect on competition (AAEC) in India and such agreements would be invalid as any agreement that results in an AAEC is prohibited. Thus vertical agreements are valid agreements as long as they do not result in an AAEC. The Act’s operative provision dealing with abuse of dominating position is Section 4 of the Act. Section 4 makes it illegal for any company to take advantage of its dominant position. The term “dominant position” is defined in the Act as “a position of strength enjoyed by an enterprise in the relevant market in India that allows it to operate independently of competitive forces prevailing in the relevant market; or affect its competitors, consumers, or the relevant market in its favor.”

In the case of Akhil R Bhansali v Skoda Auto India Pvt Ltd, it was observed that with the greater goal of encouraging and maintaining market competition, the Competition Act tries to restrict vertical restraints that create or are likely to cause an AAEC in India. In order to ascertain if a vertical agreement would result in an AAEC, the CCI is also likely to consider the impact on consumers’ interests.

In the case of Shri Shamsher Kataria VS. Honda Siel Cars India Ltd., the CCI observed that an agreement in its entirety should not completely eradicate competition and the benefits gained out of the short-termed efficiency of the agreement should not be overshadowed by the long term losses as a result of the eradication of competition.

Conclusion

In conclusion, the question of whether vertical constraints are anti-competitive is still being contested. The limits can be justifiable in many cases. When a distributor is forced to invest in promotion, he/she will almost certainly seek protection from “free-riders” who could profit from their expenses by selling the same product for less. The exclusivity may be granted over a specified territory or consumer group, or a resale price may be imposed. Economic theories support the view that if inter-brand competition exists, then restrictions on intra brand competition through vertical restraints should not be capable of restricting competition, and the efficiency-enhancing effects of vertical agreements would outweigh any possible risks. As a result, vertical agreements are an important aspect of any business and, in some ways, a surrogate for vertical integration. Vertical constraints have a conflicting impact on the competitive process, and their appropriateness must be evaluated. Vertical agreements, on the other hand, have some negative consequences, including the eviction of other suppliers or buyers by raising entry barriers, the reduction of inter-brand competition, the reduction of intra-brand competition among distributors of the same brand, and the creation of market integration barriers. Vertical agreements, depending on the conditions, can be advantageous or destructive to competition.

References


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Are publicly made promises by political leaders legally enforceable

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Ex-post-facto law

This article is written by Shikha Mishra, of Banasthali University, Jaipur. This article seeks to elucidate whether promises by political leaders made publicly are legally enforceable.

Introduction 

No promises made by political parties are legally accountable. Basically in India, democracy operates in two ways, one leads to a future where every political party is diversifying on similar promises and the election turns into an investment decision for the rich where the other is the purchasing power of its own and the other has prevented political parties from formulating false assurances given by civil society, regulatory functionaries and additional political parties themselves. If democracy is treated as a social contract between elected parties and common citizens the declaration must be treated as a valid contract that establishes the stated development agenda of the country. To maintain the health of India’s democracy, it must be ensured that the enforceability of the manifesto is an important reform to be pursued. 

Promises made by political parties are not legally enforceable

An electoral manifesto is described as a declaration that is announced by political parties, individuals or groups of people showing their intention, purpose and point of view in certain matters. It is considered as a reference document for the public at large and as to what a political party is. Future political parties announce their election manifesto, where voters can find out which party they should vote for, after comparing the ideologies, strategies and agendas of political parties, and which election manifesto best matches their expectations and aspirations. Political parties in their election manifesto pledged to run schemes for Dalits with some privileges on a daily, monthly or yearly basis to induce voters.

However, the schemes mentioned in the election manifesto did not readily inform the voters about it. Neither is described how the Treasury will fund the plan, nor how individuals will be able to receive funds under a specific scheme. With the only intention of motivating voters to vote for a specific party, some political parties furnish gifts like pressure cookers, stoves etc.

In the current political landscape, most manifestos contain aggressive campaign elements that are inserted to stimulate a specific sentiment or tendency. In India, no one scrutinizes the manifesto. Whereas proclamations are all about influencing the voters or helping the parties to manipulate the voters. Nowadays it has turned into an analytical and idealistic practice. Preferably the election manifesto will be considered as the most important part of the election process where political parties make promises to the citizens that they will deal with their issues such as money for healthcare or matters related to it will determine the standard of living of the society, economy and law. But the autocratic politician was seen above the law. The candidate who requests your vote explicitly takes one action and then does something completely different, which is harmful to the citizens.

For instance, this can be seen in several elections where the political parties manipulate the citizens through raising the issues of religion and casteism and tend to increase their vote banks.

Political parties are elected based on the effective manifesto and this manifesto gives hope to the people that the promises made by the political parties will be fulfilled. However, we know that this is done to merely attract voters and garner a strong vote base. People choose their leaders based on the manifesto. Unfortunately, it seems that the political parties forget or do not want to give attention to the election promises and do not want to work for the welfare of the people.

For example, many parties promised to introduce the Women’s Reservation Bill from 2004 and reiterated the same in 2009 and 2014 even though the parties did not make efficient efforts to support its passage in power or opposition. However, it’s 2021 and till now this bill has not been introduced.

The Supreme Court delivered its judgment on a PIL filed by Advocate Mithilesh Kumar Pandey in 2015 and a bench of Justice HL Dattu and Justice Amitava Roy stated that there is no such provision in the law that applies against political parties when they do not fulfil their promises. Also, the Chief Justice said that the Court has been adjusted to take better decisions on behalf of the people and further the Bench noted that the judiciary is not accountable for every problem that arises in the political system.

Further, Advocate Mitilesh Kumar Pandey argued several legal guidelines must be mentioned by the courts to regulate the promises made in the election manifesto and political parties should be accountable for their promises. So that the expectations of the people can be fulfilled, and some work can be done for their welfare. The Supreme Court of India further clarified that it was not for the courts to decide the cases of unfinished suits at the time of elections, as they are not legally bound to do so. Therefore the petitioner’s plea had been rejected on the ground of no merit.

There is one situation mentioned above where we can note that some political parties offered gifts such as gas stoves, pressure cookers, laptops etc. When this matter came before the Supreme Court, it said that it is against the law to offer things to such people for votes. Therefore, it was also contended that offering these gifts was contradictory to the principle laid down in Article 282 of the Constitution of  India.

Because of this, the Supreme Court of India provided direction to the Election Commission of India to draw up the guidelines regarding the election manifesto and this will be considered as a Model Code of Conduct for the elections. The Election Commission of India had prepared a Model Code of conduct for the 2014 general elections and certain guidelines were mentioned that had restricted the parties from developing promises in the manifesto that would have an undue influence on voters. This action was taken to restrain the practice of giving gifts at the time of elections but the Election Commission has not taken strict action against the political parties and they made fake promises to the people and because of the illiteracy and poor conditions of the citizens. They believed in their promises which were made during the election time. But it can be seen that these political parties were not accountable for their promises. After five years when the Lok Sabha election was held in 2019, the Election Commission of India came up with additional guidelines and said that the manifesto should not be released 48 hours before each phase of polling. Unfortunately, these guidelines were not working because the potential voters had already been impressed by the election manifesto. 

The bitter truth is that this election manifesto practice was only laid down in papers, after that the political parties forgot about their election manifesto and were not enforced in the court of the law. Still, the opposition party also did not raise questions regarding the enforcement of election manifesto promises. That’s why we can say that the election manifesto of political parties is only on paper and not in action. Hence it can be seen that the promises made by the political parties in their election manifesto are not fulfilled on time.

The doctrine of legitimate exception

Legitimate exception signifies that an individual can have a rational assumption of behaving in a definite way by executive authorities because of some continuous practice in the history or an explicit promise rendered by the council concerned. According to this principle, a public authority can be held accountable in exchange for a legitimate expectation. Thus, the principle of legitimate expectation deals with the association between an individual and a public authority. Manifestly, this doctrine is not considered a legal right. It is an assumption of profit, assistance or relief that may usually flow from a promise or specified practice. The word established practice refers to a routine, compatible, reliable and specific conduct, procedure or exercise of the decision-making administration.

  • How is the doctrine of legitimate exception important in the present scenario

Legitimate exceptions also play a very important role in the present scenario where people have voted based on promises made by political parties, so people have legitimate expectations that the elected government will fulfil their promises legally. But these are the only expectations of people. The bitter truth is that political parties are not fully accountable for their manifestos as per the law.

As in our present scenario, we can see that political parties make promises to enact or abolish certain laws and also make promises to eradicate poverty and provide job opportunities to the people. The people who are not economically strong and do not provide education to their children tend to believe their manifesto. But there are several examples, which clearly shows that political parties are not accountable for their promises which were announced at the time of the election.

For instance, the Indian Congress in elections of 2004 and 2009 asserted in their manifesto that it will give immediate revenue to the farmers. After operating the government for 10 years, they did nothing about it. Further, Congress promised to provide electricity to every home but till now we can see that there are many villages where there is no electricity supply. Further, they promised to eradicate the root of black money and corruption but we are all aware of the fact that the members of the Congress party themselves are involved in several scams like the 2G spectrum, Commonwealth scam.

These political parties are using a variety of tools to prove themselves to be more trustworthy and credible than others and make their manifesto more powerful. However, when they fail to fulfil their promises, the expectations of the people fall. There has been no improvement in their working conditions to fulfil the promises made by the political parties. The legitimate exception of the people to the government is reasonable and valid.  There is no notion of benefit, aid or relief that can generally flow from a promise or specified practice that is given to people.

  • Relation between the political parties and the doctrine of a legitimate exception

There is a valid legal relation between political parties and the doctrine of legitimate exception. As we know, the doctrine of legitimate exception describes that if any representative or administration has made some promises either by words or oral and further the past consistent practices of the political parties give an expectation and general assurance that the promises will be fulfilled in future. This doctrine imposes a legal duty to the representative or administration to implement their pledges fairly by carrying all the essential factors regarding the committed pledges and work for the welfare of the people.

If we glimpse in our present scenario, it is noticed that political parties make promises to the people and give assurance that they will fulfil their promises. So the people assume that the promises made by the political parties give some benefits and work on the welfare of the people. But nothing like that happens so the people should have a legal right to take action against the politician who does not carry out their pledges. Thus, the principle of legitimate expectation deals with the relationship between an individual and a public authority.

  • Application of the legitimate exception in our present scenario

This doctrine is applicable in our present scenario therefore we need to glimpse three situations that have occurred in the doctrine of legitimate exception.

  1.  If there are implied promises made by the public authority.
  2. There are existing practices of the public authority that furnish expectations to the people that it will be reasonably continued.
  3. These expectations must be reasonable.
  • So if we are concerned with the first situation in our present scenario that political parties are bound to make promises in their manifesto, then they will be bound to fulfil these promises as it gives expectations to the people that these parties will work in their interest.  
  • Now, if we glimpse at the second situation and relate it to our present scenario then the promises made by political parties are considered as custom and it is prevalent since ancient times. There have been many elections held in our country where political parties made a powerful manifesto and assured people that they would work in their favour, and it gave people expectations that political parties are legally bound by their promises.
  • Further, If we look at the third situation and narrate it in our present scenario then people should have reasonable expectations from political parties but the same applies to political parties that they have to make reasonable promises to the people which they can fulfil.

The doctrine of promissory estoppel

This principle is founded on the principle of justice, fair play and good conscience and was developed by Equity to Prevent Injustice. This concept is neither covered under contract nor subject to reasonable withholding. This doctrine is developed by equities to prohibit injustice and although it is usually named ‘promissory estoppel’, Estopel’s rule is considered as the law of evidence and the elements of Section 115 of the Indian Evidence Act, 1872, shall be assured by the application of the doctrine. Hence, the plea of the principle would contradict the constitutional provision beneath Article 299, which furnishes for exemption from the personal penalty of the individual creating the pledge or confirmation. 

  • How is the doctrine of promissory estoppel important in our present scenario

This doctrine plays a significant role in our present scenario because this principle is based on equity, justice and conscience and prevails against injustice therefore it can be applied to the promises made by the political parties. While we know that these political parties make promises in their manifesto but after that, they forget to fulfil so it’s unfair to the people. political parties also have a legal intention to build good relations with the people. Both the parties show trust towards each other because we know that people vote for parties. That’s why we all know that parties violate promises and think only of their good and because of this injustice is done to the people. Since the promissory estoppel principle is considered an equitable principle, it must be applicable when justice is required.

For instance, several parties said that they would provide employment opportunities, eliminate poverty, and further assure that no one would be left homeless. This is some common manifesto which political parties announce at the time of election but forget to fulfil. Still, the parties are not exempted from the obligation to fulfil the pledge made by it for its future conduct and it cannot fail to fulfil the promise made based on necessity or expediency on some undefined and undisclosed grounds that’s why the people have the right to take reasonable action against them. 

As in our present scenario, we can see that those promises are not legally enforceable by the parties, people should be given the right to take legal action against them by applying the doctrine of promissory estoppel. 

  • Relation between the political promises and the doctrine of promissory estoppel

There is a reciprocal relationship between political parties and promissory estoppel. This principle works when one party has a legal intention to make a reciprocal relationship with the other party and both parties will be acting on it while the parties must be bound by the promise and both are acted upon it.

For instance, XYZ is a political party and ABC has considered citizens where XYZ makes a promise to ABC that they will fulfil all the demands addressing welfare if ABC gives them a vote. So, XYZ gives a future promise to the ABC and makes an oral or written agreement between them. So, if XYZ is not fulfilling its promises after getting the vote from ABC, there will be a breach of promises and ABC has the right to make a complaint against XYZ by using this principle. Therefore if political parties are not enforceable or breach their promises so the citizens have a right to take action against them by applying this doctrine.

  •  Application of promissory estoppel in our present scenario

Certain circumstances which illustrate that the doctrine of promissory estoppel will be acceptable in our present scenario are mentioned below. 

  • The government should render the promises within the confine of the legislation 

If we look in our present scenario where we noticed that some pledges made by the political parties are not legally enforceable.

For instance, some parties make hypothesis promises in their manifesto to get the attention of the voters but if we notice these promises it seems difficult to implement because these promises are hypotheses and beyond the law. So it is necessary that the political parties make the commitments within the ambit of the legislation and can be enforceable.

  • The additional party must do an act or is prohibited to perform anything to fulfil that pledge

If we glimpse in our present scenario where we found that political parties have some common agenda in their manifesto that either they would do any act or be forbidden to any activity in the interest of the citizens.

For instance, many political parties cited in their manifesto that they would curtail corruption, violence, inflation and make peace in the country. But if we check the history of the parties it seems that these promises only laid down in the paper never get enforced. So this principle assists the citizens to take legal action against the political parties if they are not getting responsible for their promises.

Case analysis of Nazma v. the Government of  NCT of  Delhi 

Facts of the case

  • In this case, the petitioners have filed a PIL to implement the pledge made by the Chief Minister of Delhi in March 2020. Petitioner numbers 1 to 3, 5, are daily wage labourers who argued that they are tenants and unable to pay their monthly rent.
  • Further, Petitioner No. 4 is treated as a landlord who demands monthly rent from the tenants and is unable to get the same. The petitioner demanded that the Delhi government has to repay the monthly rent amount as per their statement declared by the CMs of Delhi.
  • It was a pledge that he committed during the press conference and had given assurance to the people that the Delhi government had furnished relief to the tenants.
  • The petitioners argued that on 29 March 2020, the CM held a press conference and said that within the scope of the COVID-19 pandemic, he requested all landlords to defer the demand or collection of rent from tenants who are poor and living in poverty. 
  • In the backdrop of owners’ representatives being forced to pay their rent, landlords were directed to speak to their tenants and defer the collection of rent and it was argued that the CM had made a clear commitment in the press conference that if any tenant is unable to compensate the rent due to deprivation, the government will reimburse his rent on his behalf. 
  • Petitioner stated that it seems that the government also forgot about their promise; it can be enforced through the principle of promissory estoppel and legitimate exceptions.

Arguments advanced

Petitioner

  • As claimed by the petitioners a respectable guarantee was mentioned that the government would take care of the tenants. It is, therefore, a confirmation that the petitioners are trying to execute judicially through this writ petition, as the Chief Minister has allegedly failed to fulfil the promises made in the press conference.
  • The petitioners claimed that despite their countless appeals, the Delhi government has closed its eyes while the CM himself makes promises to the public. Hence the poor petitioners had taken a loan to pay their rent. 
  • In front of the CM’s office, he made a representation and asked the Chief Minister to fulfil his promise to pay the outstanding rent, but no reply was received from the Principal Secretary’s office. Further, the petitioners argued that there was no need for a policy decision to maintain the writ petition as it was a settled position in law.
  • Being the Chief Minister and the head of the government, then he will be bound by his promise. Later the petitioners rely on the judgement passed in the case of the State of Jharkhand & Ors. v. Brahmaputra Metallics Ltd., Ranchi & Anr., 2021, DY Chandrachud in his own words that “the State must end the societal belief that it is a free allotment charity at its will. Its agreements give rise to legitimate expectations that the state will conduct in the public sphere according to within weeks it decides to faithfully organize representation by public officials.  Requires norms because citizens live their lives based on their faith in the state”.  
  • Therefore, he observed that when the public administration fails to comply with its expressions without giving proper reasons to the citizens for this negligence, it violates the trust built by the citizens in the state.
  • The petitioner argues that the Right to Shelter is considered a fundamental right, while the Delhi chief minister announced a statement at a press conference that would be attached as a representation made by the government. If the Delhi government does not fulfil the promise, then people’s trust in the CM will be completely broken.
  • Although this promise protects the interests of landlords and tenants on both sides, this writ petition can be maintained. Further, the petitioner said that for the period of the lockdown, the government should be directed to reimburse the amount of rent spent by the petitioners.

Respondent

  • The Council, appearing for the Respondent, held that the principle of legitimate exception could depend only on actual government policy, government notification or executive decision and not merely on political statements. A promise cannot be the mere basis of a claim based on the principle of legitimate expectation whenever a formal genuine government notice is not issued.
  • The respondents, therefore, relied on the judgment of case that supports their contention i.e State of Bihar v. Kalyanpur Cement (2010) In this case it was decided that if the administration has declared some notice regarding exemption of tax in the industrial policy, then the administration will have to fulfil its promise.  Because members of the industry have a valid exception that the government will fulfil its promises, the government cannot be exempted from their promises. So if we look at our present case where the Delhi government also promises the people that the Delhi government will pay the rent and it gives hope to the people that the government will fulfil its promises.  So it can be said that the government has to keep its promise otherwise it will do injustice to the people which is against the law.
  • Further, the respondent also argued that it was held in the case of State of Bihar v. Sachindra Narayan et al., (2019) that the sacred hope of a citizen cannot be the basis for a claim based on the principle of Legitimate Expectation. A moral obligation cannot be the basis of a valid expectation unless a crystallized right is present.
  • Again the respondent also argued that the present writ petition is not maintainable and rests on the judgment passed in the case Gaurav Jain v. Union of India 15 June 2020.

Analysis

The Court said that in a democratic country where the individual is appointed to a position, especially administration, heads of state and those in responsible positions at the time of crises,  it is believed from them that they would make reasonable promises or confirmations to the citizens of India. There must have been clear prospects of the citizens that the government would influence their commitments and work in the interest of the people by fulfilling its promises. several tenants and landlords who believe in the pledge of the chief minister of Delhi and did not migrate to their village during the lockdown.

Therefore the Court stated that the statement is declared with the conscious mind in a press conference that is held on the announcement of lockdown during the Covid 19 and the mass departure of the migrant labourers can not be ignored. People trust and believe in the statement which is declared by the people who are in power. So it is compulsory to rely on the promises and try to complete them on time so the people can not get disturbed.

Finally, the Court concluded that the promise which was made by the Chief Minister in a press conference is held accountable even without passing the formal order on behalf of the government. This writ petition will be legally valid and applied through the doctrine of promissory estoppel and legitimate exception.

Judgement

The single-judge bench of Justice Singh of the Delhi High Court stated that the pledge made by the Chief Minister is legally enforceable.

Courts tend to issue further directions to the Court that the Delhi Government should take reasonable action within the 6 weeks on the behalf of the tenants and landlords by implementing the guidelines for repaying the tenants rent. And this will give assurance to the people that whatever promises the government makes, those promises are fulfilled with time. The decision shall be held in the light of concerning the interest of the citizens or in the favour of the people whom the benefit is provided through the statement of Delhi government so the Court always works for the welfare of the people and protects their interest.

Further, the Court also directed the Delhi Government to frame policy regarding this and the Court also held that if any schemes or policy used to be announced, the petitioner’s case would be considered beneath this scheme or policy it would be followed with the procedure which laid down the policy or schemes.

The introductory paragraph of the judgment reminds and sanctifies the old idiom “रघुकुल रीत सदा चली आई, प्राण जाए पर वचन न जाई”, this means that the “lineage of Raghu does not break the promise even at the cost of one’s life”. 

This was considered the basic principle of Ramayana and was implemented during the reign of Lord Rama. The same phrase will apply in the present scenario where the promises made by the government will be implemented as the promises give assurance and sympathy to the people that the government will work on the welfare of the people so it is imperative to maintain the trust of the people. We all know that the saying holds in the social context that promises are made to be broken. The law has developed two principles, the principle of Legitimate Exception and the promissory note which will assure that the promises made by the government cannot be broken and that if necessary the judiciary will be obstructed and the promises can be enforced by taking legal action.

Conclusion 

Now we can analyze that a drastic shift can be expected in how our political leaders behave in public not just in Delhi, but across the nation. In destiny, they will speculate twice earlier, rendering any pledges to people because they understand that they will be held responsible for what they announce. They will discover that they can’t announce anything in public and get out with it.  They did their task before creating any pledges and only rendered commitments they realized they could honor. If this occurs, we can predict to see a substantial fall in the negligence of our ministers, bureaucrats, elected representatives and politicians with which the faith of common citizens is at risk, and often smashed with immunity. 

 Reference 


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The Registration of Births and Deaths Act, 1969

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This article is written by Ayushi Kumari, from Gujarat National Law University. The article elucidates all the major aspects related to the Registration of Births and Deaths Act, 1969 which was recently invoked by the Uttarakhand Government following the Chamoli disaster.

Introduction

In the aftermath of the flash flood in the Chamoli district of Uttarakhand in February 2021, the Government invoked the relevant Sections of the Registration of Births and Deaths Act 1969. Under the guidance of the Centre, the State’s Health Department chose to declare individuals who went missing in the tragedy as “dead”. Under this, the missing people’s death certificates will be issued by the authorised government authority to their family or relations. In this article, the author shall be giving an overview of the above-mentioned Act by discussing some relevant provisions of the Act.

Registration of Births and Deaths Act, 1969

Object

The Registration of Births and Deaths Act, 1969 (hereinafter referred to as the Act) regulates matters concerning the registration of births and deaths and matters connected therewith.  

Authorities for registration and their powers

Registrar-General

Appointment

As per Section 3 of the Act, the position of Registrar-General is filled by a person appointed by the Central Government of India. For this purpose, the Government puts up a notification in the Official Gazette. The Government can also appoint a person with such designation, as it thinks fit for the purpose to carry out works under the supervision of the Registrar-General.

Powers

The Registrar-General has the power to issue general directions concerning the registration of births and deaths in the territories covered by this Act. They also coordinate and unify the activities of the Chief-Registrars and submit the annual report regarding the works concerning and related to this Act, to the Central Government.

Chief-Registrar

Appointment

Section 4 of the Act defines the position of Chief-Registrar. They are appointed by the Central Government. The Government can also appoint a person with such designation, as it thinks fit for the purpose to carry out works under the supervision of the Chief-Registrar.

Powers

Clause 3 and 4 of Section 4 of the Act defines Chief-Registrar as the chief executive authority, responsible for carrying out the execution of the provisions of this Act. However, he remains the chief executive of a state only and carries out the execution of rules and orders subject to the directions of the state government. He is responsible to coordinate, unite, and supervise the work related to registration in a state.

District-Registrar

Section 6 of the Act defines the appointment and powers of District-Registrar.

Appointment

They are appointed by the State Government, for each revenue district. Also, Additional District Registrars, with suitable qualifications and whom the state government thinks fit, may be appointed to work under the direction and to carry out functions as authorized by the District Registrar.

Registrars 

Section 7 of the Act defines the appointment and powers of Registrars. 

Appointment

Registrars are appointed by the state government for each local area, which may include land under the jurisdiction of a municipality, panchayat, or other local authority, as well as any other area, or a combination of two or more of them.

Powers and functions

The Registrars are supposed to keep themselves updated about every birth and death that takes place within their jurisdiction. They maintain all the information in a register, given under Section 8 or 9 of the Act. The Registrars attend their office for matters concerning the registration of births and deaths. They are also supposed to work at such hours and on such days as is supervised by the Chief Registrar. With the prior approval from the Chief-Registrar, the Registrars can appoint Sub-Registrars also.

Who are required to register

The following persons are required to give information to the Registrar as is required by him and in the particulars of the registration. The information could be given by the concerned person either in oral or written form.

For the birth or death that takes place at:

House/household

The head of the house or the head of the household (if more than one family is living there) is required to report the births and deaths taking place there. In his absence, during the registration, the person who is recognized as the nearest relative of the head is required to register. Whereas in his absence also, the oldest adult male of the family is required to carry out the reporting of either birth or death taking place in the house/household.

Hospitals/health centres/ maternity or nursing home 

The Medical officer in charge or any person whom he (the Medical officer) authorizes to carry out the reporting of births and deaths that takes place at the Hospitals, health centres, maternity or nursing home is entrusted with the duty to do the reporting.

Choultry/ chattram/ hostel/ dharamshala/ boarding-house/ lodging-house/ tavern/ barrack/ toddy shop/ place of public resort

The person who is in charge of the above-mentioned place/s is entrusted with the duty to inform about the birth and death taking place there for the purpose of carrying out the registration of the same.

Jails

The person in charge of the concerned jail is supposed to report the births and deaths that take place there.

  1. Deserted new-born child or a dead body found in a public place 

The headman or other corresponding officer of the village, if it is a village otherwise, the officer in charge of the local police station is entrusted with the duty to report the deserted body of a newborn child or any dead body that is found in a public place.

Special provisions

Regarding births and deaths in a plantation

Section 9 of the Act provides for special provisions regarding births and deaths taking place in a plantation, the information of which is to be provided by the superintendent of the plantation to the Registrar. The explanation as to the term ‘plantation’ is also provided in Section 9 itself which states that-

“Plantation means any land not less than four hectares in extent which is being prepared for the production of, or actually produces, tea, coffee, pepper, rubber, cardamom, cinchona or such other products as the State Government may, by notification in the Official Gazette, specify and the expression”.

Regarding births and deaths of citizens outside India

Section 20 of the Act provides for special provisions relating to the registration of births and deaths of Indian citizens that take place outside India. It provides for the Registrar-general to be informed and to register about such births and deaths. Furthermore, sub-Section 2 of Section 20 provides for children born outside India, whose information has not been provided to the Registrar-General under sub-Section (1) of the same Section, when the parents of that child when return to India to settle therein, are required to provide the birth information for the registration purpose within 60 days from the date of the arrival of the child in India.

Notification of births and deaths

Section 10 of the Act provides that certain persons under certain circumstances owe the duty to notify about the births and deaths. They are midwives, or other medical or health attendants, the keeper or the owner of a place set apart for the disposal of dead bodies or any other person which the state government specifies as by his designation, to inform the Registrar.

Delay in registration

Section 13 of the Act states the provisions regarding the delay in registration of births and deaths.

  1. The first clause of this Section provides that the information regarding birth or death that is provided to the Registrar within thirty days of its happening will be registered after the payment of late fees by the informant.
  2. The second clause of this Section provides the information regarding either birth or death that is to be given to the Registrar after thirty days but within one year of its occurrence, will be registered only after the informant produces written permission of the prescribed authority, pays the fees as is required, and shows an affidavit which is made before a notary public or any other officer authorised on this behalf by the State Government.
  3. The third clause of this Section provides provisions for those registrations which are not registered within one year of their occurrence. In such a case the informant pays the fees as is required and an order is given by either a magistrate of the first class or a Presidency Magistrate after verifying the veracity of the concerned birth or death of a person.
  4. The fourth clause of this Section provides that the provisions of this Act are not to cause loss or to put anyone in a disadvantaged position when an action has been taken against a person if there is a failure from his side to register any birth or death within the stipulated time frame. 

Process of registration

As discussed earlier in this article in greater detail, Section 8 of the Act provides for provisions as to ‘persons required to register births and deaths’, Section 9 of the Act provides ‘Special provisions regarding births and deaths in a plantation’, and Section 10 of the Act provides provisions as to ‘Duty of certain persons to notify births and deaths and to certify the cause of death’. Besides this, Section 11 of the Act provides that the person providing the information, in oral form, regarding either birth or death is required to provide the information about their name, their short description, and place of residence. Besides this, if that person is not able to write, they are required to put their thumb marks against the same.

Penalties

Section 23 of the Act provides for detailed provisions regarding the penalties a person may attract if certain provisions of the Act are not adhered to.

Under Clause 1 of this Section, the following persons will attract the provision of a penalty of fine which may extend up to fifty rupees:

If a person

  1. Fails to give or provide the information and which comes under that person’s duty to inform regarding any birth or death that takes place, or
  2. Gives any false information for the registration purpose, or
  3. Refuses to provide his information as asked for under Section 11 of the Act.

Clause 2 of this Section provides for a penalty of fine payment which may extend to fifty rupees by any Registrar or Sub-registrar who fails in his duty as is expected from him and given in the Act.

Clause 3 of this Section provides for a penalty of fine payment by medical practitioners who fail or neglect their duty as is mentioned and expected from them under sub-section (3) of Section 10.

Clause 4 of this Section provides for penalty for those persons who interrupt or cause to interrupt or contravene any provision of this Act will attract fine payment which may extend to ten rupees.

Clause 5 of this Section provides that a magistrate will be hearing the trial of a person who commits any of the offences as mentioned above.

Maintenance of records 

Section 16 of the Act provides that the Registrars are supposed to keep a register of the births and deaths taking place in the area of their jurisdiction. And under Section 17 of the Act any person, subject to certain conditions as mentioned in the section, can cause the Registrars to search for any birth or death and can even obtain information regarding any birth and death. However, the proviso is that no information as to the reason for the death of any person will be disclosed to any person.   

Section 19 of the Act provides that the Registrars will send the entries made in the register that is kept by them, either to the Chief Registrars or to any other person appointed by them so as to compile all the entries.

Repeal and saving

Section 31 of the Act provides for the repeal of those acts passed in any state whose any provision is similar to the matters dealt by this Act. this repeal is subject to the provisions of Section 29 of this Act which provides that nothing in this Act will be in derogation to the provisions of the Births, Deaths and Marriages Registration Act, 1886.

Power to remove the difficulty

Section 32 of the Act gives the State government the power to remove any difficulty that arises while implementing any of the provisions of this Act, with the approval of the Central government. The State government in this regard may make provisions or issue any direction which is not inconsistent with the provisions of this Act, in order to remove the difficulty. However, the proviso provides that if in any area more than two years have passed since the usage of this Act, then no order can be made under this section in relation to that area. 

Conclusion

Mother Earth is beautiful but can be proved deadliest at certain times, as is evident from the deadly flood that erupted in the Chamoli district creating havoc among people, as it led to many people dying in it and many getting lost.

The birth and death certificates, under the said Act, are issued at the time of birth or death of a person under normal circumstances. But, few exceptional circumstances, like the Chamoli disaster require a different approach to pacify the loss of people. The Government of Uttarakhand decided to issue death certificates after a mandated investigation, to the family members of the persons who went missing and are possibly deceased beyond all reasonable doubt but his/her body is yet to be discovered. 

The decision of the Uttarakhand government can be said to be a reasonable step taken at this miserable time for the family members who lost their near and dear ones or are still in a false hope of them getting back.

References


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The gender divide in MSME

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Image source - https://bit.ly/3yrEmL7

This article is written by Shivani Agarwal from the Institute of Law, Nirma University. This is a comprehensive article that critically analyses the gender gap in micro, small, and medium-sized enterprises (MSMEs) in India.

Introduction

Micro, small, and medium-sized enterprises (MSMEs) are critical growth engines for India’s economy. After agriculture, the MSME sector contributed roughly 8% to 9% of India’s GDP in 2012, making it the second-largest source of employment in the country. For inclusive and equitable growth, it is crucial to understand how to improve women’s roles in the economy, particularly in the MSME sector.

The Ministry of MSME has emerged as the principal institution responding to the topic of female entrepreneurship, having just convened its inaugural Conclave on Empowering Women Entrepreneurs of Marginalized Sections, which garnered mammoth applications. The conclave saw multiple sessions where influencers from various walks of life came together to discuss and debate on critical issues to awaken the country to the problems of hidden disparities and discuss a range of subjects to highlight the evolving role of women entrepreneurship in India. The conference was a big success among Scheduled Caste/Scheduled Tribe women entrepreneurs. Women are society’s foundations, and when they are empowered, the entire world is empowered. The Ministry of Micro, Small, and Medium Enterprises (MSME) empowers women entrepreneurs via various programs that assist women in developing their skills and establishing their own identities.

Not only MSME, but the Indian government also has made several efforts to empower and protect women such as Beti Bachao Beti Padhao, Stand Up India, Mission Indradhanush, Mudra Yojana Scheme, TREAD (Trade-Related Entrepreneurship Assistance and Development) Scheme, Mahila Udyam Nidhi Scheme, Annapurna Scheme, Stree Shakti Package for Women Entrepreneurs, Bhartiya Mahila Business Bank Loan, Dena Shakti Scheme, Udyogini Scheme, Cent Kalyani Scheme, etc. While the Indian government works tirelessly to improve women’s lives, we must also become aware of their rights, programs, and perks that can aid in their total empowerment. Women entrepreneurs who are illiterate or semi-literate, from rural and urban regions, have benefited from several Indian government programs to assist them in establishing or maintaining a business.

About MSME industry

The Micro, Small, and Medium Enterprises (MSMEs) sector contribute significantly to the country’s socio-economic growth. The industry has grown in prominence in India as a result of its contribution to the country’s Gross Domestic Product (GDP) and exports. The industry has also made significant contributions to entrepreneurial growth, particularly in India’s semi-urban and rural areas. Government e-Marketplace (GeM), which is owned and administered by the government and from which Ministries and PSUs (public sector undertakings) get their purchases, is encouraging MSMEs to promote their products on the e-commerce platform. MSMEs have the potential to significantly contribute to the creation of jobs and the growth of the Indian economy. One of the main drivers of India’s shift from an agricultural to an industrialized economy is the MSME sector. MSMEs make up a considerable percentage of industrial units.

The MSME Ministry has four statutory bodies: 

  1. The Khadi and Village Industries Commission (KVIC), which is in charge of promoting and developing khadi and village industries to provide employment opportunities in rural areas and thus strengthen the rural economy.
  2. The Coir Board, which is in charge of promoting the overall development of the coir industry and improving the living conditions of workers in this industry.
  3. The National Institute for Micro, Small and Medium Enterprises (NI-MSME), which is in charge of enterprise promotion and entrepreneurship development, as well as enabling enterprise creation and conducting diagnostic development studies for policy formulation, among other things. 
  4. The Mahatma Gandhi Institute for Rural Industrialisation (MGIRI), which is in charge of accelerating rural industrialization for a sustainable village economy.

The Ministry of MSME administers many programs for MSMEs around the nation, including credit and financial aid, skill development training, infrastructure development, marketing help, technology, and quality improvement, and other services.

Major developments in the MSME sector

 There have been various significant developments in the MSME sector such as:

  • In March 2021, the National Small Industries Corporation (NSIC), an MSME assistance and development organization, stated that it will help MSMEs working with the Agricultural and Processed Food Products Export Development Authority (APEDA) in numerous sectors.
  • Walmart’s Vriddhi program was expanded to Uttar Pradesh in February 2021, with the opening of an e-institute to help small companies get access to skills and competencies across online and offline platforms including Flipkart’s marketplace and Walmart’s global supply chain. According to the firm, this new e-institute will help 50,000 MSMEs across the country to develop locally and internationally.
  • The NSIC will assist its MSME members in investigating the export potential of their agricultural and processed food products through a Memorandum of Understanding with APEDA. Members of APEDA will also have access to NSIC schemes, which will aid them in addressing challenges such as technology adoption, skills, product quality, and market access.

There are numerous MSMEs in India, and they operate in a wide range of industries. They are also dispersed all over the country. A vast number of MSMEs function informally and are not part of the formal MSME ecosystem. Building and implementing a new wave ecosystem that enables their development and grabs growing local and global opportunities will require fundamental changes in thought and approach of the current industrial system. At the very least, all impediments and hindrances for conducting business should be removed. This would assist in unleashing a new generation of Indian entrepreneurs who are eager to make self-employment their primary career choice and build growing companies.

In five years, the Indian government hopes to double the country’s economy to $5 trillion. Career Options for the young population have been created to attain this aim, and MSMEs have the potential to act as a vital job generator. As a result, the government has prioritized MSMEs for promotion to create new employment in the industry. In addition, the government wants to increase MSME exports and GDP contribution. The government should invest in providing additional back-end services to improve the performance of the MSME sector, which supplies goods and services to large industrial businesses to meet these goals. Bottlenecks in the sector’s ability to become competent include a lack of technology-based manufacturing activities and a low investment in Research & Development. The government might subsidize globally available technologies, allowing MSME businesses to increase their product quality with existing resources.

About women entrepreneurs

The development includes economic, social, and political components, and it would be incomplete without the development of women, who make up almost half of the population. As a result, women’s participation in economic activities is critical for the development of a healthy nation. When we talk about women’s entrepreneurship, we’re talking about a type of business ownership and creation that empowers women monetarily and improves their social standing. Women entrepreneurs are one of the most understudied groups of entrepreneurs. We know relatively little about female entrepreneurs. Our lack of knowledge about this crucial group is a prominent blind spot to boost the total number of women entrepreneurs in our economy.

Women entrepreneurs are described as individuals or groups of individuals who start, organize, and operate a business. Thus, a woman entrepreneur is a self-assured, creative, and imaginative woman who seeks financial independence while also providing job chances for others. They take on the responsibility of organizing and managing their businesses’ resources while also taking all of the risks to make a profit. They are shown as conscious decision-makers and managers in this description.

Women’s entrepreneurship is concerned with both the status of women in society and the function of entrepreneurship within that society. Women encounter unique challenges (such as family duties) that must be addressed for them to have equal access to opportunities as men. Some women have great entrepreneurial goals on a personal level.

On an institutional level, the government has undertaken some initiatives to boost women’s entrepreneurial incentives, and there is a more substantial political commitment to empowering them. India is a varied country, and so are the different types of business that women pursue. Microfinance has aided women’s empowerment and entrepreneurship, with 98 percent of women-owned firms being micro-enterprises, with around 90% of them operating in the informal sector.

Impact of women in the entrepreneurial sector

Women’s entrepreneurship directly impacts income, employment, and capital formation while also indirectly benefiting household resource allocation. Women entrepreneurs benefit not just from support but also the creation of jobs. Participating in numerous development initiatives is necessary for women’s empowerment. In other words, women’s participation in multiple entrepreneurial enterprises has given them influence in social, economic, cultural, and other areas. They have had a considerable impact on all sectors of the economy in industrialized nations such as Canada, the United Kingdom, and the United States.

In today’s world, women entrepreneurs play a critical role in commerce, trade, and industry. Their foray into business is relatively new. Other fields, such as politics, administration, medical and engineering, technical and technological, social and educational services, have already demonstrated the importance of women. This is true in advanced nations, and they have begun to penetrate these industries in our country in recent years.

In the last 50 years, the position of women in the workplace has changed dramatically, as has the perspective of entrepreneurs throughout history. There were just a handful of women who owned and ran their businesses just five decades ago. Even though the Second World War brought many more women into the workforce, social beliefs such as the male being the head of the family and women being dependent and staying inside did not create an environment that encouraged women to work unless it was indispensable.

Women have attempted to break free from the constraints of the past. In addition, significant social, political, and economic developments have offered possibilities for women while also increasing their acceptability and acknowledgement in the workplace. A woman entrepreneur is a woman or a group of women who start, organize, and run their own company. They are gradually establishing themselves as businesswomen and giving their male counterparts a run for their money. Women entrepreneurs have been a part of the Indian business environment for a long time, and they have had a lot of success. However, their number is still insignificant when compared to the total number of small businesses. 

Successful women entrepreneurs

In a country like India, where most women aren’t encouraged to think large (particularly in rural areas), some have risen higher than one might imagine in such a constrictive environment. Through their success stories, which include personal obstacles and hurdles, these wonder women are motivating other women to pursue entrepreneurship. Some famous women entrepreneurs are:

  1. Vandana Luthra, the founder of VLCC Health Care Ltd., is an inspiring woman entrepreneur. She is an Indian businesswoman, philanthropist, and the chairperson of the Beauty and Wellness Sector Ability Council (B&WSSC). There were very few women entrepreneurs in India when Vandana began her entrepreneurial adventure. In a male-dominated setting, she had to deal with a lot of criticism. But she persisted in her opinion that her concept was original and novel and that it was being offered for the first time in India. She was named Women Entrepreneur of the Year by Enterprise Asia in 2010. In 2013, India’s fourth-highest civilian accolade, the Padma Shri award, was bestowed onto Vandana by the President of India.
  2. Shahnaz Hussian is the founder of Shahnaz Herbals, a globally recognised and appreciated company. She never pictured herself as a beauty mogul and one of the world’s most renowned ladies when she married as a teenager and had a daughter at the age of 16. Shahnaz is renowned as the “Queen of Herbal Beauty Care” and was honoured by the Indian government with the Padma Shri award in 2006. She is India’s most well-known entrepreneur, with a company that operates in 138 countries and has 600 franchisees and related clinics throughout the world. Shahnaz was recently asked to talk at Harvard Business School on how she built a worldwide brand without using commercial advertising. 

Relevant features 

Women entrepreneurs have certain special features among them:

  1. The whole business of the enterprise is managed by a woman or a group of women. She makes numerous plans and sees to them that they are carried out under her supervision and direction. A woman entrepreneur isn’t afraid to take measured risks. She takes risks and meets uncertainty with confidence. She’ll have to put money aside and hope for a decent return. The capacity to construct a solid organization is the essential talent necessary for industrial progress.
  2. The other variables, such as land, labour, and capital, are assembled, coordinated, organized, and managed by a woman entrepreneur. Being self-assured is crucial for a woman entrepreneur. She needs to believe in herself and her ability. Her primary responsibility is to make decisions. She makes a variety of judgments about her company’s operations. She determines the sort of business to be conducted and how it will be conducted. A woman entrepreneur’s decision-making process must be straightforward and imaginative.
  3. A woman entrepreneur’s willingness to work hard is one of her distinctive characteristics. She must adhere to the tenet that “hard work is the key to success.” An entrepreneur who is a woman must be upbeat. Rather than being afraid of failure, she should approach her business with the prospect of success and an attitude of success. Women entrepreneurs overcome adversity with courage and boldness. She believes in herself and, despite the pressure, tries to address the difficulties. A woman entrepreneur is vivacious, focused, and has a clear goal. She should be a lady who can think both creatively and analytically.

Women’s entrepreneurship has long been connected with themes like independence and empowerment for women. It is increasingly being pushed as critical for improving the quality of life of women in impoverished countries.

Obstacles to women’s entrepreneurship

There are many barriers for women working in the entrepreneurial sector like:

  1. The skill gap between men and women 

Being a woman is the most significant impediment. They are constructing a patriarchal, male-dominated social order as a foundation for their financial success. Male members believe it is a significant risk to fund women’s businesses. Women frequently lack the education, vocational and technical abilities, and job experience required to promote the growth of highly productive firms. Male entrepreneurs, for example, are more likely to have worked in the wage sector before beginning a firm than female entrepreneurs.

  1. Informal/unorganized sector

Smaller businesses account for the majority of women’s entrepreneurship, with 90% of these operating in the informal sector. Female ownership and employment are also concentrated in less profitable and more competitive sectors like food, clothing, and retail, whereas male ownership and employment are concentrated in more profitable areas like materials and construction.

  1. Access to financial resources

A good funding source is an essential requirement of any business. Women lack in obtaining accessible credit facilities. Many reasons can be associated with it, like the old notion that women won’t be able to run businesses successfully, their liabilities, etc. Women have limited access to essential financial services like checking and savings accounts on average. As a result, many female entrepreneurs rely on personal savings, family and friend loans, or microloans to fund their businesses. Micro-loans, on the other hand, due to their tiny size and short-term character, do not allow women borrowers to make long-term investments in their enterprises. 

Women entrepreneurs are up against a lot of competition from men entrepreneurs, who can quickly get involved in promotion and development and advertise their products to the organized sector as well as their male counterparts. Women entrepreneurs are eventually liquidated as a result of such a competition.

  1. Difficulties in having easy market access and establishing a good network

Expertise, experience, and relationships are required to tap into new markets. Women entrepreneurs frequently lack training and expertise, making it difficult for them to sell their products and services successfully. Because most women entrepreneurs operate on a small scale, they also lack adequate market knowledge regarding pricing, inputs, and rivals, as well as access to support services.

There are various other challenges that a woman has to face while surviving in the industry. To overcome these kinds of problems, a woman entrepreneur should possess specific skills and the aid of government or local authorities to encourage them in the business sector. Following actions can be taken to ensure that there is equal participation and consideration of women in such fields:

  1. Awareness programs should be held so that women can learn better about the industry in which they are working. 
  2. Financial, as well as family support, is a major factor that influences a woman’s way of conducting the business. Good financial and family support provides more independence, power, and decision-making ability for women. 
  3. Various other schemes are provided by the local government like:
  4. Pradhan Mantri’s Rozagar Yojana

Women receive preferential treatment under the plan. Standing instructions are provided to ensure that the number of women beneficiaries under PMRY does not go below 30% when the Scheme’s goals are communicated to the States/Union Territories and the Reserve Bank of India (RBI). In addition, to make it easier for women beneficiaries to participate in this plan, the following concessions have been made:

  • Age relaxation

Women’s maximum age limit is 45 years, compared to 35 years for general category candidates.

  • Relaxation of residence requirements for married women

In the case of married women candidates, the residency requirement of the previous three years applies to their spouses/in-laws.

  1. Mahila Coir Yojana

Mahila Coir Yojana is a woman-centred self-employment program in the coir sector that enables rural women artisans in coir-producing regions with self-employment options. After receiving instruction, women craftsmen will be given motorized rafts to use in spinning coir yarn. This scheme has features like at the Coir Board’s training centres, women spinners are trained for two months in spinning coir yarn on a motorized raft, and they are paid a stipend of Rs. 500/- each month.

  1. Trade Related Entrepreneurship Assistance and Development (TREAD) scheme for women

The Trade Related Entrepreneurship Assistance and Development (TREAD) scheme for women initiative aims to empower women entrepreneurs economically through trade-related training, information, and counselling extension efforts connected to trades, goods, and services. Because such women do not have easy access to loans, it will be made available to women applicants through non-governmental organizations (NGOs) that are capable of properly managing finances. These NGOs will not only distribute the money that women require, but they will also offer them proper counselling, training, and aid in creating marketplaces. This scheme provides facilities such as funds credit, training, and counselling, etc. 

While a pro-entrepreneur legislative environment is critical, there is also an urgent need to make it more gender-inclusive. To invigorate women-owned businesses and close the gender gap, the proper combination of regulations, and enabling ecosystem, infrastructure, access to funding, and incubation is essential.

The gender gap in MSME Industry

MSMEs have risen to become India’s second-largest source of employment. Understanding how to improve the role of women in the economy, particularly in the MSME sector, is crucial for inclusive and equitable growth. On the other hand, women’s entrepreneurship is becoming more widely recognized as a significant but underutilized source of economic growth. Women entrepreneurs, despite their underrepresentation, contribute to the economy by creating new employment for themselves and others and contributing to the family’s financial well-being, poverty reduction, and women’s empowerment. There has been no systematic study of gender concerns in the MSME sector in India, although it has been investigated and appraised from a financial standpoint.

Analyzing the performance of female-owned enterprises compared to male-owned enterprises and examining the disparities in their observed performance is, therefore, a linked subject of significant policy significance on gender, entrepreneurship, and firm performance.

If women’s empowerment has been any yardstick, especially at the MSME level, West Bengal leads the country by miles. According to the report, the percentage share of states in MSMEs owned by women shows Bengal having 23.42 percent owned percent. In addition, women entrepreneurs lack institutional and informal networks through which they might gain access to critical information about loans, goods, and markets. Women’s entrepreneur networks are great sources of knowledge and a platform for company promotion and information exchange. 

There are various types of industries in the MSME sector and some can be discussed to analyze the gender division in the MSME industry:

  1. Readymade Garments Industry 

The Textile and Clothing (T&C) industry accounts for 4% of India’s GDP, 12% of industrial output, and 10.5 percent of total goods exports. The informal home-based sector accounts for a substantial portion of the garment industry, accounting for 94 percent of units and 70 percent of employment. Ready-made garments are labour-intensive, low-tech products, yet there is a growing need for high-tech techniques in the ready-made garment sector. In 2005-06, 1.28 million people were employed in the commercial clothing sector, with half of those employed in small, medium, and large businesses that used power. The readymade garments industry employs roughly 9.9 percent of all registered manufacturing MSMEs and 15.67 percent of all registered MSME employees. The sector has a large number of female entrepreneurs. The RMG industry accounts for about half of all women-owned registered MSMEs, making it the industry with the greatest percentage of women-owned businesses in the MSME sector.

  1. IT Hardware & Electronics manufacturing sector

India’s IT and electronics manufacturing industry is costing the country more than it is bringing in terms of GDP and other metrics. It is predicted that the country’s electronics export bill would soon surpass the country’s oil expenditure. The government is encouraging the Electronic System and Design Manufacturing (ESDM) business through a variety of initiatives, including cluster development and skill development to generate skilled labour. Consumer electronics, industrial electronics, IT hardware, electronic components, and strategic electronics are the six main segments of the Indian electronics and IT hardware industry. Consumer electronics and telecommunications equipment are the two largest divisions, each accounting for roughly 27% of the market. There is some indication that in this business cluster, there are extremely few female entrepreneurs in electronics production. Because the industry is being pushed, it does not appear in important MSMEs databases, such as the MSME Census of Registered Enterprises.

  1.  Food Processing Industry 

In India, the Food Processing Industry (FPI) is the fifth-largest economic sector. It accounts for more than 14% of manufacturing GDP and more than 6% of the country’s overall GDP. In India, the food processing industry is divided into organized and unorganized sectors, with the unorganized sector accounting for more than 70% of output in terms of volume and 50% of output in terms of value.

In India, the food processing industry is a newcomer with a lot of potential. This is evident since the food processing sector’s contribution to GDP has been expanding faster than the agriculture sector’s. After Readymade Garments, the Food Processing Industry has the second greatest female participation in the MSME sector, both in terms of entrepreneurship and employment. Women own approximately 13.3 percent of FPI businesses in the MSME sector.

Under numerous government initiatives and programs, women entrepreneurs are entitled to particular incentives and discounts. Men may register units in their wives’ names to take advantage of the benefits provided to women entrepreneurs while retaining the de-facto owners of the companies. Another reason registration statistics may be deceptive is that many women-owned businesses are home-based or operate in an unstructured, unregistered environment. Women’s capacity and confidence to take risks in their enterprises seem to be contingent on having family support. When they have great support from their families and, in certain situations, male business partners, women are ready to accept significantly more significant risks. The presence of a male family member boosts confidence in the more challenging aspects of marketing and financing.

Conclusion

Women’s participation in the workforce is mostly determined by the type of labour required and what was seen as proper for women at the time. There were gender-specific positions for employment along the value chain of production in every cluster.

Women’s engagement in the sphere of entrepreneurship is expanding at a significant rate. Therefore we can say that we are in a better position now. Efforts are being made in the economy to ensure that Indian women have equal chances in all domains, and legislation guaranteeing equal rights of participation in the political process and equal opportunities and privileges in education and work have been adopted. However, government-sponsored development programs have only helped a tiny group of women, namely urban middle-class women. Nearly 45 percent of India’s population is made up of women.

Effective actions must now be taken to offer women entrepreneurial knowledge, orientation, and skill development programs. Women’s involvement in economic growth is also being recognized, and initiatives are being done to encourage women to start businesses. The resurgence of entrepreneurship is urgently needed, with a focus on educating the female population, promoting knowledge and consciousness among women so that they may shine in the business sphere, realizing their talents and vital role in society, and the significant contribution they can make to their industry and the overall economy. Women entrepreneurs must be adequately shaped with entrepreneurial qualities and talents to face changing trends, global market problems and be competent enough to maintain and strive for excellence in the entrepreneurial sphere.

References

  1. https://www.economicsdiscussion.net/entrepreneurship/women-entrepreneurs-in-india/32337
  2. https://www.ijert.org/women-entrepreneurship-in-india-an-insight-into-problems-prospects-and-development
  3. https://www.oecd.org/cfe/smes/31919215.pdf
  4. https://link.springer.com/article/10.1007/s11187-018-0124-3
  5. https://www.indialegallive.com/column-news/gender-divide-msmes/ 
  6. https://www.ibef.org/industry/msme.aspx#:~:text=India%20has%20approximately%206.3%20crore,its%20national%20and%20international%20trade.

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