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MHA’s need to have a careful policy of criminal procedure reforms

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This article is written by Varchaswa Dubey, from JECRC University, Jaipur. The article is concerned with the new reforms which the Ministry of Home Affairs has proposed to bring in force. 

Introduction

The Indian criminal justice system has significantly been inherited from the British criminal justice system, and most of the punitive, procedural, and evidence laws are not only outdated but also need amendments while considering the need for advanced laws. 

The need for new laws is not only due to the advanced types of crimes that have started emerging with the advancement of technology, but also the laws need reformation due to there vagueness in contemporary times.

Certainly, the British era legislation required amendments, but also there is a need to reform the administration system, and the detention of the law violators, or else, merely enacting stringent laws will have no effect if there is no legal awareness about the punishments which are imposed for committing a gruesome act against the society. 

The Ministry of Home Affairs (MHA) has recently through its notification dated 1 February 2019 constituted a National Level Committee, i.e. Committee for reforms in criminal laws, for reforms in criminal laws and to review the criminal laws in India. The committee has also asked for recommendations from experts in their respective fields of criminal and substantive laws through an online mechanism. The responses of the experts shall be highlighting the issues in the Indian Penal Code, 1860, The Code of Criminal Procedure, 1973, and Indian Evidence Act, 1872 also. 

Origins of criminal reforms in India

Reforms in India have been occurring in India during the last few centuries. However, in ancient times, the laws were not codified and only personal religious and customary laws were used to dominate the field of law. The emergence of the British in India, the crown in Britain brought reforms, and codified laws to govern the administration of the company and its people in India. 

The first law commission was appointed in the year 1834 under the chairmanship of Lord T.B. Macaulay, who drafted the penal laws for India and submitted its report in the year 1837, which was later enforced as the Indian Penal Code, 1860. 

Commissions were constituted to meet the requirements of different laws, and various commissions suggested various criminal laws, reforms, procedural, and substantive laws.

Criminal reforms in India have always been a worryful concept due to the fact that most of the laws which are enacted by the legislation are not only advanced but are also always enacted after several individuals become victims of the vagueness of laws. 

Due to incomplete laws enacted by the British, the Second, Third, and Fourth Law Commissions were constituted to suggest the necessary reforms needed in the already existing laws. 

Committee formed for reforms in the criminal justice system

The legislature recently introduced the Code of Criminal Procedure (Amendment) Bill, 2020 which is primarily concerned with the kin of the deceased suffering from mental trauma, emotional injury, and economic loss as a result of the criminal act. 

The committee will collect opinions of different experts in their respective fields and various other materials required to make new laws and the committee will submit its report to the government. The consultation process began on 4th July 2020 and went on for the next three months. However, due to the Covid-19 pandemic, most of the consultation procedure took place virtually. 

History of committees formed for reforms in the criminal justice system 

Before the 2020 committee was formed, India has witnessed numerous instances where attempts to bring amendments to the criminal justice system have taken place. 

  • The Malimath Committee (2003) the most significant step to bring changes in the criminal justice system was taken by The Malimath Committee. The Committee was headed by Dr. Justice V.S. Malimath which not only highlighted the need for a better criminal justice system, but also recommended changes for the rights of the accused in crimes, presumption, and innocence, and burden of proof, justice to the victim of crimes, investigation, courts and judges, trial procedure, witnessed and perjury, vacancies in the court, etc. which was reflected in the Criminal Law (Amendment) Bill, 2003.
  • Justice Verma Committee: following the protests associated with the brutal 2012 Delhi gang-rape case, the Justice J.S. Verma Committee was formed to provide quicker trials and enhanced punishments for the perpetrators of extreme sexual assaults. The committee submitted its report, and not only the definition of rape was given wider scope, but also stringent punishment for rape, and other sexual offences were recommended by the committee. Compulsory registration of marriage without any dowry, the introduction of sexual assault of men, transgender, and transsexual rape, punishment for officers for refuses to register a complaint of rape, etc were also suggested by the committee and most of the recommendations are reflected in the Criminal Law (Amendment) Act, 2013.  

Provisions under the Indian Criminal Procedural Law which need reforms

Arrest under the Code of Criminal Procedure 

An arrest is one of the most abused forms of practice undertaken by police even in contemporary times even without any reason, which further leads to the violation of the human rights of an individual in police custody. 

The Indian police is primarily governed by the Police Act, 1861 which is Victorian-era legislation enacted for empowering the police as a direct consequence of the revolt of 1857 (first war of independence). Such legislations in the contemporary times have no significance, and they are indeed empowering the police more than what powers must be given to the police, and it is this reason why police keep abusing the loopholes in the procedural laws. 

In India, before independence, the freedom fighters were victims of illegal arrest and detention under these draconian laws, and the condition remains the same after independence. However, instead of freedom fighters, innocent civilians are detained in contemporary times most of the time due to failing in giving bribes to the police. 

Section 41 of Code of Criminal Procedure, 1973, empowers the police to arrest a person even on suspicion, or if police believe that such arrest is necessary, and the burden of proof is on the police to satisfy the court and give a reason for the arrest made under this Section. However, there are instances where police may not even present such a person before the magistrate, and the entry of such detention may have not even registered.  

Section 46 of CrPC in its exception clause states that no woman shall be arrested after sunset and before sunrise. However, it also provides with an exception to such right regarding arrest that, a woman police officer shall after making a written report, and after obtaining written permission by judicial magistrate first class who have local jurisdiction of such offence may make an arrest. Such laws empower the police to not only harass the detained women but also such arrest may lead to sexual assaults in police custody, defeating the very purpose of police, i.e. to protect and serve. 

Section 151 of CrPC is the most abused Section under procedural law wherein, the police are empowered to arrest a person without the orders of the magistrate, however, no person must be kept under custody for more than 24 hours, however, there are cases where individuals are detained illegally, but the legislature is silent on it. 

The menace of illegal detention, arrest, and custodial torture is growing, despite the landmark cases like D.K. Basu vs. State of West Bengal (1996).

Investigation and trial 

Investigation is the most important aspect in any criminal case, wherein, it is the responsibility of the police to find out the truth as per the law of the land, like identification of the accused, and establishing the guilt of the accused, and produce the same before the respective magistrate. However, the police are not at all trained, and well versed with the process of investigation, which most of the time leads to injustice to the accused or the victim. 

Section 156 of CrPC reserves the power of a police officer to investigate and the procedure for such investigation is mentioned under Section 157 of CrPC, however, the manner under which police conduct an investigation is very poor, and often, it leads to malicious prosecution of an innocent person. Therefore, the traditional procedure of investigating by police must be abandoned, and professionalism, transparency, and accountability must be introduced in the legal provisions.  

Section 177 of CrPC is associated with the procedure of place of inquiry and trial, but in cases of rape where the statements of a victim are recorded under Section 164(5) of CrPC, where the victim is still a minor, there is no separate legal provision for the same, and there are chances that the minor who is still suffering from the trauma of rape, may turn hostile, or insecure about herself, leading to miscarriage of justice. 

Although CrPC in its Section 26 contains the provision of trial in a court presided by a woman magistrate, as far as possible, which is based on the theory that a female is more comfortable in dictating the facts of the incident to another female, as compared to a man, but there is no provision for making the same compulsory, and in cases where a woman magistrate is not present, the trial begins before a male magistrate.  

Section 167 of CrPC is associated with the procedure where if an investigation is not completed within twenty-four hours, the magistrate to whom the accused person is presented or conveyed about, may allow the detention of the accused under the custody for 15 days more, which may also lead to the violation of human rights of the accused in the police custody, and therefore, a provision regarding the magistrate asking the Investigation Officer (I.O.) as to why they couldn’t produce any evidence against the accused during an investigation must be introduced. 

In cases where an investigation against a woman cannot be completed within 24 hours of arrest, the detention will be in a remand home or a recognized social institute, however, the remand homes are also not safe for women as women not only run away from remand homes leading to gang rape but women are also getting raped in the remand homes as well, and the same reflects a major loophole in the criminal procedural laws in India. 

Domestic violence 

Section 198A of CrPC states that no court shall take the cognizance of an offence concerning a domestic matter, except when a police report of facts is filed which contains the complaint made by the relatives of the victim. This provision is bestowed to protect the interests of a woman and to safeguard her marriage. Section 498A of the Indian Penal Code, 1860 is the most significant legal provision here which prosecutes the husband and other family members of the husband when they practice cruelty on a woman. This procedural law has its drawbacks including, if the police fail to entertain the complaint of the victim of cruelty or her relatives, or if the police is found to be indulged in taking bribes from the accused or the family members of the accused.

Anti-trafficking laws

The Immoral Traffic (Prevention) Act, 1956 is the primary law concerned with preventing prostitution and curbing human trafficking. The Act was initially named The Suppression of Immoral Traffic in Women and Girls Act 1956, in pursuance of India’s international commitment to ratifying the Convention for the Suppression of the Traffic in Persons and of the Exploitation of the Prostitution of Others (signed at New York on 9th May 1950). 

The Act primarily prosecutes those who are indulged in commercial sex-work, and in its Section 2(f) defines prostitution as “sexual exploitation or abuse of persons for commercial purposes”, which is in itself is a vague definition while considering the voluntarily sex-work which is not a criminal offence in India. 

It is the general view that prostitution is illegal in India but only a few of the sex-workers, and their customers know that voluntary sex-work is not illegal in India. Sex-work is conducted, or if the sex-work is being done as a result of any human trafficking, the same is a violation of provisions of ITPA. 

The Criminal Law (Amendment) Act, 2013, not only focused on controlling the menace of rape, but also other sexual assaults like human trafficking, and prostitution. Section 370 of IPC is the most significant penal provision which imposes punitive measures on those who forcefully, abet, or by any means associated with exploitation, commits the offence of trafficking, and are punished with rigorous imprisonment of not less than seven years but may extend to ten years. 

According to Statista, in 2020, over one thousand human trafficking cases were reported in India with over three thousand victims across the country, despite having such rigorous laws in IPC, and therefore the Trafficking in Persons (Prevention, Care and Rehabilitation) Bill, 2021 must be enacted to prevent the further menace of trafficking in humans, and provide the victims of trafficking with rehabilitation. 

What are the other areas which need a reformation in India

Legislative actions

The Parliament of India is the supreme authority that enacts laws presented before it by different representatives. But to pass an ordinary bill, a simple majority of members present and voting is necessary. However the process of passing a bill is decades old, and therefore, it needs reforms in such a way that the workings of parliament can take place efficiently, and consume less time. On average, it takes 261 days for a parliamentary law to come into force, and the average time a bill remains pending before the parliament is even more, and this long process not only consumes time and resources but also the people keep falling victim to vague laws.

Law enforcement

Law enforcement is considered one of the three pillars of a democracy, who’s primary job is to enforce law and order in the country. The police are not only responsible for enforcement of law and order in the country but also play a major role in every criminal case because only police have the authority to investigate, bring proof before the court, to arrest the accused, to ensure the protection of the victim, and other witnesses. 

Police are included in the State List of Schedule 7 of the Constitution of India. It is the duty and responsibility of the police to protect and serve, however, the police are themselves involved in corruption, custodial deaths, rape, forced unnatural sex, torture, stuffing beer bottles and chilly powder in private parts, etc. 

It is evident that police have been abusing the powers they have been granted by the procedural laws, and therefore, there is a need to amend these laws, which shall not only impose stringent punishment on police officers but also new laws which check the accountability of police must be enacted. 

It is evident that in certain cases, the police are not able to meet the expected quality of investigation and trial owing to minimal education qualifications and training, and therefore, most of the time, police are not able to learn the practical and legal aspects of how an inquiry and investigation must be done. Police also lack proper infrastructure, and inadequate salary which leads to custodial torture, and poor quality of work. 

Judicial process

The judicial process refers to the procedure undertaken by judges to deliver justice, which is further divided into two i.e:

Prosecution

The prosecution brings home the guilt of an accused in the court of law in criminal cases, the public prosecutor usually advises police to frame all the charges possible against the accused, so that the accused may not be able to get away from wrongful act he/she has done, however, it is important to note that this practice not only consumes the precious time of the court but also it is a burden on the already overburdened Indian judiciary. 

The current scenario is that even the public prosecutors are not doing their job with sincerity and are involved in bribery. Recently a Special Public Prosecutor was caught red-handed while accepting a bribe from a police officer in Orissa to settle a vigilance case registered against him.

Defense 

The defense usually plays dirty tricks to give the benefit of doubt to its client, and therefore, many times, the actual perpetrators get away from the punishment they should get. It shall be the duty of every officer of the court, to not undertake such practices which lead to a person getting away from criminal liability. The reforms are needed to prevent the false statements of the defense and the prosecution made to win their cases. 

Court

Courts are the most burdened in contemporary times, and therefore, the training of judicial officers must also be reformed so that they can operate their respective courts with less time and high efficiency, and therefore reform is needed in the training of judicial officers, with special emphasis on criminology. 

According to an article, around 56,69,960 cases are pending before all the High Courts in India, and around 65,331 cases are pending before the Supreme Court of India in the year 2021. 

Correctional institutes 

The correctional institutes are the last and most important part of the criminal justice system. When an accused is sent to prison, as an undertrial prisoner or a convicted prisoner, the main idea behind putting such a person to prison is not to punish the person in case he/she is an undertrial prisoner, or convicted for the first time, because there is still a scope left for rehabilitation.

The correctional institutes, in most of the cases, prisoners, and in cases of juvenile convicts, a rehabilitation home, where the accused is kept. The authorities present in such institutes play the most vital role in safeguarding the rights and interests of the convict, because, in case the convict is kept with a history-sheeter, or hardcore criminal, the chances of such person being rehabilitated or corrected are almost nil. 

Prison reforms

The prisons in India are not detention centers but they are correctional institutes that aim at rehabilitating the offenders of crimes, however, the practical aspect is that prisons in India lack proper infrastructure, where prisoners face sexual abuse, violence, torture, and extortion by other prisoners and the jail staff. 

According to the data of the National Crimes Record Bureau, in the year 2019, there are 1,44,125 convicts, 3,30,487 undertrial inmates, and 3,223 detenues in various jails across the country. There is an availability of 4,03,739 inmates in total in all jails in India, however, the number of inmates is 4,78,600, as of 2019, which reflects the overburden of inmates in prisons in India. 

Overcrowding, unhealthy living conditions, unequal treatment of prisoners in prison, low budget for maintaining health care, deficiency of legal assistance, custodial torture, and rape, are the most concerning parts when prisons in India are considered, and therefore, new reforms to check the functioning of jail authorities, and prisoners must be adopted. 

Suggested by the Ministry of Home Affairs in the year 2013, to use provisions of certain provisions of Code of Criminal Procedure, 1973 like the use of Section 436A of Code of Criminal Procedure, 1973, under which a prisoner during the investigation, inquiry, or trial, undergoes detention which exceeds one-half of the maximum period of imprisonment for which he is being tried, except for offences where punishment is death, such person shall be released by the court on his bond. 

Suggestions 

There is an urgent need to amend and reform the procedural laws of the Indian criminal system, especially those vague provisions, which are not only slowing down the process but also ceases the efficiency of the system. 

The laws which are not needed anymore, or are of no relevance must be repealed, and the laws under the Code of Criminal Procedure, 1973 must be made foolproof, and efficient, and amend laws which make the criminal process lengthy, slow, and ineffective because when justice is not delivered on time, due to the fallen criminal justice system of India, the victims are indirectly denied of justice. 

If the new criminal laws are enforced without any direction, it will only make the current scenario worse, by merely imposing heavy punishments on the perpetrators, and therefore, if the MHA intends to bring a reform in the system, there must also be awareness campaigns, and rehabilitation of first time convicted prisoners, instead of only detaining, and punishing them.

Conclusion

It is important to know what are the intentions and contents of the new criminal justice system reforms, concerning the statement made by the Union Home Minister Amit Shah. Apart from the straight intention to amend penal laws, and provisional laws driving the criminal justice system in India, it is significant that such amendments are made with a proper direction, and intention to reform the system.

However, the approach of the MHA must be cautious, or else the same shall attract vagueness of the laws which has always been a primary matter of concern in the criminal justice system. 

The laws must be advanced and must be well empowered to tackle modern times crimes, including cybercrimes. Apart from the advancement of the laws, the criminal justice system of India is lacking a better approach towards penology, criminology, and victimology.

References 


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How is the cloud security and privacy space evolving around the world

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This article has been written by Sumedha Baishya, pursuing the Diploma in Cyber Law, FinTech Regulations, and Technology Contracts from LawSikho. This article has been edited by Zigishu Singh (Associate, Lawsikho), and Smriti Katiyar(Associate, Lawsikho).   

Introduction

The use of cloud services is rising over the years and it has already crossed the $370 billion valuations in 2020, the COVID-19 situation has increased the need for cloud capabilities in corporate and organisational structure as companies are thriving to create a new remote work environment. With the evolution of cloud space and cloud computing a new challenge has emerged; Cloud security and privacy of data! Data security and privacy protection are becoming important for the future development of cloud computing technology in government, industries, and business. When we talk about Cloud security, it is more complicated than data security in traditional information systems, as the data is scattered in different machines all over the world which makes it difficult to identify the breach. This topic is a small endeavour to indulge ourselves in the concept of cloud security and how it has been evolving throughout time affecting the privacy of the data that are being stored.

What is cloud security?

Cloud security in its literal sense means cyber security that is dedicated to protecting cloud computing and its drawbacks. Thus, cloud security is a system that protects cloud computing, cloud environment, applications running in the cloud, and the data that is stored in the cloud.

Cloud security mainly consists of the following components:

·   Data security,

·   Legal compliance,

·   Identity and access management (IAM),

·   Governance (policies on threat prevention, detection, and mitigation),

·   Data retention (DR) and business continuity (BC) planning.

Data security and privacy in cloud computing have been further divided into the following categories:

·   Data integrity,

·   Data confidentiality,

·   Data availability,

·   Data privacy.

Data integrity 

In cloud computing data integrity means preserving information integrity by not allowing any unauthorised deletion, modification, and fabrication of the data. Considering the huge domain and large entities storing their data into cloud environments it is essential that only authorised people can access the data.

Data confidentiality 

As many people are now availing the feature of storing their data into cloud systems their private and confidential data must be safe. Unfortunately, breach of data confidentiality is becoming a  serious problem that this industry is facing.

Data availability

Data availability means, the extent to which the user’s data can be used or recovered when the cloud system is faced by any accidents such as hard disk damage, fire, and network failures occur, and how the users verify their data by techniques rather than depending on the guarantee by the cloud service provider alone. 

Data privacy 

In a cloud, privacy is a very important aspect that needs to be addressed as people and organizations use cloud services for storing their data and repeated attacks on data by ransomware have made it pivotal.

What are the different types of cloud services?

  • Software-as-a-service (SaaS) provides clients access to applications that are purely hosted and run on the provider’s servers. Providers manage the applications, data, runtime, middleware, and operating system. Clients are only tasked with getting their applications. SaaS examples include Google Drive, Slack, Salesforce, Microsoft 365, Cisco WebEx.
  • Platform-as-a-Service (PaaS) is also known as cloud application infrastructure services and includes hardware and software tools. Its use has been steadily rising as organizations are investing in modernising their ‘old school’ applications with cloud-native capabilities. The PaaS market is expected to grow 26.6 per cent in 2021, Gartner forecasts, stating that the growth is driven by remote workers needing access to ‘to high performing, content-rich and scalable infrastructure to perform their duties.’
  • Infrastructure-as-a-Service (IaaS)has been around  since the beginning of cloud services. It is also known as pay-as-you-go services as it is used for storage, networking, visualisation, etc.
  • Workstation-as-a-Service (WaaS), Traditionally, in a workplace an employee receives a company laptop over which they have full control, but which can only be used in its full capacity for part of the workday in that particular area. The use of this computer is dependent on on-premise applications like servers, workstations, and software. In response to this limitation, Workstation as a Service (WaaS) has emerged as a quickly growing cloud application.

WaaS is a type of application that gives employees full access to their information and other office applications at any time, from any device. It has everything needed to carry out office tasks including anti-virus software, backup capabilities, productivity apps, and accounting—already licensed and updated automatically. This gives employees freedom from physically connecting to their workstations, allowing them easy access to their work from wherever they are in the world. With the massive shift to remote work environments, we’ve witnessed in 2020, this will undoubtedly be an expanding area of cloud services.

  • Disaster-Recovery-as-a-Service (DRaaS), As most of the organisations are continuing to operate more digitally, the cost of downtime is costing a fortune. For most e-commerce companies, this downtime can be disastrous as sales depend on online access. A recent example of it will be the downtime of Facebook and its allies’ companies which hit a stop on 4.10.2021 and incurred an average of $6 billion loss.

With such incidents, stricter regulations are holding organizations legally responsible for the protection and care of customer data. Thus, the increased risk of operating online has caused some organizations to re-evaluate their disaster relief strategies and look into Disaster Recovery as a Service (DRaaS). This includes an automated disaster relief strategy that can respond to issues and breaches faster, reducing costs and liability.  

What are cloud environments?

Cloud environments are integrated models where one or more cloud services create a system to be used by the end-users and organisations. Some of them are:

  • Public cloud environments consist of multi-feature cloud services where the user shares the provider’s servers with other such users which helps in building a co-working space. They are usually third-party services run by the provider to give the users access online.
  • Private third-party cloud environments provide the users with exclusive use of the service on their cloud which is  mainly owned and operated by some single external provider.
  • Private in-house cloud environments as the name suggests are cloud service platforms that are operated by single-tenants(the organization using the services) from their own private data centre . The business that is handling the cloud service runs the environment by allowing a full configuration and setting up of every element.
  • Multi-cloud environments consist of two or more cloud services operating together. The bend can be in any form of private or public cloud services. The main focus of this service is to analyze risk mitigation, functionality features and other features that will add significantly to one’s cyber posse.
  • Hybrid cloud environments consist of a blend of onsite private cloud data or private third-party cloud with one or more public clouds. One of the advantages of a hybrid cloud environment is that when it is used in a well-integrated and balanced way it can help businesses scale up rapidly. The feature of scaling further and faster keeping at par with the public cloud’s innovative and flexible services without losing out on the higher cost efficiency, reaction speed and regulatory compliance that go hand in hand with the capabilities of the private cloud. 

How cloud security works and what makes it so important? 

Cloud security is the major issue that the information technology department is facing right now and thus the industry is trying to come up with new features every day. The cloud security measures work to accomplish the following:

·   Recovering data in case of data loss,

·   To give protection to the data and the network connectivity against any malicious theft,

·   Reducing the impact of software error,

·   Minimising human error by giving them the training to reduce data leaks.

As more and more companies are opting for cloud services in this online era and with remote work being the upcoming trend cloud services will only see an uprise. The question that has been already put in this discussion regarding the ‘Data security’ and the ‘Privacy space’ is haunting all the cloud service providers. The major problem that these companies face is that there is no parameter for cloud security, it is endless which makes it harder to attain its goal. With technological advancement, the hackers have also gained access to these systems and that is why strong software applications are required to safeguard the data.

This brings us to the next topic of discussion, how far has law evolved in respect to the swift changes in the cloud security and privacy environment?

Privacy concerns on cloud security

To protect the user’s sensitive data different legislation has been put in place to protect the sensitive data.  Legislative measures like General Data Protection Regulation (GDPR) has been adopted by the European Union, California Consumer Privacy Act (CCPA) by California, Canada has enacted the Consumer Privacy Protection Act (CPPA), India is coming up with its Personal Data Protection Bill and many other countries are joining the war through their enacted regulations. Each of these regulations does its duty in protecting the data by drawing some limitations to the usage of data, the kinds of data that can be shared, and the penalties for not abiding by such regulations.

This has brought a positive effect in terms of protecting users’ data but the stringent effects of these legislations are yet to be seen. The presence of such rules creates a legal obligation for these cloud service providers to obey them and uphold data integrity. There is mandatory training that has to be provided to their employees handling data of customers to prevent leakage of information.

The huge fines that these companies incur for not following the regulations have pinpointed the need for awareness in the field of privacy laws. For instance, in the EU a total amount of $9 Billion has already been spent to prepare GDPR regulation and employment of  500,000 data protection officers which indicates the magnitude of this issue.

Evolution of cloud security and privacy space 

With the advent of cloud computing, big tech companies made use of cloud storage for keeping their customer’s data as it was cost-effective, with no storage issue, and above all could be accessed from any part of the world. The storage of data brought the evident question of security and privacy. Over the last 10 years, everyone has understood the importance of cloud systems and also the importance of strengthening their security. That is why 50% of all corporate data is stored in the clouds. When such a huge amount of data is stored, it is evident that the privacy of such confidential and sensitive information will have to be looked into. But unfortunately, with the evolution of technology,  the growth of privacy checks has not been able to keep up. Privacy space has been heavily compromised in the past few years, be it in the form of ransomware attacks or leakage of data in the dark web by hackers or because of any system bug, it is the user’s data that has gone into the wrong hands. Many of the users had to pay heavily for such a breach of privacy. Though the laws are coming to rectify the situation and to hold companies accountable so that remedy can be provided to such victims, the progress of these laws has been very slow.

Cybercrime in cloud service 

There have been multiple data breaches in the past couple of years, ranging from Amazon, PayPal, Air India, Dominos, etc. There is a common trend in all of these data breaches that is the data is being sold on the dark web via access to the cloud logs in which it is stored.  

Cloud computing enables anytime, anywhere access of information from centralised data center repositories. It is needless to say that underlying resources are not always controlled by the customers and vendors are responsible for managing any vulnerabilities prevailing in the system. On the other hand, users of cloud computing are expected to keep their data safe against cyber threats such as ransomware that use bugs and any technical fault existing in the software application to access and control sensitive data stored in data centres.

Two factors have contributed to cloud data centres  becoming popular targets of ransomware and crypto-mining:

1. Absence of awareness among users regarding security measures,

2. Lack of visibility and control into cloud infrastructure.

Cybercrime in the cloud had cost the U.S. $7.5 billion in 2019, compromising government agencies, schools, healthcare institutions, and SMB firms using cloud-based data storage solutions.

Conclusion

Cloud services are going to see a boom in the next few years and rightly so because of the innumerable number of advantages that it serves to the IT and e-commerce companies even the individual persons are not devoid of their use. However,  with this rapid growth, a huge gap has been created between the cloud environment and the security and privacy of the data. While many companies and service providers have been taking steps to mend this gap, rapid cyber-attacks have raised a serious question of how safe and secure are the data of the users which are often very sensitive and confidential. It is quite evident that the privacy and data protection laws are unable to change along with the evolution of the technology which in turn has given a safe passage to such cybercriminals. However, in recent days there have been many exemplary judgments where the companies have been held responsible for not adhering to the rules and they also had to pay huge fines. To bridge this gap, both cloud service platforms and privacy laws must go hand in hand as cloud security can only be strengthened by updating software and other technical up-gradation, whereas the laws will protect the victims of such attacks by giving them remedy and punishing the accused appropriately. The anonymity in the cyber world makes it quite impossible to trace such criminals, but, with the advent of technology and by clinging to the legal framework the solution to this problem is not far away.

References


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Section 372 of CrPC : the need to allow a victim to seek enhancement of punishment

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This article has been written by Shohom Roy, from Symbiosis Law School, Noida. This article explains the reason behind the inability of a victim to seek enhancement of sentence under Section 372 of the Code of Criminal Procedure, 1973.

Introduction

The Indian criminal law framework has been centred around the rights and liabilities of the accused while disregarding the role of the victim in the delivery of justice. Under the Code of Criminal Procedure, 1973, the accused has been granted certain rights and protections like the presumption of innocence, including the standard of ‘proof beyond reasonable doubt’, the right against self-incrimination, the right to legal aid, the right to a free trial, the right to legal defence, etc. The Constitutional safeguards under Article 20, Article 21, and Article 22 of the Indian Constitution have played a major role in protecting the rights of the accused. However, the legislature has failed to address the need to protect the rights and interests of the victim. Efforts to strengthen victim’s rights in India have been concentrating around the concept of ‘Restitution’ or compensation for the losses or damage suffered by the victim.

While Indian criminal law jurisprudence acknowledges that a crime is an offence against society at large, it minimizes the options available to a victim. Valuable insights like the 154th Law Commission of India recommending the implementation of a compulsory justice scheme through victim compensation and the Justice Malimath Committee 2003, advising the enactment of separate legislation to safeguard the rights of the victims has played a major role in evolving victim rights in India. However, despite various amendments, the efforts of the police, prosecutors, judges, and the legislature in protecting victim rights have been inadequate.

Indian perspective of a crime victim

The Code of Criminal Procedure (Amendment) Act, 2008, defined a victim under Section 2(wa) as an individual who has suffered any loss or injury due to the actions or omissions of the accused person. The definition of a victim encompasses a person’s guardian as well as legal heirs. While deliberating on a certain issue, the judiciary follows the literal rule of interpretation concerning the definition of a victim. Hence, under Section 372 of the Code of Criminal Procedure, the right to appeal against acquittal is conferred on the victim only. 

The Indian definition of the victim is narrower as compared to the United Nations approach in the Declaration of Basic Principles of Justice for Victims of Crime and Abuse of Power, which states that a victim is a person who individually or collectively suffers a physical or emotional injury, economic loss or substantial violation of fundamental laws due to the acts or omissions of the accused that are in contravention with the criminal law framework of the Member States. The international definition of a victim also includes a person who suffers injury due to another’s criminal abuse of power. The UN declaration passed in 1985, recognizes the four types of rights and entitlements of victims of crime as:

  • Access to justice and fair treatment
  • A right to compensation
  • Restitution
  • Personal Assistance and support services

The provisions that are presently effective under the Indian Criminal law seem to be inefficient in providing these rights to the victims. The justice system seems to only assure compensation to the victim at the discretion of the judge with limited access to justice and fair treatment.

Victim’s right to appeal

The right to appeal is one of the basic human rights available to the people living in a civilized society. It flows from the principles of natural justice and substantive rights which construe a right to the substance of being human in contrast with a procedural right. The substantive rights of victims were largely ignored in the Indian judicial system. Originally, the Code of Criminal procedure, 1861 was devoid of any provisions allowing appeals against an order of acquittal. The State was given the right to appeal against the order of acquittal by any lower courts under the original or appellate jurisdiction of the High Court through Section 417 of the Code of Criminal Procedure, 1898. The 41st and 48th Report of the Law Commission of India recommended restricting the government’s right to appeal against an acquittal order by introducing the concept of ‘leave to appeal’. The ‘leave to appeal’ provision conferred discretionary powers on the High Court to allow or refuse an appeal against an acquittal order by a lower court.

The parliament enacted the Code of Criminal Procedure, 1973, and implemented the recommendations of the Law Committee’s reports. The insertion of Section 378(3) restricted the right to appeal against an acquittal order without the permission of the High Court. Section 378(4) allowed the State Government to file an appeal with the consent of the complainant only if the special leave to appeal was granted by the High Court. Section 372 of the Code of Criminal Procedure mandated that no appeals against the decision of a Criminal Court could be maintained without the consent of the High Court. Therefore, the Indian legislature failed to acknowledge the diminished rights and options available to a victim after a criminal proceeding.

The Code of Criminal Procedure (Amendment) Act 2005, introduced various changes in the legislation. However, despite the Supreme Court’s recognition of victim’s rights as well as the evolution of international jurisprudence regarding the rights of the victims of crimes, the legislature failed to introduce provisions permitting the victim to appeal against the acquittal of an accused. The Amendment allowed appeals against acquittals in the Court of Session without any leave to appeal. Section 377 of the CrPC was also amended to allow an appeal on the ground of inadequacy of sentence. All these amendments were intended to check the abuse of power and restrain frivolous acquittals.

The legislature introduced certain amendments in the Code of Criminal Procedure on the recommendations of the Committee on Reforms of the Criminal Justice System (Justice Malimath Committee) through the Code of Criminal Procedure (Amendment) Act, 2008. Some of the salient provisions of the Act that creates room for victim rights in the Indian criminal framework are:

  1. Section 2(wa) defines a victim and extends the definition to include the victim’s legal heirs and guardians.
  2. Proviso to Section 24(8) allows the victim to appoint a legal practitioner to aid the public prosecutor with the permission of the Court.
  3. Proviso to Section 26(a) mandates the offences covered under Section 376(A) to 376(D) of the Indian Penal Code, 1860 would be subjected to trial in a court of law usually presided by a woman judge.
  4. Proviso to Section 157(1) provides that the statement of a rape victim be recorded at the place of residence of the victim or a place of her choice, by a woman police officer, in the presence of any parent, guardian or social worker of the area.
  5. Section 173(1-A) mandates that investigation must be completed with three months from the date of receipt of information in a case involving child rape.
  6. Section 357-A establishes a victim compensation scheme for compensation to the victim or his dependents. 
  7. Section 372 allows the victim to appeal against an acquittal order, a conviction for a lesser offence or inadequate compensation given by the court.

Legislative action

The legislature recognized the flaw in the criminal justice system that allowed influential, rich, and powerful people to threaten or induce witnesses to turn hostile. The victim has a direct nexus with the damage caused to him whereas the society suffers from a remote effect. The need for certain rights and compensation for the victims would ensure the efficacy of the criminal justice system. They also acknowledged the dearth of options available to the victims who are the worst sufferers in a crime. The right to a fair trial is inherent to the fundamental right to live with dignity and honour under Article 21 of the Indian Constitution. Therefore, the Code of Criminal Procedure (Amendment) Act, 2008 cures the victim’s limited right to appeal by allowing an appeal against an acquittal as well conviction for a lesser offence.

The law also allows the victim to appeal against an order on the grounds of inadequate compensation. This legislative action was taken after the infamous Best Bakery case, in which the Supreme Court criticised the public prosecutor for trying to help the accused. The law recognizes that the State might have an ulterior motive in a trial and may be reluctant to prosecute the accused due to political rivalry, corruption of people in power, etc. Therefore, it allows the involvement of third parties such as the victims to appoint their legal counsel who would represent their interests in a trial. This leads to the proper functioning of the legal regime and ensures that a person is not exploited and denied justice.

Judicial opinion

In the recent case of Parvinder Kansal vs State of NCT of Delhi (2020), the accused was found to be guilty of the charges of kidnapping, murder, and destruction of evidence under Section 364A, Section 302, and Section 201 of the Indian Penal Code,1860. The father of the deceased boy sought an enhancement of the sentence imposed on the convict by the Trial Court before the High Court of Delhi. However, the honourable High Court dismissed the contention on the premise that the victim does not have the right to appeal for the enhancement of sentence of life imprisonment to a death penalty under the relevant provisions of the Code of Criminal Procedure.

The Apex Court upheld the High Court’s decision while establishing that under Section 372, the grounds for appeal by the victim are limited to the acquittal of the wrongdoer, a conviction for a lesser offence, or the imposition of inadequate compensation. Therefore, even if a Trial Court penalized the accused by a token sentence or a fine, the victim does not have any legal recourse to file an appeal. The government is empowered under Section 377 to seek enhancement of the sentence. The law subtly differentiates between conviction and sentence. While the former is the judicial process of establishing the guilt of the accused, a sentence is an actual punishment conferred upon the guilty.

This legislative oversight denying the right to seek enhancement of a sentence seems to defeat the entire purpose of promoting victim rights in criminal proceedings. The judges in the aforementioned case have relied on a literal interpretation of the constitutional text to establish that the remedy of appeal is a creation of a statute. Therefore, without an amendment to the existing legislation or the introduction of any new laws by the legislature, the judiciary is bound by the provisions of the effective legislation. A similar stance was taken in the case of the National Commission for Women v. State of Delhi and Anr. (2010), to dismiss the appeal on the grounds of lack of legislative clarity allowing the victim to seek enhancement of the sentence. 

In another case of Mallikarjun Kodagali vs The State of Karnataka (2018), the Supreme Court had stressed the importance of interpreting the rights given to the victim under Section 372 of the Code of Criminal Procedure in a liberal, realistic, progressive manner. The Court also relied on the UN Declaration of 1985 to establish that the victims along with the state have the right to appeal against the acquittal of the accused. This included the right to appeal against the conviction for a lesser offence like reducing the charge of murder to culpable homicide. However, the right to seek an enhancement of the sentence given after conviction of the accused rests with the State only. Various developments have taken place in victimology and criminology as seen from the cases of Rekha Murakha vs. State of West Bengal and Anr (2019) and Ram Phal vs State & Ors (2015), in which the courts have relied on the State of Objectives and Reasons of the Code of Criminal Procedure (Amendment) Act, 2008 to ensure a fair trial and delivery of justice. However, no attempt has been made by neither the judiciary nor the legislature to cure this anomaly of not allowing the victim to seek enhancement of a sentence under Section 372 of the CrPC. 

Conclusion

The absence of victim-oriented legislations and judicial pronouncements has handicapped the development of victim rights in India. Although victims are the actual sufferers of a crime, the government is accorded with more rights and powers in comparison to the victims. Paying heed to the demands of the victims and allowing them to play a major role in the criminal proceedings is the need of the hour.

References


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Arbitrability of insolvency disputes in India

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This article has been written by Sai Manoj Reddy. L, pursuing the Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting from LawSikho. This article has been edited by Zigishu Singh (Associate, Lawsikho), and Smriti Katiyar(Associate, Lawsikho).  

Introduction

We all know that insolvency proceedings are non-arbitrable in India as they are the proceedings in rem and involve the rights of third parties. But if an issue arises when there is an application for institution of insolvency proceedings and an application to refer the same dispute to arbitration, then what happens in such cases? In this article, we will be answering this issue based on the latest judgment by the Supreme Court in Indus Biotech Private Limited v Kotak India Venture Fund. 

Arbitrability of disputes in India

In India, even though we have a good Arbitration Act, it is being amended often to make India an arbitration-friendly country, there is no express definition or categorization of what kind of disputes are non-arbitrable. The jurisprudence and guidance regarding this topic have largely been through various judicial decisions by the apex court of the country. The judgement in Vidya Drolia v Durga Trading Corporation pronounced by the Supreme Court in December 2020 is the latest and most comprehensive one in determining what kind of disputes are non-arbitrable.

The Supreme Court in this case was required to determine the arbitrability of the disputes between a landlord & tenant which are solely determined in accordance with the Transfer of Property Act. Earlier a two-judge bench in Himangni Enterprises v Kamaljeet Singh Ahluwalia had decided this issue in negative in 2017. Later in 2019, a different two-judge bench in the Supreme Court disagreed with the ratio laid down in the Himangni Enterprises case and referred the case to be decided by a larger bench which led to the judgment in the Vidya Drolia case. The Supreme Court in this case has framed two main issues to be answered which are as follows:

  • The meaning of the word non-arbitrability and when the subject matter of the dispute is not capable of being resolved through arbitration.
  • The conundrum – ‘who decides’ – whether the court at the reference stage or the arbitral tribunal in the arbitration proceedings would decide the question of non-arbitrability.

To address these issues, the Supreme Court has come up with a fourfold test to determine what is arbitrable and what is not. The Supreme Court held that when the subject matter or cause of action in any dispute:

1. Relates to actions in rem that do not pertain to subordinate rights in personam that arise from rights in rem;

2. Affects third party rights, have erga omnes effect, require centralized adjudication, and mutual adjudication would not be appropriate;

3. Relates to the inalienable sovereign and public interest functions of the State; and

4. Is expressly or by necessary implication non-arbitrable under a specific statute.

In simple words, if an award is to be granted in a dispute against the world (Right in rem) or if their award affects third party rights or a sovereign function of a state or if it is expressly made clear in any statute that the dispute is non-arbitrable then in all such cases the disputes are non-arbitrable and have to be decided by the public forums (Courts/Tribunals etc.) only.

Arbitrability of insolvency disputes and major issues

In India, insolvency disputes are considered non-arbitrable because the resolution of an insolvency dispute involves the rights of third parties. This position has been created through many judicial decisions like Swiss Ribbons Private Limited v. Union of India, P. Anand Gajapati Raju v. PVG Raju and Booz Allen and Hamilton v. SBI Home Finance Limited where the courts have made a distinction between the right in rem and right in personam and decided that insolvency disputes are non-arbitrable. In simple words, when the insolvency proceedings begin against a person, all the other legal proceedings against such person will have stayed till the disposal of the insolvency proceedings which includes any pending arbitration proceedings as well.

The interplay between insolvency and the arbitration proceedings became more prominent in recent times. This is mainly because of the enactment of the new Insolvency & Bankruptcy Code in 2016 (IBC) which changed the entire regime of insolvency disputes in India. With this change in insolvency law, it can be seen that India is still at the nascent stage in incorporating this new insolvency code and also there are no provisions in the code that deals with the impact of the insolvency proceedings on the arbitrations except for the imposition of the moratorium. Similarly, there are no provisions in the Arbitration and Conciliation Act, 1996 that deal with the impact of the corporate insolvency resolution process (CIRP) on arbitrations.

It is also interesting to note that both the IBC, 2016, and the Arbitration Act, 1996 have certain overriding provisions. As both of these are special statutes a new issue needs to be decided as to which statute will prevail over the other. All these issues have been answered in the latest judgment by the apex court in Indus Biotech Private Limited v Kotak India Venture Fund. 

Factual background and judgment of Supreme Court in the Indus Biotech case

In 2007, Kotak Venture Fund (Kotak) had subscribed to Optionally Convertible Redeemable Preference Shares (OCPRS) issued by Indus Biotech Pvt. Ltd. (Indus). Later Kotak decided to convert the OCPRS into equity shares and a dispute arose between Indus and Kotak regarding the valuation and calculation of OCPRS into equity shares. Indus had referred the dispute to arbitration and Kotak has filed an application under Section 7 of the IBC initiating Corporate Insolvency Resolution Process (CIRP) before the NCLT against Indus. Challenging this, Indus had contended that the dispute was bound to be referred to arbitration as the scope of dispute resolution clause covers the dispute raised. Indus had further argued that the current application under Section 7 is a ‘dressed-up’ application filed by Kotak to circumvent the arbitration proceedings and is a pressure tactic to extort money from Indus.

The NCLT  applied the ‘test of arbitrability’ in this case and observed that the judicial authorities have to refer the matter to the arbitration if the dispute falls within the scope of the arbitration agreement/clause. Observing that the disputes related to valuation and calculation of converting the OCPRS and all other disputes in the current case falls within the scope of the arbitration agreement/clause, the NCLT has passed the order in favour of Indus and referred the matter to arbitration.

Aggrieved by the decision of the NCLT, Kotak has filed a special leave petition before the Supreme Court. The Supreme Court allowing the special leave petition filed by Kotak held that the insolvency proceeding stops being arbitrable from the point when the application under Section 7 of IBC for initiation CIRP is admitted by the NCLT. Further, the Supreme Court has observed that there is nothing wrong in NCLT dismissing the Section 7 application and the mere filing of the petition and its pendency cannot be construed as a trigger for an insolvency proceeding to be treated as proceedings in rem and only after the admission of such application the matter becomes non-arbitrable.

The Supreme Court further, without going into the issue regarding whether the NCLT has the power to refer the parties to arbitration has observed that the role of NCLT is to decide based on the material before it that, whether there is any default and debt payable by the company. If there is a default then naturally the application under Section 7 of IBC will be admitted and the matter becomes non-arbitrable. In case if there is no default then the application will be dismissed and the parties can go to arbitration. Thus the Supreme Court has upheld the dismissal of the Section 7 application by the NCLT but observed that the NCLT has to first decide the admissibility of the Section 7 application without looking if a section 8 application is pending or not. The admission or dismissal of the Section 7 application will by itself be construed whether the dispute is arbitrable or not.

Further, the Supreme Court while deciding the issue regarding the conflict between the non-obstante clause under Section 5 of the Arbitration Act and the overriding effect under Section 238 of the IBC stated that, as both are the special statutes the one which is enacted at a later date will prevail over the other. 

Analysis

This by the apex court makes it clear that once insolvency proceedings are admitted then the dispute becomes non-arbitrable. The biggest mistake made by the NCLT, in this case, was to refer the matter to arbitration when the correct thing to do would have been to see whether there is any default on part of Indus and if yes, then continue with the CIRP or else dismiss the case. Dismissing the Section 7 application under IBC based on the pendency of the Section 8 application under the Arbitration Act by the NCLT is not correct in my opinion. 

Conclusion

The legislative intent behind enacting the Arbitration Act and amending it regularly is to make India an arbitration-friendly nation. The IBC is not meant to be a replacement for a recovery suit, rather it is enacted to help the insolvent and struggling companies to get back on their feet, at the same time balancing the interests of creditors. The judgment in the Indus case makes it clear that only after the admission of the CIRP application, the dispute becomes non-arbitrable. With the onset of COVID-19 and suspension of IBC for more than a year, it will be interesting to see the developments in the progress of insolvency proceedings and their impact on arbitration proceedings. There needs to be a balance between the interests of the corporate debtors and the parties who are proceeding with arbitration to resolve their disputes with such corporations. With the huge financial stress and failing business environment due to COVID-19, we will see an increase in the number of cases where arbitral proceedings will be marred due to the onset of insolvency proceedings against the corporate debtors and moratorium on all the arbitration proceedings.

References


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Minority shareholder rights

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This article has been written by Sanjana Rao pursuing the Diploma in Cyber Law, FinTech Regulations and Technology Contracts from LawSikho. This article has been edited by Smriti Katiyar (Associate, Lawsikho). 

Introduction 

Due to the increasing shift of focus on corporate governance, there has been a notable attempt by the Ministry of Corporate Affairs to protect the interests of Minority shareholders by including comprehensive provisions in the Companies Act of 2013 as compared to the Companies Act of 1956. The Companies Act 2013(CA,2013), is more comprehensive and well thought out for the benefit of minority shareholders and strives to promote caution and transparency in the overall functioning of a company.  Minorities commonly suspect that the business is not being handled correctly but lack facts to back up their concerns. Evidence is required for all claims. Controlling shareholders and directors frequently refuse to release information voluntarily. Though there are some inconsistencies and lacunas in this regard, Indian corporate governance has definitely come a long way in protecting minority shareholders’ rights. Having said that, it is on the part of the management and shareholders to hold their end of their bargain with efficiency and avoid abuse of remedies or powers conferred upon them.

Difference between CA, 1956 and CA, 2013 with regard to Minority rights

Companies Act of 1956 granted remedial rights to minority shareholders under Section 397, 398, covering the concepts of oppression and mis-management. Under this Act, Company Law Board was the authorised authority to deal with these matters and the Central Government had powers to waive off eligibility requirements in certain cases. However, under CA 2013, NCLT is the authorising body and it has power to waive off eligibility requirements in certain cases. It is also vested with additional rights under Section 242. Introduction of class action suits has facilitated pellucid decision making by the management, thereby increasing the protection to all classes of shareholders. CA, 2013 provides for the same in it’s Chapter XVI “Preventions and Oppression of Management” , under Section 241 – 246.

Sections under Companies Act, 2013.Explanation
Section 214Combination of Sections 397 and 398 of CA,1956; Provides protection and remedies to minority shareholders against oppression or mismanagement of majority shareholders.
Section 242Powers of the Tribunal for applications filed under 241,includes removal of directors, restrictions on transfer and allotment of shares, imposing costs, recovering of undue gains.
Section 243Consequences of an order passed by the Tribunal in such cases.
Section 244Right to approach the Tribunal under 241; requirements.
Section 245Class Action suits can be instituted against a company or its auditors, eligibility and admissibility by depositors as well as
members.
Section 235Power to Acquire Shares of Shareholders Dissenting from Scheme or Contract Approved by Majority
Section 236Purchase of minority shareholdings
Section 151Listed companies to have one director elected by small shareholders.

Minority shareholders have certain contractual as well as statutory rights. It includes:

  1. Oppression and management-

Any member or members holding at least 10% of the company’s issued share capital, or a minimum of 100 or 10% of the total number of members, whichever is less, have the right to approach the Tribunal (NCLT) if,

  1. the company’s affairs are being conducted in a way that is either: harmful to the public interest or the company’s interests; or oppressive to any of the company’s members.
  2. any mismanagement; changes that would materially affect the management of the company so that the affairs of the company have been conducted in a way that is prejudicial to the interests of its members or the company itself.
  3. Breach of any fiduciary duty of majority shareholders.

Misusing management control, depriving dividends, making personal profits are some of the examples.

In SP Jain v. Kalinga Tubes, Supreme Court held that the alleged oppressive action must involve a lack of fair dealing and probity with a member about his proprietary rights as a shareholder. As a result, the act in question must harm the petitioner in his capacity or character as a member or shareholder, not in any other role such as director or creditor.

Similar to this, in Amalgamations Limited & Others v. Shankar Sundaram & others, it was decided that to allege oppression or mismanagement, there has to be legal relation between the aggrieved and the company, and therefore, a shareholder of a holding company cannot claim remedy for oppression by its subsidiary company.

On the contrary, in Vikram Bakshi v. Connaught Plaza Restaurants Limited, Vikram Bakshi cried oppression when he was not re-elected as the managing director and sought relief for the same under 397 of CA,1956. Even though it was not filed by him within the capacity of a shareholder, NCLT not only maintained the claim but also ruled in his favour by stating that the end result of the actions of the company was oppressive and restored his position as MD.

Tracing the inconsistency in judgments in cases filed under these sections, it is safe to conclude, what amounts to “oppression”, “prejudice” or even maintainability, is for the Tribunal to decide, depending on the facts and fundamentals of each case.

  1. Requisition of general meeting- A minimum of 10% of the company’s voting shareholders can request the board of directors to call an extraordinary general meeting. If the board of directors fails to summon the meeting, the shareholders have the authority to call it themselves. They also have the right to vote at these meetings.
  1. Cancel variation of rights- Approach the tribunal for cancellation of variation of rights attached to their shares, if they have not consented to it.
  1. Class action suits– A class action suit is a legal action in which a group of people with a common interest can file a complaint with the NCLT if they believe the company’s affairs are being managed in a way that is harmful to the company’s, members’, or depositors’ interests. Under CA, 13, section 245, requirements to file a class action lawsuit are as follows: There must be at least 100 members, or 5% of the overall number of members (whichever is less) or any member or members owning at least 5% of an unlisted company’s issued share capital, or at least 2% of a listed company’s issued share capital.

Class action suit found its importance during the Satyam Scam. American investors were able to recover almost 151 million from Satyam and PWc but Indian investors had to bear the brunt due to the lack of regulations in this regard. Acknowledging the disparity in treatment of security holders in India and the United States, the Ministry of Corporate Affairs drew attention to class action litigation, which eventually found a home under section 245 of the new Companies Act.

  1. Right to alter or restrict changes in Company’s share capital in instances of unconsented variation of rights, wrongful dilution of shareholding of minority shareholders.
  1. Contractual rights under the shareholders’ agreements- The minority shareholders of a company can incorporate certain provisions in the shareholders’ agreement to restrict changes or alter the company’s share capital like affirming voting rights, restriction on transfer of shares, pre-emptive rights and so on. Rights like board representative, veto and departure rights can also be included. These provisions are also incorporated in the articles of association of the company.
  1. Rights during amalgamation and mergers- Some of the rights include pre-emptive rights, drag along with payment rights, anti-dilution provisions, shotgun clauses, co-sale or tag-along rights. These rights are usually included only after negotiating with the companies for incorporation of these additional protective clauses.

In re Elpro International Limited, the court established that, under the listing agreements, stock exchanges have the authority to take action if they believe that any securities law has been violated in any business deal. Therefore, a squeeze-out deal was refused by Bombay Exchange in the view of it being prejudicial to the company’s minority shareholders (silence of minority shareholders to the deal was treated as acceptance of the proposal).

  1. Right to appoint small shareholders director- Under 151 of CA, 2013, small shareholders in a listed company can elect a “small shareholders’ director” via an ordinary resolution. He/she will be an independent director, appointed for a single period of three years. *Small shareholders – where the nominal value of total shares held by one shareholder does not exceed rupees 20,000. It is imperative to note that small shareholders are different from minority shareholders. They come under the purview of minority shareholders but not vice-versa.
  1. E-voting rights- Section 108 of CA, 2013, mandates certain companies to offer E-voting facilities to shareholders. This promotes active participation and exertion of power by minority shareholders.

 Notable case laws

  1. Tata Consultancy Services Limited v. Cyrus Investments Pvt. Ltd. & Ors

In this infamous case law, one Mr. Cyrus Mistry(Minority shareholder) was removed from the position of non-executive director and dictatorship in various Tata groups, by a resolution passed by the Board of Tata Sons(Majority shareholders). Mr. Mistry, who had a total of 18.36% share in Tata Son, alleged oppression and prejudice by the Board and approached the Tribunal under Section 241, 242 and 243 of Companies Act, 2013. In this petition, he sought almost 21 remedies, some of which included reinstating him as Executive Director, declaring Tata Sons as public limited. The case went back and forth between NCLT and NCLAT, resulting in NCLAT deciding in favour of Mr. Mistry. An appeal was preferred by Tata with the Supreme Court, which not only dismissed the order of NCLAT but also questioned its powers in passing those orders.

Some of the key observations made by the Supreme Court:

  1. To have adequate representation in the board, shareholders need to enter into contractual agreements, since they are not automatically entitled to a seat on the company’s board.
  2. Clear difference between small shareholders and minority shareholders. Minority shareholders do not have the right to claim proportionate representation.
  3. Removal from the position of Director of a company is not sufficient reason to claim remedy unless it involves clear cut oppression or is prejudiced to the interest of the members.
  4. Minority shareholders cannot call for winding up of the company when there is a mere lack of confidence between them.
  5. When deciding a case under Section 241, the court can only consider past or current conduct. A Section 241 complaint cannot be used to investigate fear of future misconduct resulting from the company’s Articles.
  1. Union of India v. Delhi Gymkhana Club

In this case, the Government of India filed a case for oppression and mismanagement under Section 241(2).

Key takeaway:

The term ‘public interest’ cannot be interpreted to mean all Indian nationals. It would be sufficient if the rights, security, economic well-being, health, and safety of even a small segment of society – such as candidates seeking membership in the category of common citizen – were jeopardized.

Case laws regarding power of the Tribunals

In Deloitte Haskins & Sells LLP v Union of India, NCLAT allowed the Central government to impeach the auditors of a company in case of mismanagement which was prejudicial to the public interest, under Section 241(2) of CA, 2013.

In Smt. Smruti Shreyans Shah v. The Lok Prakashan Ltd. & Ors, the NCLAT held that the Tribunal can issue interim orders under Section 242 if a prima facie case is made out.


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Understanding data protection under cyber laws through the case of Pune Citibank Mphasis call center fraud

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This article has been written by Kezia Shaji pursuing the Diploma in Cyber Law, FinTech Regulations and Technology Contracts from LawSikho. This article has been edited by Smriti Katiyar (Associate, Lawsikho). 

Introduction

We live in a world where the internet rules every little action of ours. Although recently, cyber laws have slowly started evolving, the increased human dependence on technology has created an instance where the need to have stricter cyber laws in place has become a dire necessity. If this is not prioritized, people will be subjected to huge risks where their personal and sensitive information might become available to the public. This constitutes cybercrime and many such offences that don’t come to light since the victims don’t file a complaint. This could be due to the fear of character assassination or lack of awareness as to how to go about something of that sort. In this article the author wants to shed some light on data protection under cyber laws through a case law. 

Data protection in Indian context

Data protection is the process that is used to secure the privacy of the users’ personal and sensitive information. Data protection is very vital for organizations that collect or store the personal details of customers. It is also referred to as information privacy or data security. In India, it is estimated that the digital economy will reach a valuation of around $1 trillion by the year 2022. Therefore, the need to create standalone legislation to regulate data protection is more prominent than ever before. This will attract a lot of global entities who also need to comply with the Data Protection Laws that the government intends to implement. However, India has come up with a personal data protection bill that still needs approval from the parliament. 

For understanding Data protection closely, let us refer to case law :

The Pune Citibank Mphasis Call Center Fraud Case

Facts 

In the year 2005, $3,50,000 were fraudulently transferred from four US citizens who had their account in Citibank into a few bogus accounts also based in the US. The dishonest act was carried forth by a few employees of the call centre. They first made an attempt to win the confidence of the customers by pretending to be redeemers who could help the customers come out of some difficulties and obtain their PIN.  They went on to use these numbers to transfer the money to some bogus accounts committing fraud. This involved three employees of Mphasis (Ivan Thomas, Siddharth Mehta, and Stephen Daniel) and a few other outsiders. They carried on the crime by identifying the loopholes in the Mphasis system.

Legal provisions applicable to the Issue 

The IT Act, 2000 –

  • Section 43(a) – if any person without the permission of the owner; who is in charge of a computer, computer system or computer network; 
  1. Accesses or secures access to such computer, computer system or computer network
  • Section 66 – If any person dishonestly or fraudulently, does any act referred to in section 43. He shall be punishable with imprisonment for a term which may extend to three years, or with a fine which may extend to five lakh rupees or with both.

Analysis 

This case raised the issue of data protection since it involved unauthorized access to the private electronic account space of the customers. Therefore, it was held that the offence should be tried under various statutes such as the IT Act and IPC since India doesn’t have a separate statute to accommodate data protection but is widely covered under the above-mentioned other statutes. Therefore, the accused were charged with forgery, cheating, conspiracy and breach of trust based on various sections under the IPC and the IT Act. Further, the damages that are to be paid to the customers through which the adjudication process could also be invoked. 

Court’s decision 

The two main issues that were to be addressed in this case were whether this offence constituted a cyber-crime and secondly whether section 43(a) – damage caused to a computer without the consent of the owner, and section 66 – computer-related offence under the It Act, 2000 was applicable.

The court held that since the act involved unauthorized access to the electronic accounts of the customers, it fell under the ambit of cybercrime and was to be dealt with by the IT Act. It was also held that since it involved employees of Mphasis call centre and therefore must have memorized the numbers and that the money was transferred using the society for worldwide interbank financial telecommunication.  The accused was charged under section 43(a) and section 66 of the IT Act, 2000 and also under Sections 420, 465,467 and 471 of the IPC, 1860.

The Pune Citibank Mphasis Call Center Fraud highlighted the importance of having stricter data protection laws in India so that cybercriminals could be dealt with in a stricter manner. The New Personal Data Protection Bill came into existence. 

The New Personal Data Protection Bill and what does it include?

The new PDP includes provisions to seek the prior consent of the individual’s data that are to be processed by the companies and also talks about data localization requirements and also lays down on the requirement of appointing data protection officers within each organization.  Companies that come under the telecom or finance sectors are required to keep the customers’ personal data highly confidential and use them only when required and with the prior knowledge of the customer. The PDP bill, post enactment, would repeal Section 43(a) of the IT Act. However, the act has still not been put into implementation. The bill also talks about creating a data protection authority in India that would work towards the interest of the data users and also work to prevent any data privacy infringement.

The bill also specifies the concept of a data fiduciary and data processor which is the equivalent of the data controller and data processor under the GDPR. Organizations are also required to take adequate measures to restrict any unauthorized access to the confidential data of the customers and they adopt certain data security strategies to curb the menace. 

The New PDP and its role in the future of Indian digital market

In today’s data-regulated environment, privacy is a major issue.  While the government has come up with a PDP bill, it has still not been implemented and therefore India needs an effective plan to deal with data infringement issues. This will only be possible when factors such as people and technology go hand in hand and try their best to do what they can to make the digital world less unsafe.  While the strategy adopted by most companies right now has low scope to protect the customers’ data. It is high time that the companies come up with better strategies and have a higher idea about their data so that they can put to use the relevant data protection rules and by doing so, we are setting ourselves at a competitive advantage over the other countries. 

Conclusion

With the internet bringing in such a huge revolution in the world, India is still not ready to tackle the perils that come with it as a bonus. Data protection in India still requires a lot of improvement. There is no exclusive statute or law that deals with data protection laws. They are covered under other acts such as the Indian Penal Code, The IT Act and the Indian Evidence Act. The Pune Citibank Mphasis Call Center case is considered to be one of the landmark cases in India and raised concerns regarding data protection still being a grey area in India. The case also was an eye-opener in stressing how important it is to run a background check of an individual before hiring them in order to avoid any possible security breaches that might arise later.

References 

  1. www.bnwjournal.com
  2. www.legalservicesindia.com
  3. www.datacenterdynamics.com.

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Status of the inheritance rights of transgenders under the Indian Law

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This article is written by Gyaaneshwar Joshi, a student of the Faculty of Law, Jamia Millia Islamia, New Delhi. This article enlightens about the rights of transgender persons to inherit property in India and the need for intervention of legislature to transform these rights.  

Introduction

The transgender community is among one of the most marginalised communities in the country because they do not fit into the stereotypical categories of the gender binary. Transgender is an umbrella term applied to those individuals whose gender identity is not the same as the sex they were assigned at birth. John F. Oliven, a psychiatrist at Columbia University coined the term ‘transgenderism’ in 1965 by replacing it with the term ‘transsexualism’. 

The debate on the inheritance of transgenders began in 2005 after Ajay Mafatlal (who was Aparna Mafatlal till a sex change operation) underwent sex reassignment surgery and became a man to acquire an equal share of the property under Hindu Inheritance law. This incident fueled a debate to grant institutional recognition of transgender persons in India. Therefore, the national census in 2011 for the first time allowed persons to choose ‘others’ to identify their gender. 

In India, transgender persons are deprived of their civil rights, including the right to inheritance. It has become the main reason why most transgender persons have low income, lesser savings, and do not have access to housing. 

Rights of transgenders in India

There is a long history of transgender persons in India. According to the study of transgenders by the National Human Rights Commission, the total population of transgenders according to the 2011 census is 4.8 lakh; in which only 30,000 are registered with the Election Commission. Also, the study of the Human Rights of transgenders in India suggested that there are around 50 to 60 lakh transgenders in India, but most keep it a secret to avoid discrimination. 

The Supreme Court in the landmark judgment of NALSA v. Union of India (2014), recognised the rights of transgender as the third gender. The Court while addressing their problems directed the Centre and State governments to treat them as socially and educationally backward classes and extend all kinds of reservations for their education and employment. The Court held that individuals have the right to self-identification of their sexual orientation even without medical intervention and allow them to choose their gender following the sex reassignment surgery. The Court admitted the poor property rights given to the transgender persons but refused to intervene in this matter mainly because for two reasons:

  1. Gendered Inheritance Laws: India has a poor history of gendered laws where inheritance of property is governed by personal laws of the respective religion and community. These laws contain gendered terms for which transgender person needs to put themselves in a category of either male or female to come within the ambit of inheritance laws. This leads to a challenge and confusion as to how transgender inherit property if included. The issue regarding gender discrimination has been raised by the Consultation Paper on Reform of Family Law, the 174th Report of Law Commission of India, and the 207th Report of Law Commission of India but nothing has been discussed so far about how transgender people can be included in the Inheritance laws.  

The usage of gendered terms in various laws reflects inherent biases in drafting legislation. Notably, Section 13 of the General Clauses Act, 1897 prescribed the term masculine gender shall also include females because it will help to provide uniformity of expressions in Central Acts. Similarly, Article 15 of the Indian Constitution prohibits discrimination on the grounds of sex, in which the term ‘sex’ collectively includes all genders not just limited to biological sex as male and female. 

  1. Gender and identification: Most transgender persons lack documentation which also affects their inheritance rights by denying them the guarantees usually available to citizens. Despite legal recognition been granted in a Supreme Court judgment in April 2014, acquiring an identity card in their preferred name and gender remains a challenge for transgender persons. The inheritance requires identity documents in which any person before possession of the property or an asset needs to prove their identity, relation to the deceased person, and residence of both parties. Whereas, any person without a valid marriage or adoption cannot prove a valid relation. 

Inheritance rights of transgenders : need for reform 

In India, most property is acquired through inheritance especially in the rural areas. The challenges of transgender persons to inherit property arises due to two main reasons:

  1. Rights under inheritance laws define only two sexes either male or female,
  2. Difficulty in identifying a successor. 

The use of a binary notion of gender is not limited to laws dealing with property, but it exists in criminal laws such as the Indian Penal Code, 1860 and the Code of Criminal Procedure, 1973 and labour laws like the Workmen’s Compensation Act, 1923 and the Factories Act, 1948. It is also evident in personal laws such as the Hindu Marriage Act, 1955 and the Hindu Succession Act, 1956. Also, the religious personal laws are used selectively as a tool of benefitting certain genders and excluding others. 

Hindu Succession Act, 1956 

The Hindu Succession Act, 1956 is a codified law relating to intestate succession among Hindus. It also governs Buddhists, Jain, and Sikhs. However, the Act nowhere defines transgenders within its scheme and prescribes that heirs can only be male or female persons. The Act defines agnates and cognates rights in a definition clause based on a binary notion of gender.

  1. Agnates: One person is said to be ‘agnate’ of another if the two are related by blood or adoption wholly through males;
  2. Cognates: One person is said to be a ‘cognate’ of another if the two are related by blood or adoption but not wholly through males.

The Act defines the term ‘heir’ as any person, male or female, who is entitled to inherit the property of an intestate. It grants rights to sons and daughters but does not envisage transgender persons or anyone who changes their gender identity. 

Section 8 of the Act defines the general rules of succession in the case of males and dictates the priority of inheritance through classes of heirs. Class I heirs include son, daughter, and broadly male instate’s mother and lineal descendants whereas Class II heirs are mainly father, sibling, and lineage of a sibling. Similarly, Section 15 defines the general rules of succession of Hindu females which contains the list of persons who may inherit the property of female Hindu dying intestate. The priority is given to the sons, daughters, husband, and husband heirs. This shows how males and females are treated under the Act but is entirely silent on whether a transgender who identifies as a male or female would be entitled to inheritance under Sections 8 and 15 of the Act. 

Generally, transgender people recognise themselves as females while claiming inheritance of the property rights which is a violation of Article 15 of the Indian Constitution that prohibits discrimination on grounds of sex. The Act in itself is gender-neutral under which Sections 24 and 26 lay the grounds for disqualification of a person from inheritance and being a transgender is no ground for such disqualification.

Muslim Personal Law (Shariat) Application Act

The Muslim law on inheritance is majorly based on the rules laid down in the Quran or the traditions. Muslim property law is uncodified in India and all Muslims are governed by the Shariat Law for succession. The Muslims are divided into two sects- Shia and Sunni and both have their principles of inheritance in India. Under Muslim laws, a female has been given one-half the shares of a male; this is because of her lesser responsibilities and obligations in comparison to the males. Lastly, Muslim law recognises male and female as a subject matter which can be inferred from the terms used in the list of sharers in Shia and Sunni inheritance laws. 

The Muslim Personal Law (Shariat) Application Act was enacted in 1937 which mandates Muslim personal laws to all Muslims with certain exceptions including the personal property of females inherited or obtained under gift, contract, or marriage, or dissolution of marriage, etc (under Section 2). All the provisions give little assistance whether transgender persons would be subject to personal laws or accorded the differential protection under the Act. On the same grounds, Section 3 allowed only a male member of a Muslim family to make a declaration within certain grounds as prescribed under the section. 

Need for the judicial intervention

Looking at the total number of judgments of various courts since 1950 that mentioned the term transgender, there are a total of 128 judgments in which 8 judgments are given by the Supreme Court, 116 by the High Court, and 5 judgments by the other courts and tribunals. Broadly, the matters are related to: 

  1. Institutional cases such as Navtej Singh Johar v. Union of India (2018) (decriminalisation of Section 377 of IPC) and NALSA v. Union of India (2014).
  2. Specific cases on inheritance rights of transgenders.
  3. Reading gendered laws.
  4. Claims regarding identification documents.

Currently, the Court had only two opportunities to deal with inheritance rights. In these matters,  the Court mostly relies on customary practices (of a deceased transgender) while recognising their inheritance rights. Like in the case of Illyas v. Badshah Alias Kamla (1990), the Appellant contended before the Madhya Pradesh High Court that Munilal (a transgender guru) had executed a will in his favour. On the same grounds, the Respondent contended that he was also Munilal’s disciple and had an equal right to the bequeathed property. After the investigation was complete, the Court held that the will in favour of the Appellant was forged and noted that even if there was a will, even then the deceased being a Muslim, could not bequeath more than one-third of their property (which is the testamentary limit of a Muslim person). 

The Supreme Court has had only two opportunities to deal with the inheritance rights of transgenders. However, the Indian courts have always acknowledged the fair rights that are being given to them. The Madras High Court in the case of Arun Kumar v. Inspector General of Registration (2019) held that the term ‘bride’ in the Hindu Marriage Act, 1955 also includes transwomen. 

Mostly, the court in the matter of inheritance gives relief to transgender litigants on the basis of customary practices but still deprives them of equal rights that are ordinary exercisable by the citizens. Even if the court read trans men and women in the brackets of inheritance laws that would not remain the ideal practice. Even if they are deprived of inheritance rights, it would force them to conform to the binary notions of gender to which they do not belong. 

Other countries with transgender’s inheritance laws : an international perspective

Transgender persons face problems ranging from social exclusion to discrimination, lack of education facilities, unemployment, and so on. Article 1 of the Universal Declaration of Human Rights (UDHR) states that all human beings are born free and equal in dignity and rights. Along similar lines, the International Covenants on Civil and Political Rights (ICCPR) recognise that no person shall be denied legal rights. Yogyakarta principles on the application of international human rights laws acknowledge transgenders shall not be deprived of the right to education, employment, right to property, etc. Principle 3A of the Yogyakarta principles allow states to provide inheritance rights to transgenders including the right to acquire through inheritance to transgenders without discriminating on the ground of sexual orientation. This principle was also stated by the Supreme Court in the matter of NALSA v. Union of India (2014). There are several countries that provide inheritance rights to transgenders by enacting and amending various laws:

Islamic Republic of Pakistan 

The Pakistan Supreme Court in the case of Dr. Muhammad Aslam Khaki & Anr. v. Senior Superintendent of Police Rawalpindi & Ors. (2009) gave a landmark judgment and stated that transgenders are subject to the Constitution of the Islamic Republic of Pakistan and will be given the right to life and property under the Pakistani Constitution.

On 8 May 2018, the Parliament of Pakistan passed the Transgender Persons (Protection of Rights) Act and allowed the citizens to self-identify themselves as males, females, or a blend of both genders. Pakistan’s legislation, in this historical Act, grants transgenders the right to inheritance often disputed under some interpretation of Islamic law, and the right to property, education, health in addition to the guaranteed fundamental rights. 

Bangladesh

In November 2020, the Bangladesh government decided to frame legislation in accordance with the Islamic Sharia law to ensure the property rights for transgenders. Currently, transgenders are mostly barred from inheriting estates from their families. There are 1.5 million transgenders in the country to whom the rights have been granted to identify themselves as a separate gender in 2013. However, the Bill to give them inheritance right is yet to be proposed in the Parliament but is expected to comfortably pass by the legislative body once put for a debate. 

Transgender persons (Protection of Rights) Act, 2019

The Transgender Persons (Protection of Rights) Act, 2019, was enacted by the Parliament on 26 November 2019, to protect the rights of transgenders and their welfare. However, the Act is facing a lot of criticism with respect to the measures taken for the identification, welfare, and protection of transgender persons. The salient features of the Act are:

  1. The Act empowers every transgender person to have a right to reside and be included in a household. If the immediate family is unable to care for the transgender person, the person may be placed in a rehabilitation centre on the orders of a competent court.
  2. The Act states that no government or private entity can discriminate against a transgender person in employment matters, including recruitment and promotion. 
  3. The National Council of Transgender persons (NCT) shall be established that will redress the grievances of transgender persons. The Council will also advise the Central Government as well as monitor the impact of the policies, legislation, and projects with respect to transgender persons. 
  4. A transgender can make an application to the District Magistrate for a certificate of identity, indicating the gender as transgender. A revised certificate can be obtained only if the individual undergoes sex reassignment surgery to change their gender either as a male or a female.

Conclusion

Transgender rights are a vast and complex subject in which only legislature can intervene by amending legislative laws to adapt to such knowledge. The legislative laws are subject to binary gender identity which excludes transgenders. The current status of their rights deprives them to marry or adopt a child because their gender identity is not legally recognized.  

The lack of documentation of transgenders causes great difficulty in identifying their successors and hence, alienates them of their inheritance rights. Therefore, the Ministry of Social Justice and Empowerment should conduct research work to design appropriate programs and interventions for transgender persons in the country. 

References


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Does the installation of cameras in prisons violate the Right to Privacy under Article 21

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right to privacy
Image Source: https://bit.ly/2KMWUgo

This article is written by Oishiki Bansal of Symbiosis Law School, Noida. This article delves into the surveillance laws of India and whether the installation of cameras infringes the Right to Privacy of the prisoners under Article 21 of the Constitution.

Introduction 

The Constitution of India has instilled various fundamental rights for citizens to live a more dignified life. The Right of Privacy was upheld by the Supreme Court in the case of Justice K.S. Puttaswamy (Retd) vs. Union of India (2018) and has now been granted as a fundamental right under Article 21 of the Constitution. The judgment (Shri Dilip K. Basu vs State Of West Bengal, 2015) given by the Supreme Court for installing security cameras in prisons and police stations two years before the Puttaswamy judgment has raised questions about the infringement of the Right to Privacy under the Right to Personal Liberty and Personal Life. Protests by various prisoners have led to a reconsideration of the recommendation given by the Apex Court of India. 

The surveillance law of India

Surveillance laws in India are governed by the Telegraph Act 1885 and the Information Technology Act 2000. While the Telegraph Act covers the inception of calls, the Information Technology Act covers the inception of data, making it the principle legislation.

Provisions for surveillance under the InformationTechnology Act: 

  • Section 66 (e) of the IT Act 2000, throws light on video surveillance. This Section specifies  the offense of willfully, knowingly, or intentionally transmitting an image or video of the private area of any person without their consent is a violation of the Right to Privacy. 
  • Section 69 of the IT Act 2000 and Rule 3 of the Information Technology (Procedure & Safeguards for Interception, Monitoring & Decryption of Information) Rules, 2009 provide that except for the central government, state government, or any competent authority who has received directions from the government, no one can intercept or decrypt any information transmitted, generated, received, or stored on any computer resource. The following authorities can use their powers only in certain conditions, such as: 
  1. When there is a threat to national security;
  2. A threat to national integrity; 
  3. For state security; 
  4. Maintaining cordial relations with foreign nations;
  5. In the interest of public order; and
  6. To prevent any further commission of an offense. 
  • For monitoring the use of video surveillance in India and protecting the Right to Privacy an expert committee was formed under the chairmanship of Justice AP Shah. The guidelines outlined by the AP Shah Committee Report were as follows – 
  1. A proper notice should be provided by the data controller to all the individuals whose information is to be stored explaining the practice of information collection in a very concise, simple and easy to understand language. 
  2. After giving proper notice the individual should be given a choice to opt-out or opt-in for the information collection. The data controller can store, process, share or use the data only when an individual has agreed for the same. One way of getting consent is through informing the individuals that they are under CCTV surveillance. 
  3. The data so collected should be limited to the objective as stated in the notice and no information beyond what is consented shall be collected.
  4. The data collected should be deleted except under certain circumstances after the dissemination of data for the required purpose. 
  5. A governing authority should be established for grievance redressal and implementation of all the guidelines provided.
  6. Security cameras surveillance laws should cover both internal and external video surveillance and surveillance in both the public and private spheres.

Installation of cameras in the prisons

While reviewing the landmark case of DK Basu v. State of West Bengal (1996), which gave steps to uplift the treatment of prisoners in the prison as well as a police station, the Supreme Court gave guidelines that included the installation of CCTV cameras in the prison and police station for better regulation and governing of prison and police station activities. 

The Court while issuing the guidelines put forward the issue of violence and human right abuse, to minimise, if not prevent, custodial violence, suicides, maintaining proper discipline, keeping a check on drug consumption in prisons, etc. as the reason for the installation of security cameras. Previously, the prisons and police stations were equipped with security cameras in the common areas such as the entrance, mess area, or exterior walls to ensure that no prisoner escapes from the jail. 

The Court also stated that the guideline is issued while considering most of the state’s reports and recommendations to install CCTVs in the prisons. The judgment further stated that states like Bihar, Tamil Nadu, Haryana, and Union Territories like Andaman and Nicobar islands have already started installing security cameras in police stations and prisons. The Court ordered the states to implement the recommendations within one year of the date of order, also it further stated that the recommendation has been given to ensure better discipline in the prison environment and control activities of violence and human abuse.

However, the installation of cameras has presented issues with the Right to Privacy given to the citizens after the Puttaswamy case. There have been many incidents where the prison inmates have shown resistance towards security cameras in the jails. The women prisoners in Byculla had to go on a hunger strike protesting against the installation of CCTVs in the changing areas. They expressed their concerns relating to the invasion of their privacy while changing and being a medium of fulfilling the lewd interests of the officers who will monitor the cameras installed. 

There are instances of covering up of crime, like, where some prisoners escaped from the jail and the authority claimed that they have no footage of the escapade due to malfunctioning of cameras. Later, it was found that some of the police officers were involved in helping the prisoners escape and that had raised questions over the utility of the cameras in the prison barracks. 

In some cases, it has been seen that the installation of CCTV has been advantageous to the violent prison inmates and a source to oppress the non-violent ones. 

At present, the debate is whether the Supreme Court’s judgment is still valid or it breaches the Right to Privacy as instilled in Article 21 of the Constitution.  

What does Article 21 impart in this regard

The question of whether Article 21 of the Indian Constitution includes the Right to Privacy was first raised in the case of M.P Sharma v. Satish Chandra (1954), where an 8-judge bench agreed that the Right to Privacy is not enshrined in our Constitution as a fundamental right. Further, in the case of Kharak Singh v. State of Uttar Pradesh (1964) the Right to Privacy was made as an alien concept. The seven-judge bench was formed to decide whether the Right to Privacy falls under the “personal liberty” clause of Article 21 or not. While two judges were in favor that Article 21 includes the Right to Privacy the others dissented. After a few years, the Supreme Court while balancing the Right to Privacy and the Right to Speech and Expression in the case of R. Rajagopal v. State of Tamil Nadu (1994) stated that the Right to Privacy is implicit under Article 21 as a right to be alone. Although, the ambit as to what comes under the Right to Privacy was unclear and the vagueness in that area led to more questions. With time as more cases were presented in front of the Supreme Court the area of the Right to Privacy as guaranteed under the Right to Personal Liberty and Right to Life got defined. Right to privacy of medical records, tapping of calls, search and seizure by revenue authorities, privacy for sexual identities, etc.

Over the years the Right to Privacy has been an issue of discussion. In the case of Maneka Gandhi v. Union of India (1978) the Court interpreted the ambit of Article 21 in a wider sense and prescribed that the Right of Personal Liberty and Right to Life includes all the rights under ‘natural law’. Finally, in the landmark case of K.S Puttaswamy v. Union of India, the Court came to a conclusion that the Right to Privacy is enshrined under the Right to Personal Liberty and the Right to Life. Although the judgment was a result of the petition filed by Justice K.S. Puttaswamy in 2012 challenged the biometric system scheme linked to aadhaar; it led to one of the most important judgments of the Apex Court. Not only Article 21 but Article 14 (Right to Equality) and Article 19 (Right to Freedom) of the Constitution instill the Right to Privacy as a fundamental right. 

Does installing CCTV in the prison violate Article 21

In the case of K.S Puttaswamy v. Union of India, the Court established three tests that must be met by a measure that violates privacy in order for it to be valid: 

  • The violation should be done by the authority of law. 
  • There should be a legitimate primary objective for the violation. 
  • The violation must be both necessary and proportional to the goal at hand.

The recommendation to install security cameras in the prison and police station is itself given by the Apex Court in D.K. Basu, the first test as to violation done by the authority by law is justified. The Court gave the guideline with a primary objective of controlling the human abuse, suicide, custodial deaths, to discipline the prison inmates and prevent other prevailing crimes in the jails also tries to justify the second test that needs to be fulfilled. However, more than disciplining the inmates, the installation of CCTVs in the prison has given rise to other problems. As for the third test, the violation must be both necessary and proportional to the goal at hand. There is no proper justification as to why security cameras are the only necessary, proportional, and direct solution to the problem of human abuse and custodial deaths in prison. Other means such as stricter rules and regulations, more effective implementation of the already existing rules and regulations can be used to find solutions to the problem. 

As it is said, “Inmates in prison are still citizens and should not be denied their basic human rights as any other citizens.” Access to fundamental rights for all citizens should be ensured. If the installation of security cameras can be invasive of the privacy of a citizen then why doesn’t the same principle apply to the prisoners? If the installation of security cameras at highways or other public places can make society an Orwellian state then why does installing CCTVs in the barracks and cells of prison to monitor the prisoners 24X7 doesn’t come under the Orwellian society.

The installation of CCTVs in the prison does not qualify the test provided in the case of KS Puttaswamy. Although the law was given by a legal authority, there was no legitimate and primary objective for the violation of the law. Also, the violation was not necessary and proportional to the goal at hand. The Right to Privacy is guaranteed under Part III of the Indian Constitution as a fundamental right and installing security cameras in the cells of prisons violates the basic principle of Article 21. 

Conclusion 

After the Supreme Court’s ruling making the Right of Privacy a fundamental right, the guidelines provided by the Apex Court in 2015 are violative of the fundamental rights of prisoners. The 24X7 monitoring of the prison inmates and collecting their information without asking for consent is an infringement of Article 21. Many convicts have protested against the placement of cameras in prisons, while prisoners with a history of violence have benefited from this in some way. Even if technology makes our life easier, that doesn’t imply there aren’t some flaws. Every security camera has a blind spot that can be discovered. Therefore, better and more effective steps could be taken to prevent violence, human abuse, custodial death, and other prevailing crimes for better prison reforms. 

References 


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A comparative analysis on execution of orders in Consumer Protection Act, 1986 and Consumer Protection Act, 2019

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Image source: https://economictimes.indiatimes.com/wealth/spend/heres-how-consumers-will-benefit-under-the-new-consumer-protection-act/articleshow/70711304.cms

This article has been written by Sai Manoj Reddy. L pursuing the Certificate Course in Advanced Civil Litigation: Practice, Procedure and Drafting from LawSikho. This article has been edited by Zigishu Singh (Associate, Lawsikho) and Smriti Katiyar (Associate, Lawsikho).

Introduction

Almost every law student has heard and read about the case of Donoghue v. Stevenson. It was a very interesting judgment, not just because of the compensation awarded to the petitioner, but also the year in which the judgment was passed. The judgment was passed in 1932 and fixing the liability on the manufacturer during that time was quite interesting.

With the rapid growth in the business and manufacturing, there began strict competition among various competitors to gain the market share and often the companies resorted to unfair trade practices. The consumers were at a disadvantage due to the lack of knowledge about their rights and legal mechanisms to resolve their grievances and prevent exploitations. 

The Consumer Protection Act, 1986 (from here on referred to as “1986 Act”) was passed with the main objective of protecting the rights of consumers and to resolve their grievances by providing a proper legal resolution in a speedy manner. The 1986 Act, came into force on 1st, July, 1986 and the concept of consumerism was introduced in India. The 1986 Act was an outcome of the widespread consumer protection movement all over the world and also the report of the Secretary-General on Consumer Protection dated 27th May 1983, the United Nations Economic and Social Council, which recommended all the countries to build, reinforce and implement a coherent consumer protection policy, taking into consideration the guidelines that were set. The preamble of the 1986 Act states that it is an Act “to provide for better protection of the interests of consumers…..” The use of the word ‘protection’ clearly shows the intentions of the legislators behind bringing this Act into force.

In this article, I will try to explain the changes made in the procedure related to the execution/enforcement of the orders passed by the consumer commissions/courts. Further I will explain the problems in the enforcement of these orders. 

Execution proceedings under Consumer Protection Act, 1986

Consumer Dispute Redressal Commissions (from here on referred to as “Consumer Commissions”) were established in 1988 under the Consumer Protection Act, 1986. These commissions are quasi-judicial bodies. They were established to provide speedy and accessible resolution of consumer grievances and disputes against malpractices, unfair trade practices, defective goods etc. The main aim of this commission was to reduce the burden on the traditional court systems which were already burdened and very slow in delivering justice due to lengthy procedures at every stage. 

Section 25 of the 1986 Act deals with the concept of ‘enforcement of orders of district forum, the state commission or the national commission’. According to Section 25 the consumer forum/commission was given power to attach the property of the person who is not complying with the order. Following that  if the order is not complied with within three months, then the forum/commission has the power to auction such property and award the compensation to the complainant out of the proceeds of such auction. The complainant can also file an application before the forum/commission and the forum/commission can also issue a certificate to the district collector to recover the amount due in the same manner as arrears of the land revenue.

This procedure is better explained by a chart below created by VIDHI Centre for Legal Research.

https://vidhilegalpolicy.in/wp-content/uploads/2020/06/chart.png

Execution proceedings under Consumer Protection Act, 2019

In the 2019 Act the enforcement of the orders passed by the District, State or National consumer dispute redressal commissions is dealt with under Section 71. According to Section 71 of the 2019 Act, every order made by the District, State or National commission shall be enforced in the same manner as that of a decree of a civil court in accordance with Order 21 of the Civil Procedure Code, 1908. 

This means the orders of the District, State or National commission are to be treated as the decree passed by a civil court and has to be enforced in the same manner. An execution application can be filed by the complainant as the award holder and the order can be executed using the traditional court procedures. 

Issues with the execution procedure under 1986 as well as the 2019 Act

As seen above, the procedure of execution of orders under the 1986 Act relies heavily on the assistance of the District Administration like the District Collector and other concerned officers. This is because there are no provisions under the 1986 Act or the rules framed there under for an officer to exercise executive powers, unlike in the civil courts where a bailiff is empowered to make sure decisions of the court are obeyed. This means that the orders consumer forums/commissions are toothless and heavily dependent on the District Administration for their execution. The complainant may get a favourable order from the commission in a time-bound manner but the execution of such an order is a difficult and time-consuming process as the District Administration is already burdened by various other functions and often neglects this additional job put on them. This is one of the main issues with the execution of orders under the 1986 Act. The order holder is unable to enjoy the fruits of the order.

The 2019 Act, which repeals the 1986 Act, aims to expand the scope of grievances consumers can complain against and to ease the process of filing complaints before different commissions at the District, State and National levels. However, even the 2019 Act fails to achieve better execution of orders by the Consumer Commission. The 2019 Act still hasn’t provided any rules for the appointment of staff/officers for execution or enforcement of orders passed by the Commissions which makes no development from the 1986 Act. The only bright side of the 2019 Act is that the power of consumer commissions has increased slightly . The Commissions now have the power to detain the person in civil prisons who are not complying with the orders and also attach their immovable property, agricultural crops etc. Even though the order of a Commission is treated as a decree of the civil court the Commissions still have to rely heavily on the District Administration and the procedures of traditional court systems in the execution of the orders. 

Increasing complexities in procedures of consumer litigation and making it more like traditional court practice could reduce the accessibility of Consumer Commissions, defeating the whole purpose for which these Commissions are set up. 

Changes to be made to the current system

VIDHI Center for Legal Policy is conducting an ongoing study on the efficiency of the District Consumer Disputes Commissions in Bengaluru and the Karnataka State Consumer Disputes Commission and the results as of July 2018 are as follows:

  • 3 out of 5 District Commissions in the Bengaluru Urban District were unable to dispose off even 50 percent of the execution applications filed before them in 2013.
  • Between the years 2013-17 the number of execution applications filed before the District as well as the State Commissions in Karnataka increased by 287%.

To tackle the problems in the current system of execution of orders passed by the Consumer Commissions and to make the process more streamlined the following changes need to be made:

  • There should be a simplified procedure to execute the orders passed by the Commissions with lesser dependency and interactions with the District Administration.
  • Specific rules have to be formulated under the Consumer Protection Act, 2019 to streamline the process of execution.
  • The Governments at the state as well as central level have to provide for the appointment of staff/officers at every Commission. Duty and powers should be given to such Officers in the execution of the orders in a time bound manner.
  • The capacity and infrastructure needs to be enhanced for the Commissions at all levels especially at the District level and urban areas where most of the consumer complaints are piled up.

Conclusion

The intention of the law makers in enacting laws for consumer protection is good and is highly appreciated, but there needs to be a proper system and mechanisms that need to be put in place in such laws to protect the rights of consumers and resolve their disputes in a speedy manner. As we have seen above, the main problem with the current system is not the resolution of grievances and disputes and passing orders, but it lies in the execution of such orders and allowing the aggrieved consumer to enjoy the fruits of the orders passed in their favour. Increasing complexities in procedures of consumer litigation and making it more like traditional court practice could reduce the accessibility of Consumer Commissions to the consumers, defeating the whole purpose for which these Commissions are set up. 

If the Governments at State and Central level make necessary changes to the current system by giving more powers to the Consumer Commissions, appoint officers for the execution of orders and give them enough powers to streamline the process of execution by making it time-bound, then there is a good chance that the consumers’ rights will be protected and the consumer laws will serve their purpose. 

References


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Problems with enforcing the western favoured international law in third-world countries

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International Trade Law

This article is written by Anindita Deb, a student of Symbiosis Law School, NOIDA. The objective of this article is to analyze the problems related to the implementation of International law in third world countries. 

Introduction 

Jeremy Bentham, an English philosopher and jurist coined the term “international law,” which simply means “the system of law that governs relations between States/nations.” Other names for the term include “law of nations,” “law among nations,” and “inter-state law,” implying that the state is the only subject of international law. Though, in modern times, the reflection of international law indicates that States are no longer the sole actors of international law, because new actors have emerged on the international plane: Public International Organisations (IGOs), Non-Governmental Organisations (NGOs), Transnational Corporations (TNCs), and Private Individuals (PIs). Despite this development in terms of the number of actors in international law, the Western developed nations have sought to expand and reconstruct international law norms in their favour to the detriment of third-world countries. As a result, a group of scholars, the majority of whom are from third-world countries, has embarked on critical scholarships under the name Third-World Approach to International Law (TWAIL), to address the injustices perpetrated against the third world as a result of the developed countries’ hijacking of international law. 

This group of scholars is more familiar with or has a greater interest in, the common debate in the history of international law about whether international law is law or not. Language ambiguity (the argument that there is a lack of a legislature and sanctions in international law), led some nineteenth-century philosophers to deny that international law is the law. And that, like the history of the United Nations Charter, the history of international law has been a succession of conflicts about the correct interpretation. Because language is inherently ambiguous, there is always a debate over how to interpret norms of law that are conveyed in words. One explanation is that international law, such as the Charter, was drafted mostly by politicians with little assistance from lawyers when it was first drafted. 

TWAIL was conceived by third-world intellectuals as a result of practical experience with the conditions of third-world citizens as a result of international law’s process and application, and how it affects the people of the third world. This is an approach to international law that gives it a highly specific meaning or interpretation in the context of the third-world people’s experiences throughout the colonial and post-colonial periods. This article’s argument and analysis take into account this third-world perspective to international law.

International Law: The West vs. the Third World

Since the 18th century, global events have been rich with narratives of dominance, manipulation, and subjugation schemed and masterminded by the Western world, as reflected by the application of international law in the context of the people of third-world countries. During this time, international law has been constructed and reconstructed to favour Westerners or to safeguard their activities and undertakings in an unequal world. The general equality gap between the Global North and the Global South reflects this. International law has been a source of contention for the States of the South since it has guided the operations of the North and the South, which are unequal in many respects – political, economic, and military, for example. The problem isn’t only that the Global North is more developed than the Global South; it’s also that international law was created by the former (Global North) and is constrained by their prejudiced interpretation. Contribution of International Law to Development, Paper presented at the Fifteenth Annual Conference Canadian Council on International Law, Ottawa (1986) highlighted this by stating that because the new Asian and African states’ economies are less developed than their Western counterparts’, their citizens have a lower standard of living than the norm for Western Europe and North America. In its early phases, international law was formed by states who shared more or less identical economic development requirements and supported the colonial premise. As a result, it has been natural for some of the new States to dispute some standards of international law, just as the Latin-American States did at the Hague Conference of 1907, with the subsequent contribution that those States had to make to the stability of the international order. There are a few places where Asian-African discontent has taken on a life of its own, but on the whole, the new States argue their cases by referring to international law, albeit their version of it.

In the past, Westerners used international law to legitimise or justify all of their acts of exploitation and subjugation in developing countries; for example, it has been documented that Westerners used international law to justify slavery, colonialism, and exploitation, or to drain the resources of developing countries, particularly Third-World countries subject to colonialism. In the modern era, international law is primarily used to protect, project, promote (3Ps), or safeguard the interests of Westerners. International law as a tool for fostering and maintaining colonial and neo-colonial domination of the Third World

What can be inferred from the term “Third World”

It might be prudent to begin by defining the term “Third World.” To begin with, this refers to a group of countries that share particular characteristics. The first world is made up of developed capitalist countries, whereas the second world is made up of socialist countries. The third world refers to the underdeveloped countries of Africa, Asia, and Latin America that were subjugated to colonial dominance. The superpowers are classified as the first world, whereas other developed countries such as the United Kingdom, Germany, Australia, and Canada are grouped as the second world. The third world consists of Latin American, African, and Asian countries that are underdeveloped. 

The two separate definitions have a few elements in common, such as the third world’s characteristics. In all classifications, the concept of the third world is defined in terms of developed countries. Third-world countries are economically impoverished (though some, such as the Arab Gulf states, are wealthy), and they have a colonial history. While some of these countries have democratic institutions in place, others have been dominated by military dictatorships. There are also disparities in social structures among third-world countries, ranging from tribal communities to capitalist societies. Despite these striking distinctions, the term “third world” is not meaningless, as it aids in the classification of countries that emerged as a result of resistance to colonial dominance. In reality, because of their backgrounds, they all face identical issues. As a result, there are some common traits across Third World countries, which may be linked in great part to the fact that they were colonised and that colonisation brought about some fundamental changes in their cultures.

Colonialism and its impact in shaping International Law

International law is the major legal framework for fostering and preserving colonial and neo-colonial dominance in developing nations. This is consistent with the notion of scholars such as Anghie that essential international law principles, such as those governing territorial acquisition, recognition, state responsibility, and state succession, were designed to accommodate colonialism’s indispensability. Third-world people and their countries were compelled (without their consent) to become subjects of international law by the domineering tool of international law. In this context, the colonial overlords took control of the third-world states as sovereign entities, and the people in these states surrendered virtually all of their rights. In this context, a modern postcolonial study has emphasised the extent to which colonialism was not merely a problem of sovereignty, but also one that impacted citizens’ rights. This is apparent when one considers that the main purpose or raison d’etre of colonial governance was to address the colonizer’s racial and cultural inability to govern themselves. Colonial rulers viewed native conditions as uncivilised and in need of reform while denying colonial people citizenship and the associated rights to self-improvement.

International Law and the estrangement of the Third-World citizens

The kind of relationship that existed between third-world people and international law (a Western edifice) is such that it is directly or indirectly concerned with international law’s estrangement from third-world people, based on strings that strongly but inextricably connect or bond them with past, current, and future international law. Under global capitalism, the term estrangement refers to a kind of alienated, yet complex interaction that exists between individuals, society, and the essence of international law, as well as the steady transformation of international law into internal law. This exclusion of third-world people from international law is reflected in the relegated status of third-world people in international law history. This is because they were viewed as backward, crude, barbaric, and uncivilised during the early stages of international law, and so incapable of participating in the international legal order. The argument is made, for example, that African states lacked the legal authority to ratify treaties transferring their sovereignty to a European power. The creation of a Global State was marked by greater use of deception and ingenuity in the administration of international law to safeguard the interests of powerful Westerners than in the past when legitimacy was acquired via the use of force. 

The colonial period is a clear example of how international law’s notions of justice have been infiltrated to ensure not only the appropriation of the rights of people in third world countries but also the enslavement of the greater part of humanity and the use of division to maintain colonial control.

The colonists used the divide and rule strategies to co-opt several third-world colonies, but this system of indirect rule destabilised the third-world countries. Even though the main colonial powers in third-world colonies were democratic countries, colonial control did not encourage the ideals necessary for good governance in these countries. First and foremost, the institutions they established were dominance apparatuses. They emphasised functional utility, law and order, but not involvement and reciprocity because they controlled huge areas with diverse populations. Access to the colonial order was also restricted, and it was kept away from the scrutiny and inspection of the people it claimed to control. A distant, bureaucratic, and patrimonial type of politics flourished under a state that routinely disregarded domestic legal standards, democratic beliefs, and the normative facet of governance. 

Controlling Third-World economic relations using International Law through the policies and actions of International Financial Institutions

International law and the economic liberalisation of the Third World

There has never been a time when the much popular international economic liberal movement was taken seriously by third-world countries; rather, the international economic law regime is controlled by Western countries through international financial institutions, which initiate and implement policies and actions that continue to foster third-world underdevelopment. Since third-world countries were deemed not to have personality in international law, their interests have been disadvantaged from the start because they did not have a say in defining the previous international legal order’s standards. This has had a significant impact on the current international legal order, notably in the field of third-world economic liberalisation. In this framework, international law has been utilised to re-allocate the sovereign economic powers of third-world countries to international financial organisations, thus constructing and reconstructing the meaning of sovereign states. This severely restricts the ability of third-world countries to pursue independent, meaningful, and self-sufficient development. 

International economic liberalism is one of the most potent tools of the international economic law agenda pursued by Westerners through the auspices of international financial institutions to keep third-world countries under their control and subjection. The Western justification for the international democratic and economic liberalisation agenda is that it will aid in reducing the resource gap in the third world’s Less Developed Countries (LDCs) by enhancing trade balances and encouraging net capital inflows, as well as eradicating poverty and improving economic development in developing countries. Hence, the growing relevance of international organisations such as the G7, IMF, and World Bank in the post-Cold War period reflects the influence of liberal economic internationalism. As a result, the principal goal of these organisations’ activities became the provision of aid and loans to impoverished communities as a method of eradicating hunger and disease in the Third World.

However, it has been argued that events in the developing world provide us with some critical reasons why attempts to correct the situation (of transparent inequality between Westerners and Third World as a result of exploitations and injustices caused to the latter) by encouraging increased foreign borrowing have contributed to the problem of the debt crisis in the developing world.

These powerful multinational entities, whose guiding philosophy is free trade liberalism, impose free-market restrictions on underdeveloped countries. They lock peripheral states into involuntary agreements that force them to lower their protective barriers (GATT and NAFTA, for example), preventing them from developing trade profiles that differ from the model dictate. 

The nature of the obligation imposed on the adoption of the agreements that make up the Final Act of the Uruguay Round of Trade Negotiations, which lacked transparency, is good proof. The Uruguay Round agreements appear to have provided little benefit to third-world countries. The International Monetary Fund (IMF) and the World Bank condition the provision of finance (or, more accurately, debt) to third-world developing societies on their unilateral acceptance of free-market rules for their economies, a condition that many third-world countries call the Structural Adjustment Programme (SAP). In Africa, for example, SAP failed the majority of Nigerians, resulting in enormous unemployment. Kenya has also expressed its dissatisfaction with the IMF and the World Bank for imposing these policy changes on it. Weeks of demonstrations rocked Uganda in the early 1980s, as industrial workers and students took to the streets to protest President Milton Obote’s IMF-imposed economic programme, and in 1990, Benin Republic President Matthew Kerokou was deposed following a wave of anti-SAP rioting. 

It may be claimed that it is no accident that governments that have continued to function well (e.g. Botswana) have never had to undergo the unpleasant SAP treatment. Therefore, poor countries are perpetually de-capitalised, and their economies rely heavily on decisions made by Westerners in New York, London, Paris, and other metropolitan centres, which are then implemented through international institutions. 

The actions of these financial organisations, which were governed by international economic law, aimed to keep neocolonialism alive in third-world countries. When you consider that the IMF was founded as a purely European institution, this point becomes clear. The IMF offered the impression of effectiveness during its early years, helping to restore European currency convertibility (1948–1957) and later assisting European economies in their adjustment (1958–1966). Despite the formation of Special Drawing Rights (SDRs), the fund failed to preserve stability after 1967; parity adjustments were many after that date: devaluation of the Pound and the Franc, revaluation of the German Mark and the Japanese Yen, floating off the price of gold, and so on. The end of the Bretton Woods mandate may be deemed the introduction of the General System of floating currencies in 1973. The IMF’s continued existence was put into question at one point. The institution survived by taking on new responsibilities, including management of unilateral structural adjustment in third-world developing countries and, beginning in the late 1980s, intervention in several third-world countries to ensure their reintegration into the international monetary system.

Imperatively, and based on the foregoing findings, one could be prompted to wonder why an institution (the IMF) that had previously failed to deliver in Europe was drafted to lead the economic recovery of Africa and the rest of the developing world. Surprisingly, and seemingly ignorant of the IMF’s inefficiency, Western governments proceeded to implement the institution’s recommendations by granting loans/aid to any third-world countries that adhere to the IMF’s economic liberalisation principles.

International development law and the third world

One of the reasons for the abysmal failure of the (international) law and development movement at its inception, which scholars have neglected, is that the package or programme included no development scholars, expertise, or professionals from the third world; rather, as a complete package of the West, it was carried out solely by Western scholars and agencies. There is now no agreement or uniformity between the development goals projected by leaders of third-world countries and those projected by leaders of Western industrialised countries, posing severe problems to law and development as a movement and in reality. 

More specifically, Westerners have continued to harness international development matters in ways that contradict the development and other domestic interests of the third world through the International Financial Institutions (IFIs) and other international institutions that they control. Their approach to international law and development in the third world is mostly based on situations or experiences in the Western and developed worlds, which are either unique from those in the third world or aim to achieve too many broad-ranging development goals.

The road ahead : thoughts on TWAIL research agenda

The norms of what are acceptable goals and what is judged as good academic work significantly limit the identification of TWAIL’s future endeavours. It forces academia to play a self-fulfilling function, in that the protocols shame individual academics into envisioning only specific types of social relationships. The protocols are held up as models of clear thinking for those who adopt them. Dissenting academics, on the other hand, are subjected to a range of social and peer pressures to dampen their critical energies. Even the most powerful people are incapable of being daring and courageous in assessing current trends and inventing alternate possibilities. In addition to the ideological and substantive objectives already stated, certain third-world researchers should focus on the following topics. 

Increasing transparency and accountability of international institutions

International law does not foster democracy today, either within countries or across borders. Those who want to change the current condition of the connection between state and international law must first identify the barriers to democracy in the domestic and transnational arenas, then drive the global democratic agenda forward. The path to global democracy will not follow a straight line. Instead, it will be the consequence of key actors such as states, international organisations, and transnational companies gradually strengthening their transparency and responsibility. There is still a lot of work to be done in this area. It is necessary to further expand this concept and the law (either in the form of a statement or a convention) on the subject of international organisations’ responsibilities. This would make powerful institutions like the IMF, World Bank, and WTO, among others, accountable to the world’s poor. In this regard, it is also critical to democratise decision-making inside international institutions such as the IMF and the World Bank, which have come to wield unparalleled power over the lives of ordinary people in the developing world. This need answers that combine a strong dose of realism with a strong desire for change.

Increasing accountability of Transnational Corporations

There is a range of mechanisms that can be taken to hold transnational corporations (TNCs) accountable under international law. The steps could include: 

  • Adoption of the draft United Nations code of conduct on TNCs
  • Assertion of consumer sovereignty manifested in a boycott of TNC goods that do not adhere to minimum human rights standards; 
  • Monitoring of voluntary codes of conduct adopted by TNCs in the hopes of improving their public image; 
  • The use of shareholders rights to draw attestation;
  • The creative use of domestic legal systems to expose TNC coercive activities; and 
  • Criticism of organisations such as the International Chambers of Commerce for advancing TNC interests at the expense of regular citizens’ concerns.

All of these measures necessitate international law scholarship’s critical engagement.

Making effective use of the language of rights

It is necessary to make appropriate use of human rights language to protect the interests of the poor and marginalised. The recent resolutions made by several human rights organisations highlighting the problematic parts of international economic regimes have the potential to win concessions from the government and the private sector. The ramifications of these decisions must be thoroughly examined and applied to the international and national legal systems. A second related responsibility is to reveal the first world’s hypocrisy when it comes to the application of international human rights and humanitarian law.

Injecting people’s concerns into non-territorialized legal systems

The formation of global law without the State is both empowering and concerning in terms of international law development. The tendency must be examined from the point of view of the people. There is still a lot of work to be done in this area. Simultaneously, it is necessary to investigate “the contradiction between the geocentric legality of the nation-state and the new egocentric legality of private international economic agents” to ensure that the interests of people in the developing world are not compromised.

Personal opinions and suggestions

Only Western countries contributed to the development of international law when it was first drafted. Though certain reviews and changes have been made to reflect changes in global events that affect the development of international law and the dynamism of the international system, International conventions, it is claimed, should be communicated in various continents around the world. Each State in the world (as a prominent actor) should have two representations (political and legal specialists) in international law. International law should be re-drafted in these treaties to represent the legal and political voices of the States in the international system. 

The emergence of new international law from these global conventions, with full representation and participation from big, small, rich, and poor countries, will be a critical step toward reducing global tensions and establishing global peace and security. As (founding fathers) of each State and continent, we will understand and accept the weight of international law and will be able to say to ourselves and future generations, “Yes, it is our international law, we participated in drafting it,” rather than “a global law made by the Westerners,” as it is currently conceived by the third-world category.

Conclusion

In international relations, international law has always served the objectives of powerful social groups and states. Dominance, on the other hand, can coexist with varying degrees of autonomy for dominated States, as history has shown. During the colonial period, the conquered countries’ autonomy was completely and openly denied. The actuality of dominance in the age of globalisation is better understood as a more stealthy, complex, and cumulative process. An expanding body of international rules, institutions, and practices is coalescing to destroy third-world countries’ independence in favour of transnational capital and powerful states. The transnational elite’s economic and political objectives are currently not directly translatable to international legal norms. The illusion of progress must be maintained, as must the international legal system’s internal coherence. Furthermore, individual legal regimes must make some concessions to poor and marginalised groups to diminish resistance to them in the third world as well as in the first world, in the face of changing global consciousness. The contradictions that characterise contemporary international law are perhaps best exemplified in the field of international human rights law, which codifies a range of civil, political, social, cultural, and economic rights that can be invoked on behalf of the poor and marginalised, even as it legitimises the internationalisation of property rights and hegemonic interventions. It expresses the hope that the international legal system can be used to provide some relief to those in the third and first worlds who have been suffering for a long time.

References


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