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Breastfeeding publicly : taboo or a fundamental right

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This article is written by Mehak and the article has been edited by Khushi Sharma (Trainee Associate, Blog iPleaders).

Introduction

Part III of the Indian Constitution provided us with certain fundamental rights one of the rights guaranteed is “the right to life and personal liberty” to every person. Over the years, through judicial interpretation, the meaning of ‘life and personal liberty has expanded to include Right to Dignity, Right to Livelihood, Right to Enjoy Pollution-Free Air and Water, Right to Education, Right to privacy, etc. In 2018 the Madras High court asked the central government why not make breastfeeding a fundamental right protected under article 21 of the Constitution. 

UN experts highlighted that “children have the right to the best attainable standard of health.” “Breastfeeding is an important component of this, followed by safe and healthy diets as they grow”. Furthermore, the United nation has provided certain practical steps to promote, support, and protect breastfeeding, for instance, paid maternity leave, safe workplace spaces for feeding, expressing, and storing milk, better training for health workers, and ensuring that women have accurate information so they can make informed decisions about optimal feeding practices. Additionally, breast milk substitutes of good quality should be regulated and should be made affordable so that even middle-class parents can afford them. 

Breastfeeding laws in other countries

United Arab Emirates

The United Arab Emirates introduced a rule in 2014 making it mandatory for women to breastfeed their children until they reach the age of two. An additional clause was included in children rights law, which also mandates that all government offices provide a nursery for working moms who choose to breastfeed their children as well as if a woman due to some health reasons is unable to breastfeed the infant the emirates’ Federal National Council will supply her with a wet nurse. (See here)

Australia

As per section 7AA of the Federal Sex Discrimination Act 1984 discrimination either directly or indirectly on the basis of breastfeeding is prohibited. Additionally, in 1964 Australian Breastfeeding Association was established in Melbourne, Victoria. (See here)

Britain

Similar to Australian law as per the Equality law, 2010 of Britain it is illegal for a business to discriminate on the basis of breastfeeding. (See here)

Pakistan

As per Khyber Pakhtunkhwa Protection of Breastfeeding and Child Nutrition Act 2015, it is mandatory for manufacturers to write on the containers of the products in bold that “Mother’s milk is best for your baby and helps in preventing diarrhea and other illnesses” as well as promotion of packed milk by the health workers for the child up to the age of twelve months is prohibited. (See here)

Brazil

In Brazil, advertising and promotion of baby formula are illegal as well as similar to the laws of Britain entities who prevent or discriminate against breastfeeding in So Paulo incur a fine. (See here)

Norway

In Norway, it is permitted for women to take up to 36 weeks off work with 100 percent pay, or 46 weeks with 80 percent pay as well as similar to the laws of Pakistan advertising formula is prohibited. (See here)

Canada

Discrimination against women on the basis of breastfeeding is prohibited under the Canadian Charter of Rights and Freedoms, however, Canada is one of the few countries which do not provide women with paid breastfeeding breaks. Despite the fact that over 26% of moms breastfeed, many are forced to discontinue owing to job constraints. (See here)

United States of America

In the USA total of 50 states allow public breastfeeding including the recent introduction in Utah and Idaho. According to the Centers for Disease Control and Prevention, over 83 percent of American women attempted breastfeeding at least once in 2015. There are statutes in seventeen states that protect breastfeeding moms who are called to jury duty. Certain states provide the option to postpone for a year, while others give the option to be exempt. (See here)

Though there are various countries where breastfeeding is normalized and widely accepted by society for instance in France, Iceland, Czech Republic, Norway, Spain, Poland, and New Zealand, etc.

Controversy on breastfeeding around the world

In December 2011, the social media platform Facebook banned photographs of moms breastfeeding, but after public outcry, the photos were reinstated. As per the company, the photographs were removed by them as the photographs were against the terms and conditions of Facebook. After one year of the controversy in February 2012, the company again removed photographs showing mothers breastfeeding for the second time. (See here)

At the back of a Target shop in Houston, Texas, a woman was breastfeeding her baby. Despite being covered, she was requested by the employees of Target shop to transfer to a fitting room. one of the employees stated, “You can get a ticket and be reported for indecent exposure”. She posted about the abuse on social media, and as a result, a number of women throughout the country launched public “nurse-ins” at Target shops. (See here)

Another controversy arose in London when the Five Star hotel asked a woman to use a cloth to cover herself while she was breastfeeding. As a result, mothers performed public breastfeed outside the Hotel. (See here)

When Babytalk magazine in the United States published a photo of a model breastfeeding a baby with a bare breast in 2006, despite the fact that the model’s nipple was not visible, the editors received several complaints from readers, many of whom were mothers, who remarked that the image was “disgusting.” A quarter of the 4,000 respondents who answered a follow-up poll thought the cover was negative. (See here)

Position in India

In India, there is no statute which deals with breastfeeding as a result the prevalence and social acceptance of breastfeeding vary from region to region. In India, higher socioeconomic groups are less likely to breastfeed in public, whereas lower socioeconomic groups are more likely to do so. The court in Dr. Shanti Mehra v. the State of Uttarakhand, 2016 while giving the judgment held that there should be a system for breastfeeding or nursing care at the workplace but till now no provision has been introduced by the government. Mr. Justice Kirubakaran while asking to declare breastfeeding a fundamental right of new-borns protected under Article 21 again asked the government to adopt a new law mandating the provision of breastfeeding facilities in public places and made it mandatory for government employees who take maternity leave to breastfeed their new-borns, as well as enacting penalties for officials who do not grant maternity leave.

Additionally, the court asked the government to exercise its power under article 249 of the constitution and pass a law making it obligatory for women to breastfeed their new-borns, as done in the United Arab Emirates. (See here) For the past few years, the court is trying to get various answers from the government but no actions have been taken to date. The court in Ajit Datt v. Ethel Walters, 2000 (4) AWC 3270 while observing these facts stated that no one can separate a child from a natural mother, even if it meant putting his life in peril. Adoption occurs after the child is no longer reliant on the natural mother for food and is capable of surviving without her.

In Ruhi v. State of U.P., 2014  a three months baby was taken away from his mother. As a result, Noman’s corpus (infant) was denied his natural right to breastfeed, which is critical for keeping him healthy and active at that age. Following his separation from his mother, the infant appears to have been top feeding, which could be a primary cause of persistent diarrhea. The claims that the mother was involved in the kidnapping of her husband’s sister, they cannot take away the fundamental right of the infant to breastfeed.

The court in Hardeep Kumar Sharma v. Madan Gopal Sharma, 2008 acknowledged the welfare of the kid and held that it should take precedence over the legal rights and given custody to the maternal aunt instead of the father of the child.

Section 37B in the Prevention of Food Adulteration Rules, 1955

In India Section 37B The Prevention of Food Adulteration Rules, 1955 deals with Labelling of infant milk substitute and infant food according to which the container of the food should indicate in a clear a statement “MOTHER’S MILK IS BEST FOR YOUR BABY” with certain other statements such as the product should be consumed only when prescribed by the health worker, etc. (See here)

Controversies in India

On the cover and within its new March edition, Grihalakshmi created history by displaying a breastfeeding mother and infant. Gilu Joseph, a 27-year-old model, poet, writer, and air hostess are featured on the cover, while an anonymous mother with her child is featured within the issue. Many people commented that they accept breastfeeding but expect women to keep private issues private, likened feeding an infant to other body functions that require privacy, and condemned Joseph for indulging in “nudity” in order to land a magazine cover. (See here)

In Kolkata, the employee of a shopping centre advised a mother who wanted to breastfeed her infant not to undertake such “house chores” in a shopping centre. When the dispute erupted, the manager of the shopping centre responded back by saying that breastfeeding is not permitted in stores and that the mother should have organized her day better because her infant did not require breastfeeding “at any time.”(See here)

Inalienable right of breastfeeding 

The Karnataka High court recently in Husna Banu v. the State of Karnataka, 2021 while hearing petitions involving the custody of a child between the biological mother and the foster mother has given a landmark judgment in which breastfeeding is held to be an inalienable right of lactating mothers, and this attribute of motherhood is a fundamental right protected under Article 21 (right to life) of the Constitution of India the single judge bench held by Justice Krishna S Dixit added that it is a case of concurrent rights where not only breastfeeding right of a lactating mother is protected but the right of the suckling infant for being breastfed is also protected.

Conclusion 

Even in the 21st century in many countries breastfeeding in public places is considered taboo many people consider breastfeeding a private act that should not be done in public places. Many at time controversies arose because of women breastfeeding their children in public places. On the other hand, in the countries where breastfeeding is normalized due to job concerns various women stop breastfeeding at earlier stages. In India, there was no law relating to breastfeeding recently while delivering the judgment, the Karnataka high court took a significant step toward acknowledging the importance of breastfeeding in contemporary India by making breastfeeding a fundamental right under Article 21 of the Indian constitution and protecting the right of a suckling infant to be breastfed. However, it cannot be overlooked that certain guidelines are required in order to educate the general public about the importance of breastfeeding it can be done by providing them with certain maternal benefits and making it mandatory for women to breastfeed, as well as providing them with an environment in a public place where they can easily breastfeed their infants.


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Rules relating to auto-debit transactions to undergo a change

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The article is written by Anaya Tulankar, from RTI Cell, iPleaders and the article has been edited by Khushi Sharma (Trainee Associate, Blog iPleaders) and Vanshika Kapoor (Senior Managing Editor, Blog iPleaders).

Introduction 

Beginning from the 1st of October, the auto-transaction rules are expected to be altered. As previously stated by the Reserve Bank of India (RBI) that the recurrent transactions given effect through debit cards, credit cards, and Unified Payments Interface (UPI) or any prepaid payment instruments (PPIs) will require an additional factor authentication (AFA). 

Earlier, rules were to come into operation from the 1st of April 2021, but the RBI stretched the deadline for six months as numerous banks had not conformed with the rules.

Many credit and debit card operators set auto-payment commands for numerous services extending from phone, electricity, and gas bills to OTT platform memberships, these newly made rules are bound to create a state of confusion for the users.

Banks have initiated notifying their respective customers about the new rules in auto-debit transactions as directed by the Reserve Bank of India (RBI) “As per RBI’s recurring payment guidelines, w.e.f. 20-09-21, Standing Instructions on your Axis Bank Card(s) for recurring transactions will not be honored. You can pay the merchant directly using your card for uninterrupted service,” was a message sent by the Axis Bank.

HDFC Bank has sent alerts to its clients via e-mail which reads, “The new conditions prescribed by RBI require a cohesive effort by all stakeholders, including card Issuing banks, Merchant Acquiring Banks, Card Networks, and Merchants. All constituents must complete the development, integration, and deployment of a common platform fully compliant with the RBI guidelines. A common industry-wide platform is being developed, and HDFC Bank has completed its internal development and integration. We are now working jointly with merchants to make this platform live for customers at the earliest.”

The RBI had announced these changes to make the auto-debit procedure safer and deliver more flexibility to the clienteles. The additional factor authentication (AFA) guidelines of the Reserve Bank of India (RBI) will be applied from the 1st of October.

The payment will not be complete if clienteles do not accept or respond to the pre-debit notification. Banks are obligated to send in a communication 24 hours prior to the deadline of the payment. Clients will have the prospect of altering or abandoning the transaction. They will also have the freedom or ability to abandon, view, or change any standing directions set on their card. The changed rules will not influence e-NACH and UPI autopay transactions.

What changes are expected in the rules

The Banks, payment collectors, and merchants are hustling to abide by the new auto-debut rules instructed by the Reserve Bank of India (RBI). They have also started informing clienteles about the rule change.

Nevertheless, specialists submit that not all banks may become successful in sticking to the central bank’s deadline. Although banks and financial institutions are striving for a smooth changeover, online merchants and customers could face disturbances due to the new auto-payment rules through debit and credit cards.

Leading private banks are at work with payment aggregators like Razorpay and BillDesk to fit in with a typical e-mandate stage for certifying compliance.

A Notification put up by the RBI that was issued on the 21st of August 2019 said that “relaxation in Additional Factor of Authentication (AFA) was permitted while processing e-mandates / standing instructions on cards and Prepaid Payment Instruments (PPIs) for recurring transactions with values up to Rs 2,000/-, subject to conditions listed therein. These instructions were later extended to Unified Payments Interface (UPI) as well.

The RBI also specified in notification on Developmental and Regulatory Policies dated the 4th of December, 2020, that “the aforesaid transaction limit will be increased. Accordingly, it has been decided to increase the above limit for AFA relaxation to Rs 5,000/- per transaction, with effect from the 1st of January, 2021.

According to RBI’s altered rules on the auto-payments or transactions from the 1st of October, all frequent transactions will need added verification. The payments exceeding ₹5,000 will be followed by a one-time password (OTP) and will need authentication by a purchaser when a payment is due. These rules will be applicable to both domestic and international credit and debit cards.

Following are all the details you need to know regarding the new rules:

1) All the Instructions on your credit card and debit card (both domestic and international) will not be treated without the added factor of verification through the OTP system.

2) Mandate registration, deletion, and modifications will need additional factor authentication (AFA) from now on.

3) Clienteles will get a pre-debit notification through SMS or e-mail 24 hours prior to the transaction.

4) People can choose to cancel the payment or the command through the link provided in the pre-debit notification.

5) The ability to view/modify/cancel any of the instructions set on their cards.

6) Clients can set a maximum sum for each SI. If the payment total is larger than the maximum amount allocated by the client, the pre-debit notice will have a link for the customer to confirm the action with AFA. Lacking this substantiation, the transaction will not be completed.

7) Any recurrent transactions of an amount more than ₹5, 000 will necessitate AFA each time the sum is debited.

8) If the instructions for the transactions are registered on your Bank account, there will be no alteration. If these are on your bank’s debit or credit card, these will fail from the 1st of October 2021.

How will this impact the card operation

All the standing directions will not be processed. Registration, alteration, and removal will necessitate additional factor authentication.

There will be no change if the standing instructions for bill payments are registered on a user’s bank account. The new rules will only impact the standing instructions on debit and credit cards.

Here is what the clients can do to dodge defaulting on recurrent payments: –

The payments made for merchants already joined with the technology infrastructure will be permitted. However, the operators will have to stipulate or go through the registration procedure where they will have to key in the validity period and the most amount of the standing instructions.

Any transaction appeal beyond the limited sum will need an OTP-based verification at the time of the payment. The AFA has been permitted only for transactions below ₹5,000.

For succeeding payments inside this threshold, the authorizing bank will lead a user a debit statement with the amount and name of the merchant 24 hours before each payment. The statement will also comprise a link that will direct them to a page where the users can view, modify or cancel the payment or the command. If they take no action on the notification, the payment will be taken out.

If a bank has not communicated any notification to the users about the future changes, they will have to make straight payments to facility providers through merchant apps, sites, or their bank’s net-banking provisions to sidestep defaulting on the transactions.

The banks will not impose any charges. However, in the incident of merchant/service providers imposing any charges/fees in the direction of the non/delayed payments, the bank will not be accountable.

insolvency

How does the changes in rules affect the banks

For banks and payment institutions, the new rules pose a significant challenge. It will require them to overhaul existing recurring payment flows and maintain standardization for the smooth execution of payments.

Even as the RBI’s limit ends in just a few days, many banks are having trouble bringing advancement in their system, and payment aggregators are incapable of joining in with them. The banks have still started communicating to the customers very late and delaying the process.

Some moneylenders have even directed customers to make direct payment for standing instructions as the longstanding facility may not work primarily. While leading private banks said they are prepared to obey the RBI’s guidelines, some early disturbances are probable.

Many credit and debit card users set auto-payment instructions for goods and services ranging from electricity and gas to music and movie subscriptions, and the banks fear that new rules could lead to chaos for millions of users.

The banks and payment institutions were asked to refurbish the existing frequent payment flows and preserve standardization for the smooth implementation of the payments.

All the notifications concerning such communication will come on users’ recorded phone numbers and e-mail IDs. So, the account holders must guarantee that those correct particulars are linked to their cards.

Conclusion

In simple words, clienteles have to provide additional factor authentication (AFA) by accepting the auto-debit request in advance. The payments will not be made if clienteles do not accept or reply to the pre-debit communication.

Monthly transactions can be traced easily by clienteles who prefer making payments in cash. The change in auto-debit will be a good opportunity from the stance of the people who cannot sustain consistent cash inflows. 

The customers should remember that only standing commands on cards will be obstructed and not standing instructions given to banks by clienteles. Hence, EMIs and SIPs payments will not face any confusion.


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Can a court in appeal refer parties to arbitration under the 1996 Arbitration Act : an analysis of the Supreme Court’s decision in P. Anand Gajapathi Raju v. P.V.G. Raju

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Arbitration
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This article is written by Misbah Salman Fazalbhoy, pursuing Certificate Course in Arbitration: Strategy, Procedure and Drafting from LawSikho.The article has been edited by Aatima Bhatia (Associate, LawSikho) and Ruchika Mohapatra (Associate, LawSikho).

Introduction

In 1996 the central government enacted the Arbitration and Conciliation Act, 1996 which contains provisions on the handling of national and international arbitration proceedings and defines the law for the conduct of arbitration proceedings. Since then, globalisation, industrialisation and liberalisation have multiplied manifolds. Arbitration has increasingly become a preferred option for resolving business disputes both globally and in India. In this article, we will attempt to understand whether the Arbitration and Conciliation Act, 1996 allows the court to refer the dispute between the parties to arbitration at the stage of an appeal using the P. Anand Gajapathi Raju v. P.V.G. Raju case

Facts of the case 

1. During the pendency of an appeal before the Supreme Court, the Petitioners and respondents, in this case, had entered into an arbitration agreement to resolve the dispute between them.

2. The parties had agreed to refer and settle this specific dispute which was presented in front of the Supreme Court via this appeal through arbitration, amongst others. 

3. The arbitration was a domestic arbitration seated in India and governed by the provisions of the Arbitration and Conciliation Act 1996 (“the Act”). 

4. For the same, the Parties jointly appointed Justice S. Ranganathan, a retired Judge of the Supreme Court as sole Arbitrator, since the arbitration agreement provided for a sole arbitrator.  

5. The arbitration agreement was in writing (in the form of an application), signed by the Parties, and met all the requirements of Section 7 of the Act

6. The parties applied to the Supreme Court to refer their dispute to arbitration pursuant to Section 8 of the Act

arbitration

Issues before the court 

Does the new Act i.e. the Arbitration and Conciliation Act, 1996 allow the court to refer the dispute between the parties to arbitration at the stage of an appeal? 

Decision of the court 

The court held that the powers conferred upon it under Section 8 of the Act were broad enough to cover an application for reference of a dispute to arbitration made in an appeal. The court allowed the application and referred the parties to the arbitration. 

Reasoning given for the decision 

1. In the old Arbitration Act (The Arbitration Act, 1940) sections 21 to 25 required the parties to apply to the courts for an order referring the dispute to arbitration and then the suit itself stands disposed of. However, in Part 1 (which deals with arbitrations seated in India) of the Arbitration and Conciliation Act, 1996 Act there is a clear intention of the Legislature to minimise judicial interference by Courts in arbitration proceedings. As per Section 5 of the 1996 Act

“Extent of judicial intervention.—Notwithstanding anything contained in any other law for the time being in force, in matters governed by this Part, no judicial authority shall intervene except where so provided in this Part.”

2. After clarifying the minimal intervention object of the 1996 Act the court expounded on its scope of authority. Section 8 of the 1996 Act provides courts with the authority to refer the parties before it to arbitration when certain conditions are fulfilled – 

Section 8(1) states that the Court should refer the parties to arbitration unless it finds that there is prima facie no valid arbitration agreement between the parties.

Section 8(2) requires the parties making the application for reference of the dispute to submit with such application the original arbitration agreement or a duly certified copy thereof if the original agreement is unavailable for valid reasons. 

3. There are 4 conditions that are required to be satisfied before a competent court can, using its powers under Section 8, refer the parties to the arbitration. They are:

  1. There should exist a valid arbitration agreement between the parties.
  2. One of the parties to such arbitration agreement brings an action in court against the other party in violation of such agreement to arbitrate.
  3. The subject matter of the action in court should fall under the scope of disputes agreed to be settled by arbitration in the arbitration agreement. 
  4. Finally, the other party, against whom such action has been brought, applies to the court to refer the parties to arbitration pursuant to such valid arbitration agreement before it submits its first statement to such court. 

4. In the present case, the conditions and pre-requisites as set out in sub-clauses 1 and 2 of Section 8 are properly satisfied. There is an existing arbitration agreement that is not denied by either party. Both the parties to the suit are parties to the arbitration agreement in question and the subject matter of arbitration falls within the scope of disputes covered in the arbitration agreement. The fourth prerequisite is also satisfied. Even though the party applied to the court to refer the matter to arbitration after submitting their written statement, the other party did not object to such reference and hence, in the court’s view, there is no bar. Therefore all 4 requirements of Section 8 are satisfied and the parties could be referred to arbitration.

5. The next question required to be answered before the court was – is it necessary that the arbitration agreement in question should be entered into between the Parties before an action is brought to Court? 

The court answered in the negative. The phrase “which is the subject of an arbitration agreement” is broad enough to suggest that even an arbitration agreement that is entered into after the said action is brought or during the pendency of such an action is covered under the phrase. 

6. Section 8(3) states that “Notwithstanding that an application has been made under sub-section (1) and that the issue is pending before the judicial authority, an arbitration may be commenced or continued and an arbitral award made.”

7. The court held that the word “is” is broad enough to cover all present and some past and future actions as well. To reach this conclusion, the Court took help from the definition of the word in the Black’s Law Dictionary. 

 “Black’s Law Dictionary has defined the word “is” as follows: This word, although normally referring to the present, often has a future meaning, but is not synonymous with shall have been. It may have, however, a past significance, as in the sense of has been.”

8. Identifying the language in Section 8 as peremptory the court held that in the present circumstances of the case it would be obligatory upon the court to refer the parties to arbitration under the new Act i.e., the 1996 Act as amended, since all the conditions and pre-requisites were fulfilled. 

9. The court also opined that the present application under Section 8 was not an application contemplated under Section 42 of the Act and hence the court to which the parties shall have any further recourse shall be a court as decided under Section 2 ( e) of the Act and not the present court. 

10. In light of its decision and reasoning the court allowed the application and referred the parties to the arbitration. 

Similar judgments

Below are some judgments of various Indian courts referencing the current case and following its decision – 

Tata Steel Ltd. v/s M/s H. R. Construction (P) Ltd. 

In this case, the Jharkhand High Court at Ranchi set aside an order of the Civil Judge, Sr. Division – 1, Jamshedpur in a money suit and followed the Supreme Court’s decision in P. Anand Gajapathi by disposing off the writ petition with a direction to the Civil Judge to consider the application filed under Section 8 by the petitioner – defendant. The Court however did not make any opinion or share any view on the merits of the section 8 application filed by the parties and left that decision to the Civil Judge. 

Hindustan Petroleum Corpn. Ltd. v. Pinkcity Midway Petroleum

The Supreme Court held that if there is an arbitration agreement or an arbitration clause in an agreement between the parties, it would be binding on the civil court to refer the dispute to arbitration. 

Swiss Timing Ltd. v. Commonwealth Games 2010 Organising Committee

Though this case did not directly refer to an application made under section 8 for reference to arbitration, it did touch upon similar points of law and the rights of a party to have the dispute settled through the chosen and agreed upon dispute resolution mechanism in a contract between them. The Supreme Court referred to the Court’s decision in P. Anand Gajapathi and opined on the ruling in N. Radhakrishnan v. Maestro Engineers saying that the current position of law was the one laid down in P. Anand Gajapathi and the Hindustan case (discussed in point 2 above). It observed that the judgment in P. Anand Gajapathi was not even brought to the attention of the Court in the N. Radhakrishnan case, therefore the same was neither considered nor followed. 

Conclusion

The present judgment is a step in the right direction. By allowing the parties to pursue alternate modes of dispute resolution while waiting for the court system to resolve its differences, the courts are rightly promoting ADR methods. This will not only help educate and create awareness in people about other dispute resolution methods but will also help ease the burden on courts. By allowing the parties to submit their dispute voluntarily to an arbitrator, a matter which could have taken up a lot of the court’s time turned into a simple application for reference to arbitration. Such pro-arbitration decisions also project a worthy image of India on the global platform. They show India’s seriousness towards becoming a global hub for alternate dispute resolution. 

References

  1. https://www.mondaq.com/india/court-procedure/845782/salient-features-of-the-arbitration-and-conciliation-amendment-bill-2019

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The twisted tale of Tokyo trials : a jurisprudential battlefield

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This article is written by Varalika Nigam pursuing LL.M. from NUSRL, Ranchi and the article has been edited by Khushi Sharma (Trainee Associate, Blog iPleaders).

Introduction

The two giants of jurisprudence- the Natural Law and the Analytical Positivist School, have always been at loggerheads with each other ideologically. The trials held after the world war were reflective of this fact. Some jurists have argued that justice cannot be achieved by using natural law as a medium. History reveals that justice disguised as vendetta was served while prosecuting the war criminals of Japan. Ulterior motives were fulfilled in the name of morality. On the contrary some jurists believe that positive law is devoid of morality and hence promotes dictatorial ideologies. The objective of this article is to take into account the background and facts of the famous Tokyo trials which has always been the apple of discord between the forerunners of both the schools and understand justice and jurisprudence in its light.

After the horrors of World War II ended and the allied powers emerged victorious and, they set up the first international criminal tribunals to prosecute the authorities responsible for war crimes and other wartime atrocities. The International Military Tribunal was set up in Nuremberg, Germany by the four major allied powers- France, the Soviet Union, the United Kingdom, and the United States to prosecute and castigate the war criminals of the European Axis. The defendants included the high-ranking officials of the Nazi Party, military officers, and several German lawyers, industrialists, and doctors who were indicted with the charges of crimes against peace and humanity. It was a series of thirteen trials carried out between 1945 and 1949. The recondite International Military Tribunal for the Far East (IMTFE) was created in Tokyo, Japan in consonance with the 1946 proclamation by U.S. Army General Douglas MacArthur, Supreme Commander for the Allied Powers in occupied Japan. The IMTFE presided over a string of trials of Japanese political and military commanders as it was entrusted with the responsibility to try and punish the Far eastern war criminals.

The Tokyo Trial

The International Military Tribunal for the Far East (IMTFE) was not established by an international agreement rather it was an outcome of international agreements to prosecute war criminals of Japan. The Potsdam Declaration, signed by China, the United Kingdom, and the United States, in July 1945, called for Japan’s “unconditional surrender” and declared that “stern justice shall be meted out to all war criminals.” At the time that the Potsdam Declaration was signed, the war in Europe had ended but the war with Japan was ongoing. The Soviet Union did not sign the declaration as it did not announce war on Japan until weeks later, on the same day that the United States bombarded the city of Nagasaki with atomic bomb. Japan surrendered on August 14, 1945.

The Soviet Union, the United Kingdom, and the United States (with concurrence from China) at the Moscow Conference, held in December 1945, agreed to a basic structure for subjugation of Japan. General MacArthur who was Supreme Commander of the Allied Powers, was given the carte blanche to “issue all orders for the implementation of the Terms of Surrender, the occupation and control of Japan, and all directives supplementary thereto.”

General MacArthur, acting in consonance with this authority issued a proclamation in January 1946, that led to the establishment of IMTFE. The Charter for the International Military Tribunal for the Far East was annexed to the proclamation. It outlined the composition, jurisdiction, and functions of the tribunal on the lines of the Nuremberg Charter.

The Charter empowered MacArthur to appoint judges to the IMTFE from the countries that had signed Japan’s instrument of surrender which included Australia, Canada, China, France, India, the Netherlands, Philippines, the Soviet Union, the United Kingdom, and the United States. Each of these countries also had a prosecution team. The IMTFE had jurisdiction to try individuals for Crimes Against Peace, War Crimes, and Crimes Against Humanity, and the definitions were precisely similar to the ones mentioned in the Nuremberg Charter. Nevertheless, it had authority over crimes that took place over a larger period of time, from the Japanese invasion of Manchuria in 1931 to the surrender of Japan in 1945. It presided over the prosecution of nine senior Japanese political leaders and eighteen military commanders. Japanese Emperor Hirohito and other members of the imperial family were not indicted. The Allied powers let Hirohito have his throne, though the status was significantly reduced. The Tokyo War Crimes Trials began in May 1946 and were concluded in November 1948. All the remaining defendants were found guilty by the IMTFE and sentenced to punishments ranging from death to imprisonment for seven years. Two defendants died during the trial.

Tokyo Trials : jurisprudential conflict and Victor’s justice?

The Tokyo trial was inconceivably bound to become the focal point of the deliberations on international law. The conundrum between the two colossi of the jurisprudence to make their mark was witnessed in this trial. In words of the American prosecutor Joseph Keenan the trial “served as a cockpit for a death struggle between two completely irreconcilable and opposed types of legal thinking.”

The positivists argued that the criminalization of aggressive warfare had not taken place before the outbreak of World War II therefore the individuals cannot be punished for initiating it. On the contrary the Naturalists contended that the abominable crimes of war committed by these individuals prompted the doctrine of individual responsibility which stemmed from public conscience. This would seep into the law through its usage in cases like Tokyo. According to the natural law supporters, justice might remain a mirage if morality is not protected and the crimes committed by the Japanese have stirred the moral standards of the nations across the globe.

Joseph Keenan, an avouched naturalist was the keynote protagonist of the deliberations at Tokyo. He was an ardent believer of the fact that the dynamism of international law made it distinct from the conventional laws. According to him the letters of law were not set in stone. It cannot be caged into mere words as it has experiences of life written over it. The law is guided by God and act as a medium for maintaining the existing state of affairs. His views seemed to be covered in the gloss of Blackstonian Philosophy which emphasized on the law being dictated by God himself.

He believed that the excessive ambition of certain nations paved the way for circumstances that led to the World War II which shook the very foundations of humanity. One can find traces of Gustav Radbruch’s theory in his expression where he criticized the Austinian-ism laid the cornerstone for emergence of ideologies like Nazism and Fascism. In his opinion Japan’s abrupt and brutal invasions has caused a moral catastrophe and violated the natural order of the world. There occurred a dire need to put a stop to it because, ‘If Japan had the right to change its geographical and economic status suddenly by war, then every other nation as badly situated, from the economic standpoint, had the same right.’

The entire argument of Keenan was based on the idea of two categories of wars the ones that were imperative for restoring normalcy. He called them just wars and the others which were of unjust nature, the ones which wreaked havoc. They only disintegrated the regular state of affairs. ‘The nucleus of crimes against peace is the criminally unjust war,’ he wrote, which was ‘always evil per se in the moral sphere and unjust in the judicial, despite the absence of positive legal undertakings to that effect.’ In his opinion this trial will serve as a vade mecum for development and progress of international law so that the unjust wars can be prevented in future. His abstract aspiration to set an example superseded the duty of administering justice. His beliefs immaculately resonated with the views of Del Vecchio who believed natural law to be the criterion which permits us to evaluate positive law and to measure its intrinsic justice. Although Keenan categorically declared that he had ‘no particular interest in any individual or his punishment’ but he chided the defence lawyers because they were ready to ‘sacrifice common the international good’ at the altars of individual interests of the defence. 

The path breaking dissent of Justice Pal

Justice Pal’s delineation of Pacific wars was that of a “tragic contest” in which all sides “shared alike a common grammar of militaristic imperial aggression.” It was at loggerheads with Keenan’s fanciful idea of the nobility of the allied powers and hideous axis powers. He asserted that the ramifications of coining a judgement based on the dictums of conscience will be grave and credibility can only be achieved by obeying the letters of the law and not the “general moral sense” of humanity. It is evident that he was a staunch supporter of the positivist approach.

The assertions of naturalists to save the human kind was nothing but utopia. Those claims emanated (and here he quoted Lon Fuller) the ‘rich, deep odor of the witches’ cauldron’. His legal philosophy is deeper than mere words. He had pressing concerns about the intention of the prosecuting authorities. In his discussion on ‘crimes against peace’ he reminisced about the rampage caused by the powers in Asia in the past. Owing to his profound apprehensions he cautioned about the deployment of charge for egocentric reasons by these powers in the guise of maintaining ‘the very status quo which might have been organized and hitherto maintained only by force by pure opportunist “Have and Holders”.’ He quoted Robert Jackson’s statement from the Nuremberg Trials that ‘whatever grievances a nation may have, however objectionable it finds the status quo, aggressive warfare is an illegal means for settling those grievances or for altering those conditions’. Jackson suggested to freeze the international relations irrespective of their just or unjust nature after the cessation of World War II.

This might lead to an embargo against the tussle against colonialism and exercise of ‘self-help by force’. These restrictions were beyond the pale because the colonized ‘cannot be made to submit to eternal domination only in the name of peace’. Justice Pal had his own set of disagreements with Jackson. In his opinion anti-colonial justice accompanying stability should be given precedence over peace overriding justice. This marks a deflection from his purely positivist stance to the conception of just wars- where he sees eye to eye with Keenan. Justice Pal believed that the Japanese wars were not unjust because it was caught between a rock and a hard place. It was an act of self-defence as they had no other choice than to commit a political suicide. This was a major compromise to the notion that wars could be classified as either unlawful (aggression) or lawful, rooted in crimes against peace (self-defence or sanction). Justice Pal left no stone unturned to frame the offensive Japanese actions as defensive like any devoted positivist would have done.

Conclusion

In words of Blackstone law of nature is dictated by the God himself. Therefore, it is superior to any other law or obligation. Some great philosophers of the time emphasized on how law is a reason which is totally devoid of human desires. Thus, time and again natural law emphasized on how reason, morality and the divine should be the foundation stone to govern the people. It has been seen that all the archaic laws like ten commandments, Roman Law, the Justinian code were based on an amalgamation of religion and divinity. Gierke defined natural law as unity derived from God and involved one faith, one church, and one empire. The drift from these ideologies was seen from the Modern classical era of natural law school. Thinkers like Hobbes, Locke, Kant, Rousseau divorced from the theological divine sources and founded the law on human reason exclusively. 

As a reaction to natural law arose the Analytical Positivist school. The main objective of both the British and Germanic legal positivism was to separate law from morality. Where Austin and Bentham were considered as champions of positive law whose only objective establish the power of sovereign. Kelsen on the other hand gave his “theory of pure law” which not only talked about separating law from morality but also from all the other factors. Therefore, positivists are generally blamed for rise of ideologies like Fascism and Nazism. It was so because the law in those regimes was to be followed verbatim irrespective of whether it stood the test of moral values. Gustav Radbruch time and again questioned the Austinian Command theory. Post-World War II revival of natural law became his sole aim. He propounded the theory of higher law. He stated that positive law can be disobeyed in cases of manifest arbitrariness and flagrant injustice.

The question here is whether with the help of natural law justice was achieved at the Tokyo trial? Or was natural law used as a weapon for vengeance by the winning nations? In the name of morality and setting precedents were the rights of the prisoners not considered? If there exists a sense of morality, then it should have been equally applied on all the nations. No tribunal was created to try the United States of America for trying the military commanders and the leaders who not just planned but also executed the nuclear bombings of Hiroshima and Nagasaki. Can this now be termed as Victor’s Justice? As goes the classic saying that to the victors belongs the justice. All of them remain unanswered. No one can ever justify the holocaust or molestation of a thousand Chinese women by the Japanese. Still the way justice was meted out by the two tribunals can successfully cast aspersions on the minds of a lot of people. These questions though unanswered, have been a nightmare for the jurists and will continue to haunt generations for decades to come.


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Understanding cost allocation in arbitration proceedings under the Arbitration and Conciliation Act 1996 : pre-amendment and post amendment position

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This article is written by Aanya Kameshwar, pursuing Certificate Course in Arbitration: Strategy, Procedure and Drafting from LawSikho.The article has been edited by Aatima Bhatia (Associate, LawSikho) and Ruchika Mohapatra (Associate, LawSikho).

Introduction

In August 2014, through the 246th Report, the Law Commission of India recognised that one of the complications associated with arbitration, especially in ad hoc arbitration in India is the hefty fees charged by arbitrators in spite of the fact that arbitration evolved as an expeditious, cost-effective, simple and fair alternative dispute resolution to litigation. However, over time, Arbitration became expensive. The Report announced the fees charged to be “arbitrary, unilateral and disproportionate”. Therefore, pursuant to the recommendations of the 246th Report, the Indian legislature enacted the 2015 Amendment Act, attempting to update the law on costs in line with the best international practices, and replaced Section 31(8) with a new provision on costs in the form of Section 31A

Section 31A deals with the costs to be awarded in relation to arbitral or court proceedings. It recommended following the ‘loser-pays rule’, and justified it on the ground that it “provides economically efficient deterrence against frivolous conduct and furthers compliance with contractual obligations.” The intent of the legislation behind Section 31A was to discourage frivolous conduct and dilatory practices through an award on costs. Three rules are followed around the world for cost allocation: 

  1. ‘Loser pays’, also known as the ‘English rule’; 
  2. ‘Pay your own way’, also known as the ‘American rule’; and 
  3. Apportionment of costs or Proportional Allocation  also known as ‘Pro rata’ approach.

This article addresses the problems on the law of costs that the latest amendments sought to overcome and whether arbitral tribunals and courts justifiably allocate costs in the arbitral proceedings or the arbitration-related court proceedings.

Pre-amendment position on costs allocation

Salient features of Section 31(8)

  1. In the absence of any agreement to the contrary, Section 31(8)(a) imposed a positive duty on the arbitral tribunal to fix costs of arbitration.
  2. Section 31(8)(b) mandated the tribunal to specify the party entitled to costs, the party which shall pay the costs, the quantum or the method of determination of the amount and the way in which it shall be paid.
  3. Section 31(8) also contains an Explanatory Clause which defines “costs” and qualified “costs” as “reasonable” costs and is still subsisting.

Section 31(8) of the Arbitration Act was originally enacted to deal with costs in arbitration. It lays down a default rule which meant that the parties could contract around it the manner in which they deemed chose. However, in the absence of any agreement regarding the cost of the arbitration, it is the duty of the arbitral tribunal to fix costs. But, in practice, arbitral tribunals failed to exercise their duty in allocating costs in a manner conducive to prevent frivolous conduct of a party. Another pre-amendments problem with the regime on costs was that there was no clarity as regards awarding costs in arbitration-related court proceedings related to Arbitration.

It was noted that the arbitral tribunal is not empowered to award pre-arbitration costs. Proceedings under Section 11, appeals under Article 136 of the Constitution of India, and appeals from the order of the designate are pre-arbitration proceedings. Given that the courts did not award costs in such proceedings, an amendment to the Arbitration Act empowering the courts to award costs reasonably compensating the “winning party” in all arbitration-related court proceedings as required. This dissatisfactory state of the law and its application led to a call for reforms.

arbitration

Recommendation of the law commission 

It was the Law Commission of India’s 246th Report that recommended amending Section 31(8) of the Act. The said report specifically pointed out the need for a difference in treatment of costs as compared to traditional litigation. The Commission recommended that the loser-pays principle shall be followed by the tribunals and courts while allocating costs. The Law Commission recommended the English Rule also known as the loser-pays principle. As per this approach, the winning party gets indemnified by the losing party for the entire legal cost incurred. Many institutional rules include the provision specifying this approach as a rebuttable presumption (e.g., LCIA, CIETAC, PCA, UNCITRAL, and DIS). 

The commission recommended it for two reasons: 

  1. To punish the losing party who frivolously drags the other party to court/ arbitration or who sets up inequitable arguments to avoid compensating the winning party for the losses incurred in resolving the dispute in courts or before the Arbitral tribunal. 
  2. The loser-pays principle provides indemnity to the winning party.

Post-amendments position on costs allocation

Salient features of Section 31A

  1. Section 31A(1) clarifies that the regime of costs under the 1996 Act shall be notwithstanding the Code of Civil Procedure, 1908. It empowers the court or arbitral tribunal, to award costs in proceedings under the Arbitration Act and shall have the discretion to determine— 
  1. Whether costs are payable by one party to another; 
  2. The amount of such cost; and 
  3. When such costs are to be paid.
  4. Section 31A(2) lays down two rules regarding arbitral cost—
  1. That the losing party should be ordered to pay the costs of the party who has won the case.
  2. The Court or the tribunal shall make a speaking order for departing from the general rule provided.
  1. Section 31A(3) provides the circumstances to consider while determining the cost.
  2. Section 31A(4) says that a tribunal or court may make any order under this section determining the amount of costs, the proportion of the cost, the interest on cost etc.
  3. Section 31A(5) lays down that an agreement related to who will bear the costs of the arbitration shall be only valid if such agreement is made after the dispute in question has arisen.

Section 31A was introduced with the objective of introducing a new costs regime in arbitration, in line with the judgment in the Salem Advocate Bar Association case (2005). In this case, the court lamented the fact that in most cases, parties are made to bear their own costs, and recommended imposing “heavy costs” if a party delays the process. Furthermore, the very objective of the 2015 amendments, which inserted Section 31A, was to make India more arbitration-friendly. 

Through the 2015 Amendment Act, Section 11(14) was also added, which empowered High Courts to make such rules for determining the fees of a tribunal and the manner of its payment, after taking into consideration the rates specified under the fourth Schedule of the Arbitration Act. The provision is reproduced here under-

“(14) For the purpose of determination of the fees of the arbitral tribunal and the manner of its payment to the arbitral tribunal, the High Court may frame such rules as may be necessary, after taking into consideration the rates specified in the Fourth Schedule.”

However, given the ambiguities in the 2015 Amendment, In 2019, the Arbitration and Conciliation (Amendment) Act, 2019  substituted section 11(14) which was inserted by the 2015 Amendment Act. The provision is reproduced here under-

“(14) The arbitral institution shall determine the fees of the arbitral tribunal and the manner of its payment to the arbitral tribunal subject to the rates specified in the Fourth Schedule.”

At Present, Section 11(14) lays down that the arbitral institution shall decide upon the emolument of the arbitral tribunal and the method of its payment to the arbitral tribunal subject to the rates specified in the Fourth Schedule of the Arbitration Act. It has to be noted as explained in the explanation to Section 11(14) that, this subsection does not apply to international commercial arbitrations and neither to domestic ad hoc arbitrations where the emolument of the arbitral tribunal has been agreed upon by the parties as per the rules of an arbitral institution.

The Hon’ble High Court of Delhi, in the year 2017, held in the case of National Highways Authority of India v. Gayatri Jhansi Roadways Limited (Gayatri Roadways), that, that the arbitral tribunal is empowered to fix its fees on its own discretion but it’s only possible in cases of ad hoc domestic arbitrations. However, a year later i.e., in 2018, the Hon’ble High Court of Delhi, held in the case of National Highways Authority of India v. Gammon Engineers and Contractor Pvt. Ltd (Gammon Engineering Cases), that, that the word “costs” under Section 31(8) and section 31A of the Act are the costs that are awarded by an arbitral tribunal as part of its award in favour of the winning party and against the losing party. Omission of the words “unless otherwise agreed by the parties” signifies that the parties, through an agreement, cannot pre-determine the “costs” and “denude” the arbitral tribunal of its power to award “costs” of arbitration in favour of the winning party. Furthermore, in regards to determining the “fees” by the arbitral tribunal, the Hon’ble High Court held that an arbitral tribunal is bound by the arbitration agreement between the parties, which is the source of its power.

The Supreme Court of India, in the year 2019, overruled the decision of the Delhi High Court in the Gayatri Roadways Case. The Apex Court through the case of National Highways Authority of India and Ors. v. Gayatri Jhansi Roadways Limited and Ors, upheld the decision of the High Court of Delhi in the Gammon Engineers Case related to the interpretation of sub-sections 11(14), 31(8), and Section 31A of the Arbitration Act. 

The Supreme Court of India settled the position on the issue regarding the fees of the arbitrator(s) in cases where the parties had pre-determined the fees in the arbitration agreement. It was held that Schedule four provided in the Arbitration Act is ‘not mandatory’ in determining the fees where the fees have been pre-decided by an agreement between the parties. Unfortunately, the court did not decide upon instances where the parties have not agreed to the fees of the arbitrator(s).

Conclusion

The new amendment enacted in 2019 with the objective “to promote institutional arbitration” does seem to provide some of these solutions but when it comes to ad-hoc arbitrations, there is no interference by the court or arbitral institutions and the parties in most of the cases do not pre-decide the fees of the arbitrator. In such circumstances, arbitrators are laying down their own fee structure. Now, the question which remains is whether the Fourth Schedule is applicable in cases of ad-hoc arbitration and if so, is it mandatory or directory in nature.

In respect of the 2019 Amendment, the High Court is now expected to designate arbitral institutions to discharge all the proper and necessary functions which will include appointing arbitral tribunal and determining the fees of the arbitrator(s). However, it leaves an ambiguity on whether the law and the intention of the legislature behind making schedule four will be followed because not all arbitral institutions follow it. It is extremely necessary that the courts and the arbitral tribunals allocate costs in accordance with best international practices if India wants to achieve the goal of becoming a prominent global centre for arbitration.


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Important legal disputes relating to copyright of movie titles

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This article has been written by Aarti Gosavi pursuing the Diploma in Intellectual Property, Media and Entertainment Laws from LawSikho. This article has been edited by Prashant Baviskar (Associate, Lawsikho) and Ruchika Mohapatra (Associate, Lawsikho). 

Introduction 

“The most important thing about intellectual property vs. creative expression is that copyright law was created not to stifle creativity but to encourage creativity” as quoted by Shepard Fairey, holds true since the inception of copyright law. There are various types of intellectual properties i.e. patents, copyright, trademarks, geographical indications, industrial designs, trade secrets, layout designs of integrated circuits, plant varieties. India does not have a coded law to protect trade secrets. Copyright is a form of intellectual property that protects literary, dramatic, musical, artistic work, a cinematograph film, and a sound recording. Computer programs can also be protected through copyright and they cannot be protected under patents per se. When a sensational event happens or when a person earns certain accolades for their country, we’ve seen movie producers and writers trying to book certain titles associated with the aforementioned events.  This is done to monetize the event as well as prevent others from using it for themselves. Sometimes similar movie titles end up confusing the audience and it is in order to maximize monetization and ensure that the title is unique that movie titles are sought to be protected the way any other creation is protected.  This article talks about whether movie titles can be granted protection only through copyright or any other intellectual property protection is required.

Why is it economically important?

Intellectual property rights are intangible rights. These rights protect the creativity of the original creator/author /owner from any kind of infringement. Intellectual property rights can be mortgaged, sold, leased, bought, and licensed just like any tangible immovable property.   If the infringement of intellectual property remains unchecked then the original author/creator/owner gets demotivated and will not be able to create any new masterpiece. This will further result in no income to the original author/creator/owner due to which the government will not be earning any tax from such people. This will further deteriorate the economy of the country since the government will be able to develop the nation e.g. infrastructure development only through taxpayers’ money. Thus if you compare the developed nations of the world they possess many types of intellectual properties in their intellectual property portfolio which further helps them to monetize it for any business development which in turn helps that country to develop economically. Copyright is one such of intellectual property which if not encouraged then authors/creators will not be able to protect their creativity which is needed to prevent its misuse from happening.

Protection of movie titles under copyright

A movie title is a title or a name given to a movie to distinguish it from other movies which are produced. The movie title is the very first impression that gives to the readers that the scriptwriter has taken a considerable amount of time in writing the script. The movie title describes very aptly what can happen in the story. The title distinguishes it very well from others which further plays one of the significant factors in doing good business for the producers and production companies. It is a common business practice in the entertainment industry to register the titles with movie associations. The title of a movie is not considered an expression of an idea. The Copyright Act does not protect an idea per se as it protects how the idea is expressed. The rationale behind not giving copyright protection to any idea is that it would stop any new creativity and innovation thus there is no copyright protection given to an idea and also there is no provision that protects movie titles under the copyright act.

Related provisions

We have just seen that the Copyright Act does not protect movie titles from being copied. Trademark protects the brand name of any company from being misused. The movie title, if registered under Trademarks Act, 1999 can be protected from infringement if it is later being used by anyone without express permission from its owner, and if it is unregistered then it can be protected under the act of passing off since it can be proved as to who is the prior user. The movie titles are protected under Trade Marks Act, 1999. The movie titles are protected under Class 41 of the Trademarks Act, 1999 that protects entertainment services.

Registering the titles with the film industry

It has been mentioned above that it is a common business practice in the entertainment industry to register the titles with the movie associations such as the Indian Motion Picture Producers’ Association (IMPPA), Association of Motion Pictures, and Television Program Producers (AMPTPP), or Film Writers’ Association. This is done in good faith with the intention that their movie titles will not be used by anyone else without them being first consulted. This action does not amount to intellectual property protection on a standalone basis and is protected under class 41 of the Trademarks Act, 1999 as mentioned in the previous paragraph and explained further in the below judgments.

Case laws 

  1. Fisheye Network Pvt. Ltd. vs. Association of Motion Pictures

 In the above case, the plaintiff had already registered the title “Thank You” with the Association of Motion Pictures and T.V Programme Producers and others in 2005. Registration of a title with the industry association does not protect the title from any other person using it. The title must be registered as a trademark to be entitled to statutory protection. The plaintiff knew that UTV was using that title since May 2005 and thus, the plaintiff was not entitled to any copyright protection also due to the title not being registered. The movie was due for release in theatres and granting an interim injunction was not possible since the production house would have suffered losses if an interim injunction was granted by the court at that junction.

  1. Kanungo Media (P) Ltd. v. RGV Film

In this case, the plaintiff i.e. Kanungo Media (P) Ltd had already produced a movie ‘Nistadbd’ which was later changed to “Nisshabd” due to astrological and numerological factors. The defendant had also produced a movie with the same title “Nishabd” which was due for release in theatres in the next ten days. The plaintiff had invested all his life savings in the movie and had also received monetary help from his friends, family, and relatives to realize his dream of making a movie. The plaintiff had also won a huge monetary allotment which is known as ‘FONDS SUD CINEMA’ given by the French Government. The plaintiff had also brought M/S Artcam International, France on board as the co-producer of the movie to satisfy one of the conditions prescribed to be eligible for receiving a grant for the production of the movie.  Once the shooting of the movie got over the producer contacted the Central Board of Film Certification through the Western India Film Producers Association for clearance of the movie title on 08/06/2005 and it was granted on 17/06/2005. The plaintiff claimed that the use of the title by the defendants was a deliberate attempt on the defendant’s part to spoil his image and produce a movie on the same title to gain commercial benefits based solely on the title of the movie. The plaintiff claimed that he had applied for the title before the defendant and hence enjoyed the right of prior use and thus the defendant had no right to use the same title. The defendant had already invested huge money in producing and making the movie. 

The court held that the plaintiff had allowed the defendants to complete the shooting and post-production of the movie and the plaintiff ought to have stopped them immediately as soon as the defendants announced that they are about to work on a movie with the title “Nishabd”. The injunction cannot be granted to the plaintiff at this stage since it is very late and this will cause huge losses to the defendants. Thus, the court set aside the application and refused to grant an injunction to the plaintiff.

  1. Biswaroop Roy Choudhary v. Karan Johar

In this case, the plaintiff had applied for registration of trademark/ title“KANK” on 17-05-2005 under the Trade Marks Act Class 41. The court held that neither of the parties had coined the word ‘KANK” on their own. The word “KANK” was being used by people long before the plaintiff and the defendant even thought of making a movie out of it. The permission for exclusive use would only be determined after carefully examining who has used the mark for a longer period. The judiciary cannot allow exclusive or proprietary use of any common word. The defendant applied for registration of the trademark before the Registrar of Trademarks and the Trade Guild. He had completed the production of the movie, sold the music rights to Sony BMG Music Entertainment (India) Pvt. Ltd. for Rs 5 crores and many copies had already been sold in the market and he was ready to release it in theatres. The court could not grant an injunction to the plaintiff at that point as it would have resulted in huge losses to be borne by the defendant. The plaintiff failed to use the title and also did not take timely action when he came to know that the defendant was about to use the title for his new movie through newspapers, Trade Guild or Association. Thus, the court refused to grant an injunction to the plaintiff and ordered for the release of the movie with the same title.  

Conclusion

We have already seen that the consequences of not protecting the title of a movie result in copyright infringement. The title of a movie must always be protected by registering it as a trademark and not just merely registering it with movie production houses. The applicant who applies for an injunction must also be vigilant enough and keep a watch as to who is registering for the applicant’s movie title with the movie productions as well as with the intellectual property office so that the applicant can stop the opponent well within time and not sleep over his/her rights and approach the authorities at a later stage when it is too late. 

References

  1. https://www.lexology.com/library/detail.aspx?g=e1012dd5-4276-431c-8d60-9faae1a8b493#:~:text=A%20film%20 title%20is%20protected,41%20of%20Trademarks%20Act%2C%201999.
  2. https://industrialscripts.com/movie-titles/
  3. https://www.indiacode.nic.in/handle/123456789/1993?locale=en.

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Labour legislation for compensation management for service sector employees in India

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This article has been written by Kalpesh Shailendra Amrute pursuing the Diploma in Labour, Employment and Industrial Laws (including POSH) for HR Managers from LawSikho. This article has been edited by  Ruchika Mohapatra (Associate, Lawsikho).

Introduction

As a human resources professional, designing a good compensation structure is a task, after all, it is an important tool that helps us to attract, motivate and retain talented employees and remain ahead of the competition in the market. Effective compensation planning is always based on three dimensions – internal equity, external equity, and individual equity. To achieve that, one has to consider many factors like the industry, location, experience and skill set, budgetary provisions, etc. However, one factor that cannot be ignored is the set of statutory norms related to compensation. This article mainly focuses on the important labour statutes related to compensation that exist in India and provisions thereunder that one should know, before designing a comprehensive compensation plan. At the same time, it also throws some light on the changes proposed in the soon to be implemented new wage code as well, keeping in mind the service sector in India.

Meaning of compensation and compensation management 

Compensation simply means money paid to an individual against something. In our case, it is against the services that a person offers to the organization and/or any damages that one may suffer while performing their job/ as a part of their duties while trying to earn their livelihood.  

“Compensation management” is a step-by-step process to determine the right pay structure for each job that mutually benefits both the organization as well as the employee. A typical compensation structure involves –

  • Fixed salary & wages – Monthly/hourly rate of pay, irrespective of the number of hours put in by employees.
  • Incentives – It simply means ‘payment by result’. It may vary between  individuals doing a similar job, depending on their performance. Incentive programs can be for an individual as well as for groups.
  • Benefits – It can be both statutory and voluntary, it involve Provident Fund, Gratuity, Insurance, canteen, recreation, transport, etc.
  • Perquisites – These are exclusively for top executives and often involve  facilities like club memberships, stock option schemes, paid holidays, and like. 
  • Non-monetary – Flexible working hours, WFH facility, equal growth opportunities 

Important legislations related to compensation in India

Labour is a subject under the concurrent list as per the Constitution of India, both the Union government as well as the state governments are authorized to make laws on the subject. While certain statutes are applicable across the nation, some are state-specific acts, whose applicability is confined to a specific region. 

Below are some important acts, provisions of which need to be taken into consideration before outlining any compensation plan.  

  1. Minimum Wages Act – This Act was first enacted in 1948 to fix minimum wages (Basic + Dearness Allowance) to be provided to different classes of workers – unskilled, semi-skilled, skilled, and highly skilled. The Act purports to prevent the exploitation of labour and allows them to live a dignified life with respectable pay. Rates of minimum wages are declared by various states through its notification in the official gazette from time to time, rates may differ from industry to industry. Section 12 of the act, mandates every employer to pay minimum wages applicable to them at the same time and  also prevents any unauthorized deduction from the wages. 
  1. House Rent Allowance (HRA) – H.R.A. is usually paid around 50 % of Basic + DA in metro cities (Mumbai, Delhi, Kolkata, Chennai) and 40 % in non-metro cities, mainly to help employees to gain maximum benefit under the income tax rules. However, there are some states like Maharashtra and West Bengal which has state-specific laws (The Maharashtra Workmen’s Minimum House-Rent Allowance Act, 1983 and West Bengal Workmen’s House-rent Allowance Act, 1974 respectively) which mandates every establishment employing 50 or more persons to pay a minimum 5 % of wages (Basic + DA) as an HRA allowance.  
  1. Employee’s Provident Fund & Miscellaneous Provisions Act (PF Act) – This Act tops the list of social security legislations for a myriad of reasons. Provisions under this Act provide cushion to the employees’ post  their retirement. Even though the Act was first enacted in 1952,  modifications have been made to it from time to time. It covers three important schemes – 

Key highlights 

  • Applicability – Every establishment employing 20 or more persons
  • Contribution –  
Employee Share (EE) (% of PF Wages)Employer Share (ER) (% of PF Wages)
PF Contribution12 3.67
PF Admin Charges.50
EPS8.33
EDLI .50
EDLI Admin Charges
Total1213
  • Wage ceiling amount – INR 15,000 P.M. 
  • What includes PF Wages – Any allowance paid universally, necessary, and ordinarily paid all across the board, such wages are to be considered as PF wages as per The Supreme Court of India clarification in the case of Surya Roshni Ltd V/S EPFO & Others in 2012.
  • Allowances excluded from PF wages – Allowances that are available to and especially paid to those who avail of the opportunity are not considered PF wages. E.g. Night Shift Allowance, Washing Allowance, Relocation Allowance, Canteen Allowance, incentives provided to employees, Bonus or commission payable to a particular employee, etc.
  1. Employees State Insurance Act (ESIC) – The Act first enacted in 1948, is a first of its kind to provide compulsory insurance cover to a certain class of workers for medical care. Important benefits that a worker, as well as their family, get under this Act are – 
  • Sickness benefit, 
  • Disablement (employment injury) benefit, 
  • Dependent’s benefit, 
  • Maternity benefit, 
  • Medical benefit 

Key highlights

  • Applicability – to all establishments employing 10 or more persons
  • Employee eligibility – Drawing monthly fixed gross salary up to INR 21000
  • Monthly Contribution –
Employee Share (EE) (% of monthly fixed gross salary)Employer Share (ER) (% of monthly fixed gross salary)
Contribution.753.25
Total4
  1. The Payment of Bonus Act – First enacted in 1965, this Act was amended recently in 2007 and  then again in 2015. Employees play an important role in helping their organizations earn a profit, which is essential for the overall growth of the economy. Therefore, this act was brought in to ensure that certain classes of employees, especially those working at the ground level get their legitimate share from the company’s profit.  

Key highlights

  • Applicability – Organizations employing 20 or more persons.
  • Infancy Benefit – In the first five accounting years for new establishments, unless profit is made
  • Employee eligibility – Monthly salary less than or equal to INR 21000 and minimum 30 days of working in that financial year
  • Percentage of bonus – Minimum 8.33%, Maximum 20% of salary
  •  Time limit to pay bonus – Within 8 months from the end of the accounting year
  • Bonus Calculation – (Considered as 8.33% uniformly for better understanding) 
Scenario 1Scenario 2Scenario 3
If the minimum wage in the state is lower than INR 7000 then, the salary considered to calculate the Bonus is INR 7000 in this caseIf the minimum wage applicable is INR 10,000, then, salary considered to calculate bonus is INR 10,000 (higher than INR 7000)If the employer decides to pay a bonus on actual salary (assuming it is INR 20,500)
Bonus Calculation –= 7000*12 = 84,000 * 8.33%               = INR 6997.2                                                                                                                                                             Bonus Calculation –=10000*12=1,20,000 * 8.33%              = INR 9996 Bonus Calculation -= 20,500 * 12 = 2,46,000 * 8.33%              = INR 20,492
  1. The Payment of Gratuity Act – The term “gratuity” is derived from the word “gratitude” which means thankfulness. It is paid by the employer to his employee as a token of gratitude for serving the organization for a longer period. An employee is eligible for gratuity payment in the following cases (provided they complete minimum required years of service) –
  • On attaining the age of superannuation or retirement;
  • Voluntary resignation;
  • Death or total disablement.

Key highlights

  • Applicability – Every establishment employing 10 or more persons
  • Employee eligibility – After completion of 5 years of continuous service in the same organization
  • Period Calculation – One year – For an establishment is working less than 6 days a week,                                                
  • It’s 190 days, in other cases 240 days.
  • Six months – 95 days for establishment working less than 6 days a week                                                                                       120 days in other cases. (In case of rounding off a year post 5 years of service)
  • Salary for calculation – Last drawn monthly Basic + DA
  • Calculation formula – Last drawn Basic + DA * 15/26 * No. of years of service
  • Maximum Tax exempted gratuity – INR 20 lacs as per Section 10 of the Income Tax.
  1. The Maternity Benefit Act (MB Act) – Before the enactment of this Act in 1961, many acts existed in the county both at, central and state levels, lacking uniformity. Even though the ESIC Act superseded these acts, it does not cover all women workers in the country. The objective of this act is to manage the employment of women workers during their pregnancy. As per section 5 [sub-section B (4)] of the amended act in 2017, maternity benefits were extended to adopting mothers as well as commissioning mothers. However, this is to be noted that as per section 61 of the ESIC act if a woman employee is entitled to receive maternity benefit under this act, cannot claim the same as per MB act.

Key highlights

  • Employee eligibility – Woman employee with a minimum of 80 days of working before her expected date of delivery 
  • Maternity leave – 26 weeks with fully paid salary up to two surviving children

12 weeks with fully paid salary in case of more than two surviving                             children, for adopting mother, commissioning mother

  • Medical bonus – INR 3500, in case no provision for post-natal care/post-delivery care is provided for by the employer free of charge.
  • Creche facility – Applicable to establishments having 50 or more employees. 
  1. The Equal Remuneration Act (ER Act) and various constitutional provisions– The most critical action to ensure pay parity and to prevent discrimination between men and women employees. Article 39 of the Constitution envisages that the State shall direct its policy towards securing that, and there is equal pay for equal work for both men and women. Article 14 and 15 of the Constitution of India prevents discrimination between two people of the same gender if, –
  • Nature of work is same or similar
  • No difference in their skills, efforts, responsibilities, working conditions as well as the seniority level.
  • However, the difference in payment is permitted based on – experience, age, education, qualification, and performance.
  1. Employee’s Compensation Act (EC Act) – Even though the original act was enacted in 1923 and was restricted only to workmen, in 2007-08 it was made all-inclusive (Shops & Establishment, etc.) provided the incident happens during employment. It mainly protects employees working in hazardous employment, a risk to life including disability or death. It covers – Partial disablement, full disablement, death.

Amount of compensation (amount needs to be deposited strictly with EC commissioner)

• In case of death – 50% of monthly wages or INR 1,20,000 whichever is higher

• In case of permanent disablement – 60% of wages or INR 1,40,000 whichever is higher

* A separate DD needs to be prepared in the case of each employee.

Wages/Salary to be considered for payment of compensation – INR 15,000 irrespective of actual salary (either less than or greater than 15000). Ref Sec 4.1(b) and a notification dated Jan 03rd, 2020 of the Govt. Of India.

Proposed changes as per new codes and their impact

As a part of “ease of doing business” the Govt. Of India has clubbed 29 major labour legislation into four codes (yet to be implemented) –

 Major changes impacting compensation are –

Code NameProposed ChangeIts impact on compensation
Code on Wages, 2019Revised definition on wagesWages = 50 % (Basic + DA + RA) and 50% Other Allowances (HRA + Conveyance + OT + Commission + ER PF +Retrenchment Comp)Since many of the payouts like leave encashment, PF, and gratuity is mainly calculated on Basic + DA, it is more likely that the take-home salary of an employee is going to be affected. 
Code on Wages, 2019Central floor rate for minimum wageThe minimum rates of wages fixed by the State Government cannot be less than floor wages as determined by the Central Government. The Code applies to all the establishments irrespective of the number of employees working in the establishment. It also applies to all the employees employed in both the organized and the unorganized sector.This move will help to cover as many workers under minimum wages, at the same time with the presence of a central base rate, the difference between minimum wages for various states for similar work gets reduced. This may reduce the movement of a certain class of employees to particular states only in search of higher wages.
Code on Social Security, 2020Introduction & legitimize the gig employees & platform employeese.g. freelancers, persons working for Ola, Zomato, Urban company, etc.This move will bring more people under the umbrella of the organized sector, also will force such companies to redefine their compensation strategies to include these types of employees
Code on Social Security, 2020Pro-rata gratuity for fixed-term employmentWhile this is discriminatory between a full-time employee leaving before completing five years of service and a fixed-term employee. At the same time companies are required to shell out more money if they go for short-term employment contracts.

Area of further improvement

While it is a good move on the part of  the government to make an honest effort to make these age-old labour laws work in a more synchronized way and increase their relevance with contemporary labour issues, there is still a reasonable scope for further improvement.

  • While efforts were made to reduce confusion between various terms like worker, workmen, employee, etc. further differentiation between “management” and “staff” would negate the ambiguity and make it easier to compensate them as situation demands.
  • Need uniformity in maternity benefits. While the MB act provides a maternity bonus of INR 3500, the National Food & Safety Act, 2013 (NFSA) has a provision of INR 6000.
  • While the inclusion of the creche facility is a welcome move, its practical implacability has been ignored. A provision of Creche expenses reimbursement “instead of” should be considered as well.
  • More clarity on the wage components, to be included or excluded while calculation of PF, ESIC, Bonus, etc. is desired. In general, while ESIC is calculated on monthly gross salary, others are mainly calculated on basic wages. Bringing uniformity will not only help employers to comply better but will also help employees to understand their pay structure more comfortably.

Conclusion

Compensation plays a crucial role in managing talented employees for and in any organization. While there is no “standard way” to design the compensation structure, HR has the luxury to design the same within budgetary provisions using their organizational policies. A market-driven, performance fostering yet cost-effective compensation plan is desired, one cannot neglect the statutory norms set by government authorities for payment of certain allowances at a predetermined rate. Any compromise on saving a penny today or lack of awareness may cost dearer in the future as authorities can easily keep track of company records in a tech-driven era. Therefore, priority should be given to including relevant mandatory allowances before splashing out any attractive benefits. After all, mandatory regulatory pay remains the backbone of any sound compensation plan. 

References

  1. https://www.economicsdiscussion.net/human-resource-management/compensation-management/32258
  2. https://www.incometaxindia.gov.in/_layouts/15/dit/mobile/viewer.aspx?path=https://www.incometaxindia.gov.in/acts/income-tax%20act,%201961/2018/102120000000071009.htm
  3. https://legislative.gov.in/sites/default/files/COI_1.pdf 
  4. https://egazette.nic.in/WriteReadData/2019/210356.pdf
  5. https://labour.gov.in/sites/default/files/SS_Code_Gazette.pdf
  6. https://indiankanoon.org/.

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Recent amendments and updates on the right to privacy

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

This article is written by Astitva Kumar, a student at Guru Gobind Singh Indraprastha University. The article is the outcome of detailed research and analysis on the Right to Privacy and recent developments around it. 

Introduction

Before we go into details on the Right to Privacy, it’s important to understand what the term “privacy” means. According to Black Law’s Dictionary, privacy means,  “Right to be left alone; the right of a person to be free from any unnecessary publicity; the right to live without any unwarranted public intrusion in topics with which the public is not necessarily concerned”.

Article 21 of the Indian Constitution reads that “No person shall be deprived of his life or his several correspondences several to procedure established by law”. After reading Article 21, it was determined that the term “life” encompasses all parts of life that contribute to making a man’s existence meaningful, complete, and worthwhile. In ancient times in India, the law only protected from physical threats such as trespassing, from which the Right to Property arose to safeguard one’s home and livestock. This was regarded as a violation of one’s right to life. As the ever-changing common law evolved to meet the needs of the people, it became clear that not only physical security but also spiritual and emotional security, as well as intellectual security, were essential.

There has been a positive and negative side to everything mankind has ever accomplished. Technology has infiltrated every aspect of our life, whether we wanted to or not, and we can’t be sure if what we say has been heard by a third party, whether we wanted it or not. Even walls have ears, according to the famous Hindi aphorism. By reading Article 21 following Article 12 of the Universal Declaration of Human Rights and Article 17 of the International Covenant on Civil and Political Rights, 1966, the Court has inferred the right to privacy. The right to privacy is protected in both of these international covenants.

The Supreme Court’s decision to give Article 21 a new dimension in the post-Maneka period is an interesting development in Indian Constitutional law. Article 21 is the heart of Fundamental Rights. The expansion of Article 21’s dimensions was made feasible by giving the words “life” and “liberty” a new meaning.

International Instruments on Right to Privacy

Almost every democratic country in the world now recognises the constitutional right to privacy. Other universally applicable statutes include provisions relevant to this right as well as recognition of it. Some of those are:

Universal Declaration of Human Rights

According to the Universal Declaration of Human Rights (1948), Article 12 states, “No one shall be subjected to arbitrary interference with his privacy, family, home, or communications, nor to attacks on his honour and reputation, everyone has a legal right to be protected from such interference or attacks.” 

International Covenant on Civil and Political Rights

“No one will be subjected to arbitrary or unlawful interference with his privacy, family, home, or communications, nor to unlawful attacks on his honour and reputation,” declares Article 17 of the International Covenant on Civil and Political Rights.

India is a party to this instrument.

European Convention on Human Rights

“Everyone has the right to respect for his or her private and family life, his or her home, and his or her correspondence; no interference by a public authority shall be made unless it is following the law and is necessary for a democratic society in the interests of national security, public safety, or economic well-being, for the protection of health or morals, or the protection of the rights and freedom of others.” as per Article 8 of the European Convention on Human Rights.

The phenomenon of the Right to Privacy in India

The right to privacy is a collection of rights. The right to privacy is a broad concept that incorporates several different rights. Almost every country’s constitution expressly recognizes the right to privacy. Where this right is not officially addressed in the Constitution, as it is in the United States, Ireland, and India, it is implicit in other clauses.

The concept of the right to privacy can be found in Hindu texts dating back to ancient India. Certain issues, including family matters, worship, and sex, must be kept private, according to Hitopadesh. In ancient times, privacy was associated with “good morality.” However, in ancient Indian writings, this concept was hazy.

  • The right to privacy was debated for the first time in modern India during the Constituent Assembly debate, but it was not included in the Indian Constitution. Since the 1960s, the right to privacy has been debated as a constitutionally protected right as well as a common-law right.

While dealing with the power to search and seize records from the Dalmia Group in M.P.Sharma v. Satish Chandra [AIR 1954 SCR 1077], an eight-judge bench of the Supreme Court declared that the right to privacy is not a basic right and is alien to the Indian Constitution.

As previously stated, Article 21 of the Indian Constitution provides that “no individual shall be deprived of his life or personal liberty except following legal procedure.” Article 21’s right to life has been widely interpreted to entail more than simply survival, existence, or animal existence. As a result, it encompasses all aspects of life that make a man’s existence more meaningful, complete, and worthwhile, and the right to privacy is one of them. The Supreme Court held in Kharak Singh v. State of Uttar Pradesh (1963 AIR 1295) that Regulation 236 of the Uttar Pradesh Police Regulation was unconstitutional because it conflicted with Article 21 of the Constitution. The right to privacy is an element of the right to life and personal liberty, according to the Court. The Court had equated privacy with personal liberty in this case.

In Govind v. State of Madhya Pradesh( 1975 AIR 1378), Justice Mathew, recognised the right to privacy under Articles 19(a), (d), and 21, is not an absolute right. The basic rights of the citizens encompass lacunar zones and that the right to privacy is a fundamental right, the fundamental right must be limited based on compelling public interest. Monitoring by domiciliary visits does not have to be an intolerable breach of a person’s privacy because of the character and antecedents of the person subjected to surveillance, as well as the aims and constraints under which the surveillance is undertaken. People have the right to privacy, not places. 

Under the case of Smt. Maneka Gandhi v. Union of India & Anr., (1978), a seven-judge SC bench stated that “personal liberty” in Article 21 embraces a wide range of rights, some of which have the character of fundamental rights and are afforded special protection under Article 19. Any law that restricts personal liberty must pass the Triple Test:

  1. It must establish a method;
  2. The procedure must pass the test of one or more of the fundamental rights provided under Article 19 that may be applicable in a particular case; and
  3. It must pass the test of Article 14. The legislation and method that authorises interference with one’s liberty and right to privacy must be equitable and fair, not arbitrary, whimsical, or harsh.

In the case of the Naz Foundation (2009), the groundbreaking judgment gave homosexuality legality. Section 377 IPC and Article 14, Article 19, and Article 21 were examined in this instance. The right to privacy was established to guarantee a “private space in which man may become and be himself,” according to the Court. Individuals, it was said, require a place of refuge where they can be free of societal control—a place where they can remove their masks and refrain for a time from projecting on the world the image they want to be accepted as themselves, an image that may reflect their peers’ values rather than their own nature’s realities.

It is now widely accepted that Article 21’s right to life and liberty encompasses the Right to Privacy. The right to privacy is defined as the ability to be left alone. A citizen has the right to protect his or her privacy, as well as the privacy of his or her family, marriage, reproduction, maternity, child-bearing, and education. Anyone who publishes anything on the following topics without the person’s consent could face a lawsuit for damages. However, if a person intentionally enters a controversy or voluntarily invites or generates a controversy, his or her position will be different.

Legal Restriction on the Right to Privacy

Invasion of privacy may occur as a result of:

Legislative provisions

The legislative intrusion must be judged based on reasonableness, as protected by the Constitution, and the Court can do so by looking at the proportionality of the intrusion concerning the goal sought.

Administrative/Executive actions

When it comes to administrative or executive action, it must be reasonable in light of the facts and circumstances of the situation.

Judicial orders

In the case of judicial warrants, the Court must have reasonable grounds to think that the search or seizure is warranted, and it must consider the scope of the search or seizure required to defend the specific State interest. Furthermore, as previously indicated, the common law recognised rare exceptions to the rule that warrantless searches could be done in good faith, to preserve evidence or to avert sudden damage to a person or property.

Draft of Privacy Bill, 2011

The Bill says, “Every individual shall have a right to privacy—Confidentiality of communication made to, or, by him—including his several correspondences, telephone conversations, Telegraph messages, posters, electronic means, and other modes of communication; confidentiality of his private or his family live; protection of his honour and good name; protection from search, detention or exposure of lawful communication between and among individuals; privacy from surveillance; confidentiality of his banking and financial transactions, medical and legal information and protection of data relating to an individual. “

The Bill protects citizens from identity theft, such as criminal identity theft (appearing as someone else when detained for a crime), financial identity theft (using someone else’s identity to get credit, commodities, and services), and so on.

Interception of communications is prohibited under the Bill, save in limited circumstances with the authority of a Secretary-level officer. It requires the destruction of intercepted content within two months of the interception

The Bill establishes a Central Communication Interception Review Committee to examine and review the interception orders issued, with the authority to rule that the intercepted material was intercepted in violation of Section 5 of the Indian Telegraphs Act, 1885 and that it should be destroyed immediately. Surveillance by following a person, closed-circuit television, or any electronic or other manner is likewise prohibited, save in specific instances as indicated by the procedure.

According to the law, no one has a place of business in India but data processing equipment in India may collect, process, use, or disclose any data relating to an individual without the agreement of that individual.

The Bill calls for the creation of an Indian Data Protection Authority, whose role will be to keep track of developments in data processing and computer technology, examine laws and assess their impact on data protection, and make recommendations and receive public input on any matter affecting data protection in general. The Authority has the power to examine any data security breach and issue orders to protect the security interests of individuals whose personal data has been or is likely to be compromised as a consequence of the breach.

The Bill makes violating the interception provisions a crime punishable by up to five years in prison, a fine of up to Rs. 1 lakh, or both for each such detection. Similarly, disclosing such information is a crime punishable by up to three years in prison and a fine of up to Rs. 50,000, or both. It further states that anyone who obtains any record of information about an individual from a government or agency official under false pretences faces a fine of up to Rs. 5 lakh.

Data Protection

The Bill strengthens the newly enacted Data Protection Rules,2011 under the IT Act, 2000 by establishing a statutory framework for data protection.

As a result of the Bill, “any person having a place of business in India but having data utilizing equipment situated in India” is prohibited from collecting, processing, using, or disclosing “any data belonging to an individual to any person without such individual’s consent.” I’m sure there will be some exceptions to this rule. The bill appears to authorise the creation of an oversight organisation known as the “Data Protection Authority of India,” which will investigate complaints about purported data protection infractions. The following appear to be the functions of this body:

  1. To monitor developments in data processing and computer technology;
  2. To analyse the law and assess its impact on data protection;
  3. To make suggestions and hear public comments on any topic impacting data protection in general.
  4. To examine any data security breach and issue directives to protect the security interests of individuals whose personal data has been compromised or is likely to be compromised as a result of the breach. 

The Right to Privacy, as well as the Right to Search and Seizure

The right to privacy on the one hand, and the state’s authority of search and seizure on the other, have both been the subject of rulings in India and other nations. Under the Fourth Amendment to the United States Constitution, the Supreme Court referred to American case law. The Supreme Court cited the Universal Declaration of Human Rights, the European Convention on Human Rights, as well as other treaties and constitutional requirements, to conclude that the government cannot have unrestricted search and seizure powers. It also said that while all public documents can be inspected at any time, the Collector will not be able to order the production of records maintained with banks under the impugned revised Section 73 of the Indian Stamp Act, 1899. These materials are copies of private records. The right to privacy is used to safeguard documents held by banks. Documents cannot be reviewed unless there is reasonable cause or material to suspect that they may lead to the discovery of fraud. Section 73, which gave the Collector unrestricted authority to enable “any individual” to take notes or extracts from such papers, was struck down by the Court. Even the Act’s standards did not give adequate guidelines or protections for how this power could be applied. The Supreme Court cited previous US decisions on the matter. In Miller’s case, it preferred to follow the minority perspective, believing that the majority decision was erroneous. It also alluded to a number of publications and comments that said the majority judgment was incorrect. The Court decided that records or copies of documents submitted to the bank would remain confidential. The fact that they are freely supplied to the bank does not indicate that they are no longer private documents, as stated previously.

Divorce Lawsuit

Husband infringes on wife’s Right To Privacy under Article 21 by tapping her conversation with others seeking to produce in court

In Rayala M. Bhuvaneswari v. Nagaphonder Rayala (AIR 2008 AP 98) the petitioner filed a divorce petition in court against his wife and requested to provide a hard disc relating to his wife’s chat with others recorded in the United States to corroborate his case. Some of the dialogue was rejected by her. The Court ruled that the husband’s unauthorised taping of his wife’s chat with others without her knowledge was a breach of her right to privacy under Article 21 of the Constitution. Even if the claims are true, they cannot be used as evidence. The wife cannot be compelled to take a voice test and then is asked to compare the section she disputed with the portion she admitted. Without her knowledge, her spouse was secretly recording her phone conversations with her friends and parents in India. This is an obvious violation of the wife’s right to privacy. If a husband is of this character and has no trust in his wife, even when it comes to her interactions with her parents, the institution of marriage becomes obsolete.

Right to Privacy as a Fundamental Right

Fundamental rights are guaranteed values that every human being is entitled to, and these rights, along with suitable remedies, should be available to every citizen of the country. “No individual shall be deprived of his life or personal liberty except following concerning the several correspondences concerning the law,” according to Article 21 of the Indian Constitution. Over time, the scope of Article 21 has been expanded to embrace all areas of life that make a person’s existence meaningful, complete, and worth living.

Landmark judgement: K.S.Puttaswamy v. Union of India 

Puttaswamy, a retired judge from the High Court, questioned the government’s proposed system for a common biometrics-based identity card that would be required for accessing government services and benefits. The petitioner maintained that the right to privacy was a separate right granted by Article 21 of the Indian Constitution, which guarantees the right to a dignified existence. The respondent, on the other hand, claimed that the Indian Constitution only acknowledged personal liberty, which may include, but only to a limited extent, the right to privacy.

A Supreme Court bench of nine judges has concluded that Indians have a fundamental right to privacy, which is inherent in life and liberty and hence falls under Article 21 of the Indian constitution.

Even though the judges had slightly different reasons about how privacy is vital to the right to life and liberty, the Court, led by Chief Justice J.S. Khehar, issued a unanimous decision.

Justices J. Chelameswar, S.A. Bobde, R.K. Agrawal, Rohinton Nariman, A.M. Sapre, D.Y. Chandrachud, Sanjay Kishan Kaul, and S. Abdul Nazeer made up the bench.

The Supreme Court’s nine-judge bench unanimously found that the right to privacy was a constitutionally protected right in India and that it was an integral aspect of Article 21’s right to life and personal liberty. The right to privacy was bolstered by the judges’ concurring opinions, which recognised that the right to privacy encompasses autonomy over personal decisions, such as beef consumption, bodily integrity, such as reproductive rights, and protection of personal information, such as health record privacy. It was also acknowledged that, like all other rights, this one is not absolute, but that it can be limited where it is granted by law, corresponds to a legitimate goal of the state, and is commensurate with the goal it intends to achieve.

This case increases freedom of expression by recognising the right to privacy as a separate right that may be enforced, rather than a right that is available only to the extent that it affects constitutionally protected freedoms. It protects freedom of expression by recognising rights such as the right to be free of arbitrary and unrestricted state surveillance, the right to express one’s sexual orientation, religious expressions, data protection, and so on. This judgement also establishes a binding precedent within the Court’s jurisdiction.

Further development in Right to Privacy

The proposed data protection framework adheres to the Supreme Court of India’s decision in Puttaswamy’s case. The Supreme Court ruled that the right to privacy is a basic right arising from the right to life and personal liberty, as well as other constitutionally protected fundamental rights. The right to privacy was thought to include a negative element (the right to be left alone) as well as a positive aspect (the right to be alone) (the right to self-development).

The right to safeguard one’s identity is included in the realm of privacy. The right recognises that all information about a person is fundamentally their own and that they are free to share or keep it private. The right to autonomy and self-determination in relation to one’s data is thus at the heart of informational privacy.

The right to privacy, once established as a basic right, is broad enough to encompass all aspects of life. With the advancement of technology and social networking sites, granting such a right has become increasingly challenging. On the other hand, a person’s right to privacy includes the ability to keep personal information private. The extent to which each person’s zone of privacy should be preserved is subjective and may change from person to person. The right to privacy is also recognised in Section 43 of the Information Technology Act, which renders unauthorised access to a computer resource punishable.

Formulation of a data protection regime is a complicated exercise that needs to be performed by the State after a thorough balance of the requirements of privacy coupled with other objectives that data protection sub-serves, as well as the legitimate concerns of the State,” the court remarked.

In well-defined instances, privacy can also be curtailed.

•    Restricting the right serves a justifiable state interest.

•    The restriction is required and proportional to achieve the desired outcome.

•    The limitation is imposed by legislation.

Amendments to Aadhaar Card Act,  2016

The committee made suggestions to the Aadhaar Act, 2016 to ensure the UIDAI’s autonomy and “bolster data protection.” Offline verification of Aadhaar numbers, as well as new civil and criminal punishments, will be implemented, though the ability to raise complaints will remain solely with the UIDAI.

•    Ensure UIDAI’s autonomy and strengthen data protection. 

•    Offline Aadhaar verification and increased fines.

Amendments to RTI Act

The Srikrishna Committee proposed amending Section 8(1)(j) of the RTI Act, which deals with the disclosure of personal information in the public interest. The former Section 8(1)(j) stated that there was no need to provide personal information if it was not related to “public authority or interest” or if it was a violation of privacy. The new 8(1)(j) seeks to strike a balance between the public interest in having access to information on the one hand, and the potential harm to the data principal on the other.

Individual harm vs. public interest is a new test for when personal information can be shared through RTI.

Conclusion

With the rapid growth of technology in recent years, it has become increasingly important to ensure that the right to privacy is appropriately secured. Because social media has grown so pervasive in our lives, everyone must be protected in such a way that people’s right to privacy is not jeopardised. With the Supreme Court’s recognition of this right as a basic right, it has taken on even more significance.

Though privacy should be safeguarded in all aspects, the right to privacy, like other fundamental rights, is subject to reasonable restrictions that the government can apply under specific circumstances.

The reality that we are individuals first is frequently overshadowed by our status as members of society. For whatever activity, each individual requires his or her personal space (assuming here that it shall be legal). As a result, the state grants each individual the right to enjoy private moments with people they choose away from the prying eyes of the rest of the world. According to Clinton Rossiter, privacy is a unique form of independence that can be viewed as an endeavour to maintain autonomy in at least a few personal and spiritual matters. This autonomy is the most unique feature that a person can possess. There, he is genuinely a free man. This isn’t a right against the state; it’s a right against the rest of the world. This right will help preserve the individual’s interests if he does not wish to share his opinions with the rest of the world.

Our rights are getting increasingly important as time goes on in this day and age. We need security because our lives are being splattered all over the media, whether it’s through social networking sites or spy cameras. After all, the only person to whom we owe an explanation is ourselves, not the rest of the world.

References 


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

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Scope of a Company Secretary in the public sector

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This article is written by Ms. Kishita Gupta from Unitedworld School of Law, Karnavati University, Gandhinagar. In this, she has discussed various opportunities that are available to a Company Secretary in the government sector.

Introduction

In India, the designation of a Company Secretary (CS) is recognised by the Institute of Company Secretaries of India (ICSI) which is the only recognized professional body in India set up under the Company Secretaries Act, 1980 that aims to develop and regulate the profession in question. Company Secretaries are in high demand both in India and overseas, without a doubt. The course is based on the Companies Act of 2013, which is rooted in the Indian legal and political structure but has little application outside of India. But not to be disheartened, there are a plethora of other opportunities available to a CS in India. Thus, in the article, the author will be discussing the scope of CS in the government sector.

Skills of Company Secretary

To begin with this article, we need to, first of all, understand what is meant by the term Company Secretary and who is it being referred to?

So, the Company Secretary is a critical position with significant clout at the heart of an organization’s governance activities. Governance in this context refers to how a company’s strategy and decision-making are directed and regulated, as well as how it achieves its goals and ensures that all actions are carried out in accordance with legal, ethical, and regulatory criteria.

Sections 2(1)(c) and 7 of the Company Secretaries Act, 1980 describe any person to be designated as a Company Secretary if they are a member of the ICSI.

Company Secretaries have a wide range of skills, including corporate law, finance, governance, strategy, and corporate secretarial practice; they advise a company’s board of directors on these important matters, as well as giving support to the Board of Directors and KMP. As a Company Secretary, one has access to a wide range of employment roles in a number of industries, a wide range of duties, a fast route to high-level positions, working with the board, the ability to make six-figure salaries, and many more.

Public sector 

PSUs exist and operate in India in three forms. First, there are Departmental Undertakings, such as railways, postal services, and broadcast (Doordarshan and All India Radio), which are under the supervision of one government ministry and are financed and regulated by another.

Second, statutory public corporations, such as the Food Corporation of India and the Life Insurance Corporation of India which are established by the Parliament or state legislatures by passing an Act that defines the powers, functions, management, organizational, and administrative structures of such corporations.

Finally, public sector undertakings (PSUs) include government corporations. If the Central or any state government, individually or cumulatively, owns 51 percent or more of a company’s paid-up capital, it is considered a government company or PSU. Hindustan Machine Tools Limited, Steel Authority of India Limited, and others are examples.

The public sector altogether strives to achieve the following goals:

  • To encourage rapid economic development by building and expanding infrastructure;
  • To obtain financial resources for development;
  • To encourage income and wealth redistribution;
  • To generate job opportunities;
  • To encourage regional growth that is both balanced and sustainable;
  • To promote the growth of small-scale and ancillary industries;
  • To promote exports and substitute imports more quickly.

Corporate governance in public sector

The Companies Act, 2013, the SEBI Rules on Corporate Governance, and the DPE guidelines on Corporate Governance for Central Public-Sector Enterprises provide the corporate governance framework for India’s listed PSUs. Non-listed PSUs are not subject to SEBI guidelines.

In practice, the Company Secretary’s job has expanded far beyond the minimum legislative duties. The duty for creating and executing measures to promote and maintain good corporate governance has primarily fallen under the purview of the Company Secretary. The boardroom dynamics are shifting, and the chairman and directors are realizing that they require specialized skills and technical understanding in this area, and they are turning to Company Secretaries for assistance. There are a variety of responsibilities where the Company Secretary can assist and contribute value to the organization with their specific expertise and technical knowledge.

Roles of a CS in the sector

In relation to the Board

  • Verify that the right tone has been set;
  • Board induction must reaffirm the organization’s commitment to good governance;
  • Board charters must be clear on governance principles;
  • Keep an eye on conflict of interest statements;
  • Be a stickler for policy compliance (must be approved by the Board);
  • Keep the Board informed about legislative changes (Treasury Regulations etc.);
  • Maintain a positive connection with the shareholders;
  • Report any governance failures to the proper authorities;
  • Maintain proper meeting administration and records;
  • Be prepared to change meeting dates on short notice.

In relation to management and staff

  • To check if the Companies Act is followed by the public sector organisation;
  • Effective and timely communication between management, the board of directors, and the shareholders;
  • The Company Secretary serves as a vital link between the government and the management;
  • Must be the first point of contact for governance-related questions;
  • Governance policies must be enforced;
  • Be adamant about good governance practice;
  • Timely corporate governance reporting;
  • Timely training on governance legislation and codes of practice;
  • Initiate remedial action on any governance-related failures;
  • Ensure compliance with labour laws.

In relation to the public sector 

  • To ensure that the required legislation and governance structures are in place for the public sector they are working for.
  • Areas of excellence that must be maintained by the CS:
  1.  Media freedom;
  2. National Treasury and its tight procurement/Supply Chain Management regime;
  3. The Reserve Bank and the tight monetary policy;
  4. Financial management, banking and audit systems which are admired across the globe;
  5. Brilliant, committed public servants across the sector;
  6. The national road (highway) network.

Job opportunities for a CS in the public sector

The Company Secretaries have a vast scope in the government sector of India. In several sectors, there are numerous government job opportunities for a Company Secretary. Following are some of the roles that a CS can pursue in the public sector:

  • Legal and Secretarial Officer;
  • Finance Officer;
  • Company Secretary and Compliance Officer;
  • Corporate Communication and public relations;
  • Taxation Expert;
  • International Trade and WTO Services;
  • Takeover Code, Mergers and Amalgamation Expert;
  • Securities Compliance and Certification Services;
  • Public Issues, Securities and Listings Management;
  • Representation Service;
  • Secretarial Compliance;
  • Audit Compliance and Certifications Services;
  • Corporate Governance Services;
  • Corporate and Financial Advisory Services;
  • Corporate Secretarial Services.

Although the titles of these roles and designations will differ from one office to the next, the basic skill set requirements for each of these roles will be similar. Government vacancies are advertised on the official websites of numerous Ministries’ departments for which the CS can apply.

If a CS wants to work on the more exciting side of the job spectrum, one can apply for offices that are jointly controlled by the government and private organisations. At the private end of such workplaces, the work culture and climate are more or less similar to that of a corporate office, and it is always dynamic and bustling.

Audits and financial adjustments, as well as managing human resources, setting ground rules and managing partnership regulations, and providing legal guidance for any dispute concerns, will keep a Company Secretary in an active mode always.

Examples of job opportunities for CS

Under this, we will be analysing some notifications by the government sector enterprises that offered jobs to the Company Secretaries and the requirements that they had for the same.

Air India

Recently on 29th June 2021, Air India had notified a vacancy for the post of CS. 

Qualification requirement – Bachelor’s Degree in any discipline plus Associate/Fellow Membership of the Institute of Company Secretaries of India (ICSI). Preference was to be given to candidates having a degree in Law.

Age Limit – 45 years

Monthly salary – Rs.80,000/- (All inclusive)

Experience – Should have minimum 5 years post qualification experience (ACS) w.r.t. to Company Secretarial functions at reputed companies with minimum Rs. 1000 crores turnover in the current company. Candidates with working experience in the aviation industry, preferably in MRO would be given preference.

Job description – The post carries the duties and responsibilities as overall in-charge of all secretarial functions of the Company. The person has to run the secretarial department dealing with board matters, company law affairs, industrial legislation, etc.

Skills – The candidate was required to have good command over their communication skills both written & oral. The candidate was also required to have adequate knowledge of statutes, labour laws, tax laws, Companies Act, DPE guidelines & corporate governance.

Coal India Limited (CIL) 

Recently, Coal India Limited also invited applications to fill the vacancy for the post of CS vide a notification.

Eligibility – Graduate in any discipline from a recognized University/Institute having acquired Company Secretary qualification with Associate/Fellow Membership of ICSI.

Age limit – 

  1. General Manager (CS): 55 years
  2. Chief Manager (CS): 52 years
  3. Senior Manager (CS): 48 years
  4. Manager (CS): 44 years
  5. Deputy Manager (CS): 40 years
  6. Assistant Manager (CS): 36 years

Skills required – Relevant work experience in a Company Secretarial setup with good understanding & knowledge of the Companies Act, Rules and Regulations, SCRA, SEBI, MRTP, FEMA, Listing requirements, maintenance of statutory books/ registers/ records/ etc. and the Memorandum and Articles of Association. 

Skills should also include having good knowledge of the process, procedures, and formalities of public issue/ right issue/  bonus issue/ split or allotment of shares & certificates thereon/ listing of shares/ dividend payment/ monitoring activities of share transfer agents regarding share transfer/ Demat, etc.

Powergrid Corporation of India Ltd. (PGCIL)

PGCIL is also another example of a government enterprise that invited applications to fill the vacancy for the CS.

Educational qualification – Candidate must be an Associate Member of the Institute of Company Secretaries of India (ICSI).

Age limit – 18 to 29 years (There was an age relaxation for reserved category candidates as per government norms)

Pay scale – Monthly payband of Rs. 30,000-3%-1,20,000 with initial basic pay of Rs.30,000/- +IDA + HRA + Perks @ 35% of basic pay.

Experience in secretarial matters like –  

  1. Drafting of agenda, minutes, official letter etc.,
  2. Conducting Board / Committees’ meetings, 
  3. General Body Meetings; and 
  4. Compliance with statutory requirements under Companies Act and other statutory compliance thereof.

Conclusion 

The above mentioned were just some of the examples where the Company Secretary plays an important role. However, the post of Company Secretary holds an essential place in each and every government company. Therefore, there is a vast scope for Company Secretaries in this sector to make their career in. All one needs to do is stay updated regarding the job notifications that are posted by the enterprises that have vacancies and then apply for the suitable post when they meet the eligibility criteria. 

A brief analysis of the above-mentioned job description shows that for CSs to secure a job in the government sector must be well versed in the essential statutes, rules & regulations along with good knowledge regarding corporate governance. If a CS has also earned the qualification of LLB, then CS + LLB is always more preferred than the one who is just a CS. So it’s never too late to start. If one wishes to join the government sector, they can start pursuing law as well.

Join us for an exclusive 3-day boot camp on – International Opportunities for Chartered Accountants / Company Secretaries in US Corporate Law from 9th to 11th October, 6-9PM.
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References


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

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

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The average salary of a CA in India

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This article is written by Reet Balmiki, from NALSAR University of Law. This is an exhaustive article which deals with the average CA salary in India, various factors that determine a CA’s salary, and the major recruiters in the industry. 

Introduction 

A Chartered Accountant plays a significant role as a pillar in the economic growth of the country and the overall nation-building. As a result, Chartered Accountancy is considered to be a much-respected profession in India and offers flattering packages and a wide range of opportunities. 

This article discusses the various packages available to Chartered Accountants, the average CA salary in India, the factors that determine the CA salary, and the various high-paying recruiters in India. 

Basic sources of remuneration for a CA in India

Along with the wide-ranging opportunities in Chartered Accountancy, there come various ways in which a CA may earn their basic income. Apart from the basic salary that a CA receives, the other earning sources can broadly be categorised under three heads on the basis of the roles played by a CA – 

  1. Fees – Fees are a significant source of income for a CA who works individually. When a CA delivers their consultancy services to manage an individual’s or company’s account, they will be entitled to fees as remuneration. This is a major source of income for around 80% of the individually practising CAs. 
  2. Commission – A CA often helps their clients in fixing financial problems such as disapproval of loans, preparing books for the mergers or showing good books to attract good investors. In return for the solutions offered by the CA, they are offered commission income. 
  3. Bonus and incentives – Similar to many other professions, when a CA works exceptionally well in their field, they receive a bonus as an incentive for the good work done during the year. 

Now that we have looked at the forms in which a CA can earn their income, let us proceed to explore the average CA salary and various packages available for CAs in India. 

Average CA salary in India 2021

According to a survey in 2019, a CA is paid an average hourly salary of Rs 700 (which may range from a minimum of Rs 500 and go up to Rs 3,000) and a monthly average salary of Rs 55,000 (which may range from a minimum of Rs 10,000 and go up to Rs 1,50,000). 

Further, as per the press release issued by the Institute of Chartered Accountants of India, despite the economic impact of the COVID pandemic and resultant lockdowns, there has been an upsurge in the demand for Chartered Accountants by 37% in 2020. This has resulted in an increase in the average salary of the Chartered Accountants from Rs. 7.34 lakhs per annum in 2019 to Rs. 8.91 lakhs per annum in 2020. Therefore, as per the report on the Campus Placement Programme, during February-March 2020, the average salary offered was Rs 8.91 lakhs while the highest salary for domestic posting went up to Rs 23.28 lakh per annum.

The average salary for a CA in India during 2021 starts from 6-7 lakhs per annum and reaches up to 30 lakhs per annum. However, it is very important to analyse the various factors behind the determination of CA salary to estimate an accurate average CA salary in 2021. Before doing this, we must first look at the various salary packages available in India. 

Salary packages for a CA in India

A CA’s salary depends on various factors such as experience, skills, location of recruitment, and so on. Based on these, a CA is offered a salary package.

  1. Lowest package – The estimated minor salary for a CA at the beginning of their career is Rs 3 lakh per annum. In return for services for smaller companies, CAs receive a salary package of Rs 3 lakh per annum. However, a fresher who has done exceptionally well in their exams and has built a reputation can secure a much better package during the initial period of their career itself. 
  2. In-between package – The middle range packages for CAs varies based on the posting. For an international posting, the salary range is between 9-18 lakhs per annum. Indian businesses offer CAs packages ranging from 6 to 9 lakhs per annum. CAs can, however, earn around 10-20 lakhs per annum in public sector postings. 
  3. Highest package – The highest salary for a CA is offered for international posting where they can earn up to 75 lakhs per annum. The highest salary for a CA for a domestic posting falls within the range of 25-45 lakhs per annum. 

Fresher CA salary in India 

ICAI offers placements to all freshly qualified CA graduates twice a year. While offering placements, priority is given to rank holders who have cleared the exam in their first attempt following those who have not made multiple attempts are offered placements. 

The starting salary of a CA graduate is determined on the basis of several factors such as skill, job profile, past experience, the company they have been recruited in, and the place of recruitment. However, on average, a freshly graduated CA could start their career with a package ranging from 4-6 lakhs to 40-60 lakhs per annum based on several factors. 

  • Top rankers of CA Final – Rs. 15-25 lakh per annum
  • Cleared CA in the first attempt – Rs 11-15 lakh per annum
  • CA fresher passing in several attempts – Rs 6-9 lakh per annum

Factors affecting the salary of a CA

As previously discussed, the salary of a CA is determined on the basis of several factors. The most important and commonly considered among these are the basic skills essential for a CA, practical experience in the field, willingness to update and learn, the job profile for which the CA has been recruited, and the company and location of recruitment. Let us take a look at each of these individually and determine the average CA salary for the year 2021 based on various factors. 

CA salary in 2021 : based on skill

A Chartered Accountant is expected to have three kinds of basic skills to properly serve their clients. They are thus paid on the basis of their analytical, compliance, and reporting skills. As a part of these, a CA is expected to have several budget management, financial, and auditing skills to perform better and be entitled to higher remuneration. Thus, for a CA to gain higher packages, they must possess these skills and continue to build on them throughout their career.

CA SkillsAverage Salary per annum
Budget management10 Lakhs
Strategic accounts9 Lakhs
Evaluation and management auditing8.5 Lakhs
Financial analysis8.5 Lakhs 
Financial advisory8.5 Lakhs
SAP financial accounting and controlling8.5 Lakhs
Financial reporting8-.5 Lakhs
Auditing7.5 Lakhs
Account management7.5 Lakhs
Internal audit7 Lakhs
Accounting7 Lakhs
Tax consulting7 Lakhs
Tax compliance7 Lakhs

CA salary in 2021 : based on experience 

Similar to other professions, practical experience along with basic skills is valued much more and is thus rewarded highly. Therefore, experience forms a huge relevance while determining the CA salary as it enables one to polish their skills and build a good reputation and goodwill in the industry. With continuous practice and experience, a CA gains more knowledge and skills about the industry and is thus paid higher for the same. 

Year of experienceAverage CA Salary per annum 
0-57 Lakhs
5-1012 Lakhs
10-2020 Lakhs
Above 2050-70 Lakhs

CA salary in 2021 : based on the job profile 

The demand for CAs in the industry is not limited to accounts and taxes and extends to a wide range of posts with different entities. Naturally, the salary of a CA varies with the job profile at which the CA has been recruited. This is because the nature of work done by the CA differs from post to post. The profile for CFO, account executive, and accountant receives an average salary above 20 lakh per annum, whereas account assistant and business analyst are paid approximately 12 lakh per annum. Therefore, a job profile is an important factor in determining the average pay a CA would receive during a year. 

Jobs profileAverage CA salary per annum 
Finance officer35 Lakhs
Account executive25 Lakhs
Accountant25 Lakhs
Finance controller19 Lakhs
Finance manager10 Lakhs
Chartered accountant7.25 Lakhs
Financial analyst6 Lakhs
Assistant account manager5 Lakhs
Senior account executive4 Lakhs
Senior Accountant3.5 Lakhs
Business analyst4 Lakhs
Account assistant2 Lakhs

CA salary in 2021 : based on city of recruitment 

Along with the job profile, another common factor determining the CA salary is the city in which the CA is placed. This is because companies popularly pay their employees depending on the pay scale of the particular city. Naturally, metropolitan and developed cities will pay their employees comparatively higher than other cities. This is because the cost of living is relatively higher in such cities.  

CityAverage CA salary per annum
Gurgaon10-12 Lakhs
Chennai10 Lakhs
Mumbai12 Lakhs
Delhi8 Lakhs
Guwahati6 Lakhs
Punjab6-7 Lakhs
Pune7-8 Lakhs
Ahmedabad5-6 Lakhs
Jaipur6 Lakhs

High-paying recruiters in India in 2021

Apart from the city in which a CA is recruited, another factor that significantly impacts the CA salary is the organization that recruits the CA. The high-paying employers, including the Big 4 and many other top players in the industry, provide flattering packages to CA graduates along with wide-ranging career opportunities to explore. According to the list of participating organizations, 222 organizations participated in the Campus Placement programme from February-March 2021. Some of the companies that are popularly known to be the highest paying recruiters have been listed out in the table below – 

CompaniesAverage CA Salary per annum
Reliance IndustriesRs. 25-45 Lakhs (Highest)
Hindustan Unilever LtdRs. 10-36 Lakhs
DeloitteRs. 14-35 Lakhs
KPMGRs. 14-32 Lakhs
Aditya Birla Sun LifeRs. 13-28 Lakhs
ICICI BankRs. 11-27 Lakhs
ITCRs. 10-25 Lakhs
TATA companyRs. 10-22 Lakhs
Bharti AirtelRs. 12-22 Lakhs
SBI BankRs. 6-17 Lakhs

Top recruiters of CA professionals

  1. The Big Four – The Big Four is a collective name for the four largest professional services networks in the world –  Deloitte, Ernst & Young, KPMG and PwC. These are the major recruiters in the industry and provide good CA salary packages and great opportunities.
  2. IT industry – Many major companies from the IT industry such as Wipro, Microsoft etc. recruit CA professionals to be a part of their audit teams. They generally provide an average CA salary of Rs 7-10 lakhs per annum. 
  3. Indian CA firms – Many CA firms including the top firms like Haribhakti & Co., Singhi & Co., Chaturvedi & Shah etc. also hire CA candidates for the purpose of auditing. 
  4. Public sector undertakings – Apart from major CA firms, many PSUs like BSNL, HPCL etc also recruit CA professionals and offer good packages that range from Rs 6-15 lakhs per annum. 
  5. Manufacturing companies – Manufacturing companies like TCS and MRF also hire fresh CA graduates. Though these companies provide a relatively lower package, they provide huge exposure which is beneficial for candidates. The average salary is Rs 7-11 lakhs per annum. 
  6. Banks – Banks often hire a number of CA candidates for wide-ranging job profiles. These are suitable for fresh CA graduates and have a salary package of around Rs 5-10 lakhs per annum. 
  7. International companies – These companies hire CAs for their foreign branches. They offer high salaries and great opportunities in the industry. However, the basic salary for such organizations is relatively low. 

Conclusion

Chartered Accountancy is a profession that is only increasing in demand over time. Chartered Accountants are among the most handsomely paid professionals in India. As seen during the ICAI placements in 2020, the average salary for a CA in India has significantly increased and is expected to further increase during 2021. 

However, the CA salary is based on certain factors such as skill, experience, job profile and so on. Though these factors influence a professional’s salary, even a fresh graduate who has made a name in the industry and has the necessary skills is often offered high-paying packages. There are several major recruiters in the industry that provide great salaries and wide-ranging opportunities to CA professionals. 

Join us for an exclusive 3-day boot camp on – International Opportunities for Chartered Accountants / Company Secretaries in US Corporate Law from 9th to 11th October, 6-9PM.
Click here to register.

References 


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

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

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

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

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